Proposed new changes to Portugal’s Golden Visa programme

In the last five years, there have been several amendments to Portugal’s Golden Visa programme, and the majority of those have been made to improve the programme in general. These changes include faster processing times, adjusting the residency validity rates and the ability to apply for a Golden Visa in an area different to where your property was purchased.

Recently, there have been some changes discussed but not yet accepted and passed into law:

1. Scrapping the language test entirely. This would come as a huge relief to investors and would instantly make the programme even more attractive.
2. Excluding the purchase properties in Lisbon and Porto for the Golden Visa, with the aim of distributing foreign investment into areas that need it more.

Should the proposal go ahead to exclude Porto and Lisbon, there is always an investment fund/private equity option, which will be available in those regions.

We keep our ears close to the ground in Portugal and announce any changes as soon as they’re made law. Right now, the programme is unchanged, and current applications are unaffected by these proposals.

What is the Golden Visa programme?

Golden Visa Portugal (GVP), also known as the Golden Residence Permit Programme (GRPP), was created by the Portuguese government to encourage foreign investment.

You invest in Portugal through one of several different routes and gain residency for you and your family as well as visa-free travel throughout the Schengen area of Europe. You’ll be allowed to live and work in Portugal, although this is not required.

Does it lead to citizenship?

The programme has issued its first citizenship status to initial investors. After five years of holding the Golden Visa, you can apply for citizenship or permanent residency.

All the perks

• Visa-free travel throughout the Schengen area of Europe
• Portuguese residency for you and your family
• Access to Portuguese healthcare and education
• A foreign income-earning asset
• A path to citizenship and potentially retirement in Portugal

What are my investment options?

There are four popular routes in the GVP programme allowing for flexibility in your investment selection:

Route 1: €1 million capital investment

This is a cash investment into Portugal of €1 million in the form of a fund deposit into Portuguese stocks/bonds.

Route 2: Business set up

This route involves creating at least 10 jobs with all employees paying social security for the duration of your Golden Visa. This is done through setting up or purchasing a business in the country.

Route 3:  €500,000 or €350,000 property purchase

€500,000 – This is the most popular route due to the flexibility in what you can purchase.  You’re allowed to purchase multiple properties – provided their collective value is at least €500,000. Various categories of property qualify, including commercial, farming, vacant land and rental property.

€350,000 –An increasingly popular option due to the lower capital required, this route involves investing in property in a designated urban regeneration area. The property generally needs to be refurbished, but the lower investment requirement makes up for the work that needs to be done.

Route 4: €350,000 private equity fund investment

This is a relatively new category for the Golden Visa. The investment of €350,000 needs to be invested into a fund, and a share is issued rather than a title deed.

These investment types do not attract transactional charges that you would incur when purchasing a property. It also is an easier investment to manage, because generally the maintenance, rental and general care of the property is taken care of for you.

Golden Visa: Are there other requirements?

There are two main requirements other than your qualifying investment:

Minimum residency requirement

Most people will never have an issue meeting this requirement – once you stay for a bit, you’ll have a hard time leaving. You will have to spend the following number of days in Portugal during each year of your residency:

• Year one: seven days
• Year two to three: 14 days (can be done in one trip or broken into multiple trips)
• Year four to five: 14 days (can be done in one trip or broken into multiple trips)

The Portuguese language test

The language test is the one requirement that investors feel the most anxious about, but with Portuguese lessons and practice, you’ll pass with flying colours.

To apply for permanent residency after holding your Golden Visa for five years, you’ll need to pass a level A2 exam in Portuguese. You can take the exam at any time during your five years, so you’ll have plenty of time to practice.

The proposal to scrap the language test will hopefully move forward in the near future, increasing the attractiveness of the GVP programme.

Why Portugal?

Portugal’s property market is very attractive at the moment, and the country is rated as the world’s leading destination. In terms of European countries, Portugal is still relatively affordable and has a lot to offer investors.

How do I get started?

The first step on your Golden Visa journey is to complete a pre-qualification questionnaire. One of our consultants will then contact you and discuss your options.

If you’re looking to purchase real estate, our team and property developers on the ground in Portugal can help you find the right property.

If you’re interested in the above programme, please get in touch so we can help you find the right solution for you. Speak to a consultant on +27 (0) 21 657 1584 or by emailing goldenvisa@sableinternational.com.