In 2024, Portugal's golden visa program experienced a substantial increase, with a record 4,987 visas issued to main applicants and their dependents, according to data from the country's immigration agency, AIMA. This marks a 72% increase from the previous year and surpasses the previous peak of 4,029 approvals in 2017. The significant rise in applications comes as the Portuguese government is considering enhancing the program's incentives and addressing a substantial backlog of pending applications.

The discussions on enhancements follow Spain's decision in April to eliminate its golden visa program due to housing market concerns. Portugal's Minister of the Presidency, Antonio Leitao Amaro, has indicated that the government is exploring ways to strengthen the country's competitive position by enhancing both the golden visa program and expatriate tax incentives.

Amaro outlined the government's broader economic strategy, which aims to attract foreign investment and recruit global talent. The proposed measures are intended to bolster Portugal's image as an attractive investment destination. While specific details of the enhancements have not been disclosed, the government aims to organize the golden visa and tax programs in a more effective and economically efficient manner, ensuring that any changes remain fair both economically and socially.

Currently, AIMA is dealing with a backlog of nearly 45,000 golden visa applications. Amaro expects that by the end of the year, the majority of these applications will be processed. The minister emphasized that there are no plans to end the golden visa program, marking a reversal from the previous socialist administration, which had threatened to eliminate the program entirely and removed real estate investment as an eligible pathway in 2023.

Portugal currently operates a modified Non-Habitual Resident (NHR) tax regime, offering a 20% flat rate on employment and self-employment income. This regime excludes dividends, capital gains, and pension benefits, which were part of the original program that was eliminated in 2024. Golden visa holders do not automatically qualify for this tax regime.

While Portugal is looking to enhance its investor attraction capabilities, several European countries are moving in the opposite direction. The Netherlands, Ireland, and the UK have all closed their investor residency programs. Spain eliminated its golden visa in April, and Malta now faces uncertainty following the European Court of Justice's ruling against its citizenship by investment program. Meanwhile, the UK is considering reintroducing a different version of its investor visa.

Portugal's golden visa program continues to be a significant draw for investors and talent, despite the broader trend of closure among other European countries. The government's commitment to enhancing the program and clearing the backlog of applications signals a strategic effort to maintain and strengthen its position as a leading destination for foreign investment and talent.