Rapid Growth of the Golden Visa Program
Recently, the Portuguese Association of Real Estate Developers and Investors stated that since Portugal launched its "Golden Visa" program—which grants residency in exchange for real estate investment—a year and a half ago, the country has attracted £300 million (approximately $460 million) in foreign investment. The association expects foreign investment flowing through the Golden Visa program to grow sharply this year.
BBC reporter Roberts reported from Lisbon that the Portuguese government is expected to attract £410 million (approximately $690 million) in foreign investment through the Golden Visa program this year, and the Portuguese Association of Real Estate Developers and Investors expects this figure to be even higher. In October 2012, the Portuguese government officially launched the Golden Residence Permit program, allowing non-EU citizens to obtain Portuguese residency by purchasing real estate worth €500,000 or more, attracting numerous entrepreneurs and investors, including wealthy Chinese individuals, to apply.
Chinese Investors Lead the Way
Portugal's Golden Visa requires meeting a minimum residency period in Portugal each year. Generally, this requirement is met by residing in Portugal for 7 days in the first year and 14 days every two years thereafter. After 5 years, one can apply for permanent residency, and after 6 years, one can apply for citizenship. To date, 542 foreigners have obtained Portuguese residence permits through the Golden Visa program, the majority of whom are Chinese. While Portugal is not the only country in the EU with a similar visa program to attract foreign capital, its Golden Visa program has been particularly successful.
At the same time, China is also another source of funding for Portuguese investment projects. In recent years, China Three Gorges Corporation and State Grid Corporation of China have successively acquired shares in Energias de Portugal (EDP) and Redes Energéticas Nacionais (REN).
Advantages of Investing in Europe Become Prominent
Currently, there are two main categories of countries for global investment immigration: one includes investment immigration to countries like the United States and Canada, and the other includes European property investment immigration to countries like Portugal, Greece, Spain, and Cyprus. As traditional immigration countries tighten their policies, European property investment immigration is on the rise.
A common feature of these European countries' immigration policies is that their domestic economies have been significantly affected by the European crisis, and they are eager to boost their real estate markets and stimulate overall economic recovery through foreign capital. Furthermore, in these countries, property prices have largely hit rock bottom over the past few years, making it an excellent time to buy at the bottom. In particular, countries like Portugal, Greece, and Spain have pleasant climates, are surrounded by mountains and the sea, and are world-renowned vacation and tourist destinations; these conditions provide greater room for property price appreciation. For Chinese investors, purchasing property in these European countries not only allows them to obtain residency status, enjoy superior natural and living environments and welfare benefits, and provide their children with a high-quality European education, but it also opens a door to doing business and expanding their careers across Europe and the Americas.
