The Portugal Golden Visa Scheme: Your Guide to the New Legislation
The government introduced the Portugal Golden Visa in 2012 as an overseas investor programme. The so-called “Golden Visa” was granted with an investment in Portugal of over €500,000 or the creation of 10 jobs. By 2021 it was credited with the investment of 5.2 billion euros from non-EU citizens.
In February 2021, the parliament approved changes to the legislation, which will be implemented from January 2022. It is essential to understand these changes if you are considering an investment in Portugal from outside the EU.
What is a Golden Visa Fund?
- The Golden Visa Investment and Venture Capital Fund is a foreign investment fund open to members of the Schengen area or outside the EU.
- To qualify, the fund needs to be registered in Portugal with at least 60% of the capital invested in Portugal.
- Funds can be invested directly into real estate, retail, hotels, and student accommodation.
- The capital investment can also be made in the spheres of energy, technology, agriculture, or other start-ups.
What are the Benefits?
Visa-Free Access:
The Golden Visa Residence Permit (GVRP) guarantees visa-free access throughout the Schengen Area of 26 European countries for 90 days in any 180 days. You don’t need to reside in Portugal full-time to renew the visa. You are only required to stay for seven days every year.
Subsequently, after five years, visa-holders have the right to apply for permanent residency or citizenship in Portugal.
It is also extendable to family members including your spouse, dependent children, and parents.
Tax Breaks:
The Golden Visa gives tax efficiencies on dividends and capital gains. Taxes can be reduced or exempt, depending on your tax status and the fund. Visa holders are exempt from paying tax on worldwide income if they live in Portugal for less than 183 days per tax year.
Regulated:
You can feel reassured that the Portuguese Securities Markets Commission (CMVM), Bank of Portugal and the tax authorities all regulate your funds and ensure they are in compliance with strict rules and are being managed properly.
Low minimum stay:
You are only required to spend seven days in the first year in Portugal. Fourteen days must be spent in the country during each of the two subsequent two-year periods, but they do not need to be consecutive.
Access to Services:
The Golden Visa give you access to all Portuguese public services, including health and education. There is no limitation on subsequent investments or employment opportunities.
Who Can Apply?
- The Portuguese Golden Visa for Investment Purposes (PGV) is suitable for individuals who are not a citizen of an EU Member State. Investors from EU/EEA countries or Switzerland don’t require a golden visa but will need to register their stay.
- All applicants are required to make a significant qualifying investment in Portugal.
- You need to have a clean criminal record.
Key Changes to Golden Visa Scheme in 2022
- To qualify for the Golden Visa property acquisitions have to be located in the Azores and Madeira or in the interior regions.
- The minimum investment amount will increase from €350,000 to €500,000
- The Capital Transfer option will increase from €1 million to €1.5 million
Real Estate Changes to Golden Visa
Up until July 2021, the purchase of real estate was used for 9,265 of the 9,875 visas granted up to July 2021, according to the Portuguese border agency, the Serviço de Estrangeiros e Fronteiras (SEF). Some 16,762 residence permits have also been granted to family members.
As a result, the Portuguese government announced as part of the 2020 Budget that the Golden Visa regime would be modified. The new legislation amending the Golden Visa programme was published on 12 February 2021.
You will no longer be able to purchase property in major cities such as Lisbon or Porto or in the popular coastal towns of the mainland. Lisbon, Porto, Silver Coast and the Algarve under this scheme.
How can the Golden Visa be obtained from 1 January 2022?
The Golden Visa can be obtained via the following investment routes:
- You can make a capital transfer equal to or above €1.5 million (previously €1 million);
- The purchase of residential, commercial or agricultural property in the interior of mainland Portugal, Madeira or the Azores, with a minimum purchase value of €500,000. This entry price will be reduced by 20% to €400,000 if the property is located in a designated area of low GDP area or low population density.
- By forming a single-member private limited company based in Portugal that employs ten people.
- An investment of at least €500,000 (previously €350,000) in research activities conducted by public or private scientific research institutions working within the national scientific or technology sectors.
- An investment of €250,000 for investing in artistic output, supporting the arts and reconstruction or maintenance of the national heritage.
- An injection of a minimum of €500,000 of capital (previously €350,000) for the acquisition of investment funds or venture capital fund in a company that is at least five years old and with a head office in Portugal.
How Do I Apply for a Golden Visa?
To apply for a Golden Visa you will need to do the following:
- Register with SEF’s online portal here for a Golden Visa Application (Residence Permits for Investment Activities – ARI). If you cannot register yourself, a legal representative may do it on your behalf.
- You are required to submit electronic copies of documents, including your passport and proof of clean criminal record and proof of investments made in Portugal.
- Pay all the relevant fees.
- SEF will then send you proof of the application.
- You will then need to schedule an appointment to submit your Golden Visa application at a local branch of the SEF.
- You do not have to apply for the visa in person. If you are not in Portugal, you can give Power of Attorney (POA) to a legal representative to apply on your behalf
For further help and guidance with Golden Visa, please get in touch with us at ten Hoopen Realty:
T: (+351) 914 564 506
