Located on the western coast of the Iberian Peninsula, Portugal is one of 28 European Union member countries, offering investors a straightforward scheme for obtaining residency through **Real Estate Investment for Portugal Golden Visa**.
In October 2023, the country made vital changes to its Golden Visa Program, reshaping the landscape for Investors seeking residency through this program. One of the most remarkable changes has been the removal of real estate investment for Portugal Golden Visa option and investment funds focused on real estate from the list of eligible investment choices.
Investors can still obtain eligibility for the Golden Visa of Portugal through selected funds that satisfy the updated requirements, provided these funds support a sector other than real estate. While **Real Estate Investment for Portugal Golden Visa** remains a popular option, alternative investments include funds focused on technology, science, renewable energy, agriculture, healthcare, and other sectors that contribute to the country’s economic growth and diversification.
The new framework that canceled the real estate investment for Portugal’s citizenship[1] encourages investors to invest in broader economic activities that relate to the long-term development of the country.
Real Estate Investment for Portugal Golden Visa Cancelled
Portgual Golden Visa Real Estate was one of the most popular investment routes to obtaining residency.
Investors were required to purchase a worth €280,000 property in a low-density area that needs renovation and from €500,000 for a new real estate in a high-density location. They weren’t able to purchase residential real estate in Lisbon, Porto, and other popular areas of the country.
Real estate purchases were limited to residential properties in the Portuguese inland territories, the Azores, and Madeira or commercial properties in any country region.
Additionally, funds centered on **Real Estate Investment for Portugal Golden Visa** allow investors to pool capital into Portugal’s real estate market. However, these two investment routes no longer count toward eligibility. This decision was taken to align with Portugal’s broader strategy to address housing affordability issues in major cities and to redirect investment in other economic sectors.
Accessible alternatives
Portugal has ended the option of a real estate investment for its Golden Visa, but it expanded a range of alternative investment options that keep the program accessible, affordable, secure, and investor-friendly. These alternatives include:
Fund Subscription
Applicants can invest in a qualified investment fund, such as private equity or venture capital funds, with a minimum of €500,000, with a maturity of at least five years, and with at least 60% of the investment portfolio in companies with a registered office in the national territory, excluding any fund that has direct or indirect real estate ties.
This option is considered perfect for acquiring residency in Portugal because the funds are run by managers accredited by the Portuguese Securities Market Commission, the Bank of Portugal, and the external Fund Management Company and audited by the Portuguese Tax Authorities. These stringent regulations ensure compliance with Portuguese legislation, tax laws, and the approved investment plan by the Portugal investor fund.
In the old real estate investment option for Portugal Golden Visa, all rental income from real estate is subject to a fixed 28% tax rate. On the contrary, the investment fund option does not lead to hefty fees and taxes.
Portuguese legislation mandates funds to maintain a diversified portfolio. This means there are limits on the percentage of the total fund that can be invested in any single asset or investment. This diversification helps spread risk across different investments within the fund, benefiting the participating investors. The annual yields and potential capital appreciation from an investment in a fund under the Golden Visa Program can be substantially higher compared to other investment options.
Research activities
Investors also have the option to contribute at least €500,000 for research activities of public or private scientific research institutions involved in the national scientific or technological system.
Support of artistic production
Investors aiming to gain a Portuguese residency permit can donate at least €250,000 to qualified projects in the recovery or maintenance of national cultural heritage. However, the eligible project must be approved by the Portuguese government[2].
Creation of at least 10 new jobs
Apart from Real Estate Investment for Portugal Citizenship, applicants can obtain a Golden Visa by creating and maintaining ten new full-time jobs in line with Portugal’s labor and social security standards. This number can be reduced to eight new full-time jobs in a Portuguese business established in a low-density area in the country, owned by the main applicant[3].
Commercial company
Investors can also incorporate a commercial company registered and headquartered in Portugal with an investment of €500,000, combined with the creation of five permanent jobs or the maintenance of ten jobs. They also have the option to increase the share capital of a company already incorporated and headquartered in Portugal, creating at least five permanent jobs or maintaining at least ten jobs for three years[4].
Portugal Golden Visa Benefits
Even though real estate investment for Portugal’s citizenship and real estate-focused funds are no longer qualifying options for Portugal Golden Visa, there are still great advantages that come with being a resident of Portugal. Resident permit holders[5] can easily travel in the Schengen Area, and they have the possibility of living, working, or studying in Portugal. After five years, they have the right to apply for citizenship in Portugal without losing their citizenship.
The residency obligations for **Real Estate Investment for Portugal Golden Visa** are also light, requiring only seven days in the first year and fourteen every two years afterward. Besides, there are possibilities of attending Portuguese international or local schools and universities, as well as receiving medical assistance in world-class clinics and hospitals. The high standard of living is combined with a mild climate, hospitable people, a variety of cultural life, and safety.
[1] https://www.portugal.com/news/portugal-officially-ending-golden-visa-by-real-estate-investment-on-october-7-2023/
[2] https://aima.gov.pt/pt/trabalhar/autorizacao-de-residencia-para-atividade-cultural-art-90-o
[3] https://aima.gov.pt/pt/trabalhar/autorizacao-de-residencia-para-titulares-administradores-ou-trabalhadores-de-empresas-sediadas-ou-com-estabelecimentos-principal
[4] https://aima.gov.pt/pt/trabalhar/autorizacao-de-residencia-para-atividade-altamente-qualificada-exercida-para-empresa-certificada-art-90-o-tech-visa
[5]https://www.goldenvisafunds.pt/#:~:text=Key%20features%20of%20the%20Golden%20Visa&text=Visa%2DFree%20Travel%3A%20Freedom%20of,work%2C%20and%20study%20across%20Europe.