Portugal plans to resolve the deepening housing program with funds from investors who wish to become Portuguese EU residents.

The Portuguese government's 'Action Plan  For Migration' is not just a strategy; it's a robust and comprehensive plan encompassing 41 measures. These measures, which range from restructuring the Immigration authority to providing diverse solutions for social issues, are a testament to the government's unwavering commitment to resolving the housing issue. This steadfast commitment should foster a sense of security and trust in the process for potential investors and residents.

The need for the change is clear; more than 400 thousand applications for residency are delayed due to a backlog in the system and the increasing number of applications.

Housing became a major social and political issue in Portugal due to a combination of factors. The Golden Visa scheme, the best tax structure for residents worldwide, attracted thousands of investors, ex-pats and retired people, leading to an increase in demand for housing. Interestingly, when the government introduced the residency by investment program, the housing costs in Portugal were among the lowest in the European Union. However, the inflow of migrants (legal and illegal) increased the rental and purchase costs of real estate. And the prices skyrocketed in Lisbon, Porto and the southern seaside in Algarve.

It became impossible for refugees, migrants, and tourists to find affordable accommodation. Even the locals needed help to rent or buy a home close to their jobs. In several districts of Lisbon, there are more short-term rentals than homes.

What will change in the Portuguese Golden Visa Program (ARI)?

According to the "Action Plan for Migration", the legislators will recreate the entire program. It will change its name and aim as well; the income goes to resolve social issues:

"MEASURE 32
Create an instrument for channelling private capital for social investment integration projects:
a) Residence Authorisations for Social Investment - an alteration to the scope of the Residence Authorisations for Investment (ARI), to include investments made in reception facilities and infrastructures, integration projects and support for immigrants in vulnerable situations;
b) Possible social investment intermediation and accreditation system, namely through FAMI. This extension of the ARI is in addition to that provided for in the in 'Construir Portugal' for investment in controlled-cost housing or affordable rent or affordable rent;
c) Apply the Social Impact Bond model to the area of migration in order to increase opportunities for integration into the labour market and reception conditions, sharing the development of conditions, sharing the development of responses with investors and the philanthropy sector."

We are waiting to see the exact program description, but be sure that the Portuguese ARI Golden Visa Program will change completely. The changes, which are expected to include a shift in the program's focus from real estate investment to social investment, such as investments in reception facilities and infrastructures, integration projects, and support for immigrants in vulnerable situations, are likely to be implemented in the near future.

The experts at Discus Holdings Ltd, with their extensive experience and deep understanding of the Portuguese Golden Visa Program, have been guiding our clients in obtaining a Portuguese residency permit through investment since 2012. Their expertise and track record should instill confidence and reassurance in you. Don't hesitate to ask for a consultation on becoming an EU resident through investment in Portugal or elsewhere.

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