Portugal's Golden Visa reforms spark investor pullout as housing aid faces IMF critique

Investment funds linked to Portugal's Golden Visa program have reported a sharp surge in redemption requests, with some noting a doubling of withdrawals within days. The surge follows the government's proposal to extend the residency period required for citizenship from five to ten years and to count the residency clock only from the issuance of the residence permit, measures that could slow the programme's appeal to foreign investors. The reform proposal is still under parliamentary debate and has not yet been voted on.

Separately, the International Monetary Fund warned that recent Portuguese housing measures—such as a reduced VAT rate on certain new homes, tax incentives for landlords offering moderate rents, and a state guarantee covering up to 100% of mortgage loans for first‑time buyers aged 18‑35—could unintentionally lift property prices and raise household debt. The IMF urged the government to focus on structural reforms rather than expanding fiscal incentives to address the housing shortage.