Portugal Golden Visa - What Happens Next?
If you are considering Portugal as your dream country to invest in, we have pleasant news for you. After months of uncertainty, we are ready to announce that the Portugal Golden Visa will endure. However, specific categories of investment (such as real estate acquisition) will no longer qualify for Golden Visa application. Other investment categories (such as fund investments) will persist.
As a reminder, in February, the Prime Minister of Portugal, António Costa, unveiled an array of measures aimed at addressing housing issues. The "Mais Habitação" (More Housing) initiative centers mostly on augmentation of housing opportunities, streamlining of licensing procedures and establishment of an affordable rental market. Costa also articulated his intention to terminate the Golden Visa program for foreign investors and suspend the acceptance of fresh applications. Notwithstanding this, the foreign investment program not only remains operational but is also anticipated to persist with certain modifications.
Awaiting President’s Endorsment - What Has Changed?
On the 19th of July, 2023, the final version of the Golden Visa legislation was approved by the Portuguese Parliament. It now awaits the requisite endorsement from the President to pass as a law.
What has changed? What do I need to know before applying?
The eligibility for obtaining a Golden Visa via real estate investments or investments in real estate-associated funds will cease to exist. The program will nevertheless remain active with other options available.
The new legislation will not be retroactively applicable to ongoing applications and renewals; the current rules apply to applications and renewals until the new law is published. When, and if, the president of Portugal approves the proposal, the program will officially change.
The law, as of the present moment, still remains pending passage. The precise timeframe for the President's deliberation remains uncertain. Upon the eventuality of the President's endorsement, the changes will take effect on the day following their official proclamation. Pending the approval, the existing program will persist without modification.
New Investment Routes and Possibilities
Under the proposed amendments, three primary investment routes will be rendered nonviable. The specifics are as follows:
Acquisition of real estate valued at €500,000 or higher will be prohibited.
Capital transfers exceeding €1,500,000 will no longer be admissible.
Investment in the refurbishment of real estate properties at least 30 years old, necessitating a cumulative investment of €350,000 or above, will no longer be available.
Investment in funds featuring either direct or indirect real estate allocations will no longer be feasible.
Investment in real estate within low-density regions, involving amounts of either €400,000 or €280,000, will no longer be an option.
Nevertheless, new possibilities emerge with the Portuguese residence program:
Research Funding: Investment of €500,000 or more in research endeavors conducted by public or private scientific research establishments.
Venture Capital Fund Investment: Effecting capital transfers of €500,000 or more into participation units of venture capital funds, provided such funds remain dissociated from real estate holdings.
Commercial Company Investment: Capital transfers exceeding €500,000 designated for incorporation of a commercial enterprise headquartered within national boundaries, or augmentation of the share capital of an existing enterprise, concomitant with creation of five permanent employment positions.
Cultural Heritage Support: Allocation of €250,000 or more towards supporting artistic production, restoration, or preservation of the national cultural heritage.
In fact, the ability to spend as few as seven days per year in Portugal while retaining golden visa status is a highly coveted advantage for many applicants.
In accordance with the forthcoming legislation, the Portuguese Golden Visa initiative is set to remain; however, there will be a uniform elevation in the threshold of entry for all extant categories.
To uphold both the prevailing framework and the present pricing parameter, it is strongly advised that individuals contemplating investment in the Portugal golden visa program proceed as soon as possible. Contact Citizen Lane experts today and let us guide you in this journey.