The number of Golden Visas granted in December last year was half that of November with estate agencies blaming the corruption allegations against those running the scheme.
Only 86 of the valuable Golden Visas were granted in the same month that 11 people involved in administering the scheme were arrested on suspicion of corruption, money laundering, influence peddling and embezzlement.
The drop of demand from foreign investors in high end property has been led by the Chinese who represent 80% of those granted Golden Visa since the scheme began.
Luís Lima, president of estate agency membership association APEMIP, said that Chinese investors are displaying some apprehension especially after the Minister of Internal Affairs Miguel Macedo resigned over the affair, but Lima blames the slowdown on delayed decisions rather than people going elsewhere.
Miguel Poisson, the head of ERA Portugal, said that if it were not for the BES and Golden Visa scandals, Visa-related sales would have grown 25% last year compared to 2013 instead of the 9%-15% experienced.
Since the Golden Visa programme was launched in October 2002, fronted by deputy prime minister Paulo Portas, a total of 2,022 permits have been issued which has helped estate agents shift properties in the €500,000+ category.
When the scheme ran into trouble Portas distanced himself from the politicial fallout but will be taking all the credit again should the figures pick up.
It is not yet known how much was paid out in bribes by those paid to administer the Golden Visa process but the head of the Borders and Foreigners Service, among others, is awaiting trial for taking full advantage of the scheme for his own personal benefit.
