One of a number of European Union countries to offer a so-called "Golden Visa" (a residence visa in exchange for investment), Portugal's program has become quite popular in the years that it has been in effect due to its relatively low investment costs and minimal residency requirements, in contrast to the other European countries offering similar programs. The Portuguese Golden Visa program allows investor applicants (and their spouses and minor children) to obtain long-term residency permits in Portugal in exchange for an investment in the Portuguese economy. This residency permit allows visa free travel throughout the European Schengen area (though holders are still only permitted to remain in a country for 90 days every 180 days) and can eventually be used to apply for Portuguese citizenship (though a basic knowledge of the Portuguese language must be proven).

However, despite the apparent popularity of these programs across Europe, there are those who feel it has caused real estate prices in Portugal to soar (especially in desirable areas along the coast) as third-country nationals invest in real estate projects only to obtain their residency permits and with no real intention of relocating to Portugal. As a result, earlier this year Portugal announced that it would be looking into ending its Golden Visa program; on April 14, 2023, the Portuguese Government submitted to Parliament a draft bill of law with the proposed wording regarding the ending of the Golden Visa program.

Initially, the government had drafted a bill that allowed for the effect of the end of the program to be retroactive, calling for filings made after February 16, 2023 not to be accepted. However, after a lot of public pressure, while the Portuguese Golden Visa program will still be terminated, the effective termination date will only occur after the enactment and coming into force of this new law. As a result, investors and applicants may still take advantage of this program up to and until the new law comes into force.

At the moment, the date for the approval, enactment, and publication of the law is not yet known, but we estimate that this legislative procedure can take up to 45 to 60 days (approx. 6 to 8 weeks), though delays can occur. This means that, at least for now, interested investor applicants can still take advantage of this program to obtain a residency permit in Portugal, provided they act quickly. Below is a brief overview of the types of investments available and the residency requirements of this visa.

Investment Options

There are a variety of qualifying forms of investment in Portugal, and only one needs to be fulfilled:

  • Creation of at least 10 jobs and a capital transfer of ?500,000;
  • Capital transfer of ?1.5 million, including for the purchase of shares;
  • Purchase of real estate (in the interior Continental regions of Portugal) valued at ?500,000 or more;
  • Purchase of real estates valued at ?350,000 or more, constructed 30+ years ago for the purpose of refurbishment;
  • Investment of at least ?350,000 for scientific purposes;
  • Investment of at least ?250,000 in artistic output or to support the arts; or
  • Investment of at least ?500,000 in an investment fund.

Residency Requirements

The minimum necessary time for keeping the actual investment is five years. The applicant must demonstrate having stayed in Portugal for at least seven days during the first year after the grant of the residence permit and 14 days during the subsequent periods of two years, consecutive or non-sequential. The residence permit is valid for one year initially and then can be subsequently renewed for two-year terms. Renewals must be accompanied by documents proving requirements are still being met.

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.