The Portuguese Golden Visa program appeared in October 2012 after the economic crisis of 2008. The authorities have proposed new sources of investment in the form of wealthy foreigners who are willing to invest money in exchange for European residency. Today, Portugal’s investment residency program, known as Autorização de Residência para Investimento (ARI), has become one of the most sought-after in Europe.
The legal basis of the program is Law No. 23/2007, which defines the conditions for entry, stay and exit of foreigners. The last significant amendments were made in 2021-2023, when the minimum investment amounts were revised upward and the list of available instruments was changed.
The program operates under the supervision of the Agency for Integration, Migration and Asylum (AIMA). It is AIMA that reviews applications and makes final decisions on issuing permits.
Advantages of Portugal’s Golden Visa
- The right to live and work in any EU country;
- Enhanced business opportunities;
- Access to banking services throughout the European Union;
- Visa-free trips to 178 countries;
- Free education in public schools and preferential conditions in universities;
- Access to quality medicine;
- Access to a full range of social services and benefits;
- Exemption from taxes on global income and a fixed rate of 20% on income in the Republic;
- Tax benefits for businesses;
- The right to participate in political life;
- Transfer of citizenship to children;
- The possibility of dual citizenship;
- High level of safety and quality of life.
Investment options for obtaining a visa
The Portuguese Golden Visa program offers 3 financial investment options. Each of them can become the basis for obtaining citizenship, but the speed of obtaining the status varies.
Contribution for the reconstruction of facilities
The minimum threshold starts from €250,000 for projects related to the restoration of cultural heritage. We are talking about buildings older than 30 years or objects in urban reconstruction zones. Investments can be directed to purchase and repair work.
Purchase of investment fund units
The amount of investments starts from 500,000€. The fund management company is required to invest at least 60% of the funds within the country. The average capital freeze period is 5-10 years. Funds have become the main tool after the cancellation of the possibility of buying real estate in 2023. The risks here are lower than in venture projects, but the profitability rarely exceeds 3-5% per annum.
Company opening
The option to create a business with 10 new jobs does not have a fixed financial threshold. An alternative is to invest 500,000€ in the authorized capital of an existing company, provided that 5 jobs are retained for 3 years. At the same time, jobs must be issued under a full-time employment contract (i.e. excludes part-time schemes).
Minimum investment volume and preservation conditions
The minimum amounts vary depending on the chosen destination (from 250,000€ to 500,000€). The investment capital must remain frozen for at least 5 years (from the moment of receiving the first permit). After this time, it is allowed to apply for citizenship.
Early sale of an asset before the expiration of 5 years automatically cancels residency. The fact of the sale is regarded as a violation of the terms of the program. An exception is made for force majeure circumstances. In such situations, the investor is given 6 months to transfer capital to an approved asset.
After 5 years, the resident has the right to return the money without losing the right to permanent residence or citizenship. The possibility of withdrawing funds appears only after obtaining a permanent residence permit or passport. This is the key difference between the Portuguese program and similar schemes in the EU.
Additional expenses and taxes
The initial application requires the payment of an administrative fee of € 6,045 for the main applicant. Each family member included in the application pays an additional €83. The cost of extending residency every 2 years is €3,022 for adults and €1,511 for children. The translation of documents by a notarized translator adds 15-50€ per page.
Stamp duty is charged when assets are purchased. For funds or businesses, this is 0.6% of the investment amount. In the case of investments in the reconstruction of cultural facilities, the fee is reduced to 0.4%. The annual Property Tax (IMI) varies from 0.3% to 0.8% depending on the region.
A prerequisite for participation in the program is the availability of medical insurance with coverage of at least 30,000 €. An annual policy for a family of 3 people costs 1,200–2,500euros, depending on age and health status.
Tax consequences of obtaining a visa
Obtaining a “golden visa” does not automatically make an investor a Portuguese tax resident. The condition for receiving is 183 days of stay during the year. After obtaining the resident status, the resident is required to declare all global income.
Residents pay taxes on a progressive scale from 13% to 48% on any profits. Salaries, dividends, royalties, and even rental income outside the Republic fall under this rule. Non-residents report only income of Portuguese origin at a fixed rate of 25%. A preferential NHR program with a 20% tax rate is available to new highly qualified residents for 10 years. Foreign pensions, dividends and interest are completely exempt from taxes. To receive it, you need to confirm that you have not had a tax residence in Portugal in the previous 5 years.
Requirements for the applicant and family members
The main condition for participation in the program is the age over 18 years. In addition, the key conditions for the applicant are:
- Citizenship of a non-EU or EEA country.
- No previous convictions for crimes punishable in Portugal by imprisonment for more than 1 year.
- Certificates confirming the absence of a ban on entry to EU countries.
- Medical insurance with coverage of at least 30,000€.
- Confirmation of the legal origin of the investment funds.
- Financial independence. In practice, the investor is advised to show a monthly income of at least 1,500€ for the main applicant and 750€ for each family member.
The program allows you to add a spouse, children, and parents to the application. There are age restrictions for children. Under the age of 18 are included automatically, from 18 to 26 – on condition of full-time education and financial dependence. Parents over the age of 66 are included in the application without proof of dependency, younger with documentary proof of financial dependence.
Dual citizenship
The legislation does not oblige applicants to give up their previous passport. After receiving a Portuguese passport, an investor can retain their original citizenship. The recognition of dual status is enshrined in article 15 of the Portuguese Constitution. The exception is citizens of States that legally prohibit multiple citizenship.
The prospects for obtaining a residence permit and permanent residence do not depend on the current status. The investor receives a temporary residence permit immediately after the approval of the application. After 5 years, a resident has the right to request permanent residence or immediately apply for citizenship.
The procedure for obtaining a residence permit
- Consultation and investment selection. Analysis of the applicant’s financial capabilities. Selecting a priority option for attachments.
Registration of a tax number (NIF). The Portuguese equivalent of the INN is received 24 hours in advance through a trusted representative. The number will be required for all subsequent operations. - Opening a bank account. You will need a package of personal documents, including proof of the origin of the money. The account is opened remotely via a mobile application.
- Transfer of investment funds. Transfer money to a Portuguese bank account. Conclusion of an agreement with the management company.
- Preparation of documents for a residence permit. It takes 2-3 months to collect the dossier. The list includes apostilled criminal record certificates, translated birth and marriage certificates, and a medical insurance policy.
- Submitting an application to AIMA. The applicant’s dossier is sent through the electronic portal of the migration agency. The completeness of the package of documents is checked automatically.
- Biometric verification. On the appointed date, the applicant visits the AIMA department for fingerprinting and photographing. Employees check the data and enter it into a single European database.
- Obtaining a resident card. The plastic document is delivered by courier service 90 days after biometrics. The card is valid for 2 years.
- Extension of the status. An extension request is submitted after 24 months. It is necessary to confirm the preservation of investments and the absence of violations. A new card is issued for 3 years.
Application processing time
The Portuguese government is trying to minimize the processing time, but investors should prepare for a realistic deadline of 12-18 months from submitting documents to obtaining a residence card. It takes 2-3 months to prepare the documents. The initial analysis of the dossier at the AIMA agency lasts 6-8 months. A biometric visit is scheduled 10-14 months after the application is submitted. The date is sent automatically, with 30-90 days notice. Issuing a resident’s card takes 90-120 days after fingerprinting.
Required documents
- A foreign passport with a validity period of at least 6 months at the time of submission;
- Certificate of absence of criminal record from the country of citizenship and the states where the applicant lived for more than 1 year;
- Proof of investment;
- Medical insurance with coverage of at least 30,000€ per applicant;
- Birth and marriage certificates;
- Tax number (NIF);
- Proof of residence (tickets, hotel reservations or rental agreement);
- Receipt of payment of the state fee.
- We will answer all your questions
- We will help you choose the best option
- We will guide you through every step or do everything for you
Failure and return on investment
The main reason for non–compliance with the request is non-compliance with investment conditions. The second most common reason is errors in documentation. Overdue criminal record certificates, incorrect translations, or missing apostille on birth certificates are among the most common mistakes.
After receiving the notice of refusal, the investor has 30 days to file an appeal with AIMA. The following documents must be attached to the new application:
- Corrected or missing documents with notarization;
- Written explanations on each point of refusal;
- New evidence of compliance with investment criteria.
Recent changes in the program
Since 2023, Portugal’s golden visa program has gone through a series of transformations. The basis was the Mais Habitação Law, adopted in October 2023. Real estate investments in Lisbon, Porto, Algarve and Braga were permanently excluded from the program. At the same time, directions were proposed to stimulate the development of the peripheral regions of the country.
Language allowances will be introduced in 2025. Since January, documents in English, French and Spanish are accepted without translation (excluding birth and marriage certificates). Electronic filing of documents through the AIMA portal has been introduced.
It is important to note that despite rumors of closure, Parliament has confirmed the extension of the program until 2030. However, in the near future it is planned to introduce quotas for investment funds.
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