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Portugal Golden Visa program

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.

Portugal Golden Visas: Eligible Low-Density and Interior Areas

**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

 

Real Estate Investments Options in Portugal with a Golden Visa

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.

 

What Regions of Portugal AreEligible for a Golden Visa Investment in Real Estate?

The government of Portugal wants to encourageinvestment in the following areas:

Regions with a low population density

Requalification of the city

Cultural heritage

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.

What areas count as ‘interior’?

 

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.

 

Low-density areas

 

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)

 

Areas of real estateopportunities

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.

 

Residential Real Estate, Interiorand Low-Density

 

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.

 

The 280k low-density investmentoption for the Portugal Golden Visa

 

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.

 

The benefits of using the PortugalGolden Visa 280k option to invest in low-density regions

 

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.

 

Purchase property on any of theislands

 

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.

 

Real Estate for Business

 

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 RehabilitationProjects (i.e. Hotel/Tourism)

 

●     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.

 

Search for Golden Visa Eligible Areas in Portugal by Parish

List of Low Density Areas inPortugal Low-density counties in Portugal include:

 

1. Abrantes

2. Aguiar da Beira

3. Alandroal

4. Alcácer do Sol

5. Alcoutim

6. Alfândega da Fé

7. Alijó

8. Aljezur

 

9. Aljustrel

10. Almeida

11. Almodôvar

12. Alter de Chão

13. Alvaiázere

14. Alvito

15. Ansião

16. Arcos de Valdevez

17. Arganil

18. Armamar

19. Arouca

20. Arraiolos

21. Arronches

 

22. Avis

23. Baião

24. Barrancos

25. Bej

26. Belmonte

27. Borba

28. Boticas

29. Bragança

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

42. Chamusca

43. Chaves

44. Cinfães

45. Constância

46. Coruche

47. Covil

48. Crato

49. Cuba

50. Elvas

 

51. Estremoz

52. Évora

53. Fafe

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

60. Fronteira

61. Fundão

62. Gavião

63. Góis

64. Gouveia

65. Grândola

66. Guarda

67. Idanha-a-Nova

68. Lamego

69. Lousã

70. Marção

71. Macedo de Cavaleiros

72. Mangualde

73. Manteigas

74. Marvão

75. Meda

76. Melgaço

77. Mértola

78. Mesão Frio

79. Miranda do Corvo

80. Miranda do Douro

81. Mirandela

82. Mogadouro

83. Moimenta da Beira

84. Monção

85. Monchique

86. Mondim de Basto

87. Monforte

8. Montalegre

89. Montemor-o-Novo

90. Mra

91. Mortágua

92. Moura

 

93. Mourão

94. Murça

95. Nelas

96. Nisa

97. Odemira

98. Oleiros

99. Oliveira de Frades

100. Oliveira o Hospital

101. Ourique

102. Pampilhosa da Serra

103. Paredes de Coura

104. Pedrógão Grande

105. Penacova

106. Penalva do Castelo

107. Penamacor

108. Penedono

109. Penela

110. Pedo da Régua

111. Pinhel

112. Ponte da Barca

113. Ponte de Sor

114. Portalegre

115. Portel

116. Póvoa de Lanhoso

117. Proença-a-Nova

118. Redondo

119. Reguengos de Monsaraz

120. Resende

121. Ribeira de Pena

122. Sabrosa

123. Sabugal

124. Santa Comba Dão

125. Santa Marta de Penaguião

126. Santiago de Cacem

127. São João da Pesqueira

128. São Pedro do Sul

129. Sardoal

130. Sátão

131. Seia

132. Sernancelha

133. Serpa

134. Sertã

 

135. Server do Vouga

136. Soure

137. Sousel

138. Tábua

139. Tabuaço

140. Tarouca

141. Terras de Bouro

142. Tondela

143. Torre de Moncorvo

144. Trancoso

145. Valpaços

146. Vendas Novas

147. Viana do Alentejo

148. Vidigueira

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

163. Vimioso

164. Vinhais

165. Vouzela

 

Parishes with a low population density inPortugal:

 

Águeda

União das freguesias de Belazaima do Chão,Castanheiro do Vouga e Agadão

União das freguesias do Préstimo e Macieira deAlcoba

Amarante

Ansiães

Candemil

Gouveia (São Simão)

 

Jazente

Rebordelo

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

Amares

Bouro (Santa Marta)

Goães

União das freguesias de Caldelas, Sequeiros eParanhos

União das freguesias de Vilela, Seramil eParedes Secas

Caminha

Dem

União das freguesias de Arga (Baixo, Cima, eSão João)

União das freguesias de Gondar e Orbacém

Castelo de Paiva

Real

Condeixa-a-Nova

Furadouro

Guimarães

União das freguesias de Arosa e Casteiões

Loulé

Alte

Ameixial

Salir

União das freguesias de Querença, Tôr eBenafim

Marco de Canaveses

Várzea, Aliviada e Folhada

Ourém

Espite

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

Pompal

Abiul

Ponte de Lima

Anais

Ardegão, Freixo e Mato

Associacão de freguesias do Vale do Neiva

Bárrio e Cepões

Beiral do Lima

Boalhosa

Cabaços e Fojo Lobal

Cabração e Moreira do Lima

Calheiros

Estorãos

Friastelas

Gemieira

Gondufe

Labruja

Labrujó, Rendufe, e Vilar do Monte

Navió e Vitorino dos Piães

Poiares

Serdedelo

Porto de Mós

São Bento

Santarém

União das freguesias de Casével e Vaqueiros

Silves

São Marcos da Serra

Tavira

Cachopo

Santa Catarina da Fonte do Bispo

Tomar

Olalhas

Sabacheira

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

Arões

Junqueira

Valença

Boivão

Fontoura

União das freguesias de Gondomil e Safins

União das freguesias de São Julião e Silva

Viana do Castelo

Montaria

Viseu

Calde

Cavernães

Cota

Ribafeita

São Pedro de France

União das freguesias de Barreiros e Cepões

 

Summarising Portugal's GoldenVisa

 

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.

Speak with one of our advisors

 

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.

 

Frequently asked questions about Portugal Golden Visa low-density options

 

How to qualify for the PortugalGolden Visa low-density investment option?

 

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’.

 

Will Portugal Golden Visa changes in 2022 affect the low-density investment option?

 

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).

 

What are considered official low-density areas of Portugal?

 

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.

 

Is Algarve a low-density area?

 

Yes, the Algarve qualifies as low-density, soyour real estate investments will automatically get a 20% discount for thePortugal Golden Visa.

 

Is Cascais low-density?

 

Cascais is not considered low-density. It’shigh-density, so no 20% discount applies to your real estate investment for thePortugal Golden Visa.

 

Is Faro low-density?

 

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.

Mail to: info@cscadvogada.com