Portugal’s golden visa program has attracted investment of more than €4 billion in the six years since it began.
The staggering sum shows how effective investment immigration can be when the perfect balance is struck between investment threshold and value of permanent residence.
Property investment is the overwhelming favourite option in the Portugal golden visa program, accounting for €3.6 billion out of the total.
This means more than 90 per cent of total investments received under the golden visa program have flowed into the country’s real estate sector.
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Acquiring the golden visa through capital transfers into Portuguese companies is the second-most popular option. This asset class has, over the past six years, received around €373 million from golden visa investors.
Despite a 19 per cent fall in September 2018, the program still drew €37 million in investments, down from €45.7 million in August.
Portugal represents a shining example of a golden visa program done properly.
Property investments continued to remain the preferred option in September. Of the total investment inflow, close to €34 million or 92 per cent, constituted property purchases.
The capital transfer option, meanwhile, accounted for around €3.1 million for September.
Real Estate: Most Popular Route for Golden Visas
There are many reasons why investors continue to prefer the option of qualifying for permanent residence through real estate purchase despite the availability of numerous alternatives.
Firstly, buying a second home to qualify for permanent residence is a simpler option compared to making corporate investments or other such alternatives.
Secondly, the property serves as a place of residence for the investor in Portugal, which is important considering investment immigrants must stay in the country for a fixed number of days per year to maintain their status.
Finally, the Portugal real estate sector remains an attractive investment opportunity offering value independent of the golden visa program.
Portugal’s real estate and tourism sectors took a long time to recover from the devastating impact of the 2008 global recession.
For investors seeking the twin benefit of capital appreciation and recurring rental income, Portugal real estate was a smart choice.
Portugal’s Golden Visa In Numbers
Since 2012, Portugal has issued 6,562 golden visas to investors. From the modest beginning of just two visas in 2012, the program peaked in 2014 when 1,526 visas were issued to investment immigrants.
Demand nosedived in 2015 to just 766 visas when scandal and controversy compelled the government to conduct a review and bring in additional investment options.
Since then, demand has been steady with 1,414 and 1,351 visas issued in 2016 and 2017 respectively. In the first nine months of 2018, Portugal has issued 1,009 golden visas.
Despite hiccups, Portugal’s investment immigration program has retained its credibility ,and continues to remain a popular option among wealthy investment immigrants, despite the presence of less-expensive options offered by neighbouring Spain and Greece.