Investor Halts Portuguese Investments Amid Golden Visa Renewal Crisis
A North African investor, who has channeled more than €2 million into the Portuguese economy since 2021, has suspended all new investments in the country due to what he describes as a critical failure by the state to renew his residency permit. The investor, who requested to be identified by the initials S.S., has been waiting for 18 months for a new residence card from the Agency for Integration, Migrations, and Asylum (AIMA), leaving him and his family in a state of legal and personal uncertainty. His case sheds light on the administrative chaos affecting an estimated 50,000 Golden Visa holders, threatening to undermine Portugal's reputation as a stable destination for foreign capital. Without a valid residence document, S.S. is unable to travel internationally, a critical issue as he holds business interests in the United States and France that require his personal attention.
The specific relocation services and support programs that form the backbone of the Golden Visa initiative appear to be faltering. S.S. recounted his experience, stating he arrived in 2021 with an initial real estate investment of €700,000 and quickly added another €200,000 into a local enterprise. However, since his initial two-year permit expired, his attempts to renew it through AIMA have been fruitless. A government decree extending the validity of expired documents until 15 October has provided little relief, as it is not recognized by other nations. 'I cannot leave Portugal. I can't even go to Spain, which is right next door,' he lamented. This effective travel ban has already had tangible consequences; he was unable to secure a U.S. visa to oversee his American investments because he lacks a valid Portuguese residence permit.
The bureaucratic paralysis has had a chilling effect on his investment strategy in Portugal. S.S. revealed he has canceled plans to acquire and renovate a building in Lisbon for the residential rental market. 'I was all set to buy a building in Lisbon to reform and alugar. Not for tourists, but for Portuguese housing. But I gave up, because you can't trust it, the basics are missing,' he stated. The damage extends beyond his personal portfolio. He had previously convinced two partners from his home country to join him in a €2 million venture in Portugal. Due to their own struggles with the residency process, those partners have now divested from the business and departed the country, expressing that they would never return.
The legal and administrative support services for expatriates are also under strain. Faced with AIMA's inaction, S.S. sought legal recourse. According to him, a court order was issued in early August compelling AIMA to renew his permit within seven days. However, he alleges the agency disobeyed the judicial ruling, and no action has been taken. This sense of legal insecurity is compounded by personal hardship. His wife's parents were unable to obtain visitor visas to help with the birth of their second child eight months ago, a stark contrast to their experience when living in the U.S., where visas were granted promptly for a similar family event. AIMA did not respond to a request for comment on the case from the newspaper PÚBLICO.
This situation is unfolding against a backdrop of proposed changes to Portugal's Nationality Law, which could extend the residency requirement for citizenship from five years to ten for most foreign nationals. S.S. views this as a breach of the original agreement offered under the Golden Visa program. 'This will break a commitment made by the Portuguese government when it created the Golden Visa to attract investments and pull the country out of crisis,' he argued. He warned that if the law is amended, he will liquidate his assets and leave Portugal. 'I could have chosen to go to Spain, Cyprus, Canada, and many other countries, but I chose Portugal. If they really change the Nationality Law... I will sell everything and go. And I am sure that many others will do the same.' Get expert guidance for international property buyers at realestate-lisbon.com.
