Golden Visa

GOLDEN VISA

The Golden Visa program of Portugal is one of the most popular programs for obtaining residency through investments from all over the world. It started in October 2012 and since then, almost ten thousand families have received their Golden Visas.

In this 2021 guide to Portugal’s Golden Visa, you will learn:
What is Portugal’s Golden Visa;
The benefits and advantages of Portugal’s Golden Visa;
How to obtain Portugal’s Golden Visa;
Other details about the complete process of Portugal’s Golden Visa.

1. What is Portugal’s Golden Visa?

The Portugal Golden Visa program, also known as the residency permit for investment activity (ARI), is an investment-based residency regime aimed at citizens who are not from the European Union.

Portugal launched the program in October 2012 with the primary objective of attracting international capital to the country to contribute to its economy after the economic crisis of 2008. The program proved to be a great success, raising 5.5 billion euros in just over eight years.

2. What are the benefits of Portugal’s Golden Visa?

Opportunity to become a permanent resident or Portuguese citizen in just five years;
Possibility to apply for a Portuguese passport if you decide to obtain Portuguese citizenship and travel to 186 countries without the need for a visa;
Provides a range of relatively affordable investment options for those who obtain a residence permit;
Obligation to stay only a minimum of 7 days per year in the country;
Portugal is not a blacklisted country, and its Golden Visa program is not present on any blacklist of residency programs.

3. Living, Working, and Studying in Portugal

Portugal offers a stunning natural landscape, a vast coastline, sunny weather, hospitable people, and delicious cuisine. On top of all that, it offers a high quality of life at a very affordable cost compared to other European capitals. Moreover, Portugal is a safe and accessible country. It ranks 3rd out of 163 countries on the 2020 Global Peace Index, with a high quality of life, solid infrastructure, excellent weather, and good healthcare and education systems. These features make Portugal a very attractive destination for international investors to obtain the right to live, work, and study in the country.

Here are some advantages:

If you decide to live full-time in Portugal, you will have access to all public services, including healthcare and education;
Public schools follow the Portuguese curriculum, but there are several private international schools – British and American;
The work permit allows you to work anywhere, as well as start and manage your own business in Portugal;
As the main applicant, you can extend your Golden Visa to your family members. The application process occurs together for the main applicant and their family members: spouse; children under 18; dependent children under 26 (provided they are full-time students and not married); and parents of the main applicant, if they are over 65.

4. Citizenship and Passport

You can apply for Portuguese citizenship after five years of holding a Golden Visa in Portugal. To qualify for citizenship, you will need to:

Have no outstanding tax payments in Portugal;
Have a clean criminal record – in Portugal and in your country of origin;
Pass the basic Portuguese language test.

5. Tax Benefits

The Golden Visa program does not imply any tax liability for its applicants unless they spend more than 183 days per year in Portugal. If that is the case, the applicant becomes a tax resident in Portugal.

Portugal has a favorable tax regime for foreigners. Thanks to the non-habitual resident (NHR) program, the country offers certain income tax exemptions for the first ten years of residency. The program slightly changed in 2020, exempting foreign retirees from obtaining tax incentives on their pension income.

6. Who is eligible to acquire Portugal’s Golden Visa?

Any non-EU/EEA/Swiss citizen can acquire Portugal’s Golden Visa.

6.1. Pre-requisites

The main applicant must be at least 18 years old and have no criminal record in their country of origin as well as in Portugal. The funds for investment must come from outside the country.

6.2. Minimum Residency Requirement

The Golden Visa program of Portugal has a fairly low residency requirement. Portugal requires residents who hold the Golden Visa to spend a minimum of seven days per year in the country.

Important Note: Since April 2020, initial residence permits have become valid for two years (it used to be one year) and subsequent permits have become valid for three years each. This is due to a change in the Portuguese immigration law. If the change is permanent, it is required that the holder of the initial visa with a validity of two years physically spends at least fourteen days during this period in Portugal. Renewal visas will then be valid for three years each, and applicants must physically spend at least twenty-one days in Portugal during each 3-year period.

6.3. Minimum Investment for the Golden Visa

To qualify for the program, a minimum investment must be made. Investment categories include real estate, venture capital funds, capital transfer, company incorporation, and donations.

6.4. Family Members

Under family reunification, the main applicant can extend the Golden Visa to other family members. A comprehensive list of eligible dependents is provided in the previous section.

6.5. American Citizens

American citizens can apply for the Portuguese Golden Visa. Properties with foreign owners have various tax advantages for US tax residents, making the program’s real estate investment option particularly interesting. American entrepreneurs can also choose to expand their businesses to Portugal, taking advantage of the Golden Visa program. The country’s tax incentives have made it a very attractive destination to move to.

6.6. British Citizens

British investors are preparing for the repercussions of Brexit regarding their travel conditions. At the end of 2020, UK passports lost the benefit of free transit within the Schengen Area. British citizens have Portugal in their sights for two reasons: desirable lifestyle and European citizenship through investment. Since December 31, 2020, British citizens are eligible to apply for Portugal’s Golden Visa program. This entitles them to travel within the Schengen Area.

6.7. LGBTQ+ Partners

Portugal is a progressive country regarding LGBTQ+ rights. Same-sex couples are legally recognized through marriage. Thus, same-sex partners are eligible to obtain the Golden Visa, as well as their dependents, through family reunification.

7. Investment Qualified for Five Years

The applicant must provide proof that they have made the minimum required investment. As the main applicant, they must maintain the investment while they and their dependents have Golden Visa residence status. After becoming a permanent resident or Portuguese citizen, the investment no longer needs to be maintained. Therefore, any investment made can be liquidated.

8. Proper documentation

The following documents will be required to apply for the Golden Visa:

Copy of passport or other government-issued travel document;
Proof of the qualified investment made by the main applicant:
If it is a real estate investment – a deed or a promissory sales contract with proof of payment of the deposit;
If it is an investment fund – proof of subscription to the fund from the fund’s management.
Statement from the Portuguese financial institution confirming the transfer of funds;
Proof of health insurance:
If in Portugal, from the National Health Service in Portugal;
If outside Portugal, from an insurance company with international coverage.
Criminal record from the current country of residence
It must be issued within three months after submitting the application form;
Completed form authorizing the SEF to view the criminal record in Portugal;
Sworn statement about compliance with the minimum investment requirements for the necessary period of five years;
Documentary evidence of regularity with the Tax and Customs Authority & the Social Security System (must be issued within 45 days after submitting the form);
Payment receipt of the ARI application.

Unless specifically requested otherwise, it is best that the documentation be issued within three months after submitting your Golden Visa application.

8.1. Legalization of documents

All the previous documents issued by a non-Portuguese entity need to be legalized. The legalization must be an apostille if the country in question is part of the Hague Convention.

8.2. Translation of documents

Any original document that is not in Portuguese will need to be translated into the language and properly certified. Certification is typically done by a notary.

What has changed?

In February 2023, the Portuguese Prime Minister announced the intention to end the Golden Visa program, with retroactive effect. However, that option did not proceed (largely due to public pressure from foreign investors), and the retroactivity of the change was annulled. Thus, we know that the program will likely end, but it still needs to be approved by Parliament (in May/June) and promulgated by the President of the Republic (expected to happen only in July/August 2023).

When can the new law come into force?

In order to move forward, a bill needs to be properly approved by Parliament. Based on the current deadlines of Parliament and considering the various steps involved in the legislative process, the approval process can take up to 35 days, not counting any possible constraints.

Can I still apply?

Yes, you can still acquire the Portugal Golden Visa, but you should start your process as soon as possible.

Final proposal on the end of Golden Visa (updated as of April 14, 2023)

After several pronouncements and public discussions about the future of the Portugal Golden Visa program, the final proposal from the Government was released and will now be discussed in Parliament.

In summary, the final proposal establishes the following:

The new law will not have a retroactive effect for people who have already been granted the Golden Visa;
The minimum stay of 7 days per year for Golden Visa renewal will remain in force;
People who have applied for a Golden Visa but have not yet received it have their right to the visa guaranteed;
Renewed visas will have the same flexibility as ARI (Authorization of Residence for Investment), even if they are re-framed as D2 visas;
The law will come into force when it is published in the Diário da República;
Considering the various stages of the legislative process, it is expected that this approval process will take at least 35 days, assuming everything goes smoothly.

More details

The main novelty is that in its final version, the Government revokes any possible retroactive effect of this law, ensuring that all requests submitted until the new law comes into force will be dealt with according to the rules of the previous law. In addition, the government ensures that renewal requests will also be obtained according to the law that is currently in force. Even with the reclassification of this visa, the requirement of a 7-day stay per year in the country will remain the same.

The final proposal also ensures that family reunification requests associated with the Golden Visa are properly protected. The proposal indicates that the future law will come into force on the day following its publication, with no grace period provided for the revocation of the Golden Visa in Portugal. This is a subject that can still be debated and changed, but for now, it is wise to assume that this is the last chance to apply for a Golden Visa.

What’s next?

The bill must go through the entire approval process in Parliament before it can proceed. Based on the current parliamentary schedule and considering the various stages involved in the legislative process, it is likely that this approval will take at least 35 days, in an optimistic scenario.

10-05-2023