This perspective, widely adopted by certain political factions, has proven to be a critical misstep. A closer, more objective analysis shows that these programs were not the villains they were made out to be, but rather vital contributors to the nation’s economic development.

Even after the termination of these programs, housing prices continue to rise, driven by persistent and growing demand. Blaming Golden Visas for escalating real estate costs was not only misguided but detrimental to the broader economic landscape. Over the past decade, Golden Visa-related transactions accounted for just 12,000 of the 1.5 million properties sold nationwide—less than 1% of the total. Specifically, these investments represented a mere 0.8% of all real estate transactions during that period.

The numbers debunk the myth: Golden Visas were never the primary drivers of property price increases. Instead, they brought in over €7 billion in foreign investment, revitalizing neglected urban areas, improving safety, and creating opportunities. In cities like Lisbon and Porto, once plagued by dilapidated streets and economic stagnation, this influx of capital fostered progress and prosperity.

Critics who argue that ending these programs serves the national interest fail to grasp the economic reality. In a country with limited domestic resources, rejecting foreign investment appears reckless. The decision reflects a short-sighted ideological bias, particularly among leftist political parties that often prioritize populist rhetoric over practical solutions. These programs, far from being harmful, offered essential economic support in sectors ranging from real estate to technology, education, and infrastructure.

The elimination of Golden Visas highlights a missed opportunity. Instead of scrapping such initiatives, Portugal should have reimagined and refined them to align with contemporary needs. Well-designed foreign investment programs can address critical challenges, such as housing affordability, energy efficiency, and job creation.

For example, rather than requiring investors to purchase high-value properties, programs could encourage contributions to affordable housing funds. These investments would support rent-controlled housing projects, a model that has succeeded in other EU countries. Similarly, tax benefits could be offered to investors who finance energy-efficient building renovations or renewable energy initiatives. Such measures would not only attract foreign capital but also align with Portugal's strategic priorities.

In some European Countries, for instance, landlords who create housing for third parties receive tax exemptions on rental income, recognizing their role in alleviating the state’s burden. Portugal could adopt similar incentives, encouraging private investment in sectors traditionally dominated by public funding. By directing foreign investments towards specific areas like affordable housing and green energy, the government can leverage external resources to achieve national goals while maintaining control over key policy outcomes.

Portugal faces significant challenges. The country needs more affordable housing but must avoid policies that lead to speculative markets or deepen economic inequality. Energy efficiency in the housing sector also demands urgent attention, as outdated infrastructure contributes to high costs and environmental harm. However, these issues cannot be solved without sufficient financial resources, and foreign investment is a critical piece of the puzzle.

Closing doors to these opportunities, as the previous government chose to do, serves neither the public nor the economy. Instead, Portugal must craft intelligent policies that attract foreign investors while ensuring their contributions directly benefit society. A balanced approach can achieve multiple objectives: economic growth, improved housing access, and sustainable development.

It’s time for Portugal to move beyond ideological biases and adopt pragmatic, forward-thinking solutions. Foreign investment programs, when structured to meet the country’s needs, have the potential to drive progress without compromising national interests. By welcoming and channeling external resources wisely, Portugal can create a brighter future for its citizens and build an economy that thrives on collaboration and innovation.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes