Goodbye to the Golden Visa in Spain: where does Portugal stand in this equation?

1.The End of Golden Visas in Spain
At the beginning of April 2025, the Spanish government officially announced the end of the Golden Visa program for real estate investment — a measure that caught many investors by surprise but had already been under discussion behind the scenes in political circles for some time. The decision was justified by Prime Minister Pedro Sánchez as a response to the growing housing crisis in Spain’s major cities.

Just like in Portugal, the scheme allowed non-EU citizens to obtain a residence permit by investing a minimum of €500,000 in real estate. The measure attracted thousands of investors and was especially popular in cities such as Madrid, Barcelona, and Valencia, as well as in tourist regions like the Costa del Sol and the Balearic Islands.

However, over the years and with the worsening real estate crisis, criticism of the program mounted. As a result, Spain joins the list of European countries that have opted to eliminate or reform their Golden Visa schemes, following the example of Ireland, the Netherlands, and — to some extent — Portugal, which also introduced significant changes to its program in 2023.

2.The Golden Visa Regime in Portugal – The Beginning:
Portugal launched its Residence Permit for Investment (ARI) program, better known as the Golden Visa, in 2012. The goal was straightforward: to attract foreign investment, boost the real estate sector, and create jobs at a time when the country was in dire need of external capital.

For over a decade, the program proved successful in attracting investment. According to official data, by September 2023, Portugal had granted over 12,000 residence permits under the scheme, generating a total investment volume of more than €7 billion. The real estate sector absorbed the vast majority of this amount, with Lisbon, Porto, and the Algarve standing out as preferred destinations for investors.

3.The End of the “Real Estate Option” for Golden Visas. Now What?
In response to social pressure and the housing crisis, the Portuguese government introduced a major reform of the program in 2023 as part of the “More Housing” legislative package. Among the main changes was the end of the possibility of obtaining a Golden Visa through the purchase of real estate — until then, the most commonly used mechanism.

However, the government is clearly still committed to encouraging foreign investment. As such, the program has shifted its focus to other forms of investment, such as:

• Capital transfers to investment funds;
• Investment in creating or capitalizing a company, combined with the creation/maintenance of jobs;
• Support for scientific research or cultural projects;
• Business creation and job generation in Portugal.

These changes aimed to refocus the program on economic development and innovation, moving it away from reliance on the real estate sector and signaling a new phase for the Portuguese scheme.

4.What to Expect Going Forward? What New Solutions Could Emerge?
The end of Golden Visas in Spain and the restructuring in Portugal reflect a shift in how European countries view international investor mobility, driven by social concerns such as the housing crisis.

In the short term, a drop in foreign investment in real estate is expected in both countries, especially in high-end segments.

However, this decline could also create space for new opportunities. The pivot to more diversified investment through funds, innovation, and business creation may now represent a new phase of more balanced growth, with an impact on strategic sectors and greater long-term value creation.

Indeed, despite the changes to the program, mobility will continue to play a key role in shaping public policy. In our view, the question now is not so much whether we should attract foreign investment to Portugal, but how to do it.

From the investor’s point of view, Golden Visas remain an attractive route for those seeking qualified entry into Europe, offering legal residence, Schengen mobility, and potentially access to citizenship. Portugal remains a top destination thanks to its political stability, quality of life, and an investment-friendly environment (real estate and business alike), and it continues to aim to attract foreign capital.

Jéssica Ramos | Joana Mil-Homens
MATLAW