The Golden Visa Portugal: Everything You Need To Know in 2024

The Golden Visa Portugal scheme is one of the European Golden Visa programs that has gained much traction.

It is now easier for investors to obtain a visa that will enable them to enjoy what Portugal offers while traveling across Europe without a visa.

We have compiled a detailed guide outlining how to get a Portuguese Golden Visa. 

What Is Portugal’s Golden Visa Scheme?

This visa scheme is a five-year resident permit that allows non-EU citizens to live and work in the country. launched in 2012, the program’s principal purpose was to encourage foreign investment in Portugal.

And since then, the country has received over €6 billion, which has proven to be a huge success. The program allows potential investors together with their families an opportunity to carry out legal activities in Portugal and travel across 26 countries in the Schengen Area.

You have the opportunity to enjoy the mesmerizing Atlantic coastline, fantastic climate, hospitable population, rich heritage, and luscious landscapes.

Better yet, you enjoy better living standards at an affordable rate. On top of that, the Portuguese Golden Visa scheme provides leeway to become a permanent resident after five years.

All you need is to live in the country for at least seven days in the first five years and 14 days after that. So, with all these attributes, few investors would resist the offer. 

Changes to The Portuguese Golden Visa Scheme: The Program Is Not Ending

Due to the housing crisis in the country, the Portuguese government decided to halt the Golden Visa program in February 2024.

This shocker came at a time when many investors had started streaming into high-density areas of the country.

But the good news is that the program is not fully ending. Instead, some qualifying areas for real estate investment options have been adjusted.

Real estate investments in high-density areas such as Porto, Lisbon, and the Algarve have been scrapped. So while it is true that you will not buy a property in these high-potential areas, there are still many investment opportunities that qualify you for the program.

Also Read: The Ultimate Guide For Americans Moving to Portugal in 2024

The Benefits of The Golden Visa Portugal

This program’s benefits draw some investors to this southern European country. Here are just a few of them:

1. Visa-Free Travel Across Europe

The Golden Visa Portugal program registers you in the Schengen Area registry. What it means is that you can roam around Europe without an additional visa.

And if you decide to remain in the country after five years, you qualify for a Portuguese passport. This passport allows you to travel to more than 100 countries without a visa.

2. Family reunification

As a Portuguese Golden Visa applicant, you can extend the application to other family members. So, your spouse, minor children, children under 18 dependent children who are still studying and under 26 years old.

And your parents who are dependent on you and over 65 are granted the same rights. They can live, study, work, and travel within the EU zone.

3. Live, Work, and Study in Portugal

Holders of the Golden visas can live, study, work, and even start a business in the host country. You can also get medical cover if you live in Portugal.

This will enable you to access public health services. Aside from this, your children can join the public education system. But there are several private international schools.

4. Tax Exemptions

Golden Visa holders are exempt from paying income tax unless they register Portugal as their primary residence.

In this case, you must have lived in the country for at least 183 days. If not, you can apply for NHR (Non-Habitual Residency), which offers certain exemptions in the first ten years. Here are some advantages of this tax regime:

• The government will only tax your worldwide income after 10 years.
• Your pension income, including life insurance and retirement savings, attracts a flat rate of 10%.
• Foreign dividends, interests, capital gains, and rents are exempt from taxation.
• Earnings from high-value-added activities like self-employment income from artistic, technical, and scientific activities performed in Portugal are taxed at 20%.

5. Citizenship 

After the end of five years, visa holders qualify to be Portuguese citizens. But to qualify for citizenship, you must meet these criteria:

• Have a clean criminal record within and outside the country.
• Clear your outstanding tax payments in Portugal.
• Pass a basic Portuguese language test to obtain an A2 language certificate.
• Provide documents as proof that you have a Portuguese bank account. 

Golden Visa Application and Requirements

Eligibility For the Golden Visa Portugal Program

Non-EU Nationals: Technically speaking, all nationalities except the EU citizens are eligible for this program. But there are other requirements before you can get the visa, including the following:

• All applicants must be at least 18 and free of criminal liability.
• You must make the necessary investment in Portugal (we will get to this in the next section). These funds should originate outside Portugal.

Family members: the Golden Visa scheme allows for family reunification so that you may extend the visa to your close family members. The full details of the dependents were covered in the previous section.

American Citizens: US citizens who may choose to expand their investment portfolio in Portugal can apply for the Golden Visa scheme.

The tax incentives that Portugal offers make it attractive to most residents of the US.

UK Citizens: UK citizens and investors seeking alternative travel abilities after Brexit can take advantage of the Portuguese program.

The visa benefits them in three ways: they can live a desirable lifestyle, travel across EU countries, and acquire European citizenship through investment. 

Golden Visa Portugal Investment Options

Applicants can secure a Portuguese Golden Visa by investing in any of the five options: donating, investing in real estate, investing in an investment fund, creating jobs, or transferring capital.

Let us break down each of these investment options:

Real Estate Investment

This investment is one of the popular avenues to qualify for the Golden Visa Portugal program. It requires you to invest at least €400,000 in real estate property in designated places, as indicated below:

• For properties in high-density areas like major cities, the minimum investment amount is €500,000.
• If you choose a low-density area, you must buy a property or properties worth €400,000.
• If you acquire a property in a low-density area over 30 years old, you can renovate it for €280,000. For properties in high-density areas, the minimum renovation fee is €350,000.

Investment Fund

You can contribute a minimum of €500,000 to a Portuguese investment fund, especially one that supports Portuguese businesses.

Capital Transfer 

The most expensive way to get to Portugal is to deposit a specified amount of money. A capital transfer of €1.5 million  can get you the highly sought-after visa.

Initially, you only needed to transfer €1 million, but it was updated in January 2022. As you would expect, you need to prove that the money came from outside Portugal.

Job Creation

You can contribute to job creation in two main ways:

• Invest at least €500,000 in an existing Portuguese company, where the organization must create at least five full-time jobs within three years.
• The other option is to start a Portuguese business that creates at least ten full-time jobs.

Donation 

Another qualification option is to donate money to preserve Portugal’s national heritage or improve research and development activities.

The minimum donation for the former is €250,000, while the latter is €500,000.

Are Loans Allowed in the Golden Visa Program?

The program requires you to invest the minimum amounts under any of the above investment options with money originating outside Portugal.

So, you can make these investments using a loan as long as it doesn’t come from Portuguese financial institutions. 

How To Apply for Golden Visa Portugal 

The scheme has a few requirements. We covered some of them in the previous sections but will still highlight them here.

Documents Required for the Golden Visa Program

• Valid passport
• Portugal Golden Visa application form
• Two passport-size photos
• Documents showing your medical insurance. If outside Portugal, it should be from an internationally recognized insurance firm, but if from Portugal, then the National Health System coverage is enough.
• Payment receipt for the visa application fee
• Certificate of clearance from law enforcement agencies in your country showing a clean criminal record. You should also complete a form authorizing SEF to check your criminal records in Portugal.
• Documents proving investment in real estate or Portuguese funds, company registration with employment contracts, bank deposit documents, and proof of donation

Application Fees

Besides the investment options, you must set aside some money to cover the application fee and related expenses. The initial application fee is about €5300 per person, but the renewal fee is about half of this.

Besides the one-time application fees, expect to pay other professional fees depending on your needs. They include consultants, lawyers, and translators.

Validity and Renewal of the Golden Visa Portugal

The Portuguese visa scheme is valid for five years. But it is divided into two terms. You will be issued with an initial permit that covers the first two years.

Thereafter, you will be given a three-year residence permit to complete the five years. For the first permit to be valid, you should spend at least two weeks (14 days) in Portugal.

And for the second one, you should live in the country for at least three weeks (21 days).  At the end of the five years, you can choose between these three options:

• Continue with the Golden Visa temporary residence scheme.
• Apply to become a Portuguese citizen.
• Apply for permanent residence in Portugal. 

Closing Remarks

The Portuguese Golden Visa program is among the most valuable Golden visas in the world. It grants you an opportunity to invest, live, and work in Portugal and gives you a ticket to travel across Europe without needing a visa.

Also, remember that Portugal offers a high standard of living in terms of infrastructure, safety, healthcare, education, work, and climate.