Portuguese golden visa investment program - why is it relevant?

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Programs for obtaining residence permits through investment

Programs such as Portugal's golden visa have become increasingly popular around the world, especially over the last decade. New rules will lead to changes in Portugal's "golden visa" program.

Changes to Portugal's 'golden visa' program

In mid-February, Portuguese Prime Minister Antonio Costa announced a series of measures to address housing problems. The "Mais Habitação" (more housing) plan focuses on five main objectives: increasing housing opportunities, simplifying licensing, creating an affordable rental housing market, preventing real estate speculation, and supporting families with favorable rental and home mortgage terms. Costa also announced his intention to end the "golden visa" program for foreign investors and suspend the acceptance of new applications. Despite this, the foreign investment program not only continues to operate, but is also likely to continue with some changes.

The amended bill

The amended bill was presented to the Portuguese Parliament on July 12 and subjected to a vote on July 19. The bill is subject to review and approval by President Marcelo Rebelo de Choza and must be published in the official gazette before it can take effect. The current bill differs significantly from the original proposal in that it does not end Portugal's golden visa program. However, he suggests that real estate purchases, investments in hotel renovations and capital investments will no longer qualify for a golden visa. Other unsuitable options include investments indirectly related to real estate, such as funds that invest in residential or commercial real estate. The new law provides for a "golden visa" in categories such as venture capital and investment fund investments (non-real estate), cultural heritage/artistic production and scientific research, and direct business investments that create jobs. Another significant difference from the original draft is that visa extensions for applicants who applied through real estate investment are not subject to retrospectivity, meaning that applications and extensions are pending under the law in effect at the time of application. This important point should give investors confidence.

Public pressure

It is clear that Costa is under public pressure due to high house prices in Lisbon and Porto. From the outset of the proposed bill, there has been an option for investors to apply for a golden visa through investment in cultural heritage, but the retention of several other investment options is a positive development.

Programs for obtaining residence permits through investment

such as Portugal's "golden visa" have become increasingly popular around the world, especially over the past decade. While each country creates its own set of rules regarding the type of investments that qualify for the program and the requirements applicants must meet, all programs share a common goal of stimulating the country's economy. The US program, for example, has been around since 1990, and a minimum $800,000 "at risk" investment is required, and a permanent green card is issued only after the investor proves the creation of 10 full-time jobs related to his/her application. The number of days you need to spend in a country each year to maintain a permanent residence permit also varies from country to country. In fact, this is one of the most coveted benefits for those applying for a Portugal golden visa, as they only need to spend seven days a year in the country to maintain their golden visa status. According to statistics provided by the Portuguese Immigration and Border Guard Service (SEF), since the inception of the golden visa program in October 2012 and up to the latest figures for May, Portugal has issued a total of 12,217 golden visas. The top five most popular nationalities for the golden visa include 5,349 investors from China, 1,212 from Brazil, 666 from the US, 571 from Turkey and 525 from South Africa. Another 3,894 visas were issued to investors from other countries, including India. More than €7 billion has been invested in the Portuguese economy since the program began.

Suresh Rajan - Executive Chairman and Founder of LCR Capital Partners