Information
End of Golden Visa may suspend investments of 600 million
The Portuguese Association of Residential Tourism and Resorts (APR) estimates that the end of gold visas, announced by the Government, could lead to the immediate suspension of investments of more than 600 million euros and 1,000 jobs.
In a statement, the entity said that the extinction of ARI (Residence Permit for Investment, better known as gold visas) "for tourist units in particular, is a wrong and extimed measure that arises only one year after the last review and scarce three or four months after being sinker inparliament".
According to the entity, this measure, included in the Government's More Housing plan, could lead to the "immediate suspension of investments of more than 600 million euros and, consequently, the creation of more than 1,000 jobs, which some of the APR members had planned for the next two years".
At the same time, according to The APR, the measure could generate the "loss of the contribution of each new foreign investor in the Portuguese economy, which after five years, is about six times the value of its initial investment".
Raised €534 million of investment in 2022
According to data released by the association, last year, when "it was already impossible to invest in ARI for housing in urban centers, 534 million euros of investment were raised, i.e. a potential of more than three billion euros over five years", he pointed out, ensuring that "this is equivalent to 1.3% of the national GDP [Gross Domestic Product] " and 18% of the Recovery and Resilience Plan (PRR).
The APR believes that "the complete extinction of ARI would be a measure with serious economic and credibility impacts" of the country, "disconnected from the reality of the country and its regions, and extemporare", adding that "worse would be to end suddenly and totally with the ARI".
There is danger of unconstitutionality, warns APR
The APR reviewed the preliminary version of the bill and, while acknowledging that it may be subject to change, warned that the Government's intention to implement these measures retroactively may make "invalid the concession requests submitted after February 16, 2023". "According to the APR, this claim proves to be excessively serious and certainly unconstitutional," the organization said.
Last week, Pedro Fontainhas, executive director of APR, told Lusa that the entity disagrees with the announced end of gold visas and asked the Government for a "reflection" to carry out studies, suggesting several other alternative measures.