Portugal has confirmed the end of the golden visa scheme, which has generated billions for the country’s economy over ten years.

Local media reports state that all applications for new golden visas submitted after 16th February are no longer valid, whilst residence permits for investment will remain in effect, Schengen Visa Info reports.

According to Portugal’s Prime Minister, António Costa: “Nothing justifies a special regime for golden visas.”

He added that between 2012 and 2023, 89% of residence permits were solely for real estate purchases, with just 22 cases reported where investors created employment.

The Prime Minister went on to say that residence permits granted under the golden visa scheme will become normal residence permits, similar to those belonging to foreign citizens, meaning everyone is equal under national law.

Nevertheless, golden visas for entrepreneurship will still be available. These applications will consider the economic, social, scientific, technological or cultural significance of the investment.

According to a report by El Pais, between October 2019 and February 2023, 11,758 golden visas were granted in Portugal. Whereas, the number of non-EU foreigners who acquired a Portuguese residence permit, along with their family members, was around 31,000.

The principal beneficiaries remain Chinese nationals, making up 45% of the total number of golden visas obtained. This was followed by Brazilians with 10%, as well as a significant number of beneficiaries from the US, South Africa and Turkey.

Within the country’s golden visa scheme, foreign investors obtain residency by making financial investments in Portugal. The decision to end the program follows a housing crisis in the country, amongst other motives.

In addition, according to the Foreigners and Border Service, golden visa investments in real estate have generated an additional €5.9 billion in Portugal over the last decade.