BT issue 16 VF - Flipbook - Page 20
ISSUE 16
§
PAST IS PROLOGUE IN
PORTUGAL
Written by Manuela Robinson, Associate Director
S
hakespeare once wrote, “What’s past is prologue.” All that took place in the past was preparing us for future
opportunities. History is a wheel. It all comes around again. We can learn from the past and improve the next
go around, or we are doomed to repeat our mistakes.
This is certainly something Portugal seems to understand as the current administration have taken strong steps
this year towards redressing a centuries old faux pas that cost Portugal its position as one of the world’s richest
countries.
PAST RICHES
THE EVOLUTION OF THE PORTUGUESE ECONOMY
At the peak of its colonial empire throughout Africa,
Asia, and South America, Portugal was one of (if not the)
richest country in the world. That wealth, however, was
not invested in the development of domestic industrial
infrastructure, and as a result Portugal’s wealth gradually
waned. The 19th and 20th centuries have seen the
country become one of the poorest in Western Europe.
The Golden Visa required hopeful expats to make
a substantial investment. This could be one of the
following: €500,000 in Portuguese real estate (€400,000 in
low-density areas); €350,000 in property in a Portuguese
urban regeneration area (€280,000 in low-density areas);
a minimum of €500,000 in a qualifying Investment
Fund; a minimum of €350,000 for research activities in
science or technology; or a minimum of €250,000 for the
reconstruction of Portuguese arts or heritage.
FUTURE CONCERNS
Earlier this year the Portuguese government began
taking steps to address a cost of living crisis that has
seen the price of basic necessities rapidly exceed the
average wage, while housing costs have reached an alltime high. An end to the highly popular Golden Visa was
announced, in an effort to refocus on the needs of the
native population. Subsidised food costs and affordable
housing for local residents are being prioritised over the
attraction of foreign wealth.
While it remains to be seen if these efforts will be
successful in rebalancing the economy in Portugal, and
giving denizens an equal footing once more, it seems
hopeful that the current administration has learned
from history. Recent years have seen huge investments
made in the Portuguese economy from foreign sources.
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