The Portuguese government is reportedly considering a significant upgrade to its Golden Visa program. At the heart of these plans are tax incentives designed to make the country even more attractive to international investors—especially at a time when other European nations are scaling back or discontinuing similar programs.
Background: Portugal’s Golden Visa Program
Portugal’s Golden Visa is considered one of the most prestigious residency programs in Europe. In exchange for a minimum investment of €500,000, non-EU citizens can obtain a residence permit—with an option for permanent residency and even citizenship. Just last year, the number of approved applications jumped by a remarkable 72%—a clear sign of the continued strong demand, particularly from the US and China.
Planned Changes for Portugal’s Visa Program: Tax Incentives for New Residents
According to Antonio Leitao Amaro, Minister of the Presidency, the government is currently considering reforms that could provide tax relief for both local and international investors:
- A flat income tax rate of 20% on domestically generated income
- A ten-year exemption from taxation on foreign income
This arrangement would resemble the previous NHR (Non-Habitual Residency) program, which was in effect until 2023 and made Portugal a tax haven for expats for many years.
Context: Search for an NHR Successor System
The end of the popular NHR regime recently caused unrest in the market. International professionals, freelancers, and retirees in particular felt uncertain. A new “NHR 2.0” system was introduced, but doubts remain whether Portugal can maintain its position as an attractive tax destination in the long term. The new Golden Visa approach could provide an answer to this—especially in the context of Europe’s tougher climate.
International Developments: Withdrawal of Other EU Countries
While Portugal continues to welcome investors, other countries are taking the opposite course:
- Spain abolished its Golden Visa program entirely in April 2025, following increased criticism over rising property prices and social unrest.
- The Netherlands, Ireland, and the United Kingdom ended their programs between 2022 and 2024, mostly for security or equity policy reasons.
Portugal, on the other hand, is currently benefiting from this development, as it is one of the last EU states to offer a comprehensive Golden Visa program.
Economic Benefits and Political Criticism of the Portugal Golden Visa Program
The economic case for the program is straightforward: foreign direct investment, particularly in real estate, drives growth and boosts revenues. In 2024 alone, nearly 5,000 new Golden Visas were issued—a record number.
But criticism persists. Opponents point to:
- the social inequality such programs promote,
- the rise in real estate prices in popular regions like Lisbon, Porto, or the Algarve,
- and potential risks of money laundering and tax evasion.
This is not a new point of contention—and in other countries, it has already prompted political change.
Portugal as an Exception: Opportunities for Savvy Investors
While most EU countries are taking a more restrictive approach, Portugal could become the last stronghold for investors looking to settle in Europe and secure tax advantages at the same time. Particularly against the backdrop of geopolitical uncertainties and tightening regulations elsewhere, interest remains high.
With a mix of tax breaks, high quality of life, and political stability, Portugal continues to be on the radar of numerous high-net-worth individuals, entrepreneurs, and expats.
Conclusion
The Portuguese Golden Visa program may be on the verge of a golden comeback. Should the government put its tax plans into action, new and highly attractive opportunities could open up for foreign investors—without the uncertainty faced in other EU countries. Those thinking long-term might want to seize the moment before new regulations arrive or demand exceeds supply.
Book a free initial consultation now: https://www.drwerner.com/de/weiteres/terminvereinbarung/
Note: This article is for general information purposes and does not constitute tax or legal advice. For an individual assessment of your situation, we recommend consulting a tax advisor or specialist lawyer.