Antonio Costa's executive has suspended the "Golden Visa" scheme, which grants residence authorization in exchange for investments, and has banned new licences for tourist apartments, except in uninhabited rural areas.

Both measures are part of a plan approved by the Council of Ministers on Thursday to deal with the housing crisis in Portugal. One of the axes of this plan is "combating property speculation", says Prime Minister Antonio Costa.

Thus, the country will no longer give "Golden Visa" to investors who since 2012 were awarded for the purchase of properties, large investments or "job creation".

Concerning the visas already approved, Costa states that if the investment or housing is sustainable for the investor or his descendants it will only be renewed if the investment or housing is rented in a "sustainable" way.

Since the creation of the program in 2012, Portugal has granted 11,535 residence permits with the "Vista Gold". This has meant an investment of EUR 6.754 million for the Portuguese economy.

Restrictions on tourist housing

Other measures adopted on Thursday aim to improve the control of the supply of tourist accommodation called "local accommodation" (AirBnb and the like) to increase the supply of homes for rent.

The Prime Minister has explained that the government will ban the granting of new licences, except in rural areas where the municipalities of the interior "lack urban pressure and are important factors in financing the economy".

Licences granted will be reviewed in 2030 and regular evaluations will be carried out every five years thereafter. The owners of these accommodation will have to pay an extraordinary fee to finance housing policies and will enjoy tax benefits for those who until 2024 pass their tourist home to the home rental market.

Costa acknowledges that local housing "had a great capacity for urban dynamization and job creation". He adds that he does not believe that this measure could affect the tourism sector as one of the economic motors of the country: "We cannot kill the hen of golden eggs".

Other measures

The Government has adopted other measures to increase housing supply, such as land use change and buildings for services or trade. In addition, the State will transfer land or buildings to cooperatives and private sector entities to develop their housing at affordable costs.

In order to promote rental, the Portuguese State offers a rental at market prices of the properties available for five years, assuming the risk of the owner. If the existing rentals are not paid within a minimum period of three months, it will take them on board and try to solve the tenant's situation if there is a social problem or, where appropriate, take care of the eviction.