Portugal is struggling to shake off its reputation as one of Europe’s most welcoming countries to immigrants, with its right-wing government taking the ax to yet another scheme previously designed to attract foreign workers.
Authorities have scrapped the “show of interest” mechanism in Portugal’s visa rules, which had allowed hundreds of thousands of migrants to gain residency in the country with relative ease.
“Showing Interest”
Under this clause, non-EU citizens were allowed to come to Portugal without an employment contract before they could apply for a residence permit after paying their annual social security payments.
It was the perfect accommodation option for digital nomads who would pay social security while working remotely in Portugal.
It was also a popular option for workers in lower-paid and more precarious industries who may have had difficulty finding work before arriving in the country. Reuters reportsciting research from the Migration Observatory.
Proponents of Portugal’s simplified path to residency say it has helped bring more people into the country’s legal economy, allowing them to immediately contribute to the tax system while seeking more permanent arrangements.
Opponents blame Portugal’s housing crisis on the influx of foreigners, a charge disputed by the left.
About 14% of taxpayers in the country are migrants, who contributed 1.6 billion euros ($1.7 billion) to the Portuguese economy in 2022. By comparison, they received 257 million euros ($280 million) in social security benefits.
Portuguese Prime Minister Luis Montenegro is fiercely opposed to immigration, an issue that has galvanized right-wing parties across Europe.
“We need people in Portugal who are willing to help us build a fairer and more prosperous society,” he said. “But we can’t go to the other extreme and have the door wide open.”
The government will create new visa loopholes that will give priority to certain people, including those from Portuguese-speaking countries, students and highly skilled workers.
Portuguese outlet Publico Immigrants from countries such as India, Nepal and Bangladesh will reportedly be most affected by the changes.
Montenegro says there are currently 400,000 pending regularization processes, which the government is expected to handle by hiring more staff and creating a special task force.
Changes in migration policy in Portugal
Since taking power in April, Montenegro has accelerated its agreed program to combat immigration to Portugal.
Last year, the country scrapped much of its golden visa program, which previously allowed foreigners to gain residency by purchasing properties worth at least 350,000 euros ($380,000) in popular cities such as Porto and Lisbon.
Later that year, lawmakers announced that in 2024 they would scrap the non-habitual residence (NHR) tax scheme, which allowed foreigners to reside in the country for up to 10 years while paying a flat 20% income tax. This is believed to have caused a wave of residency applications before the scheme was closed.
It was hoped the policy would stop wealthy citizens pushing Portuguese locals out of the housing market, as a Migration Observatory report found young workers were increasingly holding down two jobs or leaving the country altogether in search of a more affordable life.
However, the latest policy appears to be targeting low-skilled migrant workers who will face another barrier to entry into the country, while early data shows house prices in Lisbon continue to outpace their European counterparts.