Is Portugal Golden Visa Ending? Not Really, Here's What to Know

For years, the Golden Visa program in Portugal has been a beacon to cosmopolitan investors seeking a foothold in Europe. It's been a gateway to explore the rich history and culture of Portugal, and a strategic bridge to the European Union. However, recent adjustments in Portugal's Golden Visa program have rattled international investors, prompting questions about the program's continuity and altered eligibility criteria.

If you are a citizen investor, diligent about staying up-to-date with immigration and investment opportunities, the recent changes in the Portuguese Golden Visa Program in 2023 have likely caught your attention. The following comprehensive guide unpacks the core changes to the program, discusses the impact on existing applicants, and explores the new landscape of investments in Portugal.

The Golden Visa Program: a Quick Primer on its Significance

The Portuguese Golden Visa program, which began in 2012, was created to attract foreign investment into the country. It offered a pathway to permanent residency and citizenship for non-EU/EEA nationals who either conducted business in Portugal or invested in the local economy. By far, the most common avenue to a Golden Visa in Portugal was through real estate investment, which accounted for around 95% of all granted visas.

2023 Changes to the Golden Visa Program

Effective from October 7th, 2023, the Portuguese government has taken decisive steps to reform the Golden Visa program. One of the most sweeping changes has been the exclusion of several investment options that were historically the bedrock of Golden Visas. The focus has decidedly shifted towards investments that promote economic growth and job creation within the country.

With the new amendments, the once-popular options of real estate and passive financial investments no longer qualify for a Golden Visa. This particular shift has major implications for investors who were banking on property as a fast track to Portuguese residency.

Investors who applied before October 7th under the old regulations will, however, be protected. They can still expect to renew their visa under the previous terms. This provision offers some much-needed consolation to those in the process of their Golden Visa applications.

Impact on Existing Investors

For individuals who applied for the Golden Visa before the passage of the new law, the program continues to offer a pathway to residency and citizenship. Their rights remain unaffected, ensuring a clear path to permanent residence and, ultimately, citizenship after five years of living in Portugal.

The Portuguese government has taken a prudent step to ensure that lengthy investment assessments and commitments are not overshadowed by abrupt policy changes, thereby reassuring existing investors.

Which Options are Available to Get the Golden Visa?

Investors who are looking to start their Golden Visa journey post-October 2023 still have a set of investments to consider. Here are the primary categories for qualifying investments:

• Job Creation: Entrepreneurs can create a minimum of 10 job positions in the country, directly boosting the local employment market.

• Scientific Research Donation: A substantial donation, equal to or exceeding €500,000, to support scientific research institutions in Portugal.

• Cultural Heritage Donation: An investment not less than €250,000, dedicated to the preservation and promotion of Portugal’s cultural heritage.

• Investment Funds: Purchase of investment or venture capital units in companies established under Portuguese law, with 60% of the investment value realized within Portuguese territory, and with a maturity of at least five years at the time of investment.

• Company Incorporation: Directly establishing a commercial company or increasing the share capital of an already established company, leading to job creation or maintenance over a specific period.

While these new avenues align with the program's evolutionary trajectory, they require a deeper level of engagement and direct contribution to the Portuguese economy compared to the earlier investment options. For detailed info on which options are available click here.

Advantages of Golden Visa Funds

When compared to real estate investments, Golden Visa funds appear to hold the upper hand in terms of tax regimes and costs. For non-residents, the income and capital gains from these funds are not subject to tax in Portugal, providing a clear financial advantage.

By considering a Golden Visa investment through funds, potential investors are likely to benefit from a streamlined process that minimizes the maintenance costs and complexities of direct real estate acquisitions. Moreover, these funds can be managed by experienced professionals, offering a more passive investment approach.

The Enduring Appeal of the Portuguese Golden Visa

While the changes to the program may have altered the investment landscape, the allure of the Portuguese Golden Visa has not waned. Still offering a direct path to EU citizenship within 5-6 years, it stands as a unique proposition in comparison to residency programs in Spain and Greece. This quality sets it apart and maintains its appeal despite the revisions.

The enduring appeal of the Golden Visa in Portugal is also seen in the stability and soundness of Portuguese economy and regulatory environment. Portugal's commitment to its Golden Visa program signifies its belief as a crucial economic driver for the country.

Recommendations for Prospective Investors

For those considering the Golden Visa, navigating the new requirements can be a challenging task. Here are some essential recommendations:

• Stay well-informed about the changes and new investment opportunities.

• Work with reliable legal and financial advisors who specialize in Golden Visa applications.

• Thoroughly research and vet potential fund options to ensure alignment with investment goals and risk tolerance.

• Always consider the long-term benefits and implications of your decisions, and how they might affect your journey to citizenship.

Our team is dedicated to assisting prospective investors in selecting the most suitable fund investment options. We believe that a careful curation of investments and a detailed understanding of the new program's nuances can lead to a prosperous partnership between investors and Portugal's economy.

Conclusion

As we've dissected the recent changes to the Golden Visa program in Portugal, it's clear that while there have been significant adjustments, the program remains robust and offers a clear value proposition to investors. Our team is ready to guide you through the updated process, ensuring a seamless transition into the new Golden Visa framework.

If you're ready to explore your opportunities with the Golden Visa program, reach out to us today to begin the journey. Let Portugal be your gateway, and let this next chapter be as golden as its name suggests.