Portugal Pathways petitions government about visa backlog on behalf of people moving to Portugal

Portugal’s visa backlog has created a ‘perfect storm’ of problems that could impact the hopes and dreams of hundreds of thousands of people looking to move to Portugal.

It is estimated around some 350,000 visa applications are currently awaiting processing by government officers and could take 18 months to clear.

The situation has been compounded by the recent decision to merge the Portuguese Immigration and Borders Service (SEF) and the High Commissioner of Migration.

In their place is the new Portuguese Agency for Integration, Migration and Asylum (AIMA).

But it has been beset by problems – with union bosses pointing to staff shortages and a need for better IT systems to tackle the emerging visa crisis.

Among those impacted are the persecuted fleeing war-torn countries in pursuit of a better life.

Demand to move to Portugal has also intensified in recent weeks after Prime Minister António Costa confirmed the end of its popular Non-Habitual Residency (NHR) tax scheme to new entrants.

Bringing the curtain down on the NHR tax status to new entrants – which was designed to entice wealthy foreign investors to the nation with a beneficial 10-year tax period – saw a deadline for applications imposed of December 31, 2023.

It has raised considerable concerns among those already in the process of applying for D7, D8 and D2 visas, alongside NHR tax status, before the opportunity disappears to new entrants in 2024 and is replaced by the Incentivised Tax Scheme (ITS) which offers 5 years’ worth of benefits as opposed to 10.

The president of AIMA, Luís Goes Pinheiro, has warned it could take a staggering 18 months to clear the backlog.

That’s prompted many in Portugal to plead for leniency for those in the process of making their dream move to the sun-soaked nation.

Portugal Pathways' calls for clarity and leniency

Portugal Pathways, which supports people seeking a new life in the nation by advising on how best to structure their life, income, tax and assets to ensure a smooth transition, has been inundated with requests for help from those affected by the announcement.

A spokesman for the organisation said: “We are very concerned about the impact that this announcement will have on people moving their life and family to Portugal.

"Many of them have made a significant commitment and investment in Portugal. Now they are having the carpet pulled from beneath them by the setting of unrealistic timescales for people to adjust to the changes.

“We have no issue with the government wanting to change the system, but the backlog at AIMA is creating a perfect storm which is generating an ominous cloud of uncertainty over the plans of so many wanting to move and invest in Portugal.

“We are calling on the government to provide more clarity on the situation and to ensure those already in the system are not left behind.”

Gerald, originally from Israel, has spent the last year in Portugal overseeing the building of a new property he intended to call home. But over recent weeks has been told by advisors his plans to take advantage of the NHR could be derailed by the fact his application will not be completed in time due to delays getting his D7 visa.

He explained: “I have invested a huge amount of money into the country and this property. But until it is completed, I cannot get an address which means I can’t get my visa application completed. This, in turn, is impacting on my ability to complete my NHR application in time for this really short, end of December, deadline.

“There is now a very real danger that after all my careful planning I could be left unable to take advantage of the property and be forced to pull out, costing me hundreds of thousands of euros and uprooting my family. All due to problems entirely outside of my control. My future has become a ticking bomb.”

The Portugal Pathways spokesman added: "The government needs to invest in AIMA so that it can process applications more efficiently.

“However, surely common sense needs to prevail and anyone who has applied for NHR status being held up due to their visa application or some other technical challenge outside their control should be given some kind of extension – subject to them getting their visa approved within, say, six months.

“People’s futures should not be derailed due to a bureaucratic backlog.

“This is essential for ensuring that Portugal remains a welcoming, fair and attractive destination for foreign nationals or people who have already committed their lives and are in transition. This short deadline has caught them out.

“All we ask is that there is a level of understanding given to those who have done everything asked of them but now suddenly face rapidly approaching deadlines they weren’t expecting, and that the system appears not to be able to cope with.”

Immigration and investment advisors' perspective

Aziz, an immigration and investment advisor based in Lisbon, added: “We have people who have been planning for over a year and reset their whole lives in another country at significant financial and personal risk.

“This could be resolved for tens of thousands of people if the government gave an extension that was reasonable.

“People’s lives are complex and issuing a deadline in October in an already congested environment just needs some common sense applied. We are in the position now where we cannot guarantee, as a business, that we can help these people.

“They all just want certainty, as does the professional supply chain that supports these people. But we cannot give that as it is out of our control. This can only be solved by the government.”

Portugal Pathways and its professional supply chain partners will continue to campaign on behalf of people moving their life to Portugal and will keep people updated as this unfolds.

However, none of the professional supply chain can make guarantees that people will complete their visa and NHR tax status applications and approval by the said deadlines. We will continue to use best endeavours to support expats moving to Portugal as its only the Portuguese government that has the power and authority to improve this.

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