Golden Visa Updates: Shifting Investment Landscapes In Spain & Portugal

In April 2025, the Spanish government made headlines by officially ending its Golden Visa programme for property investment, a move that surprised many, though it had been quietly discussed in political circles for some time. The decision, framed as a response to the country’s deepening housing crisis, marks a clear shift in how European nations approach foreign investment in real estate.

Much like Portugal, Spain’s programme allowed non-EU nationals to secure residency by investing at least €500,000 in property. It was particularly popular in hotspots like Madrid, Barcelona, and the sun-soaked Costa del Sol. However, rising property prices and growing public pressure pushed Spain to follow in the footsteps of countries like Ireland, the Netherlands, and indeed, Portugal which restructured its own Golden Visa scheme in 2023.

Portugal launched its Golden Visa programme in 2012 to attract foreign capital, revitalise its real estate market, and support job creation during a time of economic difficulty. Over the next decade, it proved remarkably successful: more than 12,000 residence permits were issued, bringing in over €7 billion — the vast majority through real estate transactions in Lisbon, Porto and the Algarve.

But by 2023, with housing concerns mounting, the government introduced sweeping reforms as part of the “More Housing” law. The most significant change? The real estate route was removed. Investors could no longer qualify for residency through property purchases.

A shift towards innovation and diversified investment

Despite closing the door on property-based investment, Portugal has not turned its back on investors willing to have a foot in the country and a way to Portuguese nationality. Instead, the Golden Visa now channels investment into areas seen as more sustainable and forward-looking:

- Contributions to Portuguese based investment funds
- Business creation or capital injection that supports job growth.
- Funding for scientific research or cultural initiatives.

These new options aim to attract high-impact investors — those looking to engage with Portugal’s economy beyond bricks and mortar.

Looking ahead: Property is not enough to get residency, but everyone is welcome to invest in real estate

While some short-term slowdown in luxury real estate investment is expected, this shift could mark a turning point. By embracing a more diversified approach, Portugal is positioning itself for balanced, long-term growth rooted in innovation and entrepreneurship.

From an investor’s perspective, the appeal remains strong, and the swift of the Golden Visa program shall not be seen as a real estate investment restriction. Anyone can buy property in Portugal. It’s just not enough to get a residence permit by investment.

Portugal continues to offer political stability, lifestyle quality, and EU access via Schengen. Even without the property route, the country remains one of Europe’s most attractive destinations for those seeking EU residency opportunity and a sunny place to call home.

Interested in exploring your investment and residency options in Portugal? Contact MATLAW, a portuguese law firm focused on legal advice in all areas of real estate law that will give you tailored legal guidance.

Email: geral@matlaw.pt
Tel: (+351) 210 434 150
www.matlaw.pt