The first half of 2020 was struck by Covid-19. Almost no business could excel in its past performance. Until May, the Portugal Golden Visa Program followed a similar path. However, in May, the program came back to life. May 2020 recorded the best numbers generated by the program since its inception in October 2012.
In the first four months of 2020, the Portugal Golden Visa Program did not perform great. As with other businesses, it did not seem likely that 2020 will be a profitable year for the Portugal Golden Visa. Yet, May and June changed the scenery. In June, 171 main applicants and 293 dependents received residence permits. Combined with May, these numbers constitute around 65% of the total approvals in 2020.
The Wide Market of the Portugal Golden Visa is a Driving Factor
Until recently, Portugal Golden Visa received investments mostly from Chinese individuals. The investment methods were not very diversified either. In 2017, Chinese citizens constituted 80% of the total investors. 89% of the generated amount was directed towards the EUR 500,000 real estate investment option.
In 2020, the trend showing the increasing diversification in the program continues. In the first six months of the year, the program generated EUR 383 million. EUR 89 million of this came in June. These numbers add up to 4% more than the first half of 2019. So, the Portugal Golden Visa Program is set to exceed the numbers of the last year. One of the main driving factors behind this success is the diversification in the market.
Wider Market and Wider Variety of Investment Methods
Recent years saw an increase in the diversification of the market. Three years ago, four-fifths of the total investors of the Portugal Golden Visa Program were Chinese. In 2020, the ratio went down to 26%. Increased interest from Brazilian, Turkish, South African, and Russian investors diversify the portfolio of the program.
A parallel trend is apparent also in the investment routes of the program. Until very recently, EUR 500,000 real estate investment option brought almost all the investment the program gets. In 2016, 94% of the income was generated through this option. Due to alternative routes gaining volume, in 2020, the ratio went down to 66%.
Modification of the Residence Permit Validity
According to the new update, any permit issued after April 1st, 2020 will be valid for 2 years. Originally, these permits were valid for one year. However, there is one thing to note, the Edge International Lawyers remarks, “the changes to the duration of the validity of the temporary residency permits do not affect the possibility of applying for permanent residency or citizenship. In these cases, the minimum time required to apply remains 5 years.”