The easiest way to assess the feasibility of getting a residence visa for Portugal

Looking to gain residency in Portugal through investment? Portugal's Golden Visa is an investment residency scheme designed for non-EU individuals. It offers important advantages such as visa-free travel in Schengen countries and the opportunity for permanent residency or citizenship. With an investment starting at €250,000, you can secure not only your own residency rights, but also those of your family. This guide takes you through the steps, requirements and investment options needed to efficiently plan your Golden Visa application.

Main conclusions

• Portugal's Golden Visa program is an investment residency scheme that offers benefits such as visa-free travel within the Schengen Area, access to high-quality education and healthcare, and the ability to apply for Portuguese citizenship after five years.
• The Golden Visa application process is complex, involving steps such as consultation, document preparation and legal assistance, and requires a minimum investment of €500,000 in options such as real estate, investment funds or job creation.
• Recent legislative changes have impacted the investment routes within the Golden Visa program, notably excluding real estate acquisitions from eligible investments, leading potential applicants to consider alternative investment options.

Exploring Portugal's Golden Visa Program

Initiated by Portugal, the Portuguese Golden Visa program is a five-year investment residency scheme created specifically for non-EU citizens. This program facilitates access to life in the European Union, offering the chance to travel within its borders, seek residency or even acquire citizenship. The eligibility criteria are quite clear: be at least 18 years old, have a clean criminal record and be ready to invest in Portugal. The investment options are diverse, ranging from the acquisition of real estate and capital investment to the creation of jobs.

Since its creation, the program has issued more than 20,000 visas, reflecting a diverse group of interests from non-EU citizens, including a significant number of US citizens seeking a residence permit in Portugal. The Golden Visa offers numerous advantages, including:

• a reduced investment limit of €250,000
• the potential to obtain permanent residence or citizenship in Portugal within five years
• the possibility of accelerated citizenship for those facing delays.

The Genesis of Portugal's Golden Visa

Launched in October 2012, Portugal's Golden Visa program was designed with a clear vision: to stimulate foreign investment and contribute to the growth of the Portuguese economy. The program has indeed lived up to its promise. Since its creation, the program has raised more than €7 billion, demonstrating its significant impact on the economy.

The popularity of the program has skyrocketed over the years, with more than 27,000 applicants receiving a Golden Visa since the program's inception. The benefits of having a Golden Visa include:

• Visa-free travel within the Schengen area
• The ability to live and work in Portugal
• Access to high-quality education and healthcare
• The opportunity to apply for Portuguese citizenship after five years

The combination of diverse investment paths and these benefits has made the program attractive to global investors.

Navigating the Process of Applying for a Golden Visa in Portugal

The Golden Visa application process involves several stages, from the initial consultation and onboarding to finally receiving the Golden Visa residence cards. Proper organization and preparation of the necessary documents can help speed up the process. Here are the steps involved:

1. Initial consultation and integration
2. Gathering and organizing all the necessary documents
3. Translation of all documents into Portuguese by a certified translator
4. Legalizing documents through an Apostille Seal or the nearest Portuguese Embassy
5. Sending the application with all the necessary documents

By following these steps and ensuring that all documents are properly translated and legalized, you can make the Golden Visa application process smoother and more efficient.

Investors finalize their investment after setting up their bank account and tax number, which are integral components of the initial steps in the Golden Visa process. The application process includes government fees and takes 12 to 18 months to complete. Next, we'll look at more detailed aspects of the application process.

Choosing the Right Investment Fund

Selecting the appropriate investment fund is a critical decision in your Golden Visa journey. The minimum investment required for a Golden Visa through an investment fund is €500,000, which must be held for five years. Golden Visa investment options are diverse, offering opportunities in sectors such as energy, industry and technology.

The Portuguese Securities Market Commission (CMVM) has accredited fund managers who oversee the management of the funds. Although the tax rate for the investment fund is 14% for tax residents, it is important to note that the risk, return and duration of the investment may vary, so it is advisable to carry out thorough research or seek professional advice before making a decision.

Opening a Portuguese Bank Account

The establishment of a Portuguese bank account is a significant step in the Golden Visa application process. You must first obtain a NIF number, which a lawyer can help you with through a power of attorney. A tax representative will act on your behalf to acquire this tax identification number.

Once you have your NIF number, you can start the process of opening a bank account. Having a bank account in Portugal is a prerequisite for finalizing your investment, and can be set up with the help of an English-speaking banker before you arrive in the country. The whole process of obtaining a NIF number and opening a bank account can usually be completed within half a day, helping to speed up the initial stages of the application process.

Legal representation and government fees

The legal aspects of the Golden Visa application process can be intricate to navigate. For this reason, it is necessary to engage with a Portugal Golden Visa lawyer who can offer expert guidance. Legal representation costs generally range from €5,000 to €8,000 for individual applicants and can vary based on factors such as the law firm selected, the complexity of the case and the nature of the investment.

Selecting a reliable lawyer is vital to the success of your application. Look for a professional who specializes in Golden Visa applications and has a proven track record of success with Golden Visa applicants. In addition to the legal fees, applicants are also required to pay an application fee of €5,340 per person, plus other government fees. Application processing time usually takes between 12 and 18 months.

Investment Paths for the Portuguese Golden Visa

The Golden Visa program offers a variety of investment paths, each with unique benefits and considerations. The options include:

• Real estate acquisitions
• Subscriptions to venture capital funds
• Investing in national heritage through arts and culture
• Setting up or investing in a Portuguese business

Despite the wide range of these investment options, the purchase of real estate and subscriptions to investment funds have been the most popular options among candidates. Other alternatives, such as donations to research or cultural heritage, have not gained as much traction. Let's explore the two main avenues in more detail.

Capital Transfer Alternatives

One of the investment paths to acquiring a Golden Visa involves a capital transfer. The minimum capital transfer required is €1.5 million. This capital can be used to establish or raise the share capital of a company in Portugal or facilitate research activities. In addition, specific investment funds that meet specified criteria are eligible for the capital transfer route.

Recent changes to the program have led to new capital transfer processes. Applicants are now required to provide evidence of bank transfer deposits to Portugal from an international account. From the previous minimum of €1 million to the current minimum of €1.5 million, there has been an increase of €500,000 in the minimum capital transfer required.

Creating Job Opportunities

Another path to a Golden Visa lies in creating job opportunities in Portugal. Investors must create a minimum of ten full-time jobs to meet the eligibility criteria for the program. These jobs can be created within a Portuguese company owned by the applicant, or by starting a business in Portugal and generating at least ten job vacancies.

This route not only helps investors to obtain a Golden Visa, but also contributes positively to the Portuguese economy, creating jobs and stimulating economic growth. It's a win-win situation that benefits both the investor and the host country.

The Benefits of Having a Portuguese Golden Visa

The Portugal Golden Visa offers a number of benefits. Visa holders enjoy permanent free movement throughout the Schengen Area, covering 27 European countries, providing exceptional travel mobility. In addition, the program offers preferential tax treatment through the Non-Habitual Resident Tax Program. Program for Non-Habitual Residents (NHR). This tax regime allows for substantial tax savings, including exemptions on worldwide income and reduced taxes on income earned in Portugal, for a period of up to ten years.

The Golden Visa benefits not only the holder, but also their immediate family members. Under the family reunification provision, the Golden Visa holder's dependent children and parents are eligible for the same benefits, including the privilege of residing and working within the European Union. Let's take a closer look at these benefits.

Visa-free access throughout Europe

Visa-free access to the Schengen Area is one of the most substantial benefits of having a Golden Visa. This area consists of 27 European countries that have eliminated internal borders, establishing a unified territory without border controls. This facilitates seamless travel, commercial activities and leisure exploration without the need to obtain multiple visas.

Golden Visa holders enjoy the privilege of visa-free travel and the ability to work in any country within the Schengen Area. However, bear in mind that if you plan to stay in Portugal for more than three months at a time, you will need a visa, which should be taken into account when planning extended stays.

Taxation and World Income

The beneficial tax system serves as another significant attraction of the Portugal Golden Visa program. Offers:

• Gift exemptions for family members
• Unrestricted remittance of funds to Portugal
• Zero tax on foreign income
• A flat tax of 20% on household income for up to ten years.

Golden Visa holders in Portugal can enjoy a worldwide income tax exemption, as long as they do not physically move to Portugal and declare it as their main residence. However, tax liability may arise if an individual spends more than 183 days in Portugal during the year.

Protecting Future Relatives: Including Relatives in Your Golden Visa Application

The Portugal Golden Visa program emphasizes the family. The program allows immediate family members, including spouses, partners and dependent children, to be included in the application. This means that the benefits of the Golden Visa extend to your loved ones, guaranteeing their future alongside yours.

Dependent children and parents of the Golden Visa holder are eligible for the same benefits, including the privilege of residing and working in the European Union. Therefore, the Golden Visa not only guarantees a promising future for the main applicant, but also for their family.

Maintaining Residence: Residence Requirements and Renewal Procedures

Maintaining the Golden Visa involves meeting certain stay requirements in Portugal. The individual is required to spend a minimum of 7 days in Portugal during the first year and 14 days during each subsequent two-year period. The visa renewal process is automated and conducted online, managed by the Portuguese Immigration and Borders Service (SEF), eliminating the need to resubmit documents that were already provided during the initial application.

The initial Portugal Golden Visa is valid for two years, with the option to renew for additional two-year periods. These requirements apply to all Golden Visa cardholders, including the main applicant and their dependents.

Transition to Permanent Residence and Portuguese Citizenship

After five years of holding a Golden Visa and sustaining the investment, individuals can qualify to apply for permanent residency or citizenship in Portugal. This process involves successfully passing a language test, after which individuals are eligible to apply for permanent residence or citizenship.

Acquiring Portuguese citizenship allows individuals to take advantage of a multitude of benefits, including a Portuguese passport, which it grants:

• The ability to live and work in any EU member state
• Visa-free entry to 188 countries
• Have the indefinite right to live and work in Portugal
• Visa-free travel within the EU

Real Estate Investments: Understanding the Current Status

Previously, the acquisition of real estate was a preferred investment choice for the Portugal Golden Visa program. However, recent changes have removed real estate acquisitions and associated funds as eligible investment options. Current eligibility for real estate investments within the Golden Visa program is limited to residential properties in the Azores and Madeira, as well as Portugal's inland territories.

These changes do not affect individuals who currently hold a Golden Visa. All existing rights, including renewals, family reunification and permanent residence applications, will continue to be honored. This will ensure that individuals can maintain their status and pursue their long-term residency goals. Despite the changes, real estate was a lucrative investment option, with initial investment amounts for properties set at €500,000, or €400,000 in low-density areas.

The Impact of the Golden Visa on the Portuguese Economy

The Golden Visa program has had a significant impact on the Portuguese economy. This has resulted in a total investment of €1.92 billion, of which €1.73 billion has been allocated to property. The program's investment prerequisites require participants to generate at least 10 new full-time jobs in Portugal, thus stimulating job creation and contributing to economic growth.

The real estate sector has been the main beneficiary of the Golden Visa program, with a substantial portion of investments channeled into property acquisitions. This has not only brought in revenue for the government, but has also contributed to boosting the Portuguese economy.

Preparing for Success: Tips for a Smooth Golden Visa Application

Having covered the ins and outs of the Portugal Golden Visa program, we will now discuss some strategies for a successful application. The documents required for application include:

• The Golden Visa application form
• A copy of a valid passport and travel documents
• Acquired property deed or pre-contract agreement
• Proof of transfer of assets to a financial institution
• Two passport-sized photos

Selecting the appropriate legal representation is vital for a streamlined application process. Hire a Portuguese immigration lawyer with specialized experience in Golden Visa applications and a strong track record in this field. A proficient agent can be beneficial as it streamlines the process for applicants and their families, serving as a liaison between investors and the Portuguese government.

Navigating the Legal and Financial Aspects of the Golden Visa Journey

In terms of legal requirements, applicants for a Golden Visa must be at least 18 years old, maintain a clean criminal record and make a qualifying investment within Portugal. On the financial front, a minimum investment of €500,000 in real estate is required, or a reduced amount of €350,000 when investing in real estate located in specific areas or in a Portuguese investment fund.

In addition to the investment, there are also government fees associated with the application and renewal process. The upfront government fee for the Golden Visa application is €5,325 per family member. Renewal fees are calculated at 50% of the initial approval fee.

The Future Scenario of Portugal's Golden Visa Scheme

The landscape of Portugal's Golden Visa scheme is evolving. Recent legislative changes have redefined the investment pathways for eligibility. The Portuguese government announced changes to the Golden Visa program on February 16, 2024, with the aim of tackling the country's housing crisis.

These changes came into effect on January 1, 2022. However, despite the changes, numerous alternative investment options will remain valid, allowing investors to explore different avenues to secure the Golden Visa, which continues to be an attractive program that attracts the interest of investors around the world.

Navigating Changes and Updates to Portugal's Golden Visa Program

As the Portugal Golden Visa program continues to evolve, keeping up to date with the latest changes and developments is crucial. The program has seen significant changes, with property acquisitions no longer being considered qualifying investments since October 2023.

These changes have implications for future applicants, as they can no longer opt for real estate purchases and real estate-related funds as a method of acquiring residency through this scheme. However, several alternative investment options will remain valid, allowing investors to explore different avenues to secure the Golden Visa.

Summary

The Portugal Golden Visa program offers a path to a brighter future in the heart of Europe. The program offers a multitude of benefits, including visa-free travel within the Schengen Area, preferential tax treatment and the opportunity to include family members in the application.

Despite recent changes to the program, Portugal's Golden Visa remains an attractive proposition for non-EU citizens looking to secure their future in the European Union. With numerous investment avenues and a simplified application process, the Golden Visa program continues to attract the attention of investors around the world.

About Via Portugal

Via Portugal is a leading immigration law firm that specializes in helping individuals and families navigate the complex process of moving to Portugal. With a team of experienced lawyers and immigration experts, Via Portugal provides customized solutions to meet each client's unique needs.

Why Choose VP Via Portugal?

• Knowledge and Experience: Our lawyers have extensive knowledge of Portuguese immigration law and years of experience assisting clients with various visa applications, including the D7 visa, Golden Visa, Startup Visa and Family Reunion Visa.
• Personalized Approach: We understand that each client's situation is unique. Our lawyers take the time to listen to your goals and offer personalized advice and guidance throughout the process.
• Comprehensive Support: Via Portugal offers a wide range of services in addition to legal advice, including help with document preparation, property searches and relocation planning.
• Competitive Fees: We offer competitive fees and transparent pricing so you know exactly what to expect.
• Exceptional Customer Service: Our team is committed to providing exceptional customer service. We are responsive, attentive and always available to answer your questions.

Whether you're an entrepreneur looking to set up a business in Portugal, a retiree looking to enjoy the country's favorable tax regime, or a family looking to get together in Portugal, the Via Portugal is here to guide you every step of the way.

We offer all long-term visas in Portugal to suit your needs. Take a look.