The Minister for the Presidency, António Leitão Amaro, during a Council of Ministers’ press conference, announced that the Portuguese Government has approved its 4-Year Programme and has submitted it to the Portuguese parliament for appraisal. The announcement ratifies the direction the new Portuguese government will take henceforth regarding important policies, such as Immigration, Real Estate, and Tourism.
Portugal's New Government Sets Out Vision for Four-Year Mandate
The Portuguese Government released this Wednesday, the 10th of April 2024, its new 4-Year Executive Plan, acknowledging all the policies it intends to address during this legislature. Following the promises made during the electoral campaign, Prime Minister, Mr. Luís Montenegro’s Executive Plan, covers at least 60 policies from other parties’ electoral programmes.
The 4-Year Executive Plan places the needs of the Portuguese society at the forefront of the government’s agenda, and there is a clear emphasis on inclusivity and collaboration, drawing inspiration from the electoral platforms of various political parties. At the announcement press conference, Minister Leitão Amaro highlighted the spirit of dialogue that permeates the document.
Immigration in Portugal as an Important Factor
On the topic of Immigration, the plan is to keep a "welcome" approach to all individuals looking to set Residency in Portugal. In the paragraph, the document emphasises that the new government’s goal is to "Attract skilled immigration by encouraging qualified individuals to address Portugal's demographic and workforce needs". The document goes on about the topic of Immigration, also explaining that it will "Ensure a regulated immigration policy that guarantees immigrants in Portugal have their fundamental rights respected and promoted".
The 4-Year Executive Plan also approaches the recently created Immigration and Borders Agency, AIMA, opening the possibility for its reformulation. The document explains as follows: "To assess the restructuring of the Agency for Integration, Migration, and Asylum to address legal, operational, and competency conflicts".
Portugal Golden Visa Back on the Table?
During the political campaign, the Democratic Alliance (AD - Aliança Democrática), a centre-right alliance advocating for free markets and investment, aimed to improve Portugal's appeal to citizens and residents. While specific changes are yet to materialise, the new Executive Plan brings back to the table the discussion about reintroducing the Portugal Golden Visa, particularly its real estate option. This option was discontinued under the previous Socialist Party-led government, sparking controversy and opposition.
Despite over 300 proposed amendments (including from PSD, AD’s major party), the law passed due to PS's majority. Ahead of the 2024 election, some of the AD coalition politicians have suggested revising the Golden Visa with a new approach. During the electoral campaign, the need to support market gaps and improve accessibility to rental housing was emphasised.
Additionally, the Non-Habitual Residency (NHR) regime is also being considered for revision, aiming for a balance between attracting foreign residents and ensuring national equality through significant tax reductions. With the new Executive Plan released, it becomes even clearer that the new Portuguese government path aligns with the qualified immigration that both the Portugal Golden Visa and NHR programmes brought to the country.
Promote the learning of the Portuguese language and the understanding of Portuguese culture among immigrants, with the aim of enhancing their social, professional, and civic integration.
The Portuguese Housing & Accommodation Situation
In the plan released this Wednesday, the Housing problem was also addressed, with the Portuguese government explaining that new benefits will be created for Portuguese Citizens. For instance, there is a paragraph entirely dedicated to the "Enhancement/creation of real estate funds in collaboration with banks and property owners, enabling businesses to finance their operations through the leaseback of their properties, with an option for repurchase within a specified timeframe.", explain the document.
According to the Plan, the Government intends to encourage the provision of affordable housing in both rental and ownership markets. Recognizing that this stimulated supply may take time to fully materialize, it is proposed that any restrictive measures aimed at reducing demand should be kept to a minimum, and only implemented as necessary to address urgent social situations. The document goes on and explain that "Relaxation of land occupancy restrictions, urban density limits (including high-rise construction), and construction requirements, alongside the potential expansion of urban boundaries."
The document also has a paragraph dedicated to the controversy "Mais Habitação", the same law that discontinued the Real Estate option for the Golden Visa. The paragraph explains that "The Government is committed to repealing regulations such as forced leasing, rent freezes (providing subsidies to vulnerable tenants), and punitive measures against local accommodation such as the Extraordinary Contribution on Local Accommodation, the expiry of licenses predating the "Mais Habitação" bill, and other legally disproportionate limitations."
Boosting the Portuguese Tourism: New Strategies for Growth
When explaining the new policies for the Tourism sector, the document quotes again the "Mais Habitação" bill and explains that it will "Immediately eliminate the Extraordinary Contribution on Local Accommodation, the expiration of licenses predating the More Housing program, and concurrently review the legal limitations imposed by the previous Socialist government."
The new Government also explains that it will "clarify investment rules for real estate and attraction of investment (both residents and non-residents).", reinforcing its compromise with the Real Estate sector dedicated to the tourism industry. On the topic, the document closes by stating that the new policy will "Identify tourism infrastructure needs and promote both public and private investment in them, including areas requiring accommodation and transportation infrastructure. Initiating support programs to address these needs is also part of the plan."
Portugal Homes: Your Trusted Partner for Investment in Portugal
Portugal Homes remains dedicated to keeping our clients informed about the latest developments in the Real Estate industry and the Portuguese political landscape alongside updates on RBI (Residency by Investment) programmes. With a dedicated team focused on ongoing political changes, such as the potential reintroduction of the Portugal Golden Visa Real Estate investment option or adjustments to the NHR regime, we prioritise delivering timely insights.
Portugal Homes's advisory team also has the expertise to promote and advise on the Portugal D2 Visa, an RBI program that emerges as a standout option. This Visa programme provides foreign investors with the opportunity to secure Residency in Portugal, unlocking a range of benefits including visa-free travel to 29 European countries within the Schengen Zone and options for family reunification. Notably, recent amendments to Portugal's Nationality Law have paved an accelerated pathway to EU Citizenship & Passport through the D2 Visa program. At Portugal Homes, we are committed to ensuring our clients stay informed and empowered in their investment journey.
