With its vibrant culture, rich history, stunning landscapes, and high living standards, Portugal has become an increasingly attractive destination for tourists and investors from around the world. The jurisdiction is also a member of the European Union, which means that its citizens enjoy the freedom to live, work, and travel in 26 other countries across the EU.
But what if you are not a citizen of Portugal or any other EU country? How can you benefit from the opportunities that Portugal and Europe have to offer?
One of the key drivers behind the above interest in Portugal is the Portuguese Investor Visa program, which offers a unique opportunity to obtain residency in a beautiful European country. To make things easier for you, the International Wealth team have explored the Portuguese Investor Visa and the myriad benefits it brings to those seeking to invest in Portugal.
What is the Portuguese Investor Visa?
The Portuguese Investor Visa, otherwise known as the Golden Visa program, is a residency-by-investment scheme that was introduced by the Portuguese government in 2012. It was designed to attract foreign investment into Portugal and stimulate economic growth, particularly in the wake of the global financial crisis.
This special type of residence permit allows non-EU nationals to invest in Portugal and obtain a fast track to permanent residence and citizenship. The Portuguese Investor Visa has now become one of the most popular and successful programs of its kind globally.
Benefits of the Portuguese Investor Visa
The Portuguese Investor Visa Program has enabled Portugal to reinvest in its community, culture, and economy. This has created many benefits for holders of such visas:
- European Residency: One of the most significant benefits of the Portuguese Investor Visa is that it grants the investor and their immediate family members the right to reside in Portugal. This means access to the entire Schengen Area, allowing visa-free travel to 26 European countries. It’s an excellent opportunity for individuals seeking to explore Europe or establish a foothold on the continent.
- Pathway to Citizenship: After holding the Portuguese Investor Visa for 5 years, investors are eligible to apply for permanent residency. After 6 years, they may apply for citizenship, provided they meet the language and cultural requirements. This pathway to citizenship is an attractive prospect for those looking to become European citizens.
- Minimum Residency Requirements: To maintain your Portuguese Investor Visa status, you will have to stay in Portugal for at least 14 days in the first year and 28 days in subsequent years if you opt to invest in an existing business or an investment fund. With the above flexibility, investors can maintain their businesses and investments in other countries while enjoying the benefits of Portuguese residency.
- Education and Healthcare: Holders of investor visas have access to Portugal’s high-quality education and healthcare systems. Portugal boasts a robust public healthcare system and numerous international schools, making it an excellent choice for families.
- Favorable Tax Regime: Portugal offers a favorable tax regime for investors. Income generated outside Portugal may be tax-exempt, and several tax incentives and exemptions are available for foreign residents.
- Political and Economic Stability: Portugal is known for its political stability and strong economic performance. It is part of the European Union, which makes the country a safe and reliable destination for investment.
- Diverse Lifestyle: Portugal offers a diverse and vibrant lifestyle to its residents. From the historic streets of Lisbon to the picturesque vineyards of the Douro Valley and the golden beaches of the Algarve, there is something for everyone to enjoy here.
Changes and Updates to the Portuguese Investor Visa Program in 2023
We would like to draw your attention to the fact that the Portuguese Investor Visa program has also faced some criticism and controversy over the years, mainly due to its impact on the housing market, the environment, and the social cohesion of Portugal. As a result, the government has decided to introduce some changes and updates to the program in 2023, which will affect both existing and new applicants.
The most significant change is that, after January 2024, all real estate investment options, whether direct or indirect, will be eliminated. This means that new applicants will not be able to buy property in Portugal and get a residence permit through the program.
However, the change will not affect the existing holders or renewals of the visa based on real estate investment. The government has justified the decision by saying that it aims to address the housing crisis in Portugal and promote social and territorial cohesion.
Another change that will take effect in January 2024 is the elimination of the opportunity to transfer at least EUR 1 million into a Portuguese bank account or company as a qualifying investment. Hence, new applicants will not be able to use the above option to get a residence permit under the program.
For the current investor visa holders in Portugal, however, this change is not an issue. By the way, the reason for the amendment is that the Portuguese government has argued that this option does not generate enough economic benefits for the country.
The country’s government has also announced the introduction of stricter requirements and controls to limit the number of applications and prevent fraud and abuse of the program. This may include raising the minimum investment threshold for some of the remaining options.
Here, we are referring to investment funds, scientific research, and cultural activities. It may also refer to enhancing the verification and monitoring mechanisms to ensure compliance with the investment and residency requirements.
These changes are part of the More Housing Program approved by the parliament in July 2023 and signed by the president in August 2023. However, further revisions or implementation delays are possible, as some stakeholders have expressed concerns or objections to the changes.
As you can see, the future of the Portuguese Investor Visa Program is not so certain at the moment. Therefore, if you want to apply and get your investor visa to Portugal, act smart and consult International Wealth pros before you do so. You sure don’t want to miss such an appealing opportunity because you don’t have enough information or are waiting too long.
