Portugal set to continue to offer ‘golden visas’ to property investors

Residency permits will continue to be granted to foreign property investors even after an investigation into the "golden visa" programme, dominated by rich Chinese, led to the resignation of a minister.

Ending this programme "is a mistake that other countries which compete against us in exactly the same sector would take advantage of", Vice-Premier Paulo Portas told a parliamentary hearing on Thursday. "One cannot confuse the tree with the forest."

A probe into alleged corruption, influence peddling and money laundering linked to the issuance of golden visas led to the detention of 11 individuals for questioning, the Portuguese Prosecutor General's Office said. Among those arrested was the head of the border police.

Three days later, Internal Administration Minister Miguel Macedo stepped down. He has denied any wrongdoing.

The program enables non-EU citizens who invest more than €500,000 (HK$4.86 million) in real estate to apply for a temporary residency permit to live in the country, allowing them to travel freely within Europe.

Chinese investors were the top beneficiaries of the programme, which has resulted in 1,649 visas being issued and attracted €1.1 billion in property investment since it began in 2012, Portas said. About 80 per cent of applicants have been from China.