Howdy, all. Reader, first time to submit anything. Family began the process with Fund investment in Q42021. Received prelim approval 4-5 months later. A year after that, Biometric appointment (so now, late Jan.). No further contact from SEF.
I have taken a slightly different path - to send my appeal to the Portuguese Ambassador to the U.S. Here is his address:
His Excellency Francisco Duarte Lopes
Ambassador of Portugal
Embassy of Portugal
2012 Massachusetts Ave NW
Washington, DC 20036
The verbiage on the various websites speak to the desire for increased business and exchange…the very opposite that the current shenanigans are achieving.
Here is text we sent.
Dear Ambassador Lopes,
I write you today to ask for your help and support in conveying our concerns regarding pending legislative changes to the ARI (“Golden Visa”) program announced by Prime Minister Antonio Costa under the guise of housing reform. In summary, these changes are both disingenuous and harmful both in their scope and retroactive nature, and impact families/investors who sought a Portuguese life - ours being one.
The legislative drafts that have been broadly reported this past week suggest an extensive and retroactive recasting of the program happening at a speed which erodes confidence in the overall investment environment in Portugal. One attorney observed: law that aimed to attract investment “can after all be revoked with retroactive effects, irreversibly affecting acquired rights, without any care for the legitimate interests of those who invested in national territory.”
While a nation always has the right to alter direction or strategy, a general expectation we hold is that in well-performing democracies where rule of law is present, major changes will be done methodically, with suitable transitions and due notices, and with an eye to continuity that respects the rights of individuals that have engaged under prior policy regimes.
The current proposal has none of these attributes.
In contrast, administrative changes implemented last year increasing investment thresholds and redirecting funds for real estate purchase to the interior of the country met a strategic goal and were astute and appropriate.
Dismantling the entire ARI program does not serve Portugal nor the many thousands that have invested time and money with a goal of earning the privilege of residency and citizenship in your wonderful nation.
The arguments tying the ARI investors to the rapid appreciation of real estate pricing are absurd; since 2012 – the date on which this Program was launched – and so far, 11,758 Residence Permits for Investment (ARI) have been issued in Portugal, of which 89% were for reasons of property acquisition (or about 10,500). Yet, in the year 2022 alone, 167,900 dwellings were transacted, 1.3% more than in 2021. In value, transacted dwellings totaled 31.8 billion euros, which represents an increase of 13.1% over the previous year. (Source: INE PT).
Just to illustrate the degree of absurdity, if one takes the entire number of properties purchased under ARI vs. just the 2022 number of transactions, it amounts to 7%. The assertion that the ARI program is a material contributor to the current housing supply/price crisis is simply invalid.
We are not money launderers or housing speculators. Our family thoroughly enjoys your country, its people, and culture. We hope to make it our own. We have traveled multiple times since 2009 (when our son was 8 years old), mostly in the northern region, and intend to visit again in December to include Madeira and some of the southern regions. Just one of our fond memories is of an evening dinner in a small village along the Douro. We had travelled most of the day; it was late and we were hungry, spoke little Portuguese and the restaurant owners spoke no English. Nonetheless, we were warmly welcomed, worked our way through the menu with their help and were served a wonderful dinner.
A simple thing, really, but it’s indicative of the nature of the Portugal we have experienced, as we found similar kindnesses where we traveled - and it has made a strong impression on us. When combined with your country’s stability, political balance, natural beauty, history, location, and other aspects - we had decided several years ago that we would strive to find an opportunity to move and live there.
The ARI turned out to be the answer. In July of 2021 we began the process of pursuing the ARI in accordance with the policies in effect. Of the various methods of qualifying investment defined in the ARI program, we chose to invest in the venture capital funds. Our participation, along with that of many others, is being used to fund and accelerate the process of growth for Portuguese firms - creating home-grown employment and business expansion.
Why would the government wish to retard that type of investment?
We have planned and hoped for the opportunity to complete the multi-year process and culminate it with taking the language exam and earning the privilege of citizenship. Despite numerous delays in processing (4 months for initial electronic pre-approval, then one year to the biometric appointment), our enthusiasm has not waned…until now. Meanwhile, our invested funds have been productively working for 18 months inside Portugal helping build businesses and now there is a possibility that the entire basis for our investment is about to be disbanded.
We feel disappointed and betrayed by process and politics.
To the degree you are able, our request is that you convey the negative impact of this proposed change to your legislative colleagues and urge them to rework the ARI model (if needed) vs. abandonment.
Thanks for sharing your letter!