Portugal Golden Visa: Government Plans To Enhance Incentives

Forbes

08-06-2025

Ferragudo in the Algarve. Portugal—the government wants to enhance its golden visa program for expats.
The Portugal Golden Visa program, one of Europe's most sought-after residency-by-investment schemes, is poised for significant improvements. With a 72% surge in approvals last year, the government is now considering ways to make the program even more attractive. Proposed changes include potential tax incentives, such as a 20% flat tax on local income and a ten-year exemption on most foreign income.
Portugal's Minister of the Presidency, Antonio Leitao Amaro, said in an interview reported by Bloomberg that his government was considering making its golden visa scheme more attractive to foreigners.
Portugal's golden visa program offers residency in exchange for a minimum investment of $572,780 (€500,000) and has seen a 72% increase in approvals over the past year, with Americans among the top recipients, according to information from the country's immigration agency, AIMA. The government approved a record number of applicants, 4,987 more than the previous year. This is partly because EU golden visa programs are rare and sought-after.
Amaro did not provide specifics, but the idea is to enable new Portuguese residents to benefit from a 20% flat tax on local income and a ten-year exemption on most foreign income.
Unlike other EU countries, Amaro said that there are no plans to end the golden visa program in Portugal. He added that AIMA is working on clearing a backlog of almost 45,000 golden visa applications that are currently awaiting review.
Portugal's Golden Visa program is one of the most popular globally and one of the few remaining in Europe. In 2024, The Netherlands ended its golden visa scheme. Since the start of the Ukraine war, the U.K. and Ireland ended their programs in 2022 and 2023 due to heightened security concerns.
However, the lure of such investment programs is difficult for governments to ignore, as it boosts much-needed government coffers by attracting investment overseas. The U.K. has recently announced that it is considering opening a new golden visa program, but only if it benefits specific sectors critical to the country's economic recovery.
Spain abolished its golden visa program in April after months of consideration and protests by locals about rising house prices, as well as concerns from the EU about the use of Spain's golden visa program.
Spain plans to welcome 1 million foreign workers to legally reside in the country, including the regularization of undocumented foreign workers, but not through the Golden Visa program. Like many EU countries, it is facing a severe housing shortage. It is improving the situation for residents by severely limiting the use of Airbnb for short-term rentals and introducing a 100% tax on foreign real estate buyers. This policy may reduce the friction between Spanish locals and tourists, which has led to extreme mass demonstrations; activists are planning more protests this month as the Summer tourist season gets underway.
Golden visa and passport initiatives come under criticism because opponents argue that such programs enable affluent individuals to effectively purchase residency or citizenship, thereby fostering a system that favors the wealthy and contradicts the EU ideal of equal treatment for all. Malta's High Court recently declared the Malta Golden Visa scheme to be illegal.
Critics are also concerned about their potential use in money laundering and ties to criminal networks, prompting countries such as the U.K., Ireland, and later Malta to halt their issuance to Russian and Belarusian applicants in response to the conflict in Ukraine.
From an economic perspective, critics argue that the financial input generated primarily serves the interests of a privileged few while driving up property prices and making homes less accessible to locals—an issue that contributed to Spain's decision to scrap its golden visa policy in April 2025.
Portugal has always been a firm favorite for expats due to its livable and vibrant cities, favorable climate, and the fact that other EU nations are tightening restrictions on residency by investment. If the Portuguese government sweetens the program's offering, it's apparent demand will remain higher than ever.