Portugal Has Ceased To Be Considered As One Of Europe\’s Most Hospitable Destinations For Foreigners.
Portugal is in the process of reevaluating its immigration policies in an effort to distance itself from the perception of being one of Europe\’s most hospitable destinations for immigrants. Led by its right-leaning government, the country has recently eliminated the \”manifestation of interest\” mechanism, which had previously streamlined the residency process for non-European Union citizens.
Modifications to Residency Regulations:
The \”appearance of intrigued\” arrangement empowered non-EU nationals to enter Portugal without securing a work contract in development. After fulfilling social security contributions for a year, they could apply for residency. This option gained significant traction among digital nomads, who contributed to the social security system while engaging in remote work from Portugal, as well as among individuals in lower-wage sectors who may have encountered difficulties in obtaining employment before their arrival.
Proponents of this residency pathway contend that it has facilitated the integration of more individuals into Portugal\’s formal economy, enabling them to contribute to the tax system while transitioning to more stable employment. Conversely, detractors have associated the increase in foreign workers with Portugal\’s persistent housing crisis, a claim that is disputed by those on the left.
The government is aiming to enhance immigration management by implementing new selection criteria that will give priority to specific groups. These bunches comprise of people from Portuguese-speaking countries, understudies, and exceedingly talented workers. Agreeing to reports from the Portuguese distribution Publico, workers from nations such as India, Nepal, and Bangladesh will encounter the most critical affect due to these alterations. Portugal currently has approximately 400,000 pending regularization procedures. In order to tackle this backlog, the government plans to recruit additional personnel and establish a dedicated task force.
Wider Policy Changes:
Ever since taking office in April, Prime Minister Montenegro has expedited efforts to strengthen immigration policies. Last year, Portugal dismantled significant parts of its golden visa program, which allowed foreigners to gain residency by purchasing property valued at least €350,000 ($380,000) in popular cities like Porto and Lisbon. Additionally, lawmakers announced plans to end the non-habitual residency (NHR) tax scheme in 2024, which offered foreigners a flat income tax rate of 20% for up to 10 years.
The objective of these measures is to deter affluent foreign individuals from inflating property prices, thereby ensuring housing remains accessible for local Portuguese residents. Nevertheless, the recent policy modifications appear to specifically affect low-skilled migrant workers, imposing additional barriers to their entry into Portugal. Despite these alterations, preliminary evidence indicates that property prices in Lisbon are still increasing at a rate surpassing that of other European cities, underscoring persistent difficulties within the housing market.
