Portugal’s golden visa programme has undergone quite some changes in the last year. The scheme previously allowed non-EU nationals to invest upwards of €500,000 in real estate to gain residency permits, but that option was removed in late 2023.
Now, Portugal has said it plans to reintroduce a version of the real estate investment component, but with a twist. Golden visa applicants will only be allowed to invest in affordable housing projects that will provide accommodation for locals and immigrants.
The Portuguese government has yet to release more detailed information about the so-called solidarity golden visa. Here’s what we know so far.
What is the ‘Solidarity’ Golden Visa?
The ‘solidarity visa’ is Portugal’s new investment option within the existing golden visa programme. From what the officials said, it is designed to address the country’s lack of affordable housing for locals and the need for adequate accommodation for migrants while providing a path to residency for non-EU foreign investors.
This initiative represents a significant shift in Portugal’s approach to investment migration, moving away from pure capital attraction towards socially responsible investment that addresses pressing domestic challenges. The concept aligns with broader European Union trends towards sustainable development and social impact investing.
The Context Behind the Change
Portugal’s decision to introduce the solidarity golden visa comes after mounting pressure from both domestic critics and EU officials. The original real estate investment route, which required a minimum investment of €500,000 (or €400,000 in low-density areas), was blamed for contributing to a housing affordability crisis that has particularly affected young Portuguese families and low-income residents.
Statistics from the Portuguese National Statistics Institute show that house prices in Lisbon increased by over 40% between 2015 and 2022, with similar trends observed in Porto and other major cities. Meanwhile, Portugal faces a housing shortage estimated at approximately 600,000 units, according to government housing assessments.
The country also grapples with integrating increasing numbers of migrants and refugees, many of whom struggle to find adequate accommodation. The solidarity visa aims to tackle both challenges simultaneously whilst maintaining Portugal’s attractiveness to international investors.
Investment Options
Under this new scheme, golden visa applicants will have two investment options:
1) Affordable Housing for Locals: Investors can contribute to the development of affordable homes that Portuguese residents can purchase or rent at reasonable prices. These projects must meet specific criteria regarding affordability thresholds, typically defined as housing costs not exceeding 30% of median local income.
2) Accommodation for Migrants: Investments can be directed towards building accommodation facilities for migrants in need or financing projects that promote their integration into society. This could include temporary housing, integration centres, or mixed-use developments that combine housing with social services.
Expected Project Types
Based on preliminary government discussions, qualifying projects may include:
Social housing developments with long-term rental commitments at below-market rates
Cooperative housing projects where residents have ownership stakes
Mixed-use developments combining affordable housing with community facilities
Renovation projects converting unused buildings into affordable accommodation
Purpose-built migrant integration centres with temporary and transitional housing
Eligibility and Investment Requirements
Although the investment amount for the new solidarity visa is yet to be specified, government officials say it would be lower than other options. At the moment, the lowest threshold is investing at least €250,000 toward the preservation of cultural heritage.
Industry experts anticipate the solidarity visa investment threshold could range between €200,000 and €350,000, making it potentially the most accessible route for many investors. However, the lower financial threshold may come with additional requirements, such as:
Longer commitment periods for the investment
Specific geographical restrictions focusing on areas with acute housing shortages
Mandatory involvement in project oversight or community engagement
Requirements for additional social impact metrics beyond pure financial returns
Complementing the Existing Golden Visa Program
The solidarity visa will complement Portugal’s existing golden visa scheme, which has attracted over €7.3 billion in investments since it kicked off in 2012. The current program allows non-EU nationals to secure residency rights by investing at least €500,000 in funds, donating €250,000 or more to cultural or research projects, or generating 8 to 10 full-time employment opportunities.
For those considering their options, it’s worth understanding how the Portugal Golden Visa programme works in its current form, as the solidarity visa will operate within this established framework whilst offering a new pathway for socially conscious investors.
Comparing Investment Routes
When the solidarity visa launches, investors will need to weigh several factors when choosing between available options:
Financial Considerations
The total costs of applying for a Portugal Golden Visa extend beyond the minimum investment amount. Applicants should factor in legal fees, due diligence costs, government fees, and ongoing compliance expenses. The solidarity visa may offer lower entry costs but could involve more complex project management requirements.
Risk and Return Profiles
Traditional investment fund options for the Portugal Golden Visa typically offer more predictable returns and simpler management structures. The solidarity visa, whilst potentially offering lower investment thresholds, may involve longer payback periods and returns that are partially measured in social impact rather than purely financial terms.
Addressing Critics and Housing Crisis
Critics of the golden visa program have argued that it has exacerbated Portugal’s housing crisis by fueling rising property prices and rents, particularly in major cities like Lisbon and Porto. The solidarity visa will likely address these concerns by directing investments towards affordable housing solutions and accommodating the growing migrant population.
The European Commission has also scrutinised golden visa programmes across the EU, expressing concerns about security risks and the potential for money laundering. Portugal’s solidarity visa represents an attempt to maintain investment migration whilst addressing these concerns through increased social benefit and enhanced due diligence requirements.
Measuring Success
The Portuguese government is expected to establish clear metrics for measuring the solidarity visa’s impact, including:
Number of affordable housing units created
Percentage of units allocated to Portuguese residents below median income levels
Integration outcomes for migrant beneficiaries
Geographic distribution of projects to ensure balanced regional development
Long-term affordability maintenance through rent control mechanisms
Timeline and Implementation
While no official launch date has been announced, government sources suggest the solidarity visa could be available by late 2024 or early 2025. The delay reflects the complexity of establishing appropriate regulatory frameworks, identifying suitable projects, and creating oversight mechanisms to ensure investments deliver promised social benefits.
Prospective applicants should note that Portugal’s golden visa programme has historically experienced processing delays during periods of high demand. Early preparation of documentation and engagement with experienced advisors will be crucial for those planning to apply when the solidarity visa becomes available.
Alternative Considerations for Retirees
For those primarily interested in Portuguese residency for retirement purposes, it’s worth exploring whether the Portugal Golden Visa or D7 visa is better for retiring in Portugal. The D7 visa offers a lower-cost alternative for those who can demonstrate passive income rather than making substantial investments.
Wrapping Up
The solidarity ‘golden visa’ is still in the planning stages. It helps to get ahead of the pack given that Portugal’s golden visa programme has become increasingly popular. To understand how this or any of the changes to the scheme might impact your application, get in touch with us at International Wealth Ventures.
The solidarity visa represents Portugal’s attempt to balance investment attraction with social responsibility, potentially setting a precedent for other EU countries facing similar housing challenges. For investors seeking European residency whilst making a positive social impact, this new route could offer an attractive alternative to traditional investment options.
At International Wealth Ventures, our experienced team stays abreast of all developments in Portugal’s golden visa programme and can help you navigate the evolving landscape of investment migration options. Whether you’re interested in the upcoming solidarity visa or exploring current alternatives, we provide comprehensive guidance tailored to your specific circumstances and objectives. Contact us today to discuss how we can support your residency and investment goals in Portugal.
