Portugal Golden Visa Updates
The Golden Visa is not dead! Discover all the tweaks that have been made to make the Portugal Golden Visa Updates evermore profitable for investors!
Article by Viv Europe - Official Legal and Relocation Partner to KipperTree.
13 03 2024
Read the full article here
Business, Visas & Permits
There’s been a lot of news going around. Ever since the laws changed in late 2023, most investors were feeling disappointed about not having options. But that’s far from the truth! Some fantastic opportunities await. The best part? Your minimum stay restriction still doesn’t bind. And you’re free to choose not to relocate completely if you don’t want to. Stay with us till the end to know more about qualifying for the Portugal Golden Visa Updates!
If you’ve been planning your investment for a while, there are things you should be mindful of. Your plans might need some tweaking according to the current situation. Just as Portugal had to make some changes based on the country’s economic realities.
These changes aligned with what was best for the country, its people, and its investors, who have made it possible for Portugal to grow. So, let’s talk about the best options you can invest in to secure a European Passport for you and your family. Happy reading!
What is the Golden Visa?
The Golden Visa, more commonly known as an investment permit, is a famous residency-by-investment program for individuals who can see the potential in Portugal. From the list of Portuguese Visas, the D7 Retirement Visa and the Golden Visa make it to the top.
Through certain financial investments, it gives foreign investors the chance to become Portuguese citizens. It was launched over a decade ago, keeping in mind the interests of foreign investors and the types of financial gains they seek. It’s also particularly opted for by retirees during their retirement planning. Since its launch in 2012, the Portugal Golden Visa program has gained much popularity among non-EU/EEA citizens.
The #1 reason for that is because Portugal is one of the few countries that let you qualify for a Passport in only 5 years, along with the access to live, work, and reside anywhere during those years.
We’ll get into the details of exactly how!
Golden Visa Updates
As mentioned earlier, the regime went through some changes. The most recent Portugal Golden Visa updates state that real estate investments of any kind are no longer valid to qualify for the program.
This is a major change, and we can understand why investors are disheartened after the release of this information. It officially nullifies the process of acquiring residential or commercial properties for the Golden Visa.
But all is not lost! There are still fantastic options available for investors:
Capital transfer to investment funds;
Company creation (along with 5-10 jobs);
Donation to research activities and art.
Before you pick one, make sure to understand each option clearly. At this point, it would be good to consult professionals who can help you out with personal advice.
Why was this change needed?
Now, you’re probably wondering why they had to take off certain investment options if they were so successful.
The main reason for this change is to address the problem in the housing market. Due to an increasing shortage of available residential and commercial properties, there was a need to change policies before real estate realities got worse.
And it has subsequently resulted in shifting the investments towards other economic and social development factors that are directly linked to the development of the country.
With this, people have now revised their strategy for investment in the Portugal Golden Visa program, keeping in view the new rules and regulations.
Golden Visa 2024 Investment Options
People who seek a visa to Portugal through investment still have several investment opportunities available after the Portugal Golden Visa updates in 2024.
The sole purpose of these revised investment routes is to support the economic growth and innovation sectors within the country.
Let’s discuss the current best investment options for the Golden Visa in Portugal!
Investment Funds
Under the amendment law 102/2017, this is one of the most profitable investment options introduced on August 28, 2017.
This option was always available to investors but gained popularity fairly recently. To qualify for this, investors must transfer capital to venture capital or private equity funds worth €500,000 or more.
These funds will be allocated to capitalize registered or recognized companies under Portuguese law. The investment funds option is better in many ways. There are fewer fees and taxes, there’s a higher probability of your annual yield being higher, and most importantly, your investment is secure.
If you’re interested in how to go about this, book a consultation with Viv Europe to get advice from industry experts.
Company & Job Creation
The next option is to invest in a company. This means you must create a new company and open up employment positions for at least 10 people.
It’s often preferred by entrepreneurial minds familiar with the process of starting a new business. It’s far more complicated than transferring money to an investment fund and letting experts deal with the rest.
However, investing in a new company is also quite profitable. Given Portugal’s economic growth and strong geographical location, this option can also prove to be worth your time. And it also supports economic growth in the long run.
Scientific Research & Donation to Arts
Another opportunity is the option of investing €500,000 in the advancement of science and technology. This attracts philosophers, scholars, and other researchers to invest in their passion while benefiting from European residency.
Apart from this, if you’re interested in donating to the preservation of arts, the amount is reduced to €250,000. But keep in mind that this is a donation, and you will not gain financial returns. In this case, the only thing you will receive is residency in Portugal for you and your family, along with the option to qualify for a Passport 5 years later.
Nonetheless, this fascinates arts and culture admirers. It’s an innovative way to support the economy by investing in culture and heritage to attract tourists and improve the sector.
Benefits of the Golden Visa
Why does the demand for Portugal’s revamped Golden Visa remain high regardless of these changes?
As per Portugal Resident, “Last year, the Portuguese authorities granted 352 golden visas worth €125 million through this route to overseas non-EU citizens.”
A majority of this investment was channeled to investment funds and VCs specializing in providing capital. The numbers in 2023 were a 45% increase from 2022! Thus proving that the shortage of real estate didn’t have much of an impact on investors’ goals.
Here’s why non-EU investors have faith in the Portugal Golden Visa:
Residency Rights: Residency is offered to investors and their families. They gain the right to live, work, and study in Portugal.
Minimum Stay Required: Spend only 7 days in Portugal in the first year, 14 days in the second year, and 21 days cumulative in the remaining three years.
Visa-Free Travel: You can travel around the Schengen zone freely without any visa restrictions. After citizenship, you get visa privileges to 150+ nations that offer visa-free entry or e-visa for Portuguese nationals.
Access to World-class Healthcare and Education: You and your family get access to public healthcare and education facilities, which are up to European standards.
Tax Benefits: Potential tax incentives for this type of visa to Portugal.
We could go on about Portugal’s quality of life, being the 7th safest country in the world, growing tech community, and so on. But we know your time is worth everything to you. Let’s keep it short and simple – ask industry experts all your questions and start your process today!
Portugal granted a whopping 352 Golden Visas to investors in 2023!
Not only has Portugal become one of the fastest-growing economies in the EU, but the latest reports have also crowned Lisbon as the new tech capital in Europe. With this title, Lisbon has also received a €1 million award from the European Commission. To top it off, this year’s Web Summit is also being held at Lisbon Altice Arena in November 2024, proving that more success is yet to come!
Firms have also increasingly invested in the agricultural production sector in Portugal. With Spanish company Trops investing more than €6 million in Tavira and Aqualvor investing over €900k in the Aquamarim project, there are many opportunities to explore.
As data shows, your investments in investment funds or other companies can mean significant financial returns.
To find out what is the most popular investment for Portugal Golden Visa? Read the full article here.