Portugal Golden Visa
Portugal’s Golden Visa program is one of the most popular residence by investment programs in Europe and in the world. The program started in October 2012 and since then almost ten thousand applicants have received their residency visa.
What makes the Portugal Golden Visa so sought after?
It provides a range of relatively affordable investment options for you to choose from in obtaining your residence permit, you are only required to spend a minimum of seven days in Portugal per year. It gives you visa-free access to the Schengen states and you can become a Portuguese citizen within five to six years. Portugal is not a blacklisted country and its Golden Visa program is not a blacklisted residence program either. Portugal is a safe, secure, affordable country with a high quality of life, solid infrastructure, superb climate, and good health and education systems.
What is the Portugal Golden Visa?
The Portugal Golden Visa program, also known as the residence permit for investment activity (ARI), is a residency by investment scheme designed for non-EU citizens. Portugal launched the program in October 2012. The main objective was to attract international capital into the country, as it was much in need after the 2008 economic crisis. The program proved to be a great success, raising €5.5 billion in a little over eight years. Portugal offers a dreamy landscape, a wide coastline, a climate full of sunshine, hospitable people, and delicious cuisine. Better yet, it provides this high quality of life at a very affordable cost of living. These features make Portugal a very attractive destination in which to invest and obtain the right to live, work and study.
Furthermore, the Portugal Golden Visa program provides the opportunity to become a permanent resident or a citizen in Portugal in only five years.
Benefits: What Are the Benefits of the Portugal Golden Visa?
You can qualify for residency by investing €350,000 which is one of the lowest investment thresholds in Europe. You don’t have to move to Portugal to keep your residence permit, staying in the country for seven days on average per year will suffice. You can be eligible to apply for Portuguese citizenship in five years, being one of the quickest in Europe. Once you become a Portuguese citizen, you get visa-free access to 188 countries.
Travel And Visa- Free Countries
The Golden Visa permit registers you in the Schengen Area central system. So, you can freely travel within Europe without an additional visa.
At the end of five years, if you decide to get Portuguese citizenship, you can get a Portuguese passport. The Portuguese passport allows you to travel to 188 countries without the need for a visa and ranks 6th among all passports, as of 2021.
Living, Working, and Studying
The Portuguese Golden Visa allows you to live, work, and study in Portugal.
If you decide to live in Portugal full-time with this permit, then you will be required to have medical insurance. You will, however, have full access to all public services including healthcare and education.
State schools follow the Portuguese curriculum, though there are numerous private British and American international schools.
The work permit allows you to work anywhere, as well as start and run your own business in Portugal.
Family Reunification
As the main applicant, you may extend the Golden Visa to your family members. The application process is simultaneous for the main applicant and the dependents.
Following members of the family are eligible to apply along with the main applicant: Spouse, Children under the age of 18, Dependent children under the age of 26, provided that they are full-time students and not married, Parents of the main applicant, if over the age of 65 years old.
Citizenship and Passport
You may apply for citizenship after five years of holding a Golden Visa in Portugal.
In order to qualify for citizenship, you must have: No outstanding tax payments in Portugal, Clean criminal records from Portugal and from your home country, Entered and passed a basic language test in Portuguese.
Tax Benefits
The Golden Visa program will not bring any tax responsibility to you unless you spend more than 183 days of the year in Portugal. In case you do, then you become a tax resident in Portugal.
Portugal has a favourable tax regime for foreigners who consider relocating to Portugal and become tax residents. Through the non-habitual residency (NHR) program, the country offers certain exemptions from income tax for the first ten years of residence. The program slightly changed in 2020, exempting foreign pensioners from getting tax breaks on their pension income.
Overall Benefits
As a Golden Visa applicant, you have the right to live and work in Portugal, but there is no requirement to do so. The country offers a favourable tax regime if you decide to relocate to Portugal. With your Golden Visa, you can enjoy free travel within the European Schengen visa zone. After holding a Golden Visa for five years, you can apply for citizenship or permanent residency in Portugal, leading to a passport. The Portuguese passport allows you to live, work, study anywhere within the European Union.
Nationalities
Any non-EU/EEA/Swiss national can apply for the Portugal Golden Visa.
Portugal Golden Visa Investment Options: What Types of Investments Qualify For The Golden Visa
Portugal Golden Visa program offers different investment options.
Real Estate Acquisition
Acquire real estate worth more than €500,000 in Portugal,
→ If in a low-density area in Portugal, the minimum amount drops 20 percent to €400,000
Acquire real estate that is older than 30 years old, in an urban rehabilitation area, and renovate it for a minimum of €350,000 in Portugal.
The real estate acquisition does not need to pertain to one property necessarily. As long as the minimum amount is met in total, the transaction may include the purchase of multiple properties.
Conversely, if multiple applicants are purchasing one property of a larger purchase amount, they may also combine their investments. This means that if two siblings purchase real estate worth €1 million, they may each apply for the Portugal Golden Visa, as they each spend €500,000 in total.
Are Loans Allowed for The Golden Visa Investment In Portugal?
A common question is if you can use a loan or a mortgage in making your Golden Visa investment in Portugal. Portugal expects you to bring in the minimum required amount from outside of Portugal into the country. So the minimum amount cannot be taken out as a loan from a Portuguese financial institution.
However, you can take the amount as a loan from a non-Portuguese financial institution and then bring it into Portugal. Additionally, if your investment exceeds the minimum amount, there is nothing stopping you from taking a loan for the exceeding amount from a Portuguese bank.
What Are the Golden Visa Portugal Requirements?
Minimum Residence Requirement
Portugal Golden Visa program has a low stay requirement. Portugal requires the Golden Visa residents to spend a minimum of seven days annually on average in the country.
Validity Period
Stay RequirementInitial GV Residence Permit
Two (2) years
Fourteen (14) days within two years
Subsequent GV Residence Permits
Three (3) years
Twenty-one (21) days within three years
Make and Maintain a Qualified Investment For Five Years
You’re required to present supporting evidence that you have individually made the investment of the minimum amount required. As the main applicant, you must maintain the investment as long as you and your dependents hold the Golden Visa residency status. If and once you become a permanent resident or a Portuguese citizen, the investment no longer needs to be maintained. You can then liquidate whichever investment you made.
Proper Documentation
You need to provide the following documents in order to apply for the Golden Visa;
1) Copy of a passport or other government-issued travel document,
2) Proof of evidence of the qualifying investment made by the main applicant individually:
→ If real estate; a deed or promissory sale agreement with proof of deposit payment,
→ If investment fund; proof of fund subscription from the fund management.
3) Declaration from Portuguese financial institution confirming the transfer of funds,
4) Proof of healthcare coverage:
→ If in Portugal, from the National Health System in Portugal,
→ If outside of Portugal, from an internationally covered insurance company.
5) Criminal record of the current country of residence,
→ Must be issued within three (3) months of the form submission.
6) A completed form authorising SEF to access criminal records in Portugal,
7) A sworn declaration on compliance with the minimum investment requirements for the necessary time period of five years,
8) Documents outlining good standing with the Portuguese Tax and Customs Authority & Social Security system,
→ Must be issued within 45 days of the form submission.
9) Receipt of ARI application payment,Unless otherwise stated, it is best to have the documentation issued within three months of your Golden Visa application submission.
Legalising Documents
All the above documents issued by a non-Portuguese entity need to be legalised. The legalisation must have an apostille if the subject country is part of the Hague convention.
Translating Documents
Any original document that is not in Portuguese needs to be translated into Portuguese and certified. The certification is typically performed by a notary.
Bank Account and NIF Number
Portugal requires you, the main applicant, to make the investment from your bank account in Portugal. Accordingly, it is mandatory for you to have an account in a Portuguese bank. You must also have a NIF number. You can also provide your lawyer with a power of attorney and they can complete this step without you even being present in Portugal.
Opening a Portuguese Bank Account
Unlike many countries in the world, Portuguese banks make it quite easy to open a bank account for non-residents and foreigners. The banking and maintenance fees are also quite low compared to the rest of Europe. Just follow the below steps:
What you will need:
Passport or government-issued travel document,
NIF Number,
Portuguese phone number,
Proof of address from your country of residence,
Proof of income/payslip,
NOTE: Our lawyer establishes this for you. This is included in the legal costs.
What Are the Portuguese Golden Visa Tax Implications?
Tax Implications
Tax residency and legal residency are different concepts. Becoming a Golden Visa holder in Portugal does not necessarily turn you into a Portuguese tax resident.Even as only a legal resident, however, you will pay taxes related to your investment in Portugal, as long as the investment generates an income.If you decide to become a tax resident in Portugal, you will need to spend more than 183 days out of a fiscal year in Portugal. Becoming a tax resident in Portugal has some appealing advantages, thanks to the Non-Habitual Resident (NHR) tax program.
Statistics On Portugal Golden Visa
Below you may find the overall statistics regarding the Portugal Golden Visa program between October 8th, 2012, and October 31st, 2021.
The total number of main applicants reached 10,087 with 17,014 dependents accompanying them. These applications directed over €6 billion of global funds into Portugal.
Can same-sex couples also apply for the Golden Visa in Portugal?
Yes, Portugal allows Golden Visa applicants to include their same-sex partners within the program through family reunification.
Is Portugal LGBT-friendly?
Yes, Portugal is among the most LGBT-friendly countries in Europe. There is supportive legislation and a high level of societal acceptance for the community.