Is the Golden Visa still available in Portugal
As of 2024, Portugal’s Golden Visa program is still active, but there have been significant updates, especially regarding investment options. Notably, investing in residential real estate in high-density areas such as Lisbon, Porto, and much of the Algarve is no longer an option. Instead, the program now emphasizes investments in venture capital, private equity funds, arts and research donations, or starting a business that creates jobs locally.
Despite these changes, the program continues to attract many investors due to its minimal residency requirements. Applicants only need to spend an average of seven days per year in Portugal to maintain their visa. This is particularly advantageous for those who do not wish to relocate permanently but still want a pathway to EU residency and potential citizenship after five years.
What is the Golden Visa?
The Golden Visa program is designed for non-EU, non-EEA, and non-Swiss citizens who want to invest in Portugal without relocating there permanently. It offers a pathway to Portuguese residency and, eventually, citizenship. This visa provides significant benefits, including visa-free travel throughout the Schengen Area, which makes it easier to move across Europe.
Key benefits of the golden visa
The Golden Visa program offers several key benefits:
- Residency Rights: Investors and their families can live, work, and study in Portugal, with access to high-quality healthcare and education.
- Visa-Free Travel: Enjoy visa-free travel across the Schengen Area, allowing for seamless movement across 26 European countries.
- Path to Citizenship: After five years, you can apply for Portuguese citizenship or permanent residency, gaining an EU passport with the right to live, work, and study anywhere within the EU.
- Minimal Physical Stay Requirements: You only need to spend around seven days per year in Portugal, which is ideal for those who cannot stay in the country full-time.
Portugal golden VISA requirements
To qualify for the Portugal Golden Visa program, you must meet the following requirements:
- Have a clean criminal record (consult a lawyer if there are concerns).
- Be a non-EU, non-EEA, and non-Swiss national.
- Make a minimum investment of €250,000 through eligible routes.
- Spend about seven days in Portugal each year, ensuring at least 14 days every two years with your residence card.
Main changes in 2024
The 2024 updates to the Golden Visa program include:
- The period between submitting an application and issuing a temporary residency permit now counts towards the required number of years for EU citizenship.
- Investment requirements have been redefined, eliminating the purchase of real estate and capital deposits for investment purposes.
These changes aim to:
- Streamline the permit application process.
- Exclude investments of dubious origin.
- Recognize and compensate for the time spent on administrative processes, making citizenship more straightforward.
Investments options for the Golden Visa
The updated investment options for the Golden Visa include:
- Fund Subscription: Invest a minimum of €500,000 in a qualified investment or venture capital fund.
- Donations to Arts: Contribute at least €250,000 to support art projects.
- Donations to Research: Invest €500,000 in scientific and technological research.
- Job Creation: Establish a business that creates and maintains at least 10 jobs.
- Existing or New Companies: Invest a minimum of €500,000 in the share capital of an existing Portuguese company or start a new one with at least five permanent employees.
Golden Visa application process
To obtain the Golden Visa, follow these steps:
- Select Your Investment: Choose your investment route and gather all necessary documentation, including your tax ID (NIF) and open a bank account.
- Submit Your Application: Engage a lawyer to assist with the application process.
- Biometric Data Collection: Visit Portugal to submit biometric data.
- Receive Your Golden Visa: If successful, you will receive your Golden Visa, allowing you to enjoy its benefits.
This process typically takes 10 to 14 months to complete.
Tax implications
Understanding the tax implications is crucial when investing in Portugal:
- Tax Benefits: There is no tax liability if you spend more than 183 days in Portugal. The Non-Habitual Resident (NHR) tax program offers favorable tax rates on foreign income for up to ten years. However, as of January 1, 2024, individuals who have not been tax residents in Portugal for the previous five years are no longer eligible for NHR benefits.
- Tax Obligations: Portugal taxes worldwide income for residents, with rates ranging from 13.25% to 48%. Non-residents pay a 25% tax on income sourced within Portugal. There is no wealth tax, but property taxes apply to properties valued over €600,000. No inheritance tax exists, but a 10% stamp duty applies to property transfers outside the immediate family.
Comparison with other countries
Portugal’s Golden Visa stands out due to its minimal stay requirement of just seven days per year, compared to other countries like Spain, which requires more substantial investments and longer residency periods for citizenship eligibility. In Portugal, you need five years to become eligible for citizenship, whereas Spain requires ten years.
In summary, Portugal’s Golden Visa program offers flexibility, accessible entry requirements, and the potential for EU residency and citizenship, making it a highly attractive option for foreign investors.
