The Golden Visa, also known as the 'golden visa', is a highly attractive investment residency programme for investors and their EU and non-EU family members. Portugal, with the security it offers within its borders, its great quality of life thanks to its beaches, landscapes, climate, its stable educational and health infrastructures, and its affordability, make the Golden Visa highly coveted. Moreover, as it is a residence permit for investment, it allows investors and their families to travel freely throughout the Schengen area.
In Portugal, the Golden Visa was introduced in 2012 as an ARI, a residence permit activity for investment, which was programmed to attract non-EU citizens. The plus that has made the Portuguese Golden Visa so successful since then is the possibility for the investor and his family to obtain Portuguese nationality 5 years after obtaining it. Portugal also allows the investor to benefit from the special tax regime of Non-Habitual Resident, whereby he/she will benefit from a fixed reduced rate of 20% for the next 10 years after registration.
Before detailing the range of investment options, if you are interested in applying for a Golden Visa in Portugal, you should be aware of the following requirements.
- Firstly, you must provide proof of the qualifying investment and maintain it for a period of 5 years. If you choose to invest in real estate, you must provide a deed of sale or a promise of sale agreement.
- To meet the 'permanence requirement', you must spend a minimum of 7 days per year on Portuguese territory and then at least 14 days in each subsequent two-year period.
- Not having a criminal record, presenting a certificate issued within 3 months of submitting the application.
- As the Golden Visa allows for residence, work and study in Portugal, the investor, if he/she decides to reside for a long period of time, must have his/her own health insurance even though he/she has access to the Portuguese health system. This is for the purpose of demonstrating to the Portuguese Administration that the investor and his/her family members will not be a burden on the health system. The same applies financially, the investor will have to prove that he/she has own funds from outside the investment fund.
- Open a bank account as the investment fund will need to be transferred to the account in Portugal and from there make the investment. In order to open such an account, you will need to obtain a Portuguese tax identification number (NIF) so you will need to register as a tax resident.
Having set out the requirements for investing in Portugal, it is important to know the different types of investment that can be made. In this regard, it is worth making a brief but important point. At the beginning of this year 2021, the Portuguese Government decided to implement new measures when investing through the Golden Visa in Portugal. This decision has led to higher investment prices and has invalidated some of the most important and attractive areas, making them ineligible. Let's take a look at how these regulations have affected each type of investment in particular.
The most popular option is to invest in real estate. In this modality, the Portuguese government has decided not to establish a transition period. Those who decide to invest in Portuguese real estate will have until 31 December 2021 to invest according to the requirements prior to the new regulation. In this type of investment, the new regulations have not affected the minimum amounts to be invested, but rather the areas in which it will be possible to invest from 2022 onwards.
Therefore, the investment in movable capital will have to be made under the following conditions:
- Invest a minimum of €500,000. This investment may be reduced in different cases:
- Investment of €350,000 (up to €425,000 including renovation works) if buying a property in need of renovation. This means that the investor buys a property that is more than 30 years old or is located in a designated urban regeneration area.
- Lower investment of €280,000 (up to €340,000 including renovation works) if the investment property is in need of renovation and is also located in a low population density area.
- The investment zone. This is where the changes approved by the Portuguese government come into play, which will take effect from January 2022 for investments made in real estate in order to obtain the Golden Visa. Until 31 December 2021, anyone applying for the Golden Visa will be able to invest in any area of Portugal, but from the entry into force of the new regulations, only inland areas and areas with low population density will be eligible. This means that it will not be possible to invest in the Lisbon, Porto and Algarve areas.
Below, we provide graphic information on the above situation.
For more detailed information on specific areas, please follow this link to Regulation No. 208/2017 of 13 July 2020 on the new conditions https://dre.pt/application/conteudo/107684448.
Other forms of investment also stand out, all of which have been affected by the new regulations.
Another option is to invest in research, with a minimum investment capital of €500,000 compared to the previous minimum of €350,000. There is also the option of investing in an equity fund, whose minimum investment will increase from €350,000 to €500,000 in 2022. Finally, there is the option of investing in an established Portuguese company or setting up one's own company. In this case the investment increases from a minimum of €350,000 to €500,000, and the requirement to create at least five new permanent jobs with a duration of more than 3 years is added.
In short, the benefits of obtaining the Golden Visa in Portugal are many since, among others, the investor will be able to live and work in Portugal if he/she meets the residence requirement, will be able to apply for Portuguese nationality after 5 years and will be able to apply for permanent residence. They will also be able to travel throughout the Schengen area without restrictions and will be able to benefit from family reunification. However, we can see how the new regulations may affect the Golden Visa programme as the minimum investment levels will be significantly increased from 2022 and the areas eligible for investment will be more limited. Therefore, if you are interested in investing through this visa, it is advisable to do so before 31 December 2021 as you will be able to do so under the economic and geographical conditions applicable until now.
