Industry Leader Calls for Reversal of Golden Visa Policy and End to “Demonization” of Foreign Capital
The Portuguese Association of Residential Tourism and Resorts (APR) has issued a strong appeal to the government to reinstate a residency-by-investment program similar to the former Golden Visa, known as ARI. Pedro Fontainhas, the executive director of the APR, stated in an interview that it is urgent to cease the “demonization of foreign investment” and implement explicit policies to attract international capital and investors to reside in Portugal. He argued that “without foreign investment, the Portuguese do not get richer” and that a stable, welcoming policy framework is essential for national economic growth.
The termination of the Golden Visa program two years ago under the ‘More Housing’ initiative has been described as a “tragic” decision for the real estate sector. Fontainhas reported that the policy shift led to the immediate suspension of developments and the closure of businesses, as capital was redirected to competing markets such as Spain, Greece, and Turkey. While demand from European buyers with residency rights persists, interest from other key markets, including Brazil and the Middle East, has significantly declined. Understanding the nuances of these policy shifts is critical, a topic often covered in our Regulatory and Legal Frameworks blog.
According to a study by Nova SBE for the APR, the residential tourism and resort sector has been a significant economic driver over the past decade, generating €184.6 billion in national production, €96.8 billion in Gross Value Added (GVA), and €15 billion in taxes, while supporting 2.85 million jobs. Fontainhas emphasized that Golden Visa investments, which constituted only 4% of total transactions, were primarily in high-value properties for tourism or as second homes, and did not subtract from the traditional housing supply. He did concede, however, that the program may have had an “undeniable effect” on overall price increases as sellers adjusted their prices to meet the new demand threshold.
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Further complicating the investment landscape is a recent government proposal to increase the Municipal Property Transfer Tax (IMT) for non-resident buyers. The APR has voiced strong opposition to this measure, cautioning that it targets the remaining pool of foreign investors and could deter them from choosing Portugal. Fontainhas criticized what he termed the “levity” of successive governments in altering fiscal policies without calculating the economic consequences, creating a climate of uncertainty. For investors trying to understand these tax implications, consulting with property tax specialists is advisable.
The association is advocating for a reversal of these policies, urging the government to base its decisions on economic data rather than “generalized perceptions.” Fontainhas stressed the need for a long-term, stable strategy to attract foreign capital, noting that “all countries have instruments to attract foreign investment, and we are falling behind.” The APR positions itself as ready to partner with the government to build a sustainable and prosperous real estate sector. Investors seeking to navigate this environment can find support from English-speaking real estate lawyers.
The core message from the industry is a call for stability, predictability, and a renewed focus on attracting foreign investment as a key pillar of Portugal's economic strategy. The debate over the Golden Visa and related tax policies continues to be a central issue for the future of the nation's property market. Understand policy impacts on your Portugal property plans at realestate-lisbon.com.