Between December 2015 and January 2016, the issuing of Golden Visas to non-EU foreigners fell by 31% and real estate professionals are complaining that the scheme is discredited.
Luís Lima, the head of the Association of Professionals and Real Estate Companies (APEMIP) says the current scheme should be cancelled as it has picked up too many negative connotations.
Over the past three years the Golden Visas scheme largely has been responsible for the revival in the property market in Portugal, a market which was dead in the water from the very beginning of the recession.
Hundreds of estate agencies folded and the banks’ balance sheets began to fill up with unwanted properties, the result of hasty repossessions.
Since the Golden Visa scheme was launched by the then Deputy Prime Minister Paulo Portas at the end of 2012 property sales of €1.5 billion have been attributed to the Golden Visa scheme.
The current problem, according to APEMIP, is that there is no political will to sort out the scheme’s slothful administration.
In January this year the fall in the number of visas granted was 31% down from the month before, to just 65.
Luis Lima, president of APEMIP clearly is not satisfied with the situation and complains that "currently there is no party in government with whom we can discuss this matter. It seems that everyone is afraid of touching the Golden Visa issue."
Lima, clearly at his wit's end, goes further and suggests that "probably the best thing would put an end to the Golden Visa scheme, which currently has a certain 'toxic' connotation."
Luís Lima suggests that a name change might do the trick but the underlying problems simply are not being addressed,
"There is a total lack of dedication to the Golden Visa programme with cases of foreigners spending 10 to 12 months waiting for an answer."
Some Chinese applicants have been making official complaints about the system which leaves them hanging about in limbo, having to renew visas and cancel school places for children.
"It is obvious that this is not working in our favour. In fact, I'm seriously thinking about canceling a trip to promote Portuguese real estate in Asia and the Middle East because the credibility of the Portugese government is under question.”
Operation Labyrinth, the investigation into corruption and bribery within the scheme's administration, did not help Portugal's image and the current backlog of 4,000 applicants shows that Portugal's administrative abilities are as chronically slow as ever.
This scheme is easy to fix, but it appears that nobody in government is prepared to fix it.
