Portugal is planning to modify its golden visa scheme to permit wealthy foreigners seeking residency to invest in affordable housing for locals or accommodation for migrants.

Cabinet affairs minister, Antonio Leitao Amaro told Reuters this week that the so-called “solidarity visa” scheme would work alongside an existing programme, which since 2012 has offered residency rights to non-EU nationals who invest in Portugal.

Since its implementation, the golden visa scheme has attracted over €7.3 billion of funds. Yet according to critics, it has worsened the country’s housing crisis and has endured numerous changes over the past few years.

In order to secure a visa, purchasing real estate, which was once the preferred route for foreigners, is no longer an option. However, they can still invest in funds, donate to cultural or research projects, and create jobs, Reuters news agency reports.

“We have not changed the existing scheme, but we have created these two types of solidarity visa,” said Leitao Amaro during an interview, after the government unveiled plans to make certain immigration rules stricter.

He noted that one of the new modalities would encourage foreigners seeking residency rights to invest in affordable homes for locals to buy or rent. The other would involve building accommodations for migrants in need or financing projects that promote integration.

Around 800,000 migrants reside in Portugal, nearly twice the number from a decade ago. Despite their considerable contributions to the economy, they are more likely to have more uncertain jobs and lower salaries, according to the Migration Observatory.

Many migrants struggle to find housing and often end up living on the streets or in overcrowded apartments. This issue is exacerbated by high rents and sale prices, partly driven by a tourism boom in cities like Lisbon and Porto.

To qualify for the current golden visa program, applicants need to transfer an amount ranging from €250,000 to €500,000, depending on their chosen investment type.

According to Leitao Amaro, the government has not yet determined the investment amount for the new solidarity visa. However, he stressed that it would need to be lower than other options to encourage investors to choose it.