The Government is studying incentives for migrating short-term local lodging to affordable long-term leases. It is not yet known how the Government plans to accomplish this objective. It may become possible to change the fiscal regime that requires the payment of capital gains when the property is no longer assigned to a professional activity and returns to the sphere of the owner.
In November of 2019, total investments from Residence Permits for Investment Activities (ARI) tallied €37 million, a decrease of 52% over the same month of 2018 (€77.1 million). Comparing to October, when new investments totalled €60 million, the decline was 38%. In November, 64 Golden Visas were issued, of which 61 were for property purchases and three for capital transfer. In the first 11 months of 2019, investments have totalled €698 million, down 6% from the same period a year earlier. By nationality, China continued to lead in the number of Golden Visas issued, followed by Brazil, Turkey, South Africa and Russia.
In 2018, births in Portugal stood at 87,000 while citizenship concessions rose to nearly 128,000. To date, 2019 statistics continue to reflect the same proportion: net growth in Portuguese citizenship continues to be due largely to the naturalisation of foreign residents.
The value of tax benefits to non-habitual residents keeps growing according to the “Tribunal de Contas” (National Audit Office). In 2018, there were €548 million in NHR exemptions granted to foreign pensioners. Nevertheless, this apparent tax giveaway would have never existed if the NHR regime had not attracted these foreigners to Portugal in the first place. For example, these pensioners paid almost €80 million to the state in Individual Income Tax (“IRS “) on non-exempt income. In addition, there are IMT, IMI and VAT levies which the Government collects above and beyond the scope of the Non-Habitual Residency scheme.