Portugal has taken a significant step in tightening its immigration policies by eliminating the ‘manifestation of interest’ clause, a move that will impact many non-EU citizens seeking residency in the country. This decision is part of a broader crackdown on immigration by the right-leaning government.
Key Takeaways
- Portugal has revoked the ‘manifestation of interest’ clause in its visa rules.
- The clause allowed non-EU citizens to apply for residency after a year of social security payments.
- The change is expected to affect digital nomads and low-skill workers the most.
- The government plans to prioritize visas for individuals from Portuguese-speaking countries, students, and high-skill workers.
- Around 14% of taxpayers in Portugal are migrants, contributing significantly to the economy.
Background
Portugal has long been considered one of Europe’s most welcoming countries for immigrants. The ‘manifestation of interest’ clause allowed non-EU citizens to come to Portugal without an employment contract and apply for residency after making a year of social security payments. This route was particularly popular among digital nomads and workers in lower-paying fields.
Economic Impact
Proponents of the easy residency route argue that it helped integrate more people into the legal economy, allowing them to contribute to the tax system immediately. In 2022, migrants contributed €1.6 billion ($1.7 billion) to Portugal’s economy while taking out €257 million ($280 million) in social security benefits.
Government’s Stance
Prime Minister Luis Montenegro has been vocal about the need to control immigration. "We need people in Portugal willing to help us build a fairer and more prosperous society," he said. "But we cannot go to the other extreme and have wide-open doors." The government plans to set up new visa loopholes that will prioritize certain individuals, including those from Portuguese-speaking countries, students, and high-skill workers.
Affected Groups
The changes are expected to have the most significant impact on immigrants from countries like India, Nepal, and Bangladesh. Currently, there are 400,000 regularization processes pending, which the government aims to address by hiring more staff and creating a special task force.
Policy Shifts
Since coming into power in April, Montenegro has accelerated a series of policy changes aimed at curbing immigration. Last year, Portugal scrapped large parts of its golden visa program, which allowed foreigners to obtain residency by purchasing property worth at least €350,000 ($380,000). The government also announced the end of the non-habitual residency (NHR) tax scheme, which allowed foreigners to reside in the country for up to 10 years, paying a flat income tax of 20%.
Future Implications
While the latest policies aim to control the influx of low-skill migrant workers, early indications show that house prices in Lisbon continue to outpace those in other European cities. The long-term impact of these changes on Portugal’s economy and housing market remains to be seen.
