The weekday streets are quiet in the mountain town of Caramulo, the calm broken only by the growl of a sports car or the rattle of a vintage vehicle heading to the auto shop. But the town’s museum is busy with visitors wandering through packed displays of art, cars and World War II tanks.
Salvador Patrício Gouveia’s great-grandfather Jerónimo Lacerda founded Caramulo in 1921 as a sanatorium resort. His grandfather and great uncle created the Museu do Caramulo in the 1950s. But a couple of years ago, the museum was struggling. Caramulo is remote, and few tourists made the three-hour drive from Lisbon. With annual revenues of €2 million ($2.3 million), the museum barely covered its maintenance costs, Patrício Gouveia said.
The turning point came during a Christmas lunch in 2023, when Patrício Gouveia first learned the museum could qualify for donations via Portugal’s golden visa program, which allows foreigners to acquire residency in exchange for investments or philanthropic giving. “I sat there with my ears up thinking this would finally allow us to do really ambitious things,” said Patrício Gouveia. Now, the museum has a poster displaying a list of donors from countries including China and the US. In just two years, the museum has raised more than €20 million. “It was a complete game changer,” he said.
Portugal’s golden visa program was launched in 2012, during the country’s financial crisis. The scheme initially allowed foreigners to qualify by investing at least €500,000 in a property in Portugal. That option ended in 2023 after it was blamed for stoking a housing crisis in what has since become Europe’s hottest property market. Other European countries have abandoned or cut back their programs, but Portugal’s has been redirected to new investment routes.
Most golden visa investors now opt either for a minimum €200,000 donation to a cultural non-profit organization, such as the Museu do Caramulo, or for an investment of at least €500,000 in an approved investment fund. In 2024, the first full year since the government scrapped the real estate option, golden visa approvals jumped 72% to a record 4,990. For places like Caramulo, it’s been a roaring success, bringing in money and visitors. But elsewhere, the program’s design has raised questions about whether the cash would be better spent on healthcare, schools and infrastructure.
“It would be interesting to see some of these funds being used to improve sectors of the economy that face serious difficulties,” said João Duque, a finance professor at the University of Lisbon’s School of Economics and Management. “We need better hospitals, schools and affordable homes to fix a housing crisis.”
Portugal’s golden visa program has raised more than €7 billion since it was created more than a decade ago. The bulk of that money went into real estate, helping to transform the capital Lisbon from a quiet, aging city dotted with crumbling buildings into one of Europe’s most sought-after real estate destinations.
“It was very important to help Portugal recover from a situation that was terrible,” said Paulo Portas, who as foreign minister in 2012 launched the golden visa. “It’s a good tool to attract investment.”
European countries including Spain, Greece and Cyprus launched similar programs modeled on the Portuguese real-estate driven approach, with Greece opting for an even lower entry point to €250,000 to undercut Lisbon. Portugal quickly became one of the most popular destinations as real estate prices were relatively lower than in other European countries and because applicants only need to spend a week per year in the country to qualify for the visa, which offers a pathway to EU citizenship.
But the surge in demand drove up property prices in cities including Lisbon, Porto — Portugal’s second largest city — and other coastal hotspots. Foreigners from outside the EU typically bought homes for about double the value paid by Portuguese buyers, while an EU Tax Observatory study found that properties at the €500,000 threshold sold at a 10-15% premium. A continued mismatch between rising demand and low supply means Portugal has experienced the worst decline in housing affordability among OECD countries over the past decade.
In 2023, thousands of people took to the streets of Portugal’s main cities to protest against rising housing costs and soaring rents. The then-socialist government responded by dropping real estate from the golden visa program to cool prices, expand rental supply and promote investment elsewhere, arguing that capital would be better directed toward productive sectors and job-creating ventures.
Across Europe, countries are tightening or abandoning their golden visa programs. Spain scrapped its version in April, with Prime Minister Pedro Sánchez’s government blaming it for surging house prices. Ireland and the Netherlands have closed their golden visa programs to new applicants, while Malta’s so-called golden passport was ruled illegal earlier this year by the European Court of Justice. Greece recently increased its golden visa investment threshold to €400,000, or €800,000 in prime areas like Athens or the islands of Mykonos and Santorini.
Portugal’s center-right government insists it won’t follow suit, even as doubts grow over whether residency-for-cash delivers meaningful benefits for locals. Officials have promised “economically and socially fair” reforms, but critics say the program still funnels money into passive investment with little impact on jobs, innovation or long-term growth.
For those seeking a return on their capital, the most common golden visa route is now through fund investments. To qualify, these funds must allocate more than 60% of their resources to domestic assets such as bonds, stocks, or local projects, including farming and solar energy initiatives. At €500,000, that’s still significantly lower than the $1 million price tag on President Donald Trump’s proposed US “gold card” residency permit.
US nationals made up the biggest group of recipients of golden visas in 2024, followed by Chinese and Russian nationals, according to a report by Portugal's immigration agency AIMA, published on Thursday.
Pela Terra, a Lisbon-based fund, uses golden visa capital to grow almonds and olives on 3,000 hectares of land in Portugal. It’s raised more than €75 million across two funds from investors in 27 countries. Their pitch is sustainable farming that generates returns while revitalizing rural areas. For investors like Jim Davidson, an American who bought into Pela Terra, that community angle is what sold him.
“You’re making a commitment of capital to a fund that invests in agriculture, things that help grow the country,” said Davidson, a resident of Denver, Colorado. “I decided to invest because it will also give me Portuguese residency if one day I decide to live in Europe.”
Some of the golden visa funds flow directly into the stock market. Pedro Lino, chief executive officer of Optimize Investment Partners, an asset manager with a golden visa fund that invests in Portuguese stocks and bonds, says some clients prefer this route to real estate because “you don’t have to spend time house hunting.” He estimates those investments account for about 2% of the free float in Lisbon’s stock market.
But some have questioned the broader economic impact of channeling golden visa investments into public markets, noting that even fully compliant funds may allocate capital to assets such as US equities or cryptocurrency-linked products. Others appear more real estate-adjacent, targeting sectors such as hospitality — short-stay apartments or hotels — or businesses operating food and retail stores.
“Governments are getting tired of the golden visa issue because the market keeps finding loopholes,” Stephan de Moraes, founder of venture capital firm Indico Capital Partners, said. De Moraes is pitching his funds as an answer to criticism that the money flows into unproductive assets, by offering investors exposure to AI startups and tech firms. “I still believe the golden visa program is a good program and it will work, I’m just worried that there’s going to be another political backlash against the whole thing,” he said.
Making donations in exchange for residency rights requires less up-front capital, but no financial returns on investment. For some in the golden visa program, they offer a better way to build links with local communities, however.
“It seemed like some of the funds were just run by a bunch of rich kids,” James Davis, a geologist in the oil and gas business in Texas, told Bloomberg. “I definitely saw a better connection in doing something like a donation rather than investing in a fund.”
Earlier this year, Davis donated €250,000 to the Ricardo Espírito Santo Silva Foundation, which runs a museum of decorative arts and a school that teaches and preserves traditional craftsmanship. The investment will go toward restoring wood furniture in the foundation’s 17th-century Azurara Palace on a hill in Lisbon overlooking the river Tagus.
By getting residency rights in Portugal, Davis says he’ll have options if things turn sour in America. “I wanted a plan B as there is political risk in the US,” he said. The 51-year-old said he’s also proud to think that his donation will have an enduring impact. “The money is gone, but it will have a lasting impact on the foundation and that’s really important,” he said.
There are currently 17 cultural projects eligible for golden visa donations, according to a list published by the government. Some in Portugal think that this philanthropic money could be better directed to areas that more directly address the country’s social challenges.
While Portugal’s economy is expanding faster than the euro area average, it remains one of Western Europe’s poorest nations. The public health system is chronically underfunded and plagued by staff shortages, while government schools struggle with overcrowded classrooms and outdated facilities. Public housing accounts for only about 2% of total stock, one of the lowest shares in the region.
“Clearly some of the money could be used to improve the lives of ordinary people in cities like Lisbon, where rising living costs are squeezing out locals,” said Isabel Sá da Bandeira, head of People Live Here, a campaign group that advocates for ordinary Lisbon residents. “We need better schools, hospitals and green spaces.”
Sara Rebolo is part of a group of lawyers who want to see affordable housing added to the list of golden visa options. She founded Prime Legal, a law firm that provides legal support to applicants. “There’s a lot of potential in terms of attracting investment and direct financing for Portuguese projects,’’ she said. “I think the program will last a long time, but there’s a chance it will have to change in order to adapt to the needs of the country and society.”
But in Caramulo, Patrício Gouveia, an avid collector of everything from toys, vintage posters to World War II artifacts, said that the golden visa money has turned around the fortunes of the town, which might otherwise have been left to wither.
The museum has had structural renovations, has bought some new tanks and other wartime vehicles — and buildings to house them. It now has the funds to properly maintain more than 200 vehicles, including a super rare Bugatti 35B and the 1971 Lamborghini Miura P400 SV. A toy museum is also in the works.
The golden visa funds have helped Museu do Caramulo arrange the shipment of a historic collection of Formula 1 cars belonging to Emerson Fittipaldi, a two-time Formula 1 Champion from Brazil. Fittipaldi visited Caramulo for the first time in 2022.
The buzz around the museum has attracted record numbers of visitors to the town, which has a population of just 1,000. In September, 50,000 people attended the Caramulo Motor festival, clogging the town’s narrow streets with cars and motorcycles. Museum attendance hit 60,000 in 2024, with more growth expected this year.
“Don’t forget that Caramulo is on the way to nowhere and the golden visa money is staying right here for future generations to enjoy,” Patrício Gouveia said. “It’s an opportunity that will never repeat itself. Either we grab it with both hands or we risk being left behind.”
Salvador Patrício Gouveia’s great-grandfather Jerónimo Lacerda founded Caramulo in 1921 as a sanatorium resort. His grandfather and great uncle created the Museu do Caramulo in the 1950s. But a couple of years ago, the museum was struggling. Caramulo is remote, and few tourists made the three-hour drive from Lisbon. With annual revenues of €2 million ($2.3 million), the museum barely covered its maintenance costs, Patrício Gouveia said.
The turning point came during a Christmas lunch in 2023, when Patrício Gouveia first learned the museum could qualify for donations via Portugal’s golden visa program, which allows foreigners to acquire residency in exchange for investments or philanthropic giving. “I sat there with my ears up thinking this would finally allow us to do really ambitious things,” said Patrício Gouveia. Now, the museum has a poster displaying a list of donors from countries including China and the US. In just two years, the museum has raised more than €20 million. “It was a complete game changer,” he said.
Portugal’s golden visa program was launched in 2012, during the country’s financial crisis. The scheme initially allowed foreigners to qualify by investing at least €500,000 in a property in Portugal. That option ended in 2023 after it was blamed for stoking a housing crisis in what has since become Europe’s hottest property market. Other European countries have abandoned or cut back their programs, but Portugal’s has been redirected to new investment routes.
Most golden visa investors now opt either for a minimum €200,000 donation to a cultural non-profit organization, such as the Museu do Caramulo, or for an investment of at least €500,000 in an approved investment fund. In 2024, the first full year since the government scrapped the real estate option, golden visa approvals jumped 72% to a record 4,990. For places like Caramulo, it’s been a roaring success, bringing in money and visitors. But elsewhere, the program’s design has raised questions about whether the cash would be better spent on healthcare, schools and infrastructure.
“It would be interesting to see some of these funds being used to improve sectors of the economy that face serious difficulties,” said João Duque, a finance professor at the University of Lisbon’s School of Economics and Management. “We need better hospitals, schools and affordable homes to fix a housing crisis.”
Portugal’s golden visa program has raised more than €7 billion since it was created more than a decade ago. The bulk of that money went into real estate, helping to transform the capital Lisbon from a quiet, aging city dotted with crumbling buildings into one of Europe’s most sought-after real estate destinations.
“It was very important to help Portugal recover from a situation that was terrible,” said Paulo Portas, who as foreign minister in 2012 launched the golden visa. “It’s a good tool to attract investment.”
European countries including Spain, Greece and Cyprus launched similar programs modeled on the Portuguese real-estate driven approach, with Greece opting for an even lower entry point to €250,000 to undercut Lisbon. Portugal quickly became one of the most popular destinations as real estate prices were relatively lower than in other European countries and because applicants only need to spend a week per year in the country to qualify for the visa, which offers a pathway to EU citizenship.
But the surge in demand drove up property prices in cities including Lisbon, Porto — Portugal’s second largest city — and other coastal hotspots. Foreigners from outside the EU typically bought homes for about double the value paid by Portuguese buyers, while an EU Tax Observatory study found that properties at the €500,000 threshold sold at a 10-15% premium. A continued mismatch between rising demand and low supply means Portugal has experienced the worst decline in housing affordability among OECD countries over the past decade.
In 2023, thousands of people took to the streets of Portugal’s main cities to protest against rising housing costs and soaring rents. The then-socialist government responded by dropping real estate from the golden visa program to cool prices, expand rental supply and promote investment elsewhere, arguing that capital would be better directed toward productive sectors and job-creating ventures.
Across Europe, countries are tightening or abandoning their golden visa programs. Spain scrapped its version in April, with Prime Minister Pedro Sánchez’s government blaming it for surging house prices. Ireland and the Netherlands have closed their golden visa programs to new applicants, while Malta’s so-called golden passport was ruled illegal earlier this year by the European Court of Justice. Greece recently increased its golden visa investment threshold to €400,000, or €800,000 in prime areas like Athens or the islands of Mykonos and Santorini.
Portugal’s center-right government insists it won’t follow suit, even as doubts grow over whether residency-for-cash delivers meaningful benefits for locals. Officials have promised “economically and socially fair” reforms, but critics say the program still funnels money into passive investment with little impact on jobs, innovation or long-term growth.
For those seeking a return on their capital, the most common golden visa route is now through fund investments. To qualify, these funds must allocate more than 60% of their resources to domestic assets such as bonds, stocks, or local projects, including farming and solar energy initiatives. At €500,000, that’s still significantly lower than the $1 million price tag on President Donald Trump’s proposed US “gold card” residency permit.
US nationals made up the biggest group of recipients of golden visas in 2024, followed by Chinese and Russian nationals, according to a report by Portugal's immigration agency AIMA, published on Thursday.
Pela Terra, a Lisbon-based fund, uses golden visa capital to grow almonds and olives on 3,000 hectares of land in Portugal. It’s raised more than €75 million across two funds from investors in 27 countries. Their pitch is sustainable farming that generates returns while revitalizing rural areas. For investors like Jim Davidson, an American who bought into Pela Terra, that community angle is what sold him.
“You’re making a commitment of capital to a fund that invests in agriculture, things that help grow the country,” said Davidson, a resident of Denver, Colorado. “I decided to invest because it will also give me Portuguese residency if one day I decide to live in Europe.”
Some of the golden visa funds flow directly into the stock market. Pedro Lino, chief executive officer of Optimize Investment Partners, an asset manager with a golden visa fund that invests in Portuguese stocks and bonds, says some clients prefer this route to real estate because “you don’t have to spend time house hunting.” He estimates those investments account for about 2% of the free float in Lisbon’s stock market.
But some have questioned the broader economic impact of channeling golden visa investments into public markets, noting that even fully compliant funds may allocate capital to assets such as US equities or cryptocurrency-linked products. Others appear more real estate-adjacent, targeting sectors such as hospitality — short-stay apartments or hotels — or businesses operating food and retail stores.
“Governments are getting tired of the golden visa issue because the market keeps finding loopholes,” Stephan de Moraes, founder of venture capital firm Indico Capital Partners, said. De Moraes is pitching his funds as an answer to criticism that the money flows into unproductive assets, by offering investors exposure to AI startups and tech firms. “I still believe the golden visa program is a good program and it will work, I’m just worried that there’s going to be another political backlash against the whole thing,” he said.
Making donations in exchange for residency rights requires less up-front capital, but no financial returns on investment. For some in the golden visa program, they offer a better way to build links with local communities, however.
“It seemed like some of the funds were just run by a bunch of rich kids,” James Davis, a geologist in the oil and gas business in Texas, told Bloomberg. “I definitely saw a better connection in doing something like a donation rather than investing in a fund.”
Earlier this year, Davis donated €250,000 to the Ricardo Espírito Santo Silva Foundation, which runs a museum of decorative arts and a school that teaches and preserves traditional craftsmanship. The investment will go toward restoring wood furniture in the foundation’s 17th-century Azurara Palace on a hill in Lisbon overlooking the river Tagus.
By getting residency rights in Portugal, Davis says he’ll have options if things turn sour in America. “I wanted a plan B as there is political risk in the US,” he said. The 51-year-old said he’s also proud to think that his donation will have an enduring impact. “The money is gone, but it will have a lasting impact on the foundation and that’s really important,” he said.
There are currently 17 cultural projects eligible for golden visa donations, according to a list published by the government. Some in Portugal think that this philanthropic money could be better directed to areas that more directly address the country’s social challenges.
While Portugal’s economy is expanding faster than the euro area average, it remains one of Western Europe’s poorest nations. The public health system is chronically underfunded and plagued by staff shortages, while government schools struggle with overcrowded classrooms and outdated facilities. Public housing accounts for only about 2% of total stock, one of the lowest shares in the region.
“Clearly some of the money could be used to improve the lives of ordinary people in cities like Lisbon, where rising living costs are squeezing out locals,” said Isabel Sá da Bandeira, head of People Live Here, a campaign group that advocates for ordinary Lisbon residents. “We need better schools, hospitals and green spaces.”
Sara Rebolo is part of a group of lawyers who want to see affordable housing added to the list of golden visa options. She founded Prime Legal, a law firm that provides legal support to applicants. “There’s a lot of potential in terms of attracting investment and direct financing for Portuguese projects,’’ she said. “I think the program will last a long time, but there’s a chance it will have to change in order to adapt to the needs of the country and society.”
But in Caramulo, Patrício Gouveia, an avid collector of everything from toys, vintage posters to World War II artifacts, said that the golden visa money has turned around the fortunes of the town, which might otherwise have been left to wither.
The museum has had structural renovations, has bought some new tanks and other wartime vehicles — and buildings to house them. It now has the funds to properly maintain more than 200 vehicles, including a super rare Bugatti 35B and the 1971 Lamborghini Miura P400 SV. A toy museum is also in the works.
The golden visa funds have helped Museu do Caramulo arrange the shipment of a historic collection of Formula 1 cars belonging to Emerson Fittipaldi, a two-time Formula 1 Champion from Brazil. Fittipaldi visited Caramulo for the first time in 2022.
The buzz around the museum has attracted record numbers of visitors to the town, which has a population of just 1,000. In September, 50,000 people attended the Caramulo Motor festival, clogging the town’s narrow streets with cars and motorcycles. Museum attendance hit 60,000 in 2024, with more growth expected this year.
“Don’t forget that Caramulo is on the way to nowhere and the golden visa money is staying right here for future generations to enjoy,” Patrício Gouveia said. “It’s an opportunity that will never repeat itself. Either we grab it with both hands or we risk being left behind.”
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