Portugal immigration curbs hit construction

Portugal's centre-right coalition government has tightened immigration rules since 2024, aiming to curb 'uncontrolled inflows' and counter the far-right Chega party. The measures have halved net immigration to about 6,200 per month in 2025, according to a Portugal — Banco de Portugal study. This exacerbates a severe labor shortage in the construction sector, which relies on foreigners for 30% of its workforce and needs 80,000 additional workers to meet housing demand. Portugal faces a housing crisis with a shortfall of 300,000 homes, and a €9 billion EU-backed program to build 150,000 affordable homes by 2030 is at risk. Builders like JPS, with 90% foreign workers, struggle to recruit as the fast-track visa scheme has granted only 5,000 construction visas. Workers like José Simão from Angola face permit renewal difficulties due to new rental contract requirements. Other European countries like Spain and Italy are taking opposite approaches by regularizing migrants.