Last Updated on October 28, 2024 by Laila Oliveira
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 a 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. Golden Visa applicants are often drawn to the program for its benefits, streamlined application process, and the potential for permanent residency and citizenship in Portugal.
And 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 affecting golden visa applications. The most recent Portugal Golden Visa updates state that real estate investments of any kind are no longer valid to qualify for the program.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, especially since real estate investment was a popular route for many investors. It officially nullifies the process of acquiring residential or commercial properties for the Golden Visa, impacting those interested in golden visa applications through real estate investment.
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.
This has subsequently resulted in shifting investments towards other economic and social development factors that are directly linked to the country’s development.
With this, people have now revised their strategy for investment in the Portugal Golden Visa program, keeping in view the new rules and regulations. This strategic shift aims to diversify the types of investments attracted to Portugal, including a significant emphasis on foreign investment to bolster the country’s economic growth.
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, including venture capital funds. These funds have become increasingly appealing due to legislative changes encouraging investments in venture capital and other collective investment instruments.
The sole purpose of these revised investment routes, including venture capital funds, 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, focusing on the trend towards diversification among investors!
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.
- Read our complete article on Portugal Golden Visa Through Investment Funds Guide.
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, including the maintenance and restoration of Portugal’s national cultural heritage, the amount is reduced to €250,000. This donation directly supports the national cultural heritage, with varying thresholds based on location, 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.
- Need more details? Read our comprehensive guide on the Complete Guide to Golden Visa in Portugal in 2024.
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 have access to public healthcare and education facilities that 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!
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Recent Investments in Portugal
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.
What is the most popular investment for Portugal Golden Visa?
This is definitely an important question to consider. After the eligibility criteria for Portugal’s Golden Visa Program changed, excluding purchasing real estate or real-estate-related funds as qualifying investments, people thought the Golden Visa wouldn’t be as popular anymore. But that’s far from the truth.
Undoubtedly, the answer to this question is investment funds. Let’s discuss some specific advantages they offer:
- Following the Portugal Golden Visa updates as of 2024, with the shift away from the option of investing in real estate property, investment funds have emerged as the go-to option. Thus, there’s an opportunity to explore leading investment opportunities in this fast-growing region, including Private Equity, High Yield, and Blue Chip local and global equities.
- Low-Risk Factors: let professionals manage your funds and investments.
- Enjoy possible passive income.
- Accessible funds, thanks to liquidity.
Non-EU investors find it to be the best option to build wealth while gaining long-term benefits like obtaining the 5th strongest Passport, securing their family’s future, and living in a beautiful country!
How long does the Portugal Golden Visa process take?
The Portugal Golden Visa process usually takes around 5 months. The new updates have not affected the timeline of the visa process. With the introduction of AIMA (formerly SEF), appointments and legal processes are now conducted at a faster pace.
The timeline involves the following procedures:
- Initial application;
- Review and approval by the authorities;
- Issuance of the Residence Permit.
Documents needed
Here are the documents you’ll need to initiate your visa application:
- A copy of your Passport;
- Proof of investment;
- Declaration from a Portuguese financial institution confirming your funds;
- Proof of healthcare coverage by NHS in Portugal;
- Criminal record from your residential state;
- AIMA authorizing form;
- Declaration of minimum investment compliance for 5 years;
- A document that outlines a good understanding of Portuguese Taxation, Social Security System, and Customs Authority;
- ARI application payment receipt.
Your documents must be legalized and translated into Portuguese to be valid. This is a crucial step, thus, you will require the help of consultants.
Fees and other requirements
Lastly, before you seek an appointment for the Portugal Golden Visa, you must fulfill certain requirements.
The two most important things you’ll have to obtain first are your NIF Number and a Portuguese bank account to transfer the funds. If you have any concerns, feel free to reach out to us, and our experts will guide you.
As far as fees are concerned, here’s a basic rundown:
| Type | Frequency | Amount |
|---|---|---|
| Processing Fee | Once at the beginning and then at each renewal | €581 per applicant (+ €83 /dependent) |
| Issuance of Residence Permit for Investment Activity (for you and each family member) | Once at the beginning | €5,817 per person |
| Renewal of Residence Permit for Investment Activity (for you and each family member) | At each renewal | €2,935 per person |
| Legal Consultation Fee | Progress payments | Differs between consultancy firms |
How can Viv Europe help with the Portugal Golden Visa?
To get started on your process, you’re in the right place! Viv Europe is your all-in-one relocation assistance company. With experience in helping 600+ families obtain their visas to Portugal, our experts have all the right tools to make your application a success.
We’re only one call away – book a consultation with Viv Europe and set your application apart from the rest. Start your investment process with guidance from financial experts that align your investments with your financial goals!
Interested in getting more information about the Portugal Golden Visa updates? Join our Facebook Group – All About Portugal For Expats. Ask questions, read stories, and write down your concerns. See you soon!
