An IMGW News Report by Coryse Borg
Welcome to this interview, where we explore the dynamic landscape of investment migration in Portugal, a country renowned for its rich history, high quality of life, and strategic position within the European Union. Today, we have the privilege of speaking with Joana Mendonça, an expert in the field of Investment Migration and Citizenship by Investment programmes in Portugal.
“…the upcoming decision by the Court of Justice in the Malta case could have significant implications, potentially setting a new precedent on the balance between state sovereignty and the primacy of the European Union.”
Portugal has long been a top destination for investors seeking residency and citizenship through the Golden Visa programme. This programme, alongside the newly introduced Nomad Visa, positions Portugal as an increasingly attractive option for international investors, entrepreneurs, and remote workers. However, recent developments in neighbouring Spain and other parts of Europe have sparked debates about the future of such programmes.
In this interview, we’ll delve into the current state of Portugal’s investment migration offerings, examine their economic impact, and discuss the potential challenges and opportunities that lie ahead. We’ll also explore how Portugal’s global reputation, quality of life, and political climate influence the decisions of those seeking to invest and reside in this beautiful nation.
Join us as we gain valuable insights from Joana Mendonça on these critical topics and what the future might hold for Portugal’s place in the global investment migration landscape.
Portugal’s Citizenship by Investment Programme:
💬 1. With the recent changes in Spain regarding the termination of their Citizenship by Investment programme, there are concerns about similar actions in Portugal. Can you share your insights on whether Portugal’s ‘Golden Visa’ programme is likely to continue, or are there discussions about its potential termination or modification?
As we reach a stage of maturity in all programmes, the time has come for assessments. In 2023, the Portuguese programme underwent reassessment, during which its continuation was seriously questioned, resulting in a revision of the available investment options.
A new government has taken office, bringing with it a tenuous political majority that, in theory, supports foreign investment. However, the political landscape in the Portuguese Parliament has grown increasingly fragmented, with power now divided among three major political factions. Since migration policy is under the jurisdiction of Parliament, the government cannot unilaterally implement changes.
To see changes on this matter, one of two things must happen: either a broad consensus must be reached across the political spectrum, or Parliament must grant legislative authority to the Government to act independently on this subject for a limited period. Given the lack of widespread agreement on immigration by investment, the former seems unlikely. The latter, if it occurs, will likely be part of the next state budget, set for discussion between October and November this year. This budget will be crucial for the Government, as it must secure approval to maintain power and govern the country, making it a defining moment.
Since the Government’s election in March, discussions have centred on the State Budget, with political strategies hinging on the influence each party can exert and the implications of supporting or opposing the Government. The coming months will be critical in this context. However, it is worth noting that the focus on residency by investment may be overshadowed by growing concerns over the delays and inefficiencies within Portugal’s migration agency—issues that extend beyond investment-related residency to all forms of migration.
Finally, the upcoming decision by the Court of Justice in the Malta case could have significant implications, potentially setting a new precedent on the balance between state sovereignty and the primacy of the European Union. All in all, there may indeed be changes to the programme, both in terms of incentives and limitations, but neither option will be easy to implement for any of the decision-makers unless there is a broad consensus.
Impact on Portugal’s Economy:
💬 2. How do you see the Portugal Golden Visa and other investment migration programmes affecting the Portuguese economy, particularly in terms of real estate, job creation, and overall foreign investment?
It’s difficult to say with certainty. For those observing the ongoing investments, there’s been significant wealth creation and numerous opportunities. Real estate has seen extensive rehabilitation, the fund market has grown more dynamic and appealing, and national entities are finally recognising the potential in cultural and scientific investments. As a result, the market is diversifying, attracting interest from investors: Between January and September 2023 alone, over 125 million euros were channelled into Portuguese investment funds, according to data from the now-extinct SEF.
However, there are still many untapped opportunities within eligible investments. What’s needed is the proactive creation of these opportunities by market players, rather than waiting for demand to drive their development.
Regarding current figures, when the new migration plan was introduced in June, the Government correctly noted that previous legal changes were made impulsively, without a thorough analysis of their actual impacts – whether positive or negative. It’s crucial to shift this approach and begin measuring the effects of these instruments based on empirical data rather than social perception.
This approach was one of the commitments made by the Government in its proposed action plan for migration, and there’s hope that we’ll see more informed and scientifically grounded analyses. The development or implementation of the plans introduced in June is anticipated in October, so we should have clearer insights at that time.
Nomad Visa Programme:
💬 3. Portugal recently introduced a Nomad Visa programme. What has been the traction so far? From which countries are the majority of applicants hailing, and what sectors, professions, or business types do these individuals typically come from? Additionally, what kind of impact do you anticipate this programme will have on Portugal’s demographics and economy? Do you foresee potential synergies between these nomadic professionals and Portuguese businesses or startups as a result of the country’s Nomad Visa options?
The programme has enjoyed notable success from the start. Its announcement sparked immediate interest, and applications quickly followed. The process is straightforward and efficient, maintaining a steady flow of applications.
Data shows that 2,600 visas were granted since the inception of the programme in 2023, with the majority of applicants hailing from the United States, the United Kingdom, and Brazil.
There are essentially two types of digital nomads participating in the programme. The first group consists of ‘pure’ digital nomads—individuals who already work remotely and are attracted to the programme for the enhanced rights and mobility it provides. The second group includes those transitioning into digital nomadism specifically to relocate to Portugal. These individuals, who wish to move to Portugal but do not qualify for other visas, choose to switch to remote work in order to maintain their current job conditions and compensation while taking advantage of the residence permit.
Organic synergies are emerging as a result. Digital nomads not only enhance Portugal’s visibility in their professional fields but also drive growth in sectors such as international schools and leisure facilities, often bringing their families with them.
By supporting the integration of these migrants and their families, Portugal ensures that their success positively impacts the country, benefiting both the individuals and the nation as a whole.
Global Reputation and Quality of Life:
💬 4. Portugal is often praised for its high quality of life, safety, and global reputation. How do these factors influence the decision of international investors to choose Portugal for citizenship or residency, and how do you market these benefits to potential clients?
Portugal has built a highly attractive reputation, consistently topping rankings for quality of life and safety—key factors in the decision-making process for many.
It’s fascinating that despite occasional headlines about delays in approval processes, Portugal continues to attract a positive influx of migrants. This underscores that, above all, people prioritise well-being. This well-being is driven by several factors: Portugal’s low-profile, safe, and friendly environment, its widespread English proficiency, a temperate climate with abundant sunshine, and, of course, its status as a member of the European Union.
These attributes draw a diverse range of people – from families to individuals seeking refuge from discrimination or political instability in their home countries, as well as those, of any age, looking to embark on new adventures in international mobility.
Even when changes seem imminent, Portugal has maintained the continuity of its programmes, ensuring that applicants ultimately achieve their goals without any unwelcome surprises.
Trends in Investment Migration:
💬 5. Given your experience, what trends do you observe in the preferences of investors choosing Portugal? Are there particular sectors or regions within the country that are becoming more popular among foreign investors?
Over the years, several attractive hubs have emerged. While many families still gravitate toward large urban centres for access to international schools, new areas of interest are increasingly gaining attention.
The Silver Coast has become a magnet for those looking to live by the sea, with activities like surfing drawing enthusiasts. The Douro wine region offers stunning estates, while the tranquil Alentejo and the unique charm of Madeira continue to captivate.
In particular, the Azores and Madeira archipelagos are now poised to carve out a unique niche in attracting new residents. Recent legal changes to the NHR (Non-Habitual Resident) programme allow these islands to define which economic activities qualify for NHR benefits, specifically for tax residents in their regions.
This gives the islands a significant edge—they can target specific professionals and entice them to become civil and tax residents, offering benefits beyond what’s available on the mainland. Given the islands’ inherent appeal, adding an enhanced tax regime could create highly favourable conditions for attracting foreign residents.
Future of Investment Migration in Portugal:
💬 6. With the increasing scrutiny of Citizenship by Investment programmes worldwide, what do you think is the future of investment migration in Portugal? Are there any upcoming legislative changes or new initiatives that potential investors should be aware of?
The Court of Justice’s decision on Malta could be a pivotal moment in how we view investment-based mobility, whether for residency or citizenship.
Portugal must streamline its processes and elevate its migration agency to match the programme’s ambitions—making it simple and efficient. Once these delays are addressed and the true impact is assessed, we can thoughtfully evaluate the programme’s future.
Updating and modernising investment options to align with Portugal’s current needs might be a sensible next step. However, as mentioned earlier, we’ll only gain clarity on the government’s legislative capacity with the new state budget, which will ultimately solidify the political outcome of the March elections, whichever direction it takes.
Joana Mendonça – Bio
General Counsel at Global Citizen Solutions
Joana Mendonça has been heading the legal team at Global Citizen Solutions since 2021 and boasts a remarkable career encompassing various domains of law. With profound expertise in immigration law, she has consistently demonstrated her prowess in civil and fiscal residency planning within Portugal. Joana’s commitment lies in providing comprehensive assistance to clients hailing from diverse corners of the globe.
