Initiated a decade ago in 2012, the Portuguese Golden Visa program is one of the most popular residence by investment programs in the world, which enables non-EU individuals to get a five-year residency by investment scheme.
Since the beginning of the program, more than 10,000 applicants have received their Golden Visas. And this number is expected to continue increasing in the upcoming years. Portugal has been rated as one of the best countries to live in and to have investments in.
As of January 1st, 2022, legislation changes were implemented to encourage the dispersal of Portugal Golden Visa real estate investments, limiting purchases of residential real estate to the country’s interior regions.
After the changes, investors can still obtain commercial property all across Portugal, provided they meet the eligibility requirements.
But first, let’s have an overview of the routes one can opt to invest in if willing to apply for the Portuguese Residency:
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Real Estate Investment
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Fund Subscription
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Capital Transfer
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Scientific Research
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Job Creation
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Donation
Among all of those, real estate investment is the most popular and in fact the easiest one to apply for.
There are some benefits if choosing that route, as you don't only get the Golden Visa, but you also:
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Can take part in the huge Portuguese real estate market.
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Benefit from the booming housing prices.
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Opportunity to own a holiday home enjoying Portugal's amazing climate.
Possibility to gain some profits by renting your house during the year.
However, it was exactly the Real Estate Investment option, that got more changes in the beginning of 2022. Are those going to impact foreign investment? Let’s see what are the changes in detail.
Overview of the Portugal Golden Visa Recent Changes
Real Estate requirements for 2022 and beyond:
The main change applied to the program was the introduction by the Portuguese authorities of a new system of investment in the qualified areas for real estate to be eligible. These areas are now identified as ‘interior’ and ‘low-density’.
The major reason behind it was to diversify and spread the booming foreign investment around the whole country instead of being focused only on specific and already crowded areas like Lisbon, Porto, Algarve, and some other coastal regions.
But among those changes, it’s possible to divide them into two types of real estate sectors:
Residential Real Estate:
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Popular urban areas such as Lisbon, Porto, the Algarve, and some coastal regions or cities like Setubal and the Silver Coast are not eligible anymore.
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Such an option is now only available for designated interior areas of Portugal or in the archipelagos of Madeira and the Azores (the following video summarizes it well - video source)
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It should be worth at least €500,000 or €350,000 if investing in a rehabilitation project. Furthermore, if the residential property is located in a designated ‘low-density’ area, then a 20% discount will be applied.
Commercial Real Estate:
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It’s still possible for investors to purchase commercial real estate (for example, hotels and pre-approved tourist apartments) anywhere in the country (including the cities of Porto, Lisbon, and the region of Algarve) worth at least €500,000 or €350,000 if investing in a commercial rehabilitation project.
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The same 20% discount will apply if the commercial property is located in a ‘low-density’ area. The same is applicable to Portugal’s autonomous islands of Madeira and Azores, as long as the investment is worth at least €500,000 or €350,000 for rehabilitation projects.
Required Golden Visa minimum investment amounts:
Regarding the other possible routes to get a Portuguese Golden Visa, there are some changes involving the minimum investment, capital transfer and research and Development amounts:
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the minimum Investment amount has previously been capped at €350,000, it has now been raised to €500,000.
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however, there is a range of funds available, which softens the blow of the new requirement. There is an option of splitting an investment between different funds, which is a great opportunity to diversify funds.
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the increase of the Portugal Golden Visa Minimum Investment is not the only capital transfer option that has been altered – Portuguese bank accounts now also require a higher deposit for the capital transfer amount (a €1.5 million commitment rather than the previously established €1 million).
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Research & Development amount has seen a change of €150,000, when it was increased from €350,000 to €500,000 in 2022.
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Arts donation of €250,000 stays the same.
Main benefits of obtaining Portugal’s Golden Visa
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You’ll be eligible to apply for Portuguese citizenship in five years.
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Once you’re a Portuguese citizen, you get visa-free access to 188 countries.
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Your gateway for Europe: within Portugal or the Schengen Area, no visa is required to travel
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You can live and work in Portugal and invite your family members with a Family Reunification Visa.
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Minimum stay period (7 or more days in 1st year and 14 or more days in subsequent years).
Key Takeaways on Portugal’s Golden Visa changes and its impact
It is good news that the Portugal Golden Visa program has not been canceled, as it’s been anticipated by some.
So, it is worthwhile acquainting oneself with the new regulations as thoroughly as possible since despite increased investment thresholds, there are still affordable options (e.g: commercial real estate in low-density urban rehabilitation areas and commercial hotel development projects) that are suitable for the post-2022 Portugal Golden Visa applicants.
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Even with new rules, investing in real estate to apply for a Golden Visa in Portugal is still a good idea, making it one of the most appealing residence by investment programs in Europe and worldwide
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Designated “interior” and “low-density” areas expand the real market and open investments in other beautiful towns, not that far away from the main cities like Lisbon and Porto
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Commercial real estate investment can still be done throughout all territories.
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Rehabilitation projects might come as a significant alternative due to the incentives for doing so
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The 20% discount serves as one more incentive for designated low-density areas.