Like the rest of the countries in the Schengen Area, a stay in Portugal longer than three months requires a visa. Several European Union nations offer an immigration program that grants wealthy non-EU citizens a residence permit in exchange for a substantial investment. This is what is known as a Golden Visa.
Portugal boasts one of the most sought-after Golden Visas due to its relatively low investment baseline, relaxed stay requirements, and excellent perks. Since its launch in 2012, Portugal’s Golden Visa program has raised over €6 billion and granted residency to more than 10,000 applicants.
For non-EU citizens seeking citizenship in a European country, Portugal’s Golden Visa may be a suitable option.
Benefits of a Portugal Golden Visa
One of the most attractive features of this visa is that it allows visa-free travel throughout Europe’s Schengen Area. With the incoming implementation of ETIAS, a visa waiver that will soon be required for citizens of many non-EU countries that currently travel visa-free, a Portugal Golden Visa can make long-term inter-EU travel much more accessible. This includes Portugal.
The Portugal Golden Visa also requires a minimal physical presence. Golden Visa holders need only stay in Portugal for seven days during the first year and 14 days for the two subsequent years. Each of the days can count towards citizenship eligibility after five years.
Families are perfectly suited for the Portugal Golden Visa, as well. Those approved for a Golden Visa can extend it to the rest of their family members. Such family members include:
- The applicant’s spouse.
- All children under the age of 18.
- Dependent children under the age of 26, so long as they are full-time students and not married.
- The parents of the primary applicant, provided they are over the age of 65.
Holding permanent residence in Portugal also comes with a host of benefits. Golden Visa holders are entitled to Portugal’s excellent healthcare system. Healthcare under Portugal’s national health system is free for children under 18 and people over 65. Furthermore, international schools in Portugal are among Europe’s best and most affordable.
Investors will also enjoy significant tax savings, which this program creates. This, combined with a low cost of living, makes Portugal a haven for investors worldwide.
The quality of life one can expect in Portugal is unmatched. In addition to being ranked the 4th safest country in the world, Portugal boasts clean streets, stunning sites, and a culture that values spending quality time with friends and family.
What Are the Minimum Investment Requirements for Portugal’s Golden Visa?
The Golden Visa Program seeks to raise capital for their host countries, so a minimum investment is required to qualify. Each country that offers a Golden Visa application has different requirements, and Portugal’s are among the easiest to reach.
In addition to offering some of the lowest fees in Europe, Portuguese banks make it relatively easy to open accounts. All needed are a passport, NIF number, Portuguese phone number, and proof of income.
There are several kinds of investment that qualify:
- Real Estate Acquisition
- Fund Subscription
- Capital Transfer
- Job Creation
- Donation
Real Estate Acquisition
The baseline investment amount for a real estate property acquisition is €500,000. There are ways, though, to reduce this number.
By acquiring property in a low-density area of Portugal, the minimum investment amount drops to €400,000. This number can reduce to as low as €350,000 by acquiring and renovating a property that is older than 30 years old and in an urban rehabilitation area.
These minimum investments do not necessarily apply to just one property, either. This requirement can be met by acquiring multiple properties so long as the total investment equals the required minimum.
Furthermore, two individuals purchasing one or multiple properties for a larger amount can combine their investments to qualify. For example, if two investors purchase real estate worth €1 million, they can each qualify for the Portugal Golden Visa.
It should be noted that Lisbon, Porto, and mainland coastal towns' residential properties are not Golden Visa-eligible. Commercial property in these areas does qualify, though.
Fund Subscription
A non-EU citizen can qualify for the Portugal Golden Visa via a minimum €500,000 subscription in a qualifying Portuguese fund.
Capital Transfer
By transferring €1.5 million to Portugal, one can qualify for the Portugal Golden Visa.
Job Creation
A business owner can qualify for the Portugal Golden Visa by creating full-time jobs in several ways. The baseline requirement is to create a minimum of 10 full-time jobs in a Portuguese business owned by the applicant. This number reduces to eight when these jobs are created in a low-density area of Portugal.
Another way to accomplish this is to invest a minimum of €500,000 in an existing Portuguese business. In turn, that company must create a minimum of five full-time jobs for at least three years.
Donation
By donating a minimum of €250,000 for national heritage preservation or €500,000 for development and research activities, a non-EU citizen can qualify for a Golden Visa.
Further Requirements
Investors interested in a Golden Visa should understand that funds for their investment must have originated from outside Portugal. Loans are acceptable; however, a loan cannot be obtained from a Portuguese bank.
All non-EU/EEA/Swiss nationals are eligible for a Portugal Golden Visa. Applicants must also be 18 years old and have a clean criminal record.
Financial Benefits of the Portugal Golden Visa
- Tax incentives
- Free healthcare
- Track to citizenship
- Travel benefits
The Portugal Golden Visa does not come without a sizable investment. While these investments can pay off in and of themselves, especially with Portuguese property values on a steady rise, they can also pay off by taking full advantage of the wide range of benefits available to Golden Visa holders.
Tax Incentives
While Portuguese citizenship provides many perks, the Portugal Golden Visa investment is especially popular due to its foreign investors' tax incentives. The tax incentives that foreign investors enjoy make the Portugal Golden Visa one of the most popular Golden Visas.
Investors who move their tax domicile to Portugal are exempt from taxes on international income and pay only 20% on Portuguese-sourced income for an initial period of ten years. This relieves non-habitual residents (NHR) of paying taxes on foreign-sourced income like self-employment, investment returns, rental income, and capital gains.
Free Healthcare
Many investors will enjoy the free health insurance granted by Portuguese residency. The Portuguese government provides free access to healthcare to all children under 18 and adults over the age of 65. This exceptional healthcare system, combined with the relaxed taxation policies, makes Portugal a popular retirement destination for foreign investors.
As the Portugal Golden Visa can be passed from the applicant to their spouse, children, and parents, foreign investors can provide these benefits to their loved ones. This policy is desirable to foreign investors with children or parents who rely on them for medical support.
Track to Citizenship
Upon establishing residency in Portugal via the Golden Visa, applicants and their families will be on a fast track to obtaining Portuguese citizenship. After just five years, one of the shortest periods in any EU country, Golden Visa holders can begin the Portuguese immigrationapplication process.
One of the primary benefits of holding Portuguese citizenship is the ability to live, work, and study in any EU country. On top of that, a Portuguese passport allows one to travel to 188 countries without needing a visa.
In addition to five years of residency, applicants must also have a clean criminal record in Portugal and their home country, no outstanding tax payments in Portugal, and pass a basic Portuguese language test.
Travel Benefits
Before earning Portuguese citizenship, Portugal Golden Visa holders can enjoy similar travel benefits to an official citizen. While Portuguese citizens, similar to all EU passport holders, can travel to a wide range of 188 countries, Portugal Golden Visa holders can travel throughout the entirety of the EU without any obstruction. This is an attractive incentive for non-EU citizens as it eliminates the need for registration through ETIAS.
Although ETIAS will make traveling to Portugal on short-visits an easy process for tourists, Golden Visa holders will have greater flexibility in being permitted to stay in Portugal (and Europe) much longer.
Find out who will need ETIAS upon its initial launch in 2025.
Sources
Guide to European Golden Visas
Global Peace Index | visionsofhumanity.org
The Tax Advantages Of Portugal’s Golden Visa | Life Afar Capital