A guide to the Portuguese Golden visa
2022-03-15
Chinese nationals continue to be the main applicants of Portugal golden visas, however, there has been a decline, especially in this past year. The citizens of Brazil stand out in second place, albeit in a smaller dimension. In addition to China and Brazil, nationals from countries such as Turkey, South Africa, and Russia are part of the TOP 5 of applicants for the Portuguese Golden Visa. Other nationalities continue to emerge as new applicants, such as those from the United States and Jordan.
At the start of 2022, the Portugal golden visa program underwent changes that restrict the form of investment in Portugal, particularly with regards to real estate investment. By altering this regime, the government aims to shift and channel foreign investment to the interior of the country, thus alleviating the pressure that has been felt in the metropolitan areas, in addition to encouraging investment that benefits the creation of new jobs, urban prequalification, and cultural heritage.
The changes to the Portugal Golden Visa Program are essentially based on two pillars:
• An increase in the minimum investment amounts, and
• Restriction on the real estate investment.
Increase in minimum amounts of investment
• Transfers of capital are now of an amount equal to or greater than 1.5 million euros (the amount previously foreseen was equal to or greater than 1 million euros);
• Investment in research or scientific activities carried out by the public or private scientific research institutions, integrated into the national scientific and technological system – investment amount equal to or greater than 500 thousand euros (previously, an amount equal to or greater than 350 thousand euros was required);
• Investment funds or venture capital funds dedicated to the capitalisation of companies, whose maturity, at the time of investment, is at least five years and, at least, 60% of the value of the investments is carried out in commercial companies based in Portugal – investment in the minimum amount of 500 thousand euros (in the previous law, the amount foreseen was equal to or greater than 350 thousand euros)
• Creation of jobs – investment amount equal to or greater than 500 thousand euros intended for:
– The constitution of a commercial company based in Portugal, combined with the creation of five permanent jobs, or
– The reinforcement of the share capital of a commercial company headquartered in Portuguese territory, already constituted, with the creation or maintenance of jobs, with a minimum of five permanent jobs, and for a minimum period of three years (the amount previously foreseen was equal to or more than 350 thousand euros).
Restrictions on real estate investments
This regime does not allow for the possibility of real estate investment for housing in the following areas:
• Lisbon metropolitan area,
• Porto metropolitan area (with the exception of the municipality of Arouca and the parishes of Junqueira and Arões in the municipality of Vale de Cambra) and
• most of the Algarve (with the exception of the municipalities of Alcoutim, Aljezur, Castro Marim, Monchique and Vila do Bispo,
• The parishes of Alte, Ameixial, Salir, Union
• The parishes of Querença, Tôr and Benafim in the municipality of Loulé,
• The parish of São Marcos da Serra in the municipality of Silves,
• And the parishes of Cachopo, Santa Catarina da Fontes do Bispo in the municipality of Tavira)
It should be highlighted that property investment for tourism purposes, commerce, and services, does not apply to the territorial exclusions mentioned above.
It is important to note that when concerning real estate investment, there is no change in the minimum investment value — which is currently from 500 thousand euros for real estate, or a global amount equal to or greater than 350 thousand euros for the acquisition of real estate, a construction which has been completed for at least 30 years or located in an area of rehabilitation and carrying out rehabilitation works of the acquired real estate.
The 20% reduction in values is also maintained if the property is located in territories considered to be of low density. It should also be noted that these changes only affect new Portugal Golden Visa applications made from January 1, 2022.
Despite these updates, Portugal’s Golden Visa Program continues to be highly advantageous. In addition to being able to obtain Portuguese Citizenship after five years, this modality does not mandate the individual to stay in Portugal for long periods of time. In fact, under this regime, the individual is only required to stay in Portugal for seven days in the first year, and 14 days in each of the following years.
The benefits also include family reunification and travel visa-free in the Schengen Area.
1 Investment data 2012 – 2021 provided by the SEF.
