Portuguese President Exercises Veto on “Mais Habitação” Bill: Golden Visa Ending
If you are following Patrícia Casaburi’s latest updates on the Portugal Golden Visa saga, then you might be interested in this most recent development. On August 21, the President of Portugal, Marcelo Rebelo employed his veto authority to reject the “Mais Habitação” Bill. This legislation, designed to tackle housing issues in Portugal, encompasses the cessation of the real estate investment avenue within the Golden Visa program. I’d like to provide you with an overview of this situation under a legal perspective and its potential ramifications:
Current Course of Events
This decision follows a period of thoughtful contemplation on the President’s part, and it underlines the significance of the issues we’re tackling. Following this veto, the Bill is now headed back to the Parliament for a reevaluation, taking into account the points raised by him. While there remains a possibility for the Parliament to overturn this veto through a fresh voting process, we must consider the context. The Assembly is presently in its summer recess, with plans to reconvene on September 6th. This is when the discussions around the Bill will resume.
Given the President’s expressed reservations about the current state of the Bill, there’s a real chance that we’re in for a renewed round of debates. The Socialist Party may choose to put the Bill up for another vote without any alterations, relying on a simple majority to push it through. However, considering the President’s concerns, it’s prudent to expect a discussion before any final decisions are made.
Timeline for Real Estate Investment under the Golden Visa
While providing an exact timeline is challenging, it’s reasonable to speculate that investors have until the end of September to invest in real estate under the Golden Visa program.
Important Points to Consider
Should the revised Golden Visa law come into effect, eliminating both direct and indirect real estate investment pathways, the program itself will continue. The permissible investment avenues will include:
- Committing a minimum of €500,000 into collective investment structures, like funds or other options unrelated to real estate, either directly or indirectly.
- Participating in or contributing to the share capital of pre-existing companies, alongside job creation and a minimum investment of €500,000.
- Contributions and various forms of generosity within artistic and/or scientific domains.
- Prior to this development, on 19 July, the Assembly of the Republic of Portugal granted approval to the final version of the Mais Habitação bill, introducing significant alterations to the Golden Visa framework. Notably, all avenues for real estate investment, whether direct or indirect, will be terminated under the new law.
In conjunction with the outlined investment options, key consequences of this legislation include:
- Pending applications with the Foreigners and Borders Service (SEF) will be evaluated based on the prevailing laws at the time of submission
- The requisite minimum stay to uphold residence permits will remain around an average of seven days annually.
- Renewals of residence permits will adhere to the initial regulations as before.
- Family reunification will be guaranteed under the same terms as primary applications.
- Pathways involving real estate and capital transfers will no longer be eligible.
- The law will come into effect on the day subsequent to its official publication.
It’s noteworthy that, under the existing legislation, investors can still explore real estate-related investment options for the Golden Visa program. If you are interested in the real estate option to apply for the Golden Visa, time is of the essence.
