The Portugal Golden Visa Rules: A Brief History
Launched in 2012, the Portugal Golden Visa rules and scheme has been a resounding success, drawing in over €7.5 billion in foreign investment and granting residency to more than 12,000 principal applicants and 20,000 dependents. The program’s popularity can be attributed to its relatively affordable investment options, flexible residency requirements, and the opportunity to obtain Portuguese citizenship within five years.
The 2023 Changes: Goodbye to Real Estate and Capital Transfers
The most significant change to the Portugal Golden Visa rules in recent years came in October 2023, with the implementation of the “Mais Habitação” (More Housing) bill. This legislation effectively eliminated two of the program’s most popular investment routes: real estate acquisitions and capital transfers.
Before this change, real estate investments had been the dominant choice for Golden Visa applicants, accounting for over 11,000 of the total residence permits issued. The new law, however, has completely ruled out real estate as a qualifying investment option, signalling a clear shift in the Portuguese government’s priorities towards addressing the country’s housing crisis.
Similarly, the capital transfer investment, which previously required a minimum investment of €1.5 million, is no longer an eligible pathway for the Golden Visa program.
The Remaining Investment Options under the new Golden Visa rules
Despite eliminating real estate and capital transfer investments, the Portugal Golden Visa program offers several alternative investment routes for prospective applicants. These include:
Venture Capital Fund Investment
Investors can now qualify for the Golden Visa by making a minimum capital transfer of €500,000 into a venture capital fund in Portugal. It’s important to note that funds with direct or indirect real estate investments are no longer eligible.
Job Creation
Applicants can obtain a Golden Visa by creating and maintaining at least ten full-time jobs in a Portuguese business they own. Alternatively, they can invest €500,000 in an existing Portuguese company and create at least five permanent jobs.
Scientific Research
Contributions of at least €500,000 towards scientific research activities conducted by public or private institutions in Portugal can also qualify for the Golden Visa.
Arts and Cultural Heritage
Investors can obtain a Golden Visa by donating a minimum of €250,000 to preserve Portugal’s national cultural heritage or €500,000 to artistic production.
The New Social Investor Visa Portugal
In addition to the existing investment options, the Portuguese government has introduced a new “Social Investor Visa” in 2024. This program aims to channel private capital into social investment projects that support immigrant integration, such as the development of affordable housing and other integration initiatives.
While the details of this new visa are still under development, it represents a shift in the government’s approach, focusing on using the Golden Visa program to address broader social and economic challenges.
Navigating the Application Process
The Portugal Golden Visa application process remains unchanged, although eliminating real estate and capital transfer investments has streamlined the available options. Applicants must still submit comprehensive documents, including proof of their qualifying investment, criminal records, and financial standing.
One notable change, however, is the digitalization of the application process. As of 2024, all Golden Visa documents will be submitted electronically, and the issuance of the Portuguese individual tax number (NIF) will also be handled digitally, reducing bureaucracy and expediting the overall process.
Timing and Residency Requirements
The Portugal Golden Visa program maintains its relatively low residency requirement. Holders need to spend only an average of 7 days per year in the country to maintain their status. The initial residence permit is valid for two years and can be renewed for subsequent 2-year periods.
Significantly, the 5-year residency requirement for eligibility to apply for Portuguese citizenship has been updated. The countdown for these five years begins when the applicant submits their Golden Visa application rather than when the residence permit is issued.
Fees and Costs
The government fees associated with the Portugal Golden Visa program remain substantial, with an initial application fee of €7,730 per person and subsequent renewal fees of €3,866 per person. Additionally, applicants will need to factor in legal fees ranging from €10,000 to €30,000 for a family of four, depending on the complexity of the investment and the law firm engaged.
It’s worth noting that the investment amounts required for specific options, such as the venture capital fund and job creation routes, have increased since the 2023 changes, adding to the overall financial commitment required.
Tax Considerations
Any income generated within Portugal, such as rental income from real estate or dividends from local investments, will be subject to Portuguese tax laws. Applicants should carefully consider the tax implications of their investment and residency plans to ensure compliance.
Existing Golden Visa Holders and Future Applicants
It’s important to note that the changes introduced in 2023 do not affect the rights of existing Golden Visa holders. Those who have already obtained their residence permits through real estate or capital transfer investments can continue to renew their visas and maintain their status, including the ability to apply for permanent residency or Portuguese citizenship after the requisite 5-year period.
New investment options for future applicants, such as venture capital funds, scientific research, and cultural heritage, present alternative pathways to obtaining the Portugal Golden Visa. However, eliminating real estate and capital transfer investments may increase competition and demand for the remaining options, potentially impacting the application process and timelines.
Seeking Professional Assistance
Given the complexity of the Portugal Golden Visa program and recent changes, prospective applicants should seek the guidance of experienced professionals, such as immigration lawyers and investment advisors. These experts can navigate the evolving regulatory landscape, ensure compliance with all requirements, and provide valuable insights to help investors make the most informed decisions.
Conclusion about the Golden Visa Rules
The 2024 updates to the Portugal Golden Visa program mark a significant shift in the investment options available to applicants. While eliminating real estate and capital transfer investments may present challenges; the program offers attractive alternatives, including venture capital fund investments, job creation, and contributions to scientific research and cultural heritage.
As the program continues to evolve, potential investors must stay informed and work closely with qualified professionals to ensure a successful and seamless Golden Visa application process. By understanding the latest rules and regulations, investors can make the most of the opportunities presented by the Portugal Golden Visa program and secure their residency and investment goals in this thriving European destination.
Catarina graduated in Law in 2021 from the Faculty of Law of the University of Coimbra. She has been a member of the Bar since 2023.
