Does Portugal Offer Citizenship By Investment?

No, Portugal does not offer direct citizenship by investment. However, Portugal does offer something potentially more valuable: a legal, EU-approved pathway to citizenship through its residency-by-investment program, commonly known as the Golden Visa.

Unlike Caribbean citizenship-by-investment schemes or programs that the EU has challenged (Malta’s program was ruled illegal by the EU Court of Justice in 2024), Portugal’s Golden Visa provides a legitimate route to EU citizenship.

Here’s what this means in plain English: You invest in Portugal, obtain residency, maintain minimal physical presence requirements, and after meeting the required timeline (10 years for most applicants), you can apply for Portuguese citizenship—giving you full EU citizenship with the right to live, work, and move freely across all 27 EU member states.

Residency vs. Citizenship by Investment

• Residency by Investment (Golden Visa or ARI) means you make a qualifying investment in Portugal and receive a residence permit. This permit must be renewed periodically, but it puts you on a path to citizenship.
• Citizenship by Investment would mean you pay money and immediately receive a passport—no waiting period, no residency requirements. Portugal does not offer this, and increasingly, the EU is against such programs.

Why Portugal’s approach is better:

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• It’s compliant with EU law
• Portuguese citizenship is among the most powerful in the world
• You’re investing in a stable, developed EU economy—not a micronation with uncertain diplomatic standing

Timeline & Citizenship Eligibility

How Long Until Citizenship?

Current Rule (as of 2025): Most Golden Visa holders must wait 10 years from the date their permit is issued before they can apply for citizenship.

Important nuances:

• Citizens of Portuguese-speaking countries (CPLP) can apply after 7 years instead of 10
• The clock starts from the issue date of your residence permit, not when you submitted your application
• The processing time for citizenship is currently 2-3 years. Effectively this means the entire process is likely to take between 12 and 15 years

Recent Changes: The timeline was previously 5 years for all applicants but was extended to 10 years under new nationality law reforms expected to take effect in 2025. This change aims to ensure longer-term commitment and integration.

Physical Presence Requirements

To keep your Golden Visa valid (and count time toward citizenship):

• First two-year permit: Minimum 14 days per two-year period (average of seven days per year)
• Subsequent renewal periods (every two years): Minimum 14 days per two-year period

These are among the lowest physical presence requirements of any residency-by-investment program globally.

Important for citizenship: While these minimal stays keep your visa valid, when you apply for citizenship, you’ll need to demonstrate “effective connection” to Portugal—language proficiency, knowledge of Portuguese society, and proof of ties to the community (more on this below).

Investment Options (Post-2023 Rules)

In October 2023, Portugal eliminated real estate purchases as a qualifying Golden Visa investment in response to housing affordability concerns. Here are the current pathways:

1. Investment Funds (€500,000)

Invest at least €500,000 in qualifying Portuguese investment or venture capital funds. These funds must have at least 60% of their investments in Portuguese companies.

Pros: Professional management, diversification, liquidity (compared to real estate)
Cons: Market risk, fund performance variability, less tangible than property
Best for: Investors comfortable with managed portfolios and medium-term lockup periods

2. Research & Development (€500,000)

Capital transfer of €500,000 or more for research activities conducted by Portuguese public or private scientific institutions.

Pros: Supports innovation, potential for collaboration with institutions
Cons: Highly specialized, less liquid
Best for: Tech entrepreneurs, academics, or investors with sector-specific interests

3. Cultural & Arts Donations (€250,000)

Support for artistic production, reconstruction/renovation of national heritage, or contributions to public art collections.

Pros: Lower entry point, culturally meaningful
Cons: No financial return, highly illiquid
Best for: Philanthropically minded investors with genuine interest in Portuguese culture

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4. Job Creation (10+ jobs)

Create a minimum of 10 permanent jobs for Portuguese residents.

Pros: No capital outlay beyond business operations
Cons: Ongoing compliance burden, business performance risk
Best for: Entrepreneurs planning to establish or expand operations in Portugal

5. Alternative Assets (€500,000+)

Capital transfer of €500,000+ combined with creation of at least 5 permanent jobs (hybrid approach).

Note: The real estate pathway, while eliminated for the Golden Visa, can still support other visa types like the D7 (passive income) or D2 (entrepreneur) visas.

Family, Taxes & Lifestyle

Family Inclusion

The Golden Visa allows you to include:

• Spouse or registered partner (de facto partner with proof of stable relationship)
• Dependent children (minors and adult children if enrolled in education)
• Dependent parents (yours or your spouse’s) if you financially support them

All family members receive residence permits and follow the same path to citizenship.

Tax Implications

Common misconception: “Portugal doesn’t tax worldwide income.” Reality: Portugal taxes residents on worldwide income.

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However:

• Tax residency ≠ Golden Visa residency: If you spend fewer than 183 days per year in Portugal, you’re typically not a tax resident
• Current situation: Most Golden Visa holders are non-tax-residents and only pay tax on Portugal-sourced income (e.g., Portuguese rental income, capital gains on Portuguese assets)

Critical: Tax rules are complex and depend on your specific circumstances, other countries’ tax treaties, and your individual arrangements. Always consult a qualified tax advisor in both Portugal and your home country before making investment decisions.

Living Elsewhere Most of the Year

Golden Visa holders can live abroad most of the year—that’s the point of the program. However:

• Maintain minimum stay requirements (14 days per two-year period)
• Track your time carefully for immigration purposes
• Remember that minimal presence may complicate citizenship application later
• Consider gradually increasing time in Portugal as you approach citizenship eligibility

Alternative Route: D2 Entrepreneur/Business Visa

If you’re planning to actively run a business in Portugal rather than make a passive investment, the D2 visa may be a better fit—and potentially cheaper.

What Is the D2 Visa?

The D2 is a residency permit for entrepreneurs, business owners, and professionals who establish or acquire an operating business in Portugal. There’s no fixed minimum investment; instead, you must prove:

• A viable business plan with market need
• Sufficient capital to fund operations (typically €5,000–€50,000+, depending on business type)
• Commitment to manage the business from Portugal
• Potential to create jobs or contribute to the Portuguese economy

Who Is It For?

• Startup founders launching a tech company, consulting firm, or service business
• Business buyers acquiring an existing Portuguese enterprise
• Professionals setting up a solo practice (e.g., lawyer, architect, consultant, developer)
• Small to mid-sized investors who prefer hands-on involvement over passive funds

D2 vs. Golden Visa: Key Differences

When to Choose D2

• You want to live in Portugal and integrate into the local community
• You have entrepreneurial skills and a business idea suited to the Portuguese market
• You’re comfortable with business risk and active management
• The Golden Visa’s capital requirements are a barrier, but you’re willing to invest effort
• You plan to hire locally or provide services to Portuguese clients

When to Choose Golden Visa

• You want flexibility to live elsewhere while maintaining EU residency
• You prefer passive investment with professional management
• You can meet the €250,000–€500,000 threshold
• You’re seeking a low-maintenance pathway

In recent years, the Golden Visa has suffered from considerable processing delays. While this did not affect those who only wanted to spend minimal time in Portugal, it did complicate things for those who made investments or donations with a view to moving to Portugal. In that instance, the D2 (or another visa) would have made more sense. Going forward, it is unclear how fast AIMA will handle Golden Visa applications.

Language & Integration Requirements

When you apply for citizenship (after 10 years), you must demonstrate integration into Portuguese society. The two primary components are:

1. Portuguese Language Proficiency

You need to prove A2-level Portuguese (basic user level on the Common European Framework of Reference).

Two pathways:

• Option A: Pass the CIPLE (Certificado Inicial de Português Língua Estrangeira) exam administered by the Camões Institute
  • Cost: Approximately €70–90
  • Content: Reading, writing, listening, speaking tasks
  • Availability: Test centers worldwide
• Option B: Complete 150 hours of Portuguese language instruction at an accredited institution
  • Often more practical for busy professionals
  • School certificates are accepted in lieu of the exam
  • Many schools offer flexible, online, or weekend courses

A2 level means: You can introduce yourself, order food, handle basic transactions, describe your background, and discuss familiar topics in simple terms. It’s achievable with consistent study over several months.

2. Effective Connection to Portugal

Beyond language, you must demonstrate ties to Portuguese society. This is where simply holding a Golden Visa may not be enough.

Immigration authorities look for evidence such as:

• Club or association memberships (sports clubs, cultural organizations, professional bodies)
• Property ownership or long-term lease agreements
• Bank accounts and financial presence
• Utility bills showing actual residence time
• Social integration activities: volunteering, community involvement, children enrolled in Portuguese schools
• Professional or business connections: partnerships, employment, entrepreneurial activities

Reality check: If you’ve only spent 7–14 days per year in Portugal over 10 years, you may struggle to prove meaningful ties. Many legal advisors now recommend:

• Spending at least a few weeks per year in Portugal, especially in the years before citizenship application
• Actively building social connections—join a gym, a book club, a football supporter group
• Keeping detailed records of your time in Portugal and community involvement

Conclusion

Portugal doesn’t offer citizenship by investment, but it offers something better for most serious applicants: a legitimate, EU-compliant pathway to one of the world’s most desirable citizenships.