Portugal has long been a popular destination for global investors and expatriates, offering attractive pathways to residency through programs like Portugal Golden Visa. However, the collapse of the Portuguese government, headed by Prime Minister Luís Montenegro, after losing a vote of confidence in Parliament has created a wave of uncertainty around the country’s immigration and investment policies. This political shift may soon lead to changes in the favorable terms offered by the Golden Visa Program, therefore, making it crucial for investors to take quick action.
A Nation in Transition
After these changes, the current Portuguese government will function in caretaker mode, and its powers will be limited until the new legislative elections are held in May 2025. A new government composed of different political ideologies and different parliamentary members will take office between June and July. The upcoming leadership will focus on implementing reforms across major policy areas while immigration programs continue to be the main point of discussion. The new government could alter Portugal Golden Visa program and asylum and refugee policies while also changing its immigration strategy for third-country nationals, including investors, digital nomads, and entrepreneurs.
The Portuguese government has previously made several adjustments to the Golden Visa program. For instance, in late 2023, it eliminated real estate investment as a qualifying option, aiming to alleviate pressure on the housing market. Additionally, the program has faced challenges due to processing delays, prompting the Portuguese Immigration Office (AIMA) to introduce vital changes to improve efficiency and respond to the growing interest in the program. However, with the political balance shifting, there is a real possibility that the next government may tighten requirements, raise investment thresholds, or phase out certain categories altogether.
Why Investors Should Act Now?
The current situation offers foreign investors a chance to obtain the best possible conditions. Delaying may result in missing out on the most favorable terms Portugal has ever presented. Therefore, investors should act swiftly to capitalize on the current strategic advantages, which primarily include:
Political Certainty for Now
Until a new government takes power, current laws and procedures remain in place. That allows savvy investors to secure residency while the program still operates under known, stable conditions.
Political Risk Ahead
The upcoming election results remain unclear while major changes in the country could emerge because corruption, immigration, and economic policy dominate the discussion. The question is not about timing but rather when such changes will occur.
Ensuring EU Residency Status
Applying for a Golden Visa today guarantees the investor’s EU residency status under current regulations, which will protect investment and residency rights regardless of future regulations.
Strong Long-Term Fundamentals
Portugal’s real estate market, quality of life, and access to the European Union make it one of the most strategic residency destinations globally. These fundamentals remain rock-solid even amidst political transitions.
Major Benefits of Portugal’s Golden Visa
- Applicants can obtain a residency permit by investing in a qualified investment fund, such as private equity or venture capital funds, with a minimum of €500,000, excluding any fund that has direct or indirect real estate ties. There are numerous venture capital and private equity funds available in the market. Each fund offers unique business strategies and investment techniques that appeal to a wide range of investors. The average annual return on investment (ROI) is between 6% and 8%, and investment can be liquidated after the citizenship process is completed. Funds are managed by fund managers who are accredited by the Portuguese Securities Market Commission.
- Golden Visa holders are not required to reside in Portugal to hold the residence permit but rather stay in the country for seven days annually.
- Golden Visa holders can apply for citizenship after five years while keeping other citizenships, which is considered one of the fastest routes to obtain citizenship in Europe.
- Golden Visa holders provide visa-free access to the Schengen area.
General Advantages
As a participant in the Portugal Golden Visa program, investors are entitled to reside and work in Portugal, although residency is not mandatory. Portugal provides an attractive tax regime for those who choose to relocate. The Golden Visa also grants visa-free travel throughout the Schengen Area. After holding the Golden Visa for five years, you can apply for Portuguese citizenship or permanent residency, which includes a passport. A Portuguese passport allows you to reside, work, and study anywhere in the European Union.
What Investors Should Do?
For Investors and high-net-worth Individuals considering investing in Portugal Golden Visa, now is the ideal time to act decisively. Applicants should consult a legal expert specializing in Portuguese immigration law to assess their eligibility and gather the documentation. Then, investors should begin the investment process, whether in qualifying funds or in establishing their own company as soon as possible. Applicants should stay updated on political developments and prepare to file their applications before any new government changes enter into effect. Here’s the step-by-step process:
Step 1: Applicants seeking to invest in a Golden Visa permit should work with an advisor to guide them through the process. These professionals have the expertise and knowledge to navigate the complex legal and regulatory requirements, ensuring that applicants comply with all necessary procedures.
Step 2: Investors should review the various investment options available and choose the one that aligns best with their goals. Advisors can also provide valuable insights into the different investment options. Currently, the most popular choice among applicants is the fund investment option.
Step 3: The appointed lawyer assists the applicant in obtaining the NIF number (tax identification number), which can typically be completed within a few days in Portugal.
Step 4: The Advisor and the appointed lawyer will help the investor open a bank account without requiring you to be physically present in Portugal his process may take from a week to a few months, depending on the country of origin.
Step 5: After choosing the investment route, the applicant should transfer the investment amount into their Portuguese bank account and then proceed to invest.
Step 6: An advisor helps the applicant collect all the required documents for himself and any dependents. This involves translations, notarizations, apostilles, and certifications, which can make it a bit overwhelming. The advisor helps applicants streamline the application process, avoid potential pitfalls, and increase their chances of successfully obtaining a Golden Visa.
Step 7: Once applicants make the qualifying investment and finish their paperwork, the lawyer should submit their pre-application online to Agência para a Integração, Migrações e Asilo (AIMA, previously SEF).
Step 8: After reviewing the application, AIMA will book a biometrics appointment. On the chosen date, the applicant and any dependents must attend in person at the designated AIMA office to submit their fingerprints.
Step 9: After completing the biometrics appointment and paying the residence card issuance fee, AIMA will analyze the application. The advisor will then collect the Golden Visa residence cards and send them to the applicant and his dependents. Each card is valid for two years, after which applicants should renew them to continue holding the Golden Visa. The entire process, from the biometrics appointment to receiving the cards, usually takes around six months.
A Smart Move in Uncertain Times
Political uncertainty often creates the greatest opportunities. Some people may choose to stand by and wait, but informed investors know that timing is everything. Portugal remains open for business, but the chance of acquiring its citizenship may not be an option anymore. Hence, this is the perfect time for investors who are hesitant to take action because the new government rules may change the current conditions.
Investors from the Middle East can use the Portuguese Golden Visa to gain access to the European Union, which offers lifestyle independence, wealth planning advantages, and future mobility. It is crucial to act quickly to secure an EU entry point, as forthcoming regulatory changes may limit access or raise entry requirements.
For more information about Portugal’s Golden Visa and D7 Visa Programs and the whole application process, please contact us here.