June 2024 was a landmark month for Portuguese immigrants. The government announced a comprehensive 41-point plan to develop the country by attracting foreign workers to the labor market. This plan was created after reviewing ineffective immigration and integration laws, taking into account successful strategies. Its implementation was driven by the aging local population and the need to replace local specialists with relocants from the EU and third countries.
Experts from Global-Relocate support the Prime Minister Luis Montenegro's view that attracting foreign highly skilled labor will help solve economic and demographic problems.
According to statistics, from 2015 to 2023, the number of relocators increased by 171% and reached over 1 million in digital terms. Of these, 55% were working-age people aged 25-44. This age group comprises only 22% of the local population. Considering that 12% of the population are elderly people aged 75+, the aging trend among Portuguese people and the reduction in the workforce are evident.
According to the employment service, in 2022, the country's unemployment rate decreased by 6% due to a 2% GDP growth. The economic forecast is favorable until 2029; however, it is not being realized due to an acute shortage of personnel.
Previously implemented measures had a partial effect. According to the immigration report, 42,409 relocants were granted permits for professional/entrepreneurial activities without obtaining a residence permit the year before last. This group included specialists:
- digital technologies;
- health care;
- construction and technical professions;
- businessmen, financiers, entrepreneurs.
GR analysts estimated that they accounted for 45% of various types of visas. Among them, 30,897 (33%) held EU passports, and 19,345 (21%) arrived for family reunification.
Innovations for Obtaining the "Golden" Visa
Global-Relocate information security auditors note that measure 32, with an expanded list of financial options, has attracted general attention. It includes changes in the issuance of the Residence Permit for Investment Activity (ARI) and adds a provision for solidarity investments to support low-income immigrants. The press claims that the new law has adjusted the conditions for obtaining the "golden" visa.
The government insists that these are social measures driven by economic necessity. The relevant minister openly stated this to journalists at a briefing. He emphasized that this is merely the implementation of a previously conceived strategy, not conditions for receiving benefits and preferences.
Key points of the plan:
- Assistance to refugees through capital investment in infrastructure, new projects, and support for immigrants.
- Accreditation of the Asylum, Migration and Integration Fund for mediation and attracting investors to the charitable sector.
- Housing initiative for the construction of social housing.
- Changes in bond purchases to improve working conditions through the capital of investors and patrons with the possibility of receiving benefits.
Exact data on the threshold amounts for participation in the residence permit by investment program are not yet available. Global-Relocat auditors suggest that the range will be 250,000-500,000 euros.
Concept of the Plan
The authorities are confident that structural changes in the law regarding the mobilization of private capital will soon create an effective tool for investing in immigration projects and reallocating funds. The new plan aims to:
- Address the issue of regulated immigration;
- Simplify the process of validating qualifications and competencies;
- Retrain foreigners;
- Implement strategies for integration into the work environment;
- Eliminate bureaucratic obstacles;
- Conduct institutional reorganization.
Of particular interest was a comment by lawyer Madalena Monteiro, specializing in foreign affairs, in the context of previously adopted initiatives and decisions on unresolved cases. "The authorities acknowledge that the transition from SEF to AIMA was unsuccessful and have created a group to manage immigration." She optimistically stated that the new system improvement strategies would help close 400,000 pending cases, with only a small portion related to obtaining "golden" visas. Colleague Adriano Vieira clarified that the new strategies include allocating resources for talented professionals, which will incentivize professionals to come to the country.
Entry Rules
In Chapter 41, dedicated to regulated immigration, the expression of interest system has been abolished. Under this system, expatriates entered the country on a tourist visa, settled in, and paid social taxes. After 12 months, they were granted legal status by law. Now, after signing a contract with an employer, specialists can obtain a residence permit at the consulate in their home country and come to Portugal.
The overall expansion of the staff will reduce the processing time for applications, including the issuance of national and 'golden' visas. Currently, the processing time is one month. Attention in the program is also focused on prioritizing immigration routes for family reunification and student education. To expedite border checks and passenger processing at Lisbon and Faro airports, IT system upgrades with advanced technology implementation are planned.
Recommendations for Attracting Talent
Access of foreigners to universities, provision of scholarships is another effective measure to address the democratic issue, expand the youth national policy. Portugal is revising the educational program considering market demands. As highlighted by GR analysts, this will help young professionals from third countries to become residents of the country and find employment immediately after completing their studies. Higher education institutions are recommended to collaborate with international universities specializing in digital technologies, engineering, teaching, and healthcare. Training personnel through global programs will help meet market-specific needs.
Partnership Strengthening
Authorities consider it important to establish connections, create programs with private entrepreneurs and civil society to assist foreign specialists. Networking events, mentoring will help adapt to local realities. Public programs, including language and tradition studies, are aimed at promoting cultural exchange. The Portuguese government is confident that simplified laws aim to stimulate the economy, and the creation of favorable social conditions will generate interest in obtaining citizenship within 5 years.
Migration lawyers have assessed the government's plan in the context of identified procedural violations and found solutions to address them. According to analysts at Global-Relocate, passing laws and enforcing them are two different things. Making changes to AIMA, which has only been operational for six months, is not easy, but it is better than reforming the old SEF.