Major Changes to Portugal's Golden Visa Scheme

The highly popular Golden Visa scheme in Portugal has now been amended, with the new law, Mais Habitação, which was enacted on the 8th of October and removes the category for investment with the purchase of residential real estate in the sum of €500,000. The categories relating to commercial investment remain in place.

The Golden Visa was initially introduced to revive Portugal’s flagging economy and proved to be extremely successful in this respect bringing an estimated €530 million worth of investments to the country through the scheme. High-income foreign residents bolstered the local economies in the popular areas and the revised Golden Visa scheme has not been welcomed by all in Portugal. Victor Reis, previously president of the Institute of Housing & Urban Rehabilitation “the problem of the lack of supply of housing is not solved with hostile measures towards those who invest.” Also, the regional President of Madeira Miguel Albuquerque exhibited reservations about the decision. 

The category for residential real estate investment, now rescinded, proved so popular with retirees that unfortunately it adversely influenced Portugal’s real estate market driving up property prices, in some areas, such as the Algarve prices rose by as much as 15%. The inflated costs were elevated to such an extent that Portuguese citizens were priced out of the market by the enthusiastic acceptance of the Golden Visa Scheme by foreign retirees. 

Rute Lourenço, an associate, commented “the considerable advantages of the Golden Visa scheme and its can still be accessed through commercial investments enabling the investor to benefit from the extremely favourable rate of tax.” Rute further pointed out “if you have already embarked on the Golden Visa scheme through the purchase of residential property you can still access all the benefits extended at the time of your application.”

Terms of the Golden Visa

The Golden Visa scheme can be accessed by the following types of commercial investment:

• An investment of €500,000 in an organisation that specialises in scientific research
• An investment of €250,000 in the maintenance or production of the Portuguese national heritage
• An investment in a business that creates at least ten jobs
• An investment of €500,000 in securities funds
• An investment of €500,000 in an existing company or the creation of a new company that creates or maintains five long-term permanent jobs for a minimum period of three years

The minimum residential requirement is seven days per year, one of the least demanding requirements compared to other Golden Visa schemes across Europe. 

Advantages of A Golden Visa

A holder of a Golden Visa can apply for citizenship after five years. For individuals wishing to be domiciled in Portugal that are able to take advantage of:

• Worldwide exemption from income tax 
• Income sourced in Portugal, either through employment or self-employment, is liable to a flat tax rate of 20%
• No inheritance tax or gift tax

Giambrone & Partners English-speaking immigration lawyers in Portugal can guide you through the entire process. 

Requirements for an Application for a Golden Visa

Applicants will require a Portuguese bank account and a taxpayer identification number (numero de indentificação) known as NIF. An NIF provides personal identification and enables the holder to enter contracts, purchase services and goods in Portugal.

Applicants will need to provide a range of documentation which, if issued by a non-Portuguese authority, must be legalised and translated into Portuguese. by an accredited translator and certified, usually by a notary, which our lawyers can facilitate. The key documentation required:

• Evidence of your qualifying investment
• Confirmation by a Portuguese financial institution that the transfer of funds has taken place
• Proof of acceptable health care in Portugal
• Evidence that you have a clear criminal record issued within three months of your application
• A completed SEF (the Portuguese Immigration and Border Service) application form

Our expert lawyers will diligently prepare and submit the application on your behalf, guiding and assisting you until your residence permit has been issued.

Rute Lourenço Rute specialises in several areas such as immigration; including nationality applications and an extensive range of visas such as the Golden Visa scheme where her considerable real estate experience is also utilised. Her expertise extends in more than one direction as Rute additionally provides valuable guidance and insight in corporate and commercial non-contentious matters and has extensive experience in drafting complex cross-border contracts, providing protective clauses that offer the maximum safeguards for our clients.

If you would like to know more about a Golden Visa in Portugal please contact Rute's clerk, Bruno Diniz at bruno.diniz@giambronelaw.com or please click here.