Portugal Golden Visa
Portugal Golden Visa regime has undergone a major transformation since October 2023. Applicants can no longer apply for Golden Visa by directly investing in any form of real estate projects or real estate funds. Despite the initial concerns around the program’s discontinuation, the Golden visa continues to thrive under a revised framework. In 2024, Investors can apply for Portugal Golden Visa by investing in certain Golden Visa funds, or making an investment in designated cultural projects.
While the investment requirements have evolved, other aspects of the Portugal Golden Visa remain unchanged. The program continues to provide flexibility to investors, permitting them to maintain their residency with minimal stay requirements – just 7 days per year (or 14 days in a block of 2 years) during the initial 5 years. It’s important to emphasize that the specified duration is the minimum stay requirement, and there exists no maximum limit or cap on the total time one can spend in Portugal. After completion of 5 years, applicants can apply for Permanent Residency of Portugal or Portuguese citizenship, as per their requirements.
Overview
Portugal citizenship by investment program is in fact a 5-year residency-by-investment program, where investors and their dependents can become Portuguese citizens at the end of 5 years. The decision to obtain permanent residency in Portugal or citizenship of Portugal after the completion of 5 years, rests with the investor.
Throughout the initial 5 years, Golden Visa applicants receive a residency permit in Portugal, commonly known as the ARI or the Residence Permit for Investment Purposes. Each ARI is valid for 2 years and can be renewed upon fulfilment of the required conditions. Investors must maintain their investment for 5 years. The residency permit allows investors to live and work in Portugal, as well as travel visa free in the EU Schengen area. Portugal is a full-member of the EU. Upon becoming a Portuguese citizen, the investors gain the freedom to live and work in any EU member state.
Portugal Golden Visa Investment options in 2024
In 2024, the following investment avenues remain open for Investors looking to apply Golden Visa in Portugal:
- Capital transfer of at least EUR 500,000 for investment or acquisition of units in eligible investment funds or venture capital fund of funds dedicated to the capitalization of companies, capital injected under the Portuguese legislation, whose maturity, at the moment of the investment, is, at least, of five years and, at least, 60% of the investments is realized in commercial companies with head office in national territory. These are typically close-ended funds with a fund life ranging from 8 to 12 years. We have fund options that provide defined exit to investors after completion of at least 6 years. Until Nov 2023, a total of 723 investors have received Golden Visa through the fund investment route.
- Investment of EUR 250,000 in pursuing activities of artistic output, such as a Portuguese movie of cultural importance. Alternatively, investment of EUR 250,000 in recovery, reconstruction, and maintenance of national cultural heritage. The underlying production art or work of national heritage must be pre-approved by a recognized Government authority. The investment amount can further be reduced to EUR 200,000 for a low-density region. Although conceived as a donation, we have opportunities for the investor to earn a return from the original investment or a commitment from the production partner to at least return the capital after the minimum holding period of 5 years. Until Nov 2023, only 8 investors have received Golden visa under this category.
- Creation of at least 10 full time equivalent job positions in Portugal by setting up your own Company. The requirement can be reduced to 8 full time positions if the jobs are created in low density regions. This route is most suited for entrepreneurs looking to setup business in the thriving European market. Alternatively, one may also invest a minimum of EUR 500,000 in existing business that creates at least 5 full time job positions. Until Nov 2023, only 23 Investors have received a Golden Visa under the job creation route.
- Investment of EUR 500,000 in scientific research activities conducted by public or private research institutions. Until Nov 2023, only 9 investors have obtained a Golden visa through this option.
Since October 2023, the following investment options that were previously permitted, no longer qualify for the Golden Visa in Portugal.
- Purchase of real estate property with a value equal to or exceeding EUR 500,000 (EUR 400,000 if the property is in a low-density area)
- Purchase of real estate property built over 30 years ago or located in urban regeneration areas, for refurbishing, for a total value equal to or exceeding EUR 350,000 (including the cost of renovations).
- Purchase of real estate property built over 30 years ago and located in a low-density area, for refurbishing, for a total value equal to or exceeding EUR 280,000 (including the cost of renovations).
- Capital transfer of a minimum 1.5 million Euros into a Portuguese bank account.
Requirements of the Golden Visa Program
- Qualifying investment to be held for at least 5 years
- Obtain Portuguese tax number (NIF) and open Portuguese bank account
- Provide KYC documents and proof of funds.
- No criminal records or police clearance certificate for all adult applicants
- All applicants under the program to stay at least 7 days per year (or 14 days in a block of 2 years) during the initial 5 years
- At end of 5 years, Investor has the option to obtain permanent residency or citizenship
- Language test (A2 level proficiency – beginner level) is necessary to obtain citizenship, not required for temporary residence. There are exemptions to this requirement.
Benefits of the Portugal Golden Visa Program
- Right to live, work and study in Portugal. Visa-free travel within EU Schengen area
- Citizenship after 5 years. As a Portuguese citizen, eligibility to live, work and study in the Schengen area plus visa free travel to 170+ countries.
- Portugal permits dual citizenship
- Favorable tax regime as a non-habitual resident (subject to change).
- High quality of life, stable democratic country and low crime rate
- Universal health coverage through National Health Service