From 1 January 2022, new changes will come into force for the Portuguese Golden Visa programme. The changes include limitations on where investment properties can be located and an increased investment threshold for some investment routs.
Changes Regarding Real Estate
Although residential properties located in Lisbon, Oporto and the Algarve will be excluded from the programme, areas such as Alcácer do Sal, Grândola, Santiago do Cacém, the Douro Valley, Aljezur, Peneda-Gerês, and Madeira, still offer attractive investment potential, and will be some of the key areas that are likely to see growth, especially early 2022.
The real estate route is divided into the €500,000 minimum investment that requires the acquisition of a property and the €350,000 route which requires the acquisition of a property that is at least 30 years old or located in rehabilitation area and will also have to be refurbished.
Considering that as of next year the investment into residential properties is limited to low density areas such as the ones indicated above, the minimum investment reduces in 20%, meaning that the minimum investment of EUR 500.000 reduces to EUR 400.000 and the EUR 350.000 reduces to €280,000.
Madeira and the Azores are not considered low density areas and therefore the minimum investment amounts remain the EUR 500.000 and the EUR 350.000.
The restrictions are not applicable to commercial or services properties, such as hotels, where clients can still acquire properties in Lisbon and Oporto.
Changes to Other Investment Routes
As of 1st January 2022, investment in any one of the non-real estate routes, will be required at the increased levels, as detailed below:
- Investment by capital transfer will increase from €1,000,000 to €1,500,000; or
- Investment by capital transfer in research activities, will increase from €350,000 to €500,000; or
- Investment by capital transfer for the acquisition of units of investment funds or venture capital funds, designated for the capitalisation of companies, will increase from €350,000 to €500,000; or
- Investment by capital transfer through the establishment of a commercial company with a head office in Portugal, and the creation of a minimum of five permanent jobs, will increase from €350,000, to €500,000.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.