Purchasing property and obtaining a visa—this "Golden Visa" launched by Portugal a year ago is quite attractive to wealthy Chinese individuals. In addition to owning a property in a beautiful coastal area, the "Golden Visa" also guarantees them the ability to travel or conduct business freely across Schengen countries.
The Eurozone crisis has led to a bleak real estate market in Portugal, with property prices dropping by 30%. A year ago, the Portuguese government launched a project to attract investors: as long as they purchase a property worth over 500,000 euros in Portugal and hold it for at least five years, investors can obtain residency permits in Portugal. Currently, the majority of investors participating in this project are Chinese, followed by investors from Brazil, Russia, and Angola.
Recent data released by the Portuguese Ministry of Foreign Affairs shows that to date, the project has issued residency permits to 356 individuals, with a total investment of 222 million euros. The project is currently running well, and future investments are expected to grow rapidly. There are still 300 new residency applications under review. Including the existing investments, the total investment will reach 600 million euros, with almost all applications expected to be approved. According to government data, the investment amount in a single week in November reached 15 million euros. Based on this calculation, the annual investment could reach 800 million euros.
A 35-year-old Chinese businessman plans to move into a modern apartment in Lisbon with his wife and son. This way, their son can attend an English school in Lisbon. The educational demands of Chinese schools are too high for children, so this couple wants their son to receive an education in Europe. Another reason is the price. In Lisbon, 500,000 euros can buy a three-bedroom apartment with an area of 130 square meters, while in Beijing or Shanghai, properties in good locations are even more expensive.
Most Chinese investors do not wish to settle in Portugal but rather want to use their visas to conduct business in other European countries, traveling freely among the 26 Schengen countries. There are two other ways to obtain the "Golden Visa": one is to invest over 1 million euros, and the other is to create 10 jobs. However, 80% of Chinese clients choose to purchase real estate.
Since the crisis, Portugal's GDP has shrunk by 4%, and real estate prices have declined by about 30%. In May 2011, Portugal received a bailout fund of 78 billion euros and implemented a series of measures. With the overall improvement of the European economy, signs of recovery have begun to appear in the Portuguese real estate market.
