Portugal: end of golden visas and tax exemptions

Launched in 2012 in the wake of the financial crisis, the Golden Visa has enabled Portugal to attract foreign investment and bail out its economy. The golden visa has been a great success, enabling Portugal to attract nearly 6.8 billion euros in investment in 10 years, with almost 12,000 special visas awarded, mainly to Chinese, American and Brazilian investors.

The end of Golden Visa in 2023

Despite being a real opportunity for investors, this visa has resulted in soaring property prices, which have risen by more than 75% in ten years. For the Portuguese, it has become very difficult to live and buy in the big cities in the face of wealthy foreign investors.

The government decided to stop this golden visa program to protect its market and curb real estate speculation.

For investors, we can therefore expect a slowdown in the Portuguese market over the coming year.

From 2020: no more tax exemptions for “non-habitual residents”.

One of the features that has made Portugal so attractive to Europeans since 2009 has been the tax benefits available to those with RNH (Non-Habitual Resident) status. This status enabled EU nationals wishing to expatriate to Portugal to benefit from a tax reduction or exemption on their income or retirement pension.

Until 2020, retirees with RNH status could take advantage of a tax exemption on their income for 10 years. In February 2020, however, Portugal introduced a new law imposing a minimum tax rate of 10% on the income of foreign pensioners.

These measures – tax exemption for RNH and Visa Doré – were both introduced at a time when Portugal needed foreign currency and capital following the 2008 financial crisis. Today, the country is putting an end to these measures, which have achieved their objectives. For buyers, this means exploring new opportunities in other countries open to foreign investment.

In search of new opportunities

In this context, it’s worth looking for other opportunities. This is why, in 2023, Osiris Investissements has decided to diversify its investment destinations with Cambodia: a new destination in Asia that will replace Portugal in our selection of the best investment countries.

Cambodia is a Southeast Asian country with economic growth averaging 7% / year between 2000 and 2019. In the wake of the COVID crisis, the country is seeking to develop responsible tourism and infrastructure in the country’s most important cities, such as Phnom Penh, the capital, and Siem Reap, home to the UNESCO World Heritage temples of Angkor Wat.

For people looking to invest in rental property abroad, Southeast Asia is a good destination for diversifying their assets, both in currency (Cambodia uses the US Dollar) and geographically.

Don’t hesitate to write to us or ask for a private appointment with an advisor to find out more!