Investors from Hong Kong and mainland China seeking permanent residency in Portugal may soon have to consider buying commercial property there rather than a residence, under new rules set to take effect in the new year.

Starting from January, house purchases in the capital city of Lisbon as well as Porto and parts of the Algarve region will no longer qualify under the fast-track residency programme, a move intended to cool down home prices and encourage investment in other Portuguese cities.

Investors seeking citizenship can still choose to invest in these popular cities, but they will have to put their money into commercial properties such as serviced apartments or hotel units that can serve as flats to rent out.

Another option is to invest in real estate funds. Both options would almost certainly mean having to shell out a bigger amount to secure Portuguese citizenship.