Portugal golden visa numbers treble

Photo: Chris Yunker

The number of Golden Visas issued by Portuguese authorities has trebled in the last month.

The scheme, which offers permits for overseas investors who purchase real estate, issued 119 visas in October 2015, up from 37 in September. €41.6 million investment was generated as a result, according to the country's Foreigners and Frontiers Service (SEF).

The figures herald the return of the scheme following a two-month suspension, which was enforced to ensure that reforms could be properly implemented.

Indeed, Golden Visas have helped to fuel foreign investment in Portugal - a crucial driver of both activity in the housing market and its overall recovery. Sales of Portuguese property have risen every month since July 2013, helping to push up prices for more than 10 months in a row, according to the latest RICS/Ci market report.

However, the scheme has not been without controversy: a police investigation into suspicions of corruption saw 11 officials detained last year, with the Minister for Internal Administration also resigning his post. Since then, a number of reforms were planned for the process, while the scheme has also been opened up to include other investment options apart from real estate.

Now, the doors are officially open once more and business is booming. According to the SEF data, 37 Golden Visas were issued in September in exchange for €21.1 million of investment. In October, though, momentum had built back to previously strong levels, with 112 of 119 issued for investment in real estate.

The strength of the scheme remains evident: sales of family homes in Portugal fell 4.7 per cent in the second quarter of 2015 compared to the preceding three months, but 25 per cent more properties still changed hands  compared to the same period of 2014. So far in 2015, 599 Golden Visas have been issued, down from 1,526 last year but up from 494 in 2013.

Since 2012, when the scheme was first introduced, 2,621 permits have been issued in total - 2,480 of which have been in response to investment in property. China has been the biggest investor so far, responsible for 2,087 Golden Visas.