Changes to the Portuguese Golden Visa Program

The Portugal Golden Visa changes will take effect in January of next year; applications must be sent by the end of 2021. Every Golden Visa pleading filed after this date will be subject to new legislation that will take effect on January 1, 2022.

The new laws make a variety of changes. Let’s take a look at them one by one. Keep in mind that the price rise in Portugal will enter into force on January 1, 2022.

• When applying for a Visa via a real estate purchase, the cost remains the same. Options between €350,000 and €500,000 are still available in their current configuration, with discounts of 20% in sparsely populated regions.
• Alternative investment options are now more expensive. If you want to make an investment fund, the cost will rise to €500,000 depending on the criteria (instead of the existing €350,000). The conditions of the application are the same.
• For capital contributions, the new indispensable prerequisite will be 1.5 million euros compared to 1 million euros at present. The terms of the application remain the same.
• For science and research areas, the cost will also increase. The amount will rise from €350,000 now to €500,000 with no modifications in other requirements.
• For people who create jobs, the sum of contributions will boost to €500,000 (in the present time €350,000) and an essential prerequisite for creating ten new jobs in Portugal.
• You can still participate in the Portugal Golden Visa program by investing in commercial, office, and tourism assets in any area of Portugal and its autonomous provinces.
• The civil polity has allowed Tavira, Monchique, Castro Marim, Evora, Vila do Bispo, Alte, Coimbra, Silves, Guimaraes, Douro, Serra da Estrela, and some urban regions of Porto to remain available for real estate investment next year.

Minimum investment items with a €350,000 price tag are becoming increasingly scarce. However, there is still time to make secure and longstanding funding in Portugal’s capital over the next 5-6 years.

Why is the Golden Visa in Portugal so widely known?

The Golden Visa is distinguished at an international scale due to comparatively inexpensive property prices, the country’s safety, and excellent quality of life. The Portuguese capital is one of those regions providing minimal property investments among all European regions.

Lisbon is one of the world’s greenest cities. It has one of the most pleasant climates on the European mainland and outstanding beaches, an exceptional transport system, and globally recognized universities that make the city a desirable option for vacationers and trans-border investors.

Persons who gain Portuguese citizenship by investment must remain in the country for at least 14 days consecutively or intermittently for each 2-year visa period in order to keep all of the privileges of living in the EU, such as passports, free unrestricted travel, and the freedom to work, learn, and live in Portugal.

Privileges of the Portugal Golden Visa Program

The main pre-eminences of acquiring a residency and citizenship in Portugal are:

• a quick process of taking Portugal residence permit within a few months, while only two visits to the country are required
• visa-free travel to all Schengen nations
• the absolute minimum of prerequisites for actual stay in the country is only 35 days within 5 years
• excellent international and Portuguese schools and universities
• an attractive tax system for individuals and legal entities
• medical facilities provide health care that meets international quality standards
• eligibility for citizenship after five years
• high living standards and low crime rate.

How to make Portugal Golden Visa investment

1. Choose a property in Portugal
2. Open an account in a Portuguese bank for transferring funds and registering a tax number for foreign investors
3. Gather documentation and clinch a deal for a real estate transaction that meets the requirements of the programme
4. Create an appointment with the SEF Portuguese Foreigners and Borders Service Portal.
5. Set a date for the biometrics delivery (registration is 2-4 months in advance)
6. Apply for a Portugal temporary residence permit personally or through your representative
7. Fly to Portugal to submit biometric data
8. Get a residence permit card (you can get it through your agent).

Indispensable papers to become a resident in Portugal

With your application for a Golden Portugal Investment Visa, you must also apply the next documents:

• passport or valid identity document
• proof of legal entry into Portugal (specifically, a Schengen short-stay visa)
• proof of medical insurance (issued within the last three months)
• police clearance certificate from the country of origin/residence (issued within the previous three months)
• prove of compliance with assess and social obligations
• payslip of Portuguese Golden Visa fees.

Candidates must also demonstrate that they are committed to keep the investment fund for at least five years in addition to this list of paper trails. Additionally, candidates must provide proof of their investment, such as:

• bank statement on financial placements
• employment agreements regarding job creation
• acts of purchase for real estate investing.

Applicants renewing their Golden Visa in Portuguese Republic will be asked to show that they have fulfilled the necessary conditions to stay during the visa validation time. For proving this, each form of investment has its own set of criteria.

Getting Portugal citizenship by investment with the help of the Portugal Golden Visa will take several months to process. SEF may contact the respondent (or their legal assignees) to set up a meeting after it has been reviewed.

Portugal Golden Visa investment opportunities available

Participants eager for immigration to Portugal by investment will contribute financially to either of the succeeding options:

1. Buy real estate in Portugal at €500,000.
2. Purchase a €350,000 immovable property in the country for restoration. It must be 30+ years old and in a cultural heritage or downtown restoration area. The capital provider is responsible for the object’s restoration.
3. Take ownership of Portuguese business stock or make a deposit of at least 1 million euros in a bank.
4. Purchase shares in a venture fund or an investment at a price of €500,000 or more. At least 60% of the fund’s donations must be delivered to Portuguese-based businesses.
5. Build at least ten jobs for Portuguese people by registering a company.

Residence permit and receiving Portugal passport by investment

Real estate investments are the most common capital contributing strategy for securing a residency permit in Portugal. In 2019, this choice was favoured by over 93 percent of international investors over other Golden Visa alternatives.

Portugal’s movable properties are in high demand. According to Standard Poor’s (an American credit rating agency), the country is among the top three EU countries with the fastest-growing property rates, with a 7 percent increase in 2019.

In order to maintain a Golden Visa in Portugal, you must spend at least €500,000 in a landed estate or €350,000 in a project for renewal.

The minimum contribution will be decreased by 20%, to €400,000 and €280,000, respectively, but only if immovable property is bought in an area with a low population density (less than 100 inhabitants per square kilometer of land area) or a low GDP (75 percent lower than the national average index).

The Portuguese government will no longer grant residency permits for investments in Grande Lisboa, Porto, and other coastal zones of the country starting January 1, 2022. Foreign clients with funds would be acceptable to buy homes only in the inner districts of Portugal, the Azores, or Madeira.

The housing costs in the plan are charged without the need for a mortgage. You may, however, apply for a loan of an amount greater than the minimal Portugal Golden Visa requirements. For example, if you purchase a home for €700,000 and meet the Portugal residence program’s minimum standards of €500,000, you will get a €200,000 mortgage.

When acquiring real estate in Portugal, remember that the cost of registration would be roughly 10% to 12% of the object’s value. In fact, the total annual cost of housing maintenance in Portugal would be €2,000.

Some information about patriality

The person obtains permanent Portugal residency by investment and applies for Portuguese citizenship after five years. In comparison to Spain and Italy, where patriality can be obtained in 10 years, and Greece, where nationality can be received in 7 years, it is one of the fastest naturalizations in the European Union.

Furthermore, the Portuguese authorities recognise dual nationality, allowing you to hold your home country’s passport.

There are a few Portugal Golden Visa necessary criteria that the investor must satisfy:

• evidence of profits and a fund placement
• certificate of a clean criminal record
• knowledge of the Portuguese language at a basic level.

The Golden Visa application process step-by-step

Depending on whether the investor obtains a Golden Visa in Portugal on his or her own or with the assistance of an immigration department, the measures will vary. In the second scenario, specialists do all of the mundane tasks. The client must pay for the contribution and receive a certificate of residency permit status. Let’s look at the most important steps:

1. Fill out an application. Cooperation with an immigration agency helps you get it right. This and the next 5 steps the agency takes upon itself, you only need to provide the original documentation and purchase the property.
2. Select an object and conclude a purchase agreement if you want to take part in the Golden residence permit program through real estate.
3. Collect a package of documents, translate them into Portuguese and notarize them.
4. Register in SEF and send the prepared documents there.
5. Pay all fees €517 for yourself and €80 for each family member in the application.
6. Apply for a Schengen visa to visit Portugal and select a property.
7. Open a Portuguese tax number (NIF).

SEF will review the resignation and make a decision within 6-7 months. If the investor’s application for a residence permit card is approved, he or she will be required to pay an extra fiscal obligation for each family member involved in the application.

Golden Visa fees and costs

In Portugal, the expense of acquiring a residency card is €5,173 per family member. The cost of extending a residency in Portugal is 50% of this amount, or €2,586.

The fee for applying for and renewing a residency permit is €517 for the principal applicant and €80 for a family member.

The expense of obtaining a tax number (NIF) and the services of a tax representative is €200. Medical insurance is also around €200 per person.