Investments in real estate and capital transfers are responsible for 100% of the Golden Visas issued so far, a disappointment to the government minister in charge, but good news for Portugal's real estate sector which has benefitted from an influx of high rollers.
The allocation of Golden Visas under the Residence Permit for Investment Activity in Portugal programme can be made if certain requirements are met - the acquisition of property of a value equal to or greater than €500,000, the transfer of €1 million of more of capital and the creation of at least 10 jobs.
According to data provided by the Office of the Deputy Prime Minister, Paulo Portas, up to the end of last year 471 Golden Visas were issued of which 440 qualified as the applicant had bought real estate, the remaining 31 were granted as the applicant had transferred a chunk of capital to Portugal.
The amount of money inbound was €306.7 million, with 80% of this amount resulting from the purchase of property and 20% from the transfer of savings and assets to Portugal. None were granted under the job creation option.
Asked by impertinent journalists about the failure of the job creation scheme, the deputy prime minister Paulo Portas downplayed the situation by saying that the investments already made would create jobs. Portas added that the Golden Visa job creation category was not really suitable for businessmen setting up shop in Portugal as there are more suitable alternative schemes. Portas was referring to the incentives available from the Agency for Investment and Foreign Trade of Portugal and added that in case of people buying houses of over €500,000 this would create “other job opportunities.”
The Deputy Prime Minister, a master in the devilish use of statistics, said that there had been a positive impact on the high end property market which had been in a very critical situation, and that according to 'some technical studies' which he did not name, "Golden Visa purchases contributed in 2013 to an increase of more than 40% of transactions in the sector."
The Job Creation option in many ways was the easiest of the three options for those wanting unlimited travel in much of Europe and excellent income tax concessions.
The criteria are that the applicant creates a minimum of 10 jobs with no minimum investment value stipulated, and no limitation on business areas or activities as long as social security rules are followed. There is even a note to say that grants are available for busnesses in certain sectors yet not one business has been set up.
Maybe the deputy Prime Minister may wish to dwell on why this part of the Golden Visa plan has failed rather than dismiss questions as irritants to his serentity.
