End of golden visas affecting US interest in Portugal

A new report by Bloomberg claims that Portugal is not meeting the expectations of North Americans.

By TPN/Lusa, in News, Portugal, North America · 10 Jun 2023, 15:07 · 20 Comments

The language barrier, the various bureaucracies and rising housing costs along with the end of the golden visa programme are cited as reasons that are puting off US investors.

In the first half of the year there was an 18% drop in demand for residence by foreigners in Portugal under the Golden Visa programme, compared to the same period last year.

This number is however more expressive among North Americans, with a decrease of 37%.

Also according to Bloomberg, the number of foreign residents in Portugal has increased in recent years to a record number of 700,000, while the number of North Americans has more than tripled between 2018 and 2022, to 9,794.

In the last year alone, 216 gold visas were granted to North Americans.

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Comments

What a terrible shame.

By J from Lisbon on 10 Jun 2023, 16:00

Rich immigrants jumping the queue when workers for key services are being refused. Golden visas always stank.

By Adam from Porto on 10 Jun 2023, 21:10

22% of the GDP of Portugal comes from foreigners either visiting or migrating . The Algarve has been transformed from a third world agricultural economy with widespread illiteracy as a result of this . So yes it is a shame for Portugal . Your bitterness which is so often expressed here should be researched for your politicians who do not utilise the revenue effectively not the benefactors .

By George from Algarve on 11 Jun 2023, 07:48

This should have been done long time ago. Housing shortage is a real problem. Young talents emigrate and we accept all the worlds tax evaders.

By Joe from Lisbon on 11 Jun 2023, 08:25

Well said Adam & Joe. Don't listen to idiot George on the algarve. They know nothing of Portugal & it people. Shameful....

By J from Lisbon on 11 Jun 2023, 08:47

Such a shame that North Americans have changed their minds about Portugal. How oh, so sad. We will miss them dearly. We will surely miss another increase in housing prices and in the cost of living in general that always happens when the foreign hordes fancy a beautiful country like Portugal.

By Dijon7 from Madeira on 11 Jun 2023, 11:17

The Algarve has been transformed into an area that's impossible for young families to afford to live. The sumptuous villas and lavish restaurants, shops and water guzzling golf courses are a sickening reminder that the majority of expats are here exclusively for themselves without a care in the world for the average Portuguese worker. Yes, I've met many now literate Algarvians who had to leave since it has become unaffordable. Thank you for the 22% GDP. It is truly making a huge difference. We can't thank you enough.

By Dijon7 from Madeira on 11 Jun 2023, 11:24

As a recipient of the Golden Visa, I acquired mine via the purchase of real estate in rural western Algarve. At no point has my purchase or that of hundreds of other GV applicants effected the local housing market. We simply do not buy 2 bedroom apartments in rent controlled buildings, not going to happen. Our interests are for properties that are way above the scope of those experiencing a housing shortage.

The biggest objection to the GV is not from Portuguese, but from English speakers living in Portugal. I find it to be wealth envy and nothing else. We inject capital into an otherwise low performance market with a low return on investment.

My parish and municipality are relatively poor and the area is certainly low income. I do not experience resentment or animosity from neighbors or locals in any way. Most of them have gone out of their way to ensure we fit in with them. Currently I have a cleaning crew of 3, a landscaping crew of 4, a local driver to do the airport runs and a load of part time help from the village. I do not use any services of the Parish nor do I require municipal assistance to live here. The local restaurants will always have a table for us even if they are full. It's how the game works, we tip and pay above market rates for any services or products.

The locals get very upset when people move here and do not engage or at least spend some money in the local area, and complain about everything. They certainly are not happy with low budget tourists for obvious reasons.

Portugal suffers from a payroll problem with low wages, and the inability of young people to build a future, it has nothing to do with the Golden Visa.

By Chris from Algarve on 11 Jun 2023, 19:29

@Joe, GV applicants are literally waiting years for their applications to be approved, while all other visas are processed in weeks or a few months. There is no queue jumping.

By Steve from USA on 12 Jun 2023, 04:59

The ignorance, hate and nationalism/xenophobia in the replied here is embarrassing to Portugal and the immigrants writing here.

First off, the GV has brought in 9 billion Euros to Portugal since 2009. This money goes from foreigners to Portuguese. This money is taxed and goes to fund Porguese government programs, such as for housing and food.

Secondly, GV people are not damaging housing, as they are buying homes of an average cost of 660,000 Euros. Minimum is 280K, and that's in rural areas. Popular areas it's 500K, and nobody has been allowed to buy in Lisbon, Porto or within many kilometers from the ocean for many years. NONE of these homes are being looked at as possible housing by people challenged to find a place to live. Canceling the GV will not open up housing, but it will damage government housing program funding.

Third, GV people eat out constantly, hire laborers to work on their homes, buy cars, buy petrol, buy home furnishings, fly in and out paying flight taxes, put money in Portuguese banks, etc. They generally commit no crimes, and simply come here and spend their money, transferring it to Portugal. Much of the money GV people spend is incalculable, so it's not considered in that 9 billion Euro figure.

You may not like foreigners coming to Portugal, but the GV is not damaging housing availability, and it brings lots of money into Portugal. LOTS.

So you can have less foreigners living in Portugal, and a lot less funding for Portugal, and a lot less transfer of money from foreigners to Portuguese citizens, or have the opposite.

The hate has to stop. Realize Portuguese people move to foreign nations, as well, and aren't generally required to buy such expensive properties to do so

By Mike Schmidt from Algarve on 12 Jun 2023, 11:11

How do less than 10,000 Americans get all the blame when there are multiple other countries with much larger immigrant populations? Americans don't even crack the top 10.

By Natalie Gray from Other on 12 Jun 2023, 11:17

The idea that GV hurts people who are looking for housing is just dumb. GV people are buying homes the poor people cannot buy, cannot afford.

People like those who have explained their GV purchases here spend a lot of money in Portuguese restaurants, stores, on taxis/uber, on Portuguese home workers, on gasoleo and petrol, on electronics, with Viaverde, in food stores, furniture stores, and more. They have to buy everything for their homes.

They are required to have private health insurance, and use no government services. We do not see GV people in the news committing crimes, nor are they causing problems in the streets.

So we have foreigners here. So what? The GV is 2% of all visas. These are the ones we worry about? Those who can fully support themselves and spend so much money and aren't criminals? Crazy.

The problem is people hate these people because they are wealthy, because they have money the average Portuguese could never have. Guess what? Where they come from they are the rich, too. So we hate people for their success? Why? Why not wish to be like them?

It's time to be less hateful and realize these people aren't the problem.

Joao

By Joao G from Lisbon on 12 Jun 2023, 11:24

Golden Visas wouldn´t be such an issue if the government ploughed all the gains back into ordinary folk´s hands - one way or another.
They´re just not interested in that.

By Steve from Algarve on 12 Jun 2023, 13:33

Increases housing costs, have nothing to do with Americans. The rents we pay and the homes we purchase were never meant for affordable housing.
But they are built by Portuguese companies that hire Portuguese people.
As far as taxes, there is no tax evasion.
There is a ten year NHR.
10% of the pension I earned in the US is taxed in Portugal. I did not earn the money here but Portugal get's to tax this.
I do get to write this off my US taxes so it is fair deal the way around.
After the 10 years my taxes here are just like everybody else's
I pay the same VAT everybody does.
There are some great Portuguese communities in the US.
Newark NJ and Portchester NY to name two, they are welcomed and valued communities.
Thankfully the Americans in these cities don't have your attitudes.
There is an old saying: If you want to blame someone and point the finger at them, remember there are three fingers pointing back at you.
It is always easy to find a scapegoat for your problems.
I do agree about the language.
My wife take two classes a week and it is difficult, but many Portuguese people have thanked us for trying to learn the language.
I do wonder, after all your complaining and blaming, what are you doing to make other lives better?

I

By jeffrey Kugler from Algarve on 12 Jun 2023, 14:16

By Americans, you mean rich Israelis??
Let's remember that the golden visa was the government tactic to deal with the 2008 post bank crisis. Obviously, rich people will take advantage of BUYING a citizenship/passport.
The government knew exactly the consequences, the pros and the cons. A lot of Portuguese people took advantage of selling their properties at super inflated prices and mess up the rental market for local people who earn money here (me! Living renting a room for past 7 years because I don't have a fiador nor have a cash flow to pay twelve months of advance rent.... Yes, crazy, that is what PORTUGUESE landlords are asking these days). So as much as ppl want to point fingers at the golden visas Buyers, remember there is a lot of Portuguese boomers full of cash and distributing money to their offspring so they can sit and not work and live the "good life" until the next crisis.... That is Portugal. Either receiving money from the EU or... else

By MMF from Lisbon on 12 Jun 2023, 14:41

You think your economy could do without 22% of its money , clown .
You want a better standard of living try working more than 30 hours a week and taking a public holiday every two weeks .

By George from Algarve on 12 Jun 2023, 18:21

Third-world agriculture and illiteracy are not ideas I associate with Portugal, as George claims. Portugal is a country with literature at the core of its culture, it's natural hero, Camoes is a poet/historian. Not a school child passes their first years without learning to recite Camoes, which is so difficult that it is something I could not even attempt to do after several years of studying and practicing Portuguese. Furthermore, Portugal's naturally organic produce is far from being third-world. Agricultural production is not third-world just because its growers understand and do not want to poison and destroy the quality its produce with chemicals and pesticides. Portugal has things George could not understand, hundreds, thousands of years of rich culture, fine whole foods-based cuisine and wine that has grown up with it, and history. This is a culture where you are served "house' wine in a traditional restaurant and it is not the cheapest thunderbird the restaurant can find but great wine that is often from their own estates really is served as the wine of the house.

By Suzann Deborah Fulbright from USA on 13 Jun 2023, 00:57

The fellow Brits slamming Americans here are embarrassing to themselves. Americans may up about 5% the total of immigrants in Portugal when compared to Brits. It's not American tourist that are smashing store windows, urinating and defecating on the streets, throwing chairs in bars, dressing in silly little outfits or going nude on the streets, spewing all over the streets, fighting, causing car accidents because they can't adjust to left hadn't drive, etc. It's fellow Brits.

While not expats, our tourists have a horrible reputation for behavior world wide. Amsterdam has literally put out ads saying that young men from the UK are not welcome, don't come.

Americans aren't the people buying up all the new properties, Brits, French and Dutch are. And who already owned much of the property? Brits, French and Dutch. So why the attack on Americans? Simply nationalistic hate, xenophobia.

So lets be proper Brits and not the pillocks and twits on a side dedicated to the country that has welcomed us in.

Nigel

By Nigel D from Beiras on 13 Jun 2023, 11:49

I wonder what all these complainers do to help their fellow Portuguese?
Other than ignorant complaining and hating what do they bring to society?
Haters gonna hate, it is much easier to blame somebody else for your shortcomings than shoulder responsibility yourself.
Thankfully the Portuguese community has made us feel welcome and we proud to be a part of it.

By jeffk from Algarve on 22 Jun 2023, 16:39

Nigel,
I have witnessed everything you mentioned in your post.
I am from Miami and we wrote the book on bad tourists.
The Algarve wanted that tourist money, they could have stopped that behavior but chose not to.
They just kept opening more $5 kabob shops and cheap English breakfast restaurants. Not to mention cheap pints.
Go to an expat website and see how many posts are "where can I get the cheapest beer?"
Spain and Italy are giving summonses to tourists who walk around next to naked or feel they need to chant their soccer teams anthem at 2AM.
The bad behavior was excepted and became the norm.
While it is predominately English, it is from all over.
I was in Tomar and an American couple was letting their children fight in the Convento.
I just walked over and said you represent your country poorly, they were so embarrassed they grabbed their kids and left.
There should be a big sign at the airport:
IF YOU DON'T DO IT IN YOUR COUNTRY DON'T DO IT HERE!
5 GNR reps standing on a corner and talking to each other is not policing.
I see now they are being incentivized to write summonses, maybe we will see a change.

By jeff from Algarve on 22 Jun 2023, 16:56