After going largely unchanged for over a decade, the requirements for obtaining a Golden Visa in Portugal were changed on January 1, 2022.
Here is a summary of the current situation resulting from these changes.
There are 5 types of investments that qualify for the Golden Visa
1. Fund Subscription
A minimum of €500,000 subscription in a qualifying Portuguese fund is required. This must be maintained for at least 5 years after which if you wish to maintain your Golden Visa Portugal status you will need to maintain your investment.
Qualifying private equity funds must also be approved and regulated by the Portuguese Securities Market Commission (CMVM) and at least 60% of the investment units need to have their registered headquarters in Portugal.
This is probably the quickest route for obtaining meeting the requirements for Golden Visa application and is easier to capitalise at the end and more tax efficient than other options.
2. Real Estate Acquisition
The minimum amount for real estate purchases is now €500,000. Residential purchases in Lisbon, Porto or on the mainland coast no longer qualify, but commercial properties still do. This means that the only qualifying areas for residential properties are low population density areas in the interior or in the autonomous zones of Azores and Madeira.
The acquisition does not need to be in a single property but may involve a number of properties provided that the minimum amount is met. Also if there is more than one applicant, they may combine their investments in the purchase of a property or properties provided the individual minimums are met. For example, in the case of 2 applicants the total value has to be €1 million or above in which each invests more than the minimum.
A viable alternative is to invest in properties that are over 30 years old or located in an area of urban regeneration and renovate them for a minimum of €350,000. However, due to variables pertaining to the property itself, location and market volatility, the return on this type of investment is more volatile and less predictable.
3. Capital Transfer
The minimum qualifying amount for a capital transfer to Portugal is now €1.5 million. This can be transferred into a Portuguese bank account or approved investment option like a Portuguese Public Debt Instrument, with associated top-ups with each visa renewal.
4. Formation of a Company
To qualify, your company must create a minimum of 10 new full-time jobs (8 in low-density areas) for Portuguese Nationals registered in the Portuguese Social Security system.
If you invest a minimum of €500,000 in an existing Portuguese business, the incorporated business must create a minimum of 5 new full-time jobs for at least three years.
The minimum investment in the case of preserving national heritage in Portugal is €250,000.
If you invest in research and development in Portugal the minimum investment is €500,000.
Are Loans Allowed For Golden Visa Investment In Portugal?
In order to qualify for Golden Visa status the minimum amounts required have to be brought into Portugal from outside of the country. A loan or mortgage from a Portuguese financial institution does not therefore qualify towards the minimum amount. However, if the amount is in the form of a loan from a non-Portuguese financial institution which is then brought into Portugal this will qualify. Having secured the minimum amounts from sources outside of Portugal, you can still take a loan from a Portuguese bank for any exceeding amount.
Make and Maintain a Qualified Investment for Five Years
Supporting evidence that you have individually made the investment of the minimum amount required must be presented and the investment must be maintained for as long as the main applicant holds Golden Visa residency status. However, once you become a permanent resident or a Portuguese citizen, the investment no longer needs to be maintained and this can then be liquidated if you wish.
With over 40 years of experience in the Portuguese market, Lince Capital Team can help Golden Visa Portugal applicants to invest in the right qualified investment funds to secure all the benefits associated with the program.
As experts in securing Portugal Golden Visas through the Investment Fund option, we can carefully navigate you through the process. Depending on your investor profile, Lince has two standout funds to consider which are still open to subscription.
Lince Innovation Fund
The Lince Innovation Fund is focused on research and development projects across a wide range of sectors such as health, IT and industrial. The minimum investment in this fund is €100,000 and the term lasts for 8 years.
Navigator II is exclusively focused on real estate development projects in the high-value central Lisbon area. The minimum investment for this fund is €100,000 and the term lasts for 7 years.