Portugal Golden Visa 2024: New Rules, Routes & How to Apply

Introduction

Are you considering investing in Portugal and obtaining a Golden Visa? The Portugal Golden Visa program has undergone some significant changes in 2023, but don’t worry, the program is still open for investment residency and eventual EU citizenship. In this article, we will explore the new rules and routes for the Portugal Golden Visa, as well as provide a comprehensive guide on how to apply. Whether you’re interested in job creation, art and culture, scientific research activities, investment funds, or company incorporation, there are still exciting opportunities available.

Golden Visa Changes 2023

The Portugal Golden Visa program has seen some important changes as of October 7, 2023. While two routes have been removed, there are still five routes available for potential investors. Let’s take a closer look at the remaining routes:

1. Creation of at least 10 new permanent jobs: This route requires investors to create a minimum of 10 new permanent jobs. There is no specified minimum investment for this route, but further details are yet to be announced.

2. Investment in artistic production and national heritage preservation: With a minimum investment of €250,000, investors can contribute to artistic production and the preservation of Portugal’s national heritage. This route offers a unique opportunity to support cultural initiatives while also meeting the requirements for the Golden Visa.

3. Investment in scientific research activities: By transferring a minimum of €500,000 to public or private scientific research institutions integrated into the national scientific and technological system, investors can qualify for the Golden Visa. Although this route hasn’t been widely utilized in the past, it offers an intriguing alternative to other investment options.

4. Investment in Portuguese funds: This route allows investors to buy shares in certain Portuguese funds with a maturity of at least five years. At least 60% of the fund’s investments must be in commercial companies based in Portugal. Investing in funds not only provides a proven pathway to residency but also offers tax benefits for investors.

5. Investment in company incorporation with job creation: By incorporating a commercial company with a registered office in Portugal and creating at least five permanent jobs, investors can qualify for the Golden Visa. This route requires a transfer of capital equal to or greater than €500,000.

It’s important to note that the required investment for routes 1, 2, and 3 can be reduced by 20% if the investment activities take place in a low-density zone of Portugal. Low-density zones are defined as areas with fewer than 100 inhabitants per square kilometer or a GDP per capita of less than 75% of the national average.

Background and Reasons for Changes

The changes to the Portugal Golden Visa program were implemented as part of a broader package of measures aimed at addressing the country’s housing crisis in the wake of the pandemic. The new bill, Mais Habitacão (More Housing), was introduced to increase housing availability and access in the medium-term. The changes to the Golden Visa program are just one aspect of the government’s interventions in the housing market.

In addition to the Golden Visa changes, other measures include limiting rent increases, imposing higher taxes on short-term accommodation, and enabling the state to repossess empty houses. The removal of real estate investment options from the Golden Visa program is perhaps the most significant change. Real estate had been the most popular route for obtaining a Golden Visa since the program’s inception in 2012.

Benefits of the Portugal Golden Visa

Despite the changes, the Portugal Golden Visa still offers numerous benefits for potential investors. Here are some of the key advantages:

1. Visa-free travel in Europe: With a Golden Visa, investors can enjoy visa-free travel throughout the Schengen area, allowing for easy exploration of Europe’s diverse countries and cultures.

2. Pathway to Portuguese and EU citizenship: While the Golden Visa program does not offer immediate citizenship, obtaining residency through the program allows investors to apply for citizenship after five years. Portugal’s citizenship pathway is known for its efficiency, minimal language requirements, and recognition of dual citizenship.

3. Inclusion of family members: Investors can include their spouse, children, and dependent parents on their Golden Visa application, granting them the same residency rights.

4. Various investment routes: Despite the removal of real estate investment options, there are still exciting investment routes available, such as job creation, art and culture, scientific research activities, investment funds, and company incorporation.

5. Low physical stay requirements: The Portugal Golden Visa program requires investors to spend just seven days per year physically in the country, offering flexibility and convenience.

Eligibility for the Portugal Golden Visa

To qualify for the Portugal Golden Visa program, applicants must meet certain basic requirements:

1. Non-EU/EEA and non-Swiss citizenship: The program is open to individuals who are not citizens of the European Union, European Economic Area, or Switzerland.

2. Minimum investment threshold: Applicants must make an investment in Portugal that meets the minimum threshold for their chosen route.

3. Clean criminal record: Applicants must have a clean criminal record, free from any serious offenses.

4. Minimum physical presence: Golden Visa holders are required to spend at least seven days per year in Portugal.

Qualifying Investment Routes in 2024

Let’s delve deeper into the five investment routes available for the Portugal Golden Visa program in 2024:

1. Job Creation (No Minimum Investment)

This route focuses on job creation and does not have a specified minimum investment amount. Investors must create a minimum of 10 new permanent jobs, although further details regarding this route are yet to be announced.

2. Art and Culture (€250,000 Investment)

The art and culture route offers investors the opportunity to contribute to artistic production and the preservation of Portugal’s national heritage. By investing a minimum of €250,000, investors can meet the requirements for the Golden Visa. This route is unique as it allows investors to support cultural initiatives while also potentially receiving a return on their investment. Investing in film production is one way to meet the requirements for this route, and applications must be submitted by an eligible public entity.

3. Scientific Research Activities (€500,000 Investment)

Investing a minimum of €500,000 in scientific research activities allows investors to qualify for the Golden Visa. This route involves transferring capital to public or private scientific research institutions integrated into the national scientific and technological system. While this route has not been widely utilized in the past, it provides an alternative option for investors interested in scientific research activities.

4. Investment Funds (€500,000 Investment)

Investment funds offer a fast and straightforward route to obtaining the Golden Visa, with proven success over the years. Investors can purchase shares in Portuguese funds with a maturity of at least five years. To qualify for the Golden Visa, at least 60% of the fund’s investments must be in commercial companies based in Portugal. Investing in funds also provides tax efficiency, as investors who do not become tax residents in Portugal are exempt from taxes on dividends and capital gains.

5. Company Incorporation with Job Creation (€500,000 Investment)

By incorporating a commercial company with a registered office in Portugal and creating at least five permanent jobs, investors can qualify for the Golden Visa. This route requires a transfer of capital equal to or greater than €500,000. Alternatively, investors can reinforce the share capital of an already incorporated commercial company in Portugal and create at least five permanent jobs or maintain at least 10 jobs for a minimum period of three years.

Bringing Your Family to Portugal

One of the advantages of the Portugal Golden Visa program is the ability to include family members on the application. The following family members are eligible to be included:

1. Spouse or legal partner: Proof of living together for over two years is required for legal partners.

2. Children: Children under 18 years of age can be included on the application. Additionally, dependent children under 26 who are unmarried and in full-time education may also be included.

3. Parents: Parents over the age of 66 or financially dependent on the investor can also be included on the application.

Fees and Other Costs

When applying for the Portugal Golden Visa, there are several fees and costs to consider. Here is an overview of the fees involved:

• Government fees: The processing fee is €533 for the main applicant and €83.30 per dependent. This fee is paid at the start of the application and at each renewal. Additionally, there is an application fee of €5,325 per applicant and a renewal fee of €2,663 per applicant.
• Legal fees: The total fees for legal assistance over the full five years typically start from around €10,000 for a family of four. The exact fees may vary depending on the law firm chosen to handle the application.

It’s important to note that fees can vary depending on the law firm you choose to assist with your Golden Visa application.

Application Process for the Portugal Golden Visa

Applying for the Portugal Golden Visa involves several steps. Here is an outline of the application process:

1. Select your preferred investment route: Choose the investment route that aligns with your interests and meets the program’s requirements.

2. Collect all required documents: Gather all necessary documents, including passport copies, proof of investment, health insurance policies, criminal record certificates, and declarations related to your investment intentions.

3. Get a NIF: Obtain a Portuguese tax number (NIF) as part of the application process.

4. Open a Portuguese bank account: Open a bank account in Portugal to facilitate your investment and financial transactions.

5. Make your investment and collect the proof: Carry out your investment according to the requirements of your chosen route and collect the necessary proof of investment.

6. Submit your Golden Visa application online: Complete and submit your Golden Visa application online, including all required documentation.

7. Receive your application pre-approval: After submitting your application, you will receive a pre-approval notification.

8. Attend your biometrics appointment in person: Schedule and attend a biometrics appointment in person at a designated location.

9. Receive your residency permit from SEF: Once your application is approved, you will receive your residency permit from the Portuguese Immigration and Borders Service (SEF).

Renewing Your Golden Visa Residency Permit

The initial residency permit issued through the Portugal Golden Visa program is valid for two years. Here’s what you need to know about renewing your residency permit:

• Years 1 and 2: During the first two years, you must spend a minimum of 14 days physically in Portugal. It’s advisable to initiate the renewal process at least two months before the permit’s expiration date to account for potential delays. Renewal requires updated versions of the same documents submitted for the initial application, a new set of biometrics, and the payment of renewal fees.

• Years 3, 4, and 5: The renewed residency permit will be valid for another three years. During this period, you must spend at least 21 days physically in Portugal, averaging seven days per year. After holding temporary residency for five years, you have the option to convert it to permanent residency, which is valid for ten years.

After five years of holding temporary residency, you can also apply for Portuguese citizenship by naturalization. This option provides the opportunity to enjoy the benefits of dual citizenship.

Final Thoughts and Recommendations

Although the Portugal Golden Visa program has undergone significant changes in 2023, it remains an attractive option for investors seeking investment residency and eventual EU citizenship. While real estate investment options have been removed, there are still compelling routes available, such as job creation, art and culture, scientific research activities, investment funds, and company incorporation.

For new investors, the best choices are investing in Portuguese film production with a minimum investment of €250,000 or investing in an investment fund with a minimum investment of €500,000. These routes offer exciting opportunities and potential returns on investment.

It’s important to stay informed about the latest developments and projects unfolding in Portugal, as the legal and investment landscape continues to evolve. Consulting with experienced lawyers, fund managers, and film production companies can provide valuable insights and guidance throughout the application process.

The Portugal Golden Visa program may have changed, but it is still very much alive and offers a pathway to residency and EU citizenship. If you’re considering investing in Portugal, the Golden Visa program is worth exploring for its numerous benefits and opportunities.