The Portugal Golden Visa program provides a fast track for non-European Union (EU) residents and investors to obtain a residency permit and citizenship rights. Since its launch in 2012, the Portugal Golden Visa program has granted many investors with an expedited residency permit, allowing free travel access within a majority of European countries (Schengen area).
There are many advantages and benefits to obtaining a Portuguese Golden Visa. In addition to the ability to live and work in Portugal, qualifying applicants can travel freely though Portugal and all 26 European countries included in the Schengen area. Visa benefits are extended to family members with no additional investment required. Applicants can apply for permanent residency and citizenship after only five years.
The purpose of this article is to provide a quick overview of some of the recent improvements to Portugal's Golden Visa program. These modifications were accepted on December 22, 2020, and were published on February 12, 2021, by Decree Law 14/2021.
The Golden Visa is a residence program for investors who meet certain criteria and qualify for residency for themselves and their family members for a term of five years by making one of the qualifying investments. The Golden Visa program is celebrating its tenth anniversary this year, and it has already undergone changes since its inception in October 2012.
Property, capital, and employment are the three primary areas of investment that have been impacted by the recent modifications that took effect on January 1st of this year. In the vast majority of situations, the modifications amounted to little more than an increase in the investment minimum.
There are still two investment criteria for property investments, which have traditionally been the most appealing to applicants: € 500,000 or € 350,000. Investors with a minimum investment of €500,000 have complete freedom to choose any sort of property in any area. The € 350,000 category entails the acquisition and successful renovation of a property that is at least 30 years old or situated in a special legally defined urban rehabilitation zone. The most recent adjustments in this category have nothing to do with the required minimum investment levels.
The fact that the purchase of residential property is now confined to specific pre-approved regions of Portugal, which are regarded as more inner regions of the nation, is what changes this investment choice. These are places that are regulated by legislation.
In practice, this implies that non-residential property investments such as commercial, land, office buildings, and touristic property (such as hotels or serviced apartments) are still available across Portugal, including important cities such as Lisbon, Porto, and the Algarve.
This category's investment amount remains unchanged, as stated before. It should also be noted that, if the property is situated in a low-density population region, the legislation still allows for a 20% decrease in the minimum investment levels.
Subscription of participation units in Portuguese Investment or Venture Capital Funds is another alternative that has recently attracted a lot of investor interest. The minimum subscription amount has been raised from € 350,000 to € 500,000 for this category. There have been no other changes, which means that you can still invest in multiple Funds and that the requirements for Venture Capital Fund eligibility remain the same as before, namely, that the Fund must have a maturity of at least 5 years at the time of subscription and that at least 60% of the companies in which it will invest must be located in Portugal.
There was also an increase in the minimum amount for capital investments. Previously, a minimum capital investment of € 1,000,000 was required to qualify for the program in this category; however, this year, a minimum investment of € 1,500,000 will be required. The legislation still allows you to invest all or part of your money in government bonds or stock in Portuguese enterprises.
In a nutshell, the minimum investment amount has been raised from € 350,000 to € 500,000 in both the:
1. Job creation option, with this amount going toward the incorporation / growth of a company's share capital, which must then generate 5 new jobs and keep them for at least 3 years; and 2.
2. on public and private scientific research institutes participating in the national scientific or technological system's investment in science and research activities
We'd also want to point out that there are still other extremely attractive Golden Visa possibilities that aren't impacted by these changes in the legislation, such as investing in or supporting the arts and culture, which is still allowed with a € 250,000 donation.
**Notice: The Portugal Golden Visa Program has experienced substantial modifications this year, which has resulted in the revocation or partial modification of several property investment possibilities. Consult our guide on the changes to the Portugal Golden Visahere* for a detailed summary.
The Portugal Golden Visa program, also knownas the Residence Permit Program, is highly coveted worldwide. Foreign investment has pushed almost €4 billion into the Portuguese economy as part of a five-year residence by investment plan for non-EU residents, with current interest in property investment prospects in low-density regions in Portugal expanding.
While the Portugal Golden Visa Program allowsyou to spend a minimum of €500K in domestic or commercial property in Portugal or €350K in restoration projects, there are certain limits on where you may doso. More crucially, prices differ depending on whether a house is located in a 'low-density' region of Portugal.
Here we can get guidance on:
Portugal's real estate investment choices forthe Golden Visa
What parts of Portugal are suitable forresidential real estate investment
What words like "low-density,""interior area," and "280K investment" mean in legal terms
The following real estate investment avenuesare possible to qualify for the Portugal Golden Visa:
● Purchase residential real estateworth at least €500,000 in selected interior regions of Portugal, or €350,000 if investing in a rehabilitation project. A 20% reduction is applied if the residential property is situated in a designated 'low-density' region(amounting to €400K and €280K, respectively).
● Purchase commercial real estate worth at least €500,000, or €350,000 if investing in a rehabilitation project, anywhere in the nation. A 20% reduction is applied if the business property issituated in a designated 'low-density' region.
● Purchase residential and commercial real estate worth at least €500,000 or €350,000 if investing in a rehabilitation project on either of Portugal's independent islands of Madeira and Azores. Because Madeira and the Azores are both categorized as high-density areas, there is no choice for a 20% discount.
Are you unsure whether real estate investingi s a suitable match for you? We've put together a special guide for this occasion, which will lead you through the golden visa real estate investment perks in Portugal.
The government of Portugal wants to encourageinvestment in the following areas:
Regions with a low population density
Requalification of the city
Environmentally or socially significant activities
Job creation and productivity
As a result, the Portuguese government hasaltered the real estate investment pathways to Portuguese residence, establishing a categorization system for which parts of Portugal qualify for property investment. The terms 'interior' and 'low-density' are used to describe these locations. But there's no denying that they're two distinct words.
Below, we break down which locations of Portugal are suitable for property investment, highlighting the subtlevariations between 'interior areas' and 'low-density areas.' By the conclusion of this section, you should have a good idea of which parts of Portugal aresuitable for real estate investment.
Interior regions simply refer to locations where you may invest in residential real estate and get a golden visa residency permit. In contrast, there are no constraints on where commercial real estate may be built. That is to say, you may invest anywhere in the nation as long as the property is classed as "commercial" (licensed for business-related activities).
See our map below, which highlights the interior parts of Portugal. Property in Portugal's 'interior' regions isa cceptable for both residential and commercial real estate investment. Only commercial properties, which are marked in blue, may be acquired outside of the'interior' restrictions.
The locations in light gray on the map beloware classed as being in the low-density zone, as noted. Dark gray highlightsareas that are not in the low-density zone.
Low-density locations decide whether or notyou get a 20% discount on your investment. Low-density areas are defined asterritorial units (NUTS III) with a population density of fewer than 100 peopleper square kilometer and a per capita GDP of less than 75% of the nationalaverage.
It's worth noting that a region might be bothinternal and dense. You may still buy a house in this instance, but there willbe no discount.
Consider the following scenario: You'vedecided to invest in Algarve real estate. While the Algarve is categorized as a'low-density' area, it is not considered part of Portugal's interior. As aresult, certain areas of the Algarve are not suitable for residential propertyinvestment. Aljezur, Odeceixe, and Sagres are some of the low-density ANDinterior locations that are now eligible. In this instance, you have the optionof purchasing a home or investing in a domestic renovation project.
The regions of Portugal shown on the map beloware eligible for either:
Property investment in non-interior locationswith a high density (commercial only)
Investment in non-interior low-density realestate (commercial only)
Interior property investment in high-densityregions (residential and commercial, but no discount applies)
Investing in low-density properties in theinterior (residential and commercial, 20% discount applies)
Are you seeking to renovate a historicbuilding in the Douro Valley? Maybe you're looking to acquire a commercial shoplocation in Lisbon. Or maybe you like the notion of owning a seaside propertyin the Azores. The good news is that the Portugal Golden Visa program is abeneficial plan that provides investors with a variety of real estateinvestment opportunities. Let's take a look at some of the important locationswhere you may want to put your money.
It is completely conceivable to purchase aresidential property in a designated interior region of Portugal that is also'low-density.' Parts of the Douro Valley, Aljezur, and Peneda Gerês areexamples of locations with significant development potential that qualify forthe Golden Visa.
They offer ideal property opportunities forinvestors, with exceptional value for money, since properties in low-densityregions are often cheaper and more spacious. For about €400K, a family may havethe property of their dreams, replete with fruit trees, a decent-sized pool,and breathtaking views.
The Alentejo, Douro Valley, and Peneda Gerêsare now the most favored investment areas. All of them have excellentinvestment potential, including prospects in hotel, outdoor tourism, andcultural and religious tourism.
To be eligible for the €280K low-density investment option and benefit from the 20% discount, the applicant must:
Invest in a commercial restoration project ina region of the nation with a low population density.
Invest in a home restoration project in alow-density, often known as interior, sector of the nation.
The cost of investing in a rehabilitation project in a high-density region starts at €350,000. Either the property inissue is over thirty years old and undergoing renovations, or it is located ina designated rehabilitation area. It must be in an interior location if it is aresidential property.
There are several advantages to investing inlow-density regions and receiving a golden visa.
These are some of them:
Lower investment barrier and strong rental returnreturns present a great opportunity.
Low-density locations have much cheaper realestate values.
Rental apartments are highly profitable in ahealthy property market.
The Portuguese government strongly encourages property investment in Madeira and the Azores. Applicants for a Golden Visa may purchase real estate or invest in a residential or commercial renovation project on the islands. It's worth noting that Madeira and the Azores are only considered high-density areas. As a result, no section of the islands iseligible for a 20% discount.
Commercial real estate in Portugal is eligible nationwide, with no limits on location. Investors wishing to purchase commercial property or engage in commercial restoration in Portugal's major cities, such as Lisbon, Porto, and the Algarve, are free to do so.
● For investors searching for asecure investment, commercial yields (long-term leasing agreements) might be aviable alternative. Office space, franchise businesses, restaurants, anddeposit rooms are all examples.
● A fantastic way to diversify yourinvesting portfolio in terms of both physical and intangible assets.
● Long-term plan for generatingsignificant and regular returns, with the possibility for monthly, quarterly,or yearly income.
● Commercial propertyrehabilitation, often in the shape of a hotel, are excellent chances since they are not confined to Portugal's interior (you can invest anywhere in thecountry)
● Hotel developments enable investors to invest at a lower cost of €350K in high-density regions and €280Kin low-density areas.
● These are turnkey projects withguaranteed returns or a buy-back after five years.
2. Aguiar da Beira
4. Alcácer do Sol
6. Alfândega da Fé
12. Alter de Chão
16. Arcos de Valdevez
30. Cabeceiras de Basto
31. Campo Major
32. Carrazeda de Ansiães
33. Carregal do Sal
34. Castanheira de Pêra
35. Castelo Branco
36. Castela de Vide
37. Castro Daire
38. Castro Marim
39. Castro Verde
40. Celorico da Beira
41. Celorico de Basto
54. Ferreira do Alentejo
55. Ferreira do Zêzere
56. Figueira de Castelo Rodrigo
57. Figueiró dos Vinhos
58. Fornos de Algodres
59. Freixo de Espada à Cinta
71. Macedo de Cavaleiros
78. Mesão Frio
79. Miranda do Corvo
80. Miranda do Douro
83. Moimenta da Beira
86. Mondim de Basto
99. Oliveira de Frades
100. Oliveira o Hospital
102. Pampilhosa da Serra
103. Paredes de Coura
104. Pedrógão Grande
106. Penalva do Castelo
110. Pedo da Régua
112. Ponte da Barca
113. Ponte de Sor
116. Póvoa de Lanhoso
119. Reguengos de Monsaraz
121. Ribeira de Pena
124. Santa Comba Dão
125. Santa Marta de Penaguião
126. Santiago de Cacem
127. São João da Pesqueira
128. São Pedro do Sul
135. Server do Vouga
141. Terras de Bouro
143. Torre de Moncorvo
146. Vendas Novas
147. Viana do Alentejo
149. Vieira do Minho
150. Vila do Rei
151. Vila do Bispo
152. Vila Flor
153. Vila Nova da Barquinha
154. Vila Nova de Cerveira
155. Vila Nova de Foz Côa
156. Vila Nova de Paiva
157. Vila Nova de Poiares
158. Vila Pouca de Aguiar
159. Vila Real
160. Vila Velha de Ródão
161. Vila Verde
162. Vila Viçosa
Parishes with a low population density inPortugal:
União das freguesias de Belazaima do Chão,Castanheiro do Vouga e Agadão
União das freguesias do Préstimo e Macieira deAlcoba
Gouveia (São Simão)
Salvador do Monte
União das freguesias de Aboadela, Sanche eVázea
União das freguesias de Bustelo, Carneiro eCarvalho de Rei
União das freguesias de Olo e Carnadelo
Vila Chã de Marão
Bouro (Santa Marta)
União das freguesias de Caldelas, Sequeiros eParanhos
União das freguesias de Vilela, Seramil eParedes Secas
União das freguesias de Arga (Baixo, Cima, eSão João)
União das freguesias de Gondar e Orbacém
Castelo de Paiva
União das freguesias de Arosa e Casteiões
União das freguesias de Querença, Tôr eBenafim
Marco de Canaveses
Várzea, Aliviada e Folhada
União das freguesias de Freixianda, Ribeira doFárrio e Formigais
União das freguesias de Matas e Cercal
União das freguesias de Rio de Couros e Casaldos Bernados
Ponte de Lima
Ardegão, Freixo e Mato
Associacão de freguesias do Vale do Neiva
Bárrio e Cepões
Beiral do Lima
Cabaços e Fojo Lobal
Cabração e Moreira do Lima
Labrujó, Rendufe, e Vilar do Monte
Navió e Vitorino dos Piães
Porto de Mós
União das freguesias de Casével e Vaqueiros
São Marcos da Serra
Santa Catarina da Fonte do Bispo
União das freguesias de Além da Ribeira ePedreira
União das freguesias de Casais e Alviobeira
União das freguesias de Serra e Junceira
Vale de Cambra
União das freguesias de Gondomil e Safins
União das freguesias de São Julião e Silva
Viana do Castelo
São Pedro de France
União das freguesias de Barreiros e Cepões
The Portugal Golden Visa Program is afive-year residency-by-investment program that provides eligible candidateswith permanent residence in Portugal in return for making an initial investmentin the nation. After five years of lawful presence, you may apply for Portuguese citizenship (essentially EU citizenship).
Consult our golden visa Portugal guide foradditional information on the entire range of investment possibilities availableunder the plan, as well as program conditions.
When it comes to Golden Visa applications, ourstaff has a 100% success record, and we'll make sure you discover the idealinvestment for your needs.
Your personal account manager will be with youevery step of the way, saving you time when it comes to submitting yourapplication. Our staff has years of expertise and can assist you in avoidingthe problems that many Portuguese Golden Visa investors face.
Investors can opt to invest in commercial realestate in need of rehabilitation and restoration starting from €350,000 anywhere in the country. A residential real estate rehabilitation project is also possible, but only in designated low-interior areas of the country. The autonomous islands of Azores and Madeiraare considered high-density AND interior, so you can buy residential realestate here.
The property in question must at least be morethan thirty years old and undergoing renovation.
A cheaper option is to invest €280K+ inrenovations projects in low-density areas. These designated areas are split according to the region’s population. If the area hosts less than 100 occupants per 1,000 square meters, it counts as a ‘less densely populated area’.
The Portugal Golden Visa will receive anextensive makeover, starting from 1 January 2022. With regards to real estate investments, the following will apply: Properties in Lisbon, Porto, and otherpopular urban coastal towns will NOT QUALIFY for residential property investments under the Golden Visa scheme, only commercial real estate. Residential real estate investment in low-density areas will continue toqualify, but only in designated ‘interior areas’ of the country. Alternatively ,you can buy residential property or invest in residential rehabilitation projects anywhere on Portugal’s autonomous islands (they’re not subject torestrictions).
Low density areas in Portugal include thecountryside/eastern areas in Portugal mostly, with the exception of coastalareas south of the River Lima and North of the River Sado. Madeira and Azoresare also excluded.
Yes, the Algarve qualifies as low-density, soyour real estate investments will automatically get a 20% discount for thePortugal Golden Visa.
Cascais is not considered low-density. It’shigh-density, so no 20% discount applies to your real estate investment for thePortugal Golden Visa.
Faro is indeed considered low-density. Thismeans a 20% discount automatically applies to your real estate investment forthe Portugal Golden Visa.
We will be gald to consider your case and examine the documents you may already have.
Don't hesitate to mail us with your questions. Kindly scan existing documents to facilitate the examination.
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