Portugal Golden Visa: Hong Kong buyers likely to take advantage of property investment extension in Lisbon, Porto
- Portugal has extended its Golden Visa scheme to include investment homes in Lisbon and Porto from July 2021 to January 2022
- The extension comes after the government had sought to disqualify home purchases in the two main cities and the resort region of Algarve to cool down prices
Portugal’s decision to extend its fast track residency programme to include property investments in Lisbon and Porto by six months is expected to boost inquiries for homes from Hongkongers seeking permanent residency in the European country, say agents.
Home prices across Portugal rose 5.9 per cent last year, making housing unaffordable for many locals amid the coronavirus pandemic that saw the economy contract by 7.6 per cent. Portugal’s unemployment rate rose to 6.8 per cent last year from 6.5 per cent in 2019 because of the economic fallout from the pandemic, according to official data.
“When the Portuguese government introduced the deadline of July 2021, Hong Kong buyers were hesitant to commit as they felt they may not have enough time to do the transaction and then fly to Portugal to complete the necessary biometrics,” said Chitra Stern, founder and owner of Elegant Group, developer of Martinhal Hotels & Resorts and Martinhal Residences, a branded residence project in Lisbon. “The extension removes this barrier and we expect to have more enquiries now.”
The scheme grants a foreigner the right to live, work and study in the country and visa-free travel within Europe’s Schengen area comprising 26 European countries. The residency route via purchase of property worth at least €500,000 (US$606,000) has been favoured by Hongkongers seeking an option to emigrate overseas.
“Investors will now have more confidence [regarding] their application as ten and a half months is a very comfortable time frame,” said Luiz Felipe Maia, managing director at Lisbon-based Maia International Properties, which has an office in Hong Kong.