Golden Visa
The Golden Visa program continues to bring a good number of non-European investors into Portugal mainly investing in properties between Euro 500k and 750k in the Lisbon and Porto areas. The total investment this scheme has brought into Portugal to date stands at Euro 5.6bn, 5.09bn of which was invested into the property market. To encourage more of this investment from the Golden Visa scheme to go to supporting the property market in the interior regions of Portugal, the government has decided that as of July 2021, property investment for purposes of acquiring a Golden Visa will no longer be possible in the Porto, Lisbon or Algarve regions. Very few of our buyers in the central Algarve have been Golden Visa buyers and so we do not anticipate this to have a huge effect on our market.
At QP Savills, we saw a 67% increase in enquiries, the average sales price jump from Euro 1.8m to 2.3m, and a total sales volume increase of 15% to Euro 169.7m.
On 22 December 2020, an amendment to the Golden Visa was approved by the Government, where the changes would go into effect as from 1 July 2021. However, a set of adjusted rules were approved on 12 February 2021, postponing start of the changes to 1 January 2022.
Established in 2012, the Golden Visa Program aims to attract foreign investors to reside and invest in Portugal. Once in possession of a “GV”, investors are allowed to travel within the Schengen area without the need for a visa. The investor can also then apply to extend the residency to their immediate family members. Until the end of 2020, the total investment generated by the GV scheme was a jaw-dropping EUR 5.6 billion, of which 5.09 billion went directly into the Portuguese real estate market.
How to qualify for a Golden Visa in Portugal?
To qualify for a Golden Visa, the applicant must meet at least one of the following conditions, under the current and future rules (specific thresholds apply to low density territories):
|
Investment types |
Eligible investments |
Current rules (applicable up to 31 December, 2021) |
Applicable as from 1st January, 2022 |
|
Capital transfers |
Transfer of capital |
EUR 1 million |
EUR 1.5 million |
|
Investment into research by scientific institutions integrated into the national scientific and technological system |
EUR 350,000 |
EUR 500,000 |
|
|
Investment into or supporting artistic production or the recovery and maintenance of national cultural heritage |
EUR 250,000 |
||
|
Acquisition of shares in investment funds or venture capital funds dedicated to the capitalization of companies incorporated under Portuguese law, under certain requirements |
EUR 350,000 |
EUR 500,000 |
|
|
Subscription of share capital in a commercial company with a head office in Portugal, combined with the creation of 5 permanent jobs for a minimum of 3 years |
EUR 350,000 |
EUR 500,000 |
|
|
Real Estate investments |
Acquisition of residential property (including vacant building plots) |
EUR 500,000 |
EUR 500,000 (only applicable in the interior of Portugal, as defined, as well as in Azores and Madeira)* |
|
Acquisition of non-residential property (e.g., properties licensed for touristic purposes) |
EUR 500,000 |
|
|
|
Acquisition of residential real estate in Portugal where construction was completed 30 years prior or is located in an urban regeneration area, with the implementation of renovation works |
EUR 350,000 |
EUR 350,000 (only applicable in the interior of Portugal, as defined, as well as in Azores and Madeira)* |
|
|
Acquisition of non-residential real estate in Portugal where construction was completed 30 years prior or is located in an urban regeneration area, with the implementation of renovation works |
EUR 350,000 |
EUR 350,000 (only applicable in the interior of Portugal, as defined, as well as in Azores and Madeira)* |
|
|
Creation of jobs |
Creation of permanent job positions in Portugal |
10 jobs |
|
* In the Algarve, eligible residential investments will be limited to the municipalities of Alcoutim, Aljezur, Castro Marim, Monchique and Vila do Bispo. For the municipality of Loulé, the investments will be limited to the parishes of Alte, Ameixial, Salir, Querença, Tôr and Benafim.
Once issued, the Golden Visa is valid for an initial 1-year period, which should be renewed every subsequent 2 years. The investor will need to provide proof that they have remained in Portugal for a minimum of:
- 7 consecutive or staggered days in the first year
- 14 consecutive or staggered days in the subsequent 2-year period
Investors who obtain a Golden Visa may also qualify as potential beneficiaries of the NHRs tax residence regime.
Through the beneficial tax regime for NHRs and the Golden Visa regime, Portugal is a very attractive country to live and invest in, both for European and non-European nationals. Their regimes have contributed to an increased demand for property throughout the country.