New regime applicable to the Portuguese Golden Visa (July 2023)

About the Portuguese Golden Visa

Since 2012, non-EU and non-EEA nationals may apply for the Golden Visa. The Portuguese Golden Visa is a residency-by-investment program introduced by the Portuguese government to attract foreign investment and stimulate economic growth.

This Schengen area residence permit is granted to individuals that conduct specific types of investment activities in Portugal.

The Golden Visa regime was amended over the years. On July 2023, a new law was passed by the Portuguese Parliament, reducing the list of eligible investments.

Benefits

Immediate benefits

Golden Visa holders may reside in Portugal as long as they wish and move within the Schengen area (and other territories with open borders within Europe).

Flexibility is part of the appeal of this residency scheme. Golden Visa holders are required to stay in Portugal for as few as 7 days per year during the first year and as few as 14 days in the following two-year periods — 35 days in a five-year period.

Long term benefits

In addition to the right to reside in Portugal for the applicant and freedom of movement within the Schengen area, the Golden Visa grants the right to family regrouping, the possibility to request a permanent residence permit in Portugal after 5 years and does not constitute an obstacle to apply for Portuguese citizenship (further requirements must be met) after 5 years.

Eligible investments for the Golden Visa (to be amended soon)

Real Estate Investments

• Acquisition of real estate worth at least 500,000 Euros
• The acquisition of a real estate for a minimum purchase price of 350,000 Euros, if the property is at least 30 years old or is located within an urban regeneration and the buyer refurbishes it.

Read about the geographic restrictions for real estate investments.

Capital Investments

• Bank deposit or investment into financial products valued in excess of 1.5 million Euros
• Transfer of capital in excess of 500,000 Euros for the acquisition of participation units in venture capital funds, with a maturity date of 5 years, investing at least 60% of the capital in Portuguese companies

Arts & Science Patronage

• Transfer of capital in the minimum amount of 250,000 Euros, for the purposes of investing in or supporting art production or the restoration and maintenance of national cultural heritage, through services carried out by a range of public or private entities
• Transfer of capital in the minimum amount of 350,000 Euros for scientific research purposes

Business Investments

• Creation of a business employing 10 individuals; or
• Transfer of capital in the amount of 350,000 Euros for the incorporation or capitalization of a Portuguese company, combined with the creation of 5 jobs for a minimum of three years.

Please note that some investment thresholds are reduced by 20% if the investment is conducted in a low density area (if there are fewer than 100 inhabitants per square kilometer or the gross domestic income per capita is lower than 75% of the national average).

Update: Eligible investments for the Golden Visa after new amendments are introduced in 2023

The new law restricting the list of eligible investments is yet to be publish in the Republic’s Gazette. Our team is closely monitoring the evolution of this process.

For more information, please check our news and insights page here. Also, we have posted an update on the evolution of the bill here and the new bill’s approval at Parliament here.

New applicants for the Portuguese Golden Visa must now rely on the following list of eligible investments.

Which investment routes are terminated?

The new law shall exclude from the eligible investments list:

• The acquisition of real estate;
• The deposit of capital or investment into financial products valued in excess of 1.5 million Euros;
• Acquisition of participation units in investment funds investing in real estate.

The acquisition of real estate is excluded, including indirect investment in real estate via Portuguese-based collective investment vehicles, such as venture capital funds. How to assess if a fund is deemed not to hold directly or indirectly real estate investments is yet to be determined.

Which investment routes are still available?

The following investment routes are still available:

• Transfer of capital in excess of 500,000 Euros to acquire participation units in venture capital funds, with a maturity date of 5 years, investing at least 60% in Portuguese companies’ capital*.
• Employing ten individuals.
• Transfer of capital of 500,000 Euros for the incorporation or capitalization of a Portuguese company, combined with the creation of 5 jobs for a minimum of three years.

*The investment activities still eligible for the Golden Visa cannot be conducted, directly or indirectly, for real estate investment.

The following capital contributions are also eligible for Golden Visa purposes but are generally considered non-yield-generating options:

• Transfer of capital in the minimum amount of 250,000 Euros to invest in or support art production, or the restoration and maintenance of national cultural heritage, through services carried out by a range of public or private entities.
• Transfer of capital in the minimum amount of 500,000 Euros for scientific research.

The investment threshold may be reduced by 20% if the investment is conducted in low-density areas.

Past changes applicable since 2022

The Portuguese Government introduced several changes to Golden Visa. The changes focus on minimum investment thresholds and geographic restrictions.

The new changes will enter into force on January 1st, 2022, and will only apply to Golden Visa applications submitted after that date. The same rules will apply to renewals.

To know more about the Golden Visa regime applicable in 2022, visit this page.

The information contained in this webpage is not to be used in place of proper and complete professional advice, as it does not constitute a binding legal opinion nor does it not consider the particularities of your case.

Please contact our team for advice before making any transactions.

Disclaimer

This publication or document contains general information and is not intended to be comprehensive nor to provide legal or tax advice or services. It should not be acted on or relied upon or used as a basis for any decision or action that may affect you or your business. Professional legal advice should be requested for specific cases. We do not undertake any continuing obligation to advise on future legal amendments, or of the impact on the conclusions herein. Prior results do not guarantee a similar outcome. The contents of this publication or document may not be reproduced, in whole or in part, without the express consent of GFDL Advogados.