Portugal will end its so-called golden visa program for new foreign property buyers as it tries to address the lack of affordable housing, Invest-Gate reports.

Foreign real estate buyers who wish to renew their existing golden visas will only be eligible if their properties are used as their own home, or if these units are placed in the long-term rental market.

The step is part of the country’s measures to confront the housing crisis.

In addition, Portugal will ban new licenses for Airbnbs and other short-term holiday rentals.

Rents and house prices have skyrocketed in Portugal, which is among the poorest countries in Western Europe. Last year, more than 50% of workers earned less than 1,000 euros per month while in Lisbon alone, rents jumped 37% in 2022.

Further, low salaries, a red-hot property market, policies encouraging wealthy foreigners to invest and a tourism-dependent economy have for years made it hard for locals to rent or buy, housing groups have said.

It is worth noting that Portugal’s 8.3% inflation rate has exacerbated the problem.