Portugal will no longer issue golden visas from March 16

Portugal will no longer allow non-EU third-country nationals from outside the European Union permanent residence under the 'golden' U visa. The government says that this decision has been taken due to the housing crisis. But the EU has been pressuring Portugal to stop it for a long time. They believe that money laundering opportunities are created through this visa.

Under the Golden Visa, rich foreign nationals would get a permanent residence permit in Schengen countries if they invest 500,000 euros. Portugal introduced this visa in 2012.

At least 12,000 investors have availed this opportunity in the last 12 years. As a result, the investors along with their family members have legal residence in the European Union.

In the end, Portugal has to withdraw from the golden visa under the pressure of the European Union. Prime Minister Antonio Costa said the visa program will end on March 16.

Ana Gomes, a member of the Socialist Party of the European Parliament, has been opposing Portugal's decision to attract wealthy foreigners with investment opportunities.

He said that finally canceling the golden visa is a very good decision. Portugal should not have introduced such a visa. Gomes also said that this visa encourages money laundering, "Through this, many criminals and terrorist organizations have the opportunity to legally enter the Schengen zone.

According to Gomes, more than half of the applicants for golden visas are citizens of countries known for money laundering. Rather, he claimed that Portugal never questioned the source of the money in hopes of investment.

Portugal has a reputation as an investment-friendly country
Even a decade ago, Portugal's economy was not so good. Basically, the country gave the golden visa opportunity to boost the economy through investment. However, it has some benefits.

But despite the talk of investment, foreign investors have bought luxury apartments in and around Lisbon, the capital of Portugal, without creating new businesses or employment. Most of them are from China. Then there are Brazilians, Turks, South Africans and Russians.

About seven billion euros have been added to Portugal's economy through this visa facility. 90% of this money has been invested in real estate or housing sector.

Statistics from the Portuguese Immigration and Border Service show that only 22 visas have been issued to create employment. As a result, only 280 people have been employed in the last 10 years.

The Portuguese Association of Real Estate Developers and Investors has expressed disappointment at the decision to stop the process of granting permanent residence through the Golden Visa.

The president of the association, Hugo Santos Ferreira, said the decision was an attack on all foreigners interested in investing in Portugal.
The housing businessman also believes that Portugal will "lose its credibility and reputation as an investment-friendly country". Santos Ferreira said that Portugal needs international investors to strengthen its economy and this opportunity to generate six hundred million euros per year should not be missed.

Santos Ferreira, representative of the country's housing business, also claimed that thousands of jobs have been created in the construction and housing sectors due to the golden visa.

Portugal succumbs to skyrocketing housing prices and EU pressure
Property prices in Portugal have skyrocketed in the past few years. Especially in the two main cities of the country, Lisbon and Porto, this problem is the most. Critics say the Golden Visa is to blame. Many citizens of European Union countries have also bought houses or apartments there. As a result, the Portuguese have lost the financial ability to buy houses in their own country.

Ana Gomes said that the golden visa is responsible for the increase in house prices. And keeping this incident in front, the government has got the opportunity to take the initiative of stopping such visas. Gomes sees the government as an "excuse" to stop the golden visa due to rising house prices. He said that Portugal had to come to this decision due to the pressure of the European Union.

When war broke out in Ukraine, Russians were banned from investing in Portugal and excluded from the Golden Visa program. "Wealthy citizens of countries like China and Vietnam are also eligible for golden visas, but they are not models of transparency," Gomes said.

However, it remains to be seen what the Portuguese government thinks about those who have taken advantage of the golden visa opportunity to legally reside in the Schengen zone.

Presumably, among those who have started to live permanently in Portugal, an exemption may be granted. But for those who are not living with permanent residence permit, there may be a new decision.

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