Portugal’s 'golden visa' scheme has long been a massive benefit for entrepreneurs and expats who wanted to take advantage of everything Portugal has to offer. Since 2012, the scheme had been offering a visa with a guaranteed route to permanent residency in exchange for a real estate investment or business investment. Under the last rulings, an expat wanting a Golden Visa would have to invest at least €350,000 in an area of urban renewal, or €500,000 for a property in any Portuguese location. Under these rules, a Golden Visa holder only had to reside in Portugal for 7 days in their first year, and 14 days thereafter. Along with various tax breaks which brought expats savings of up to €30,000 a year, foreign residents felt like they were quids in by deciding to move to Portugal.
However, the scheme has undergone a few changes in the last year which have taken the shine off for real estate investors and in February 2023, the whole scheme was brought to an end by the Portuguese government who were concerned by the country’s housing crisis. Portuguese locals were experiencing difficulties in renting or buying affordable property because of houses being bought up by Golden Visa expats which were then left empty for most of the year.
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But in July 2023, the government rolled back its decision and admitted that it wouldn’t completely end the Golden Visa option. It confirmed that real estate investment was no longer a viable route to obtaining a visa or a residency permit. However, it proposed – as part of the Mais Habitação bill - to keep the entrepreneurial investment open for Golden Visa seekers. In the previous scheme, entrepreneurs would need to invest at least a million euros, along with buying a property of at least €500,000. Now, however, an investor would only need to invest €500,000 in collective investment structures or the same amount in an existing Portuguese company to encourage job creation for citizens in Portugal, as long as none of these investments have anything to do with real estate. Donations of that amount to science or art would also be considered.
So for now the rule of law for current applications are as follows:
- Pending SEF (Foreigners and Borders Service) applications will be assessed on the laws in place at the time of their submission.
- The minimum stay requirement to maintain residence permits will remain at an average of 7 days per year.
- Renewals of residence permits will follow the same initial rules as before.
- Family reunions will be guaranteed under the same conditions as main applications.
- Investment routes related to real estate and capital transfer will no longer be eligible.
The Portuguese government has yet to give its stamp of approval to the proposed changes so keep an eye out for our latest updates. Until then, take a look at our article The best country to start a business in Europe for alternatives to Portugal, or download our free guide below that gives you all the information on expanding your opportunities and investing in Europe
