Portugal's Golden Visa Program Faces Uncertain Future After Malta Ruling

Malta was the last country in the European Union to offer citizenship in exchange for investment. Golden visa brokers are urging their clients to expedite their applications following a recent ruling by the European Court of Justice that declared Malta’s “golden passport” program illegal. This decision has raised significant concerns about the future of similar programs across the European Union, including Portugal’s Golden Visa program.

The European Court of Justice ruled that Malta’s investor citizenship scheme violated EU law by commercializing the grant of nationality and EU citizenship. This ruling has sparked fears that Portugal’s Golden Visa program, which grants residency to investors, could face similar scrutiny. While the Portuguese program offers residency rather than direct citizenship, the underlying principle of commercializing access to the EU remains a contentious issue.

Portugal’s Golden Visa program, which has been operational since 2012, has attracted substantial investment, particularly from citizens. The program has brought in over €6 billion in investments and issued thousands of residence permits. However, the recent ruling has cast a shadow over its future viability. Critics argue that such programs facilitate money laundering, real estate speculation, and pose security risks. The European Commission has taken a firm stance against these schemes, stating that “European citizenship is not for sale.”

The ruling against Malta comes at a time when Spain has already abolished its own Golden Visa program, citing concerns about real estate speculation and housing affordability. This move aligns with growing EU pressure against such programs, which are seen as potential gateways for security risks and financial crimes.

For current Golden Visa holders in Portugal, the situation creates uncertainties. While it is unlikely that already acquired rights will be retroactively affected, the Portuguese government will need to carefully assess the program’s future. Some experts suggest that Portugal should consider a profound reform or even the gradual elimination of the program to preempt external pressure.

The housing crisis in Portugal, exacerbated by the influx of foreign investment, adds another layer of complexity. The demand for housing has surged, driven by both local and international buyers, leading to skyrocketing rents and property prices. This has made it increasingly difficult for average families to afford homes, further fueling the debate on the impact of foreign investment.

In response to the ruling, brokers are advising clients to apply for the Golden Visa as soon as possible. The message is clear: if you are considering obtaining residency in Portugal through the current Golden Visa program, it is advisable to act promptly. The era of “golden visas” in Europe may be coming to an end, and Portugal will have to adapt to this new reality. The Portuguese authorities will need to navigate this legal and political landscape carefully, balancing the need for investment with the concerns raised by the EU and the public.