Golden Visa Investment Program in Portugal
Portugal | Angola | Mozambique | Dubai
Portugal | Angola | Mozambique | Dubai
When examining global top expat destination lists, it becomes apparent that Portugal has climbed the ladder recently and turned into an attractive destination for a broad variety of expat types.
Some people are finding it the right country in which to spend their golden years, owing to the mild climate, delicious food and drink, low living costs and high safety standards. Others realise Portugal’s growing potential for tourism and property investments, as well as for entrepreneurial activities as the country is on a rapid recovery trajectory after a recession period during the debt crisis years between 2010 and 2014.
The government in Lisbon continues to promote the so-called Golden Visa scheme for foreign investors, which it introduced in October 2012 at the peak of the crisis. The programme is designed as a fast-track process for investors to obtain a fully valid residency permit for Portugal, which, consequently, also allows free and unrestricted travel to European countries in the Schengen area.
Once issued, the Golden Visa is valid for an initial period of one year and can be renewed for two successive periods of two years as long as the necessary requirements are fulfilled. Apart from the conditions that an applicant should not have a criminal record and isn’t blacklisted by Portuguese immigration, there are no more prerequisites. The immigration authorities promise to issue a residency permit 90 days after the submission of all the necessary paperwork, although this depends on the individual case.
The scheme targets non-European Union citizens, with the option to obtain permanent residency after five years and citizenship by naturalization after only six years. It makes it even easier for them since they need to stay in Portugal for just a minimum of seven days during the first year, and two weeks in each subsequent period of two years.
What does the Portuguese government want in return?
Investors have a number of ways to qualify for the Golden Visa, but three have turned out to be the most popular:
Investors can buy property valued at least €500,000 with foreign funds to qualify, which is the most common way.
Investors can transfer capital into Portugal of at least €1 million, which can be retrieved after five years, after permanent residency is granted.
Investors can set up a business. Applicants need to create at least 10 permanent jobs for locals in a newly set-up business with no limitation on areas or activities and no investment minimum, but only the usual capital requirements that range from a symbolic €1 for a private limited-liability company to €50,000 for a public limited liability company.
Other, less utilized options include investments in both purchase and renovation of a property older than 30 years,
or one that is located in urban regeneration areas for at least €350,000;
capital transfer of at least €350,000 for investments in research activities or €250,000 for supporting the arts or the refurbishment of national heritage;
or the transfer of at least €500,000 to invest into domestically incorporated investment funds or for venture capital destined to capitalize small and medium-sized enterprises with a viable business plan.
So far, the residence-per-investment scheme has brought Portugal close to €2 billion in foreign investments, and more than 3,100 Golden Visas have been issued since the start of the programme, which is a much better track record than similar programmes within the European Union, namely those offered by Spain, Greece and Cyprus.
Unsurprisingly, real estate has by far been the most attractive investment choice, with close to 94 per cent of foreign investments having flown into property, not only city apartments, beach villas or country mansions, but also vineyards or farms and the like. There are no restrictions on foreign property ownership in Portugal, which means that buying a vineyard can be an enticing way to obtain residency in the country.
These buying activities in the (mostly premium) property market by foreigners have led to a significant boom in the Portuguese real estate sector, additionally fuelled by scores of retirees and pensioners from European countries choosing to relocate to Portugal due to its low cost of living and high quality of life.
Redevelopment and building programmes in the residential and commercial property sector are under way across the country, particularly in large cities such as Lisbon and Porto, as well as in popular expat destinations like Coimbra, Sintra, Cascais and along the Algarve in the South, namely in and around Lagos, Faro, Sagres and Portimao. An increasing number of discerning foreign investors also opt to purchase a holiday home on the idyllic island archipelago of Madeira.
That said, the Portuguese property market – with the support of strong foreign investment inflow – has done a lot to revive the Portuguese economy. But, while square metre prices of premium real estate have been on the upswing in the past couple of years at up to 15 per cent annual appreciation, there are no signs that the market has reached its peak yet since there is still a lot of demand. This demand is driven by the perception of foreign investors of Portugal being a safe harbour for overseas money to be put within the euro zone, its political stability and its apparent overall economic recovery in the foreseeable future.
The scheme targets non-European Union citizens, with the option to obtain permanent residency after five years and citizenship by naturalization after only six years. It makes it even easier for them since they need to stay in Portugal for just a minimum of seven days during the first year, and two weeks in each subsequent period of two years.
