Portugal’s Golden Visa: Residency By Investment

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Last updated on December 4, 2024

Ah, the golden visa – Portugal’s glittering ticket to residency that’s been turning heads since 2012. Officially known as the Residence Permit for Investment Activity (ARI), it’s the VIP pass of visas that’s had over 12,000 savvy investors rolling out their golden welcome mats.

Now, you might be wondering, “Who’s this visa for? Is it my golden ticket to Portuguese paradise?” Well, let’s break it down for you.

Picture two scenarios:

  1. The Part-Time Expat: You’re dreaming of a slice of Portuguese life, but you’re not quite ready to move there just yet (or ever). Maybe you’ve got business elsewhere, you want to travel the world, or you’re just not ready to commit to full-time Mediterranean bliss. The golden visa’s got your back – it only asks for an average of 7 days per year in Portugal. That’s right, just one week a year to maintain your residency. Easy peasy, lemon squeezy!
  2. The Cash-Rich, Income-Light Expat: You’ve got a chunk of change burning a hole in your pocket, but your passive income or remote job situation isn’t quite up to snuff for visas like the D7 or D8. Fear not! The golden visa doesn’t care about your monthly paycheck – it’s all about that investment (or donation).

So, whether you’re looking to dip your toes in the Portuguese waters without diving all the way in, or you’re ready to invest your way to residency, the golden visa might just be your golden opportunity.

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Overview of the Golden Visa

  • Flexible: Portugal’s Golden Visa program offers a variety of investment options, such as investing in funds, starting a business, or donating to scientific research.
  • Tax-Friendly: One of the most significant advantages of Portugal’s Golden Visa is that you don’t need to physically relocate to Portugal to maintain your residence permit or apply for citizenship. By spending just an average of seven days per year in Portugal, you can keep your Golden Visa status and work towards your long-term residency goals.
  • Visa-Free Schengen Travel: As a Golden Visa holder in Portugal, you’ll enjoy the benefit of visa-free travel within the European Union’s Schengen area, allowing you to explore and conduct business across 26 countries with ease.
  • Pathway to Citizenship: Once you successfully obtain Portuguese citizenship, which typically takes five years of holding a Golden Visa, you’ll gain the right to live and work freely anywhere within the EU/EEA. Additionally, you’ll possess the world’s 4th best passport, opening up a wealth of travel opportunities.
  • OECD Compliant: Portugal’s Golden Visa program stands out from many others as it is not blacklisted by the OECD, ensuring that your investment is viewed as legitimate and transparent by international standards.

Would I Qualify for the Golden Visa?

Close-up of file folders with labeled tabs, focusing on a tan folder labeled "Requirements." Other tabs, in various colors such as green, purple, and white, are partially visible and labeled with different text. The folders are arranged in a filing system.

The main requirement for the golden visa is, unsurprisingly, financial. Let’s break it down:

The Investment Route

Most applicants opt for investment, with €500,000 being the standard amount. These days, many choose to invest in funds, which can be a more straightforward option than property investment. Some firms offer schemes like buyback deals that can potentially reduce the initial investment.

The Donation Route

If you’re feeling philanthropic, the minimum donation amount is €250,000. This is currently the most affordable way to qualify for the golden visa.

Beyond the Finances

While having the funds is crucial, it’s not the only requirement:

  1. Background Check: You’ll need to pass a background check. The Portuguese authorities want to ensure that golden visa applicants have clean records.
  2. Source of Funds: Be prepared to explain where your investment or donation money is coming from. This is a standard anti-money laundering procedure.

In essence, if you have the financial means, a clear background, and can verify the source of your funds, you’re likely a good candidate for the golden visa. It’s a significant investment, but for many, the benefits of Portuguese residency and a potential path to EU citizenship make it worthwhile.

What About Couples & Kids?

A smiling family of four enjoys a day at the beach. The father carries a young boy on his shoulders while standing next to the mother, who holds a baby on her shoulders. The mother wears blue sunglasses and the sun is setting in the background, casting a warm glow.

If you see the value of having Portuguese residency (and later, potentially Portuguese citizenship) then you will probably want your family members to get the same benefits as well.

Certain family members can be added to a golden visa application, allowing them to obtain residency in Portugal and take advantage of benefits like access to Portugal’s healthcare system and universities.

The following family members can be included:

  • Spouse (or common law partner)
  • Dependent minor children
  • Dependent minor adopted children
  • Dependent children aged 18+ if studying or financially dependent on parents
  • Parents over the age of 65 (or younger if dependent)
  • Dependent siblings under the golden visa holder’s guardianship
  • Other relatives (if certain dependency requirements can be proven)

What are the benefits of the golden visa?

There are a number of selling points to the golden visa compared to other visas like the D7 and Digital Nomad Visa, but the two biggest selling points are:

  1. It has minimal physical stay requirements.
  2. It suits those who have cash to invest, but may not have a passive income, which is what the D7 typically requires.

Even though you’re technically resident in Portugal, you don’t need to spend a lot of time there: just 7 days per year on average. You can spend more time if you wish, but this flexibility makes the golden visa perfect for at least two groups of people:

  • Those that want a pathway to citizenship but don’t want to move to Portugal (or perhaps, not right now).
  • Those that want to move to Portugal but want more flexibility to travel and leave whenever they want rather than having to spend around 6-8 months of the year here.

However, lawyer Sandra Gomes Pinto notes the increasing importance of showing ties to the Portuguese community when applying for Portuguese citizenship. She suggests that only spending seven days per year in Portugal doesn’t signify an intent to create those ties, and that if you are only going to spend minimal time here, you will need to show strong ties in other ways to make up for this [source].

The golden visa also allows you to invest cash, which suits those who have savings but don’t have an income. The D7, for example, requires you to have a regular, passive income, such as income from a pension or a rental property. The Digital Nomad Visa requires you to have a regular active income, such as a salary from a remote job.

Of course, Portugal isn’t the only European country to offer a golden visa. However, the reason Portugal’s program has become so popular is that the physical stay requirements are minimal and it’s possible to apply for Portuguese citizenship after just 5 years of residency.

General Benefits

And there are other benefits, which are common across most Portuguese residency visas, such as:

  • You can apply for Portuguese citizenship after just 5 years of residency (or just permanent residency if you prefer).
  • Once you have Portuguese citizenship, you can easily live, work, and study anywhere else in the EU.
  • There are no language requirements at the application stage. However, if you want to apply for permanent residency or citizenship after five years, there is a language requirement, but this is only the A2-level of Portuguese.
  • You can access Portugal’s healthcare and education facilities.
  • You can travel visa-free within the Schengen Area.
  • Family members can be added to your application.

Who is eligible to apply?

The golden visa is generally open to most people who are non-EU/EEA/Swiss nationals, but there are a few other requirements to consider.

  • Investment Requirement: The applicant must make a qualifying investment in Portugal. For example, the applicant could invest €500,000 or more into a qualifying fund. The investment or donation cannot come from a loan.
  • Nationality Requirement: The application must be a non-EU/EEA/Swiss national (e.g. someone from the US or Argentina). Following Brexit, UK citizens are now eligible to apply for the golden visa.
  • Age requirements: The main applicant must be at least 18 years old.
  • Clean Criminal Record: The applicant must have a clean criminal record, and AIMA (previously known as SEF) must not have issued an alert for the applicant in the Schengen Information System (SIS).
  • Source of Funds: The applicant must demonstrate the legal source of investment funds.

What are the Investment Options?

As of 2023, Portuguese parliament has voted to remove the option to invest in property or transfer funds to a Portuguese bank account. This means that the following options now remain:

  • Invest €500,000 or more in qualifying funds, such as venture capital funds (these can’t be real-estate focused funds). 
  • Invest €500,000 or more into a company, which creates 5 jobs or maintains 10 jobs. 

There are also more donation-focused options:

  • Transfer €500,000 into public or private scientific research institutions. 
  • Transfer €250,000 into projects which  support artistic production, recovery or maintenance of the national cultural heritage. 

Investment Options Overview

Investing in funds

€500,000 minimum

One way to qualify for the golden visa is to invest in a fund, such as a private equity or venture capital fund. The minimum investment amount is €500,000. There are a number of different qualifying funds, such as in agriculture, startups, and healthcare.

Investing in funds comes with a certain amount of risk, however, it is also one of the most hands-off ways to obtain the golden visa. Simply invest the money and cash out, hopefully with a profit, once the fund allows and once you’ve qualified for permanent residency and Portuguese citizenship. This is normally at the 5 year mark, although some funds may require you to hold your investment for longer.

Create 10 Jobs

No minimum amount

Arguably one of the best ways to contribute to the Portuguese economy is through job creation. Portugal has a talented and well-educated workforce, many of whom not only speak Portuguese but also speak English to a high level. Spanish is also spoken well too.

Aside from the societal benefit that this route offers, another selling point might be that there is no minimum investment amount. However, even with Portugal’s low minimum wage of around €700 per month, and even excluding other costs like social security, paying 10 salaries isn’t going to work out particularly cheap – and that’s without considering the time needed.

Incorporate a Company + Create 5 Jobs

Typically €500,000

If creating 10 jobs sounds like too difficult a challenge, there is a simpler option which is to create 5 jobs and also transfer capital of at least €500,000 to a newly incorporated company or increase the share capital of an existing company. The company must have a registered office in Portugal.

Donation Options Overview

Donate to an Arts & Culture Institution

Typically €250,000

The cultural investment option isn’t particularly popular as it’s a donation rather than an investment. However, it’s worth mentioning that this is the cheapest way of obtaining the Portuguese golden visa.

If you’re a philanthropist who’s looking to do some good while also earning his European citizenship, this option (along with others like the investment in scientific research) is worth considering.

Donate to a research institution

Typically €500,000

If you’re feeling generous but would rather your money went to a research facility, such as a scientific research institution, rather than Portugal’s arts and culture sector, this golden visa route might be a better option for you. At €500,000, it’s double the cost, but you may feel that it’s an area you would rather invest in.

FAQs

What happens if my visa is rejected?

Under Portuguese administrative law, it’s crucial to know that if the authorities are considering an action that could lower your chances of getting approved, you always have the right to defend your case before any final decision is made [source].

Can I move to Portugal if I have a criminal record?

The crime would have to carry a prison sentence of more than one year in Portugal to affect your golden visa application. However, it is important that you craft a personal statement that not only notes that criminal record but also the applicable Portuguese law [source].

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