Real estate consultant says Gold Visas impair market fluidity in Portugal

Imovendo welcomes the measure announced by the European Parliament of wanting Gold Visas to end immediately in the countries of the European Union.

The real estate consultant Imovendo "applauds" the measure announced by the European Parliament this Monday, October 26th, in which it wants the Gold Visas to end immediately in the countries of the European Union (EU), considering that EU citizenship " it cannot be marketed as a commodity ”.

In a statement, the consultant explains that “this type of investment is not productive, not guaranteeing, in most cases, any type of positive externality, neither for the geographic area in which the property is located, nor for the real estate market, since it is not assumed as the driving force of the market as a whole ”.

Imovendo explains that the investment of Gold Visas structurally represents less than 3% of the volume of real estate business in Portugal (2,8% of the volume of transactions over the last four quarters), and its impact in terms of effect speculative is much higher, "impairing the absorption capacity of the real estate product by potential national buyers, with less purchasing power".

In addition, and in a general context of combating corruption, money laundering and tax fraud and evasion, the consultant points out that “Gold Visas are a vehicle that promotes this type of behavior”, given that the entities that would be responsible for the complaint of suspected cases “they hardly report any type of suspicion, since if they did, they would cease to act in this niche market”.

Imovendo understands that the end of Gold Visas in Portugal will allow prices to be adjusted in certain areas of the country, to values ​​“more in line with reality and national purchasing power”, as well as allowing absorption dynamics to be ensured more easily, both by domestic buyers and by international non-Visa Gold investors.

It should be remembered that in Portugal, the gold visa regime has been in force since 2012, but should end in Lisbon and Porto soon. The Government's decision to change the rules of this program was postponed because of the coronavirus pandemic, but the Executive will have the diploma ready by the end of 2020.

With this decision, foreigners who want to acquire a permit to live in Portugal through an investment in real estate will have to do so outside of large urban centers, since Gold Visas will only be given to those who decide to bet in the interior regions. .

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