Invest in Portugal and Get Citizenship – The Ultimate Guide

If you’re planning to invest in Portugal, this ultimate guide will give you the necessary information concerning: 

• How to get Portuguese residency by investment?
• What are the benefits of investing in Portugal?
• What are the best investment options in Portugal?

 

Why invest in Portugal for citizenship?

With its lovely weather, very low crime rate, affordable living costs, and attractive tax system, Portugal is in a good shape to attract expats and investors — which the country has certainly proved over the years. Expats have been working and settling in Portugal for many years, with a key pull factor being that Portugal ranked seventh in the 2024 Global Peace Index.  

Portugal has also caught the eye of investors, who are considering the country due to its strong investment potential, particularly in investment funds and real estate investments. Among the many European countries with a different residency by investment or citizenship by investment programs, Portugal offers one of the most attractive ones, the Portugal Golden Visa. 

The Portugal Golden Visa is one of the most popular residency-by-investment programs in the world. The program has proved to be very popular due to the fact that after five years of holding your investment, there is the possibility to apply for citizenship and gain access to the European Union. Alongside this, all the family members are eligible.

 

Foreign investment in Portugal: Advantages

The advantages of the Portugal Golden Visa are many, which is why the program has gained a good reputation in a short time. By investing in Portugal, you will benefit from the following:

1- Portuguese legislation that protects investors:

Portugal has a liberal foreign investment scheme and offers a favorable legal framework for foreign investors. 

2- Ripe business opportunities:

Portugal has become a gigantic business hub for startups and tech companies, which is attracting entrepreneurs and investors from all over the world.

3- Skilled and cheap labor force:

If you’re considering starting a business venture in Portugal, then the cheap and skilled labor force will ensure you get optimal returns on your investment.

4- Tax advantages:

Portugal offers great tax incentives for investors, alleviating some of the burdens that come with doing business in a foreign country.

Portugal’s real estate market outlook

The real estate market in Portugal is growing exponentially, which is a great benefit for investors looking to secure a good profit from their real estate investment. With foreign property ownership requirements and mortgage rates being so reasonable in Portugal, investors buying into the property market are benefitting from significant capital gains.

Given the increased interest in the Portuguese rental market, and expats relocating to Portugal, rental prices in the Portuguese have increased. This unprecedented growth in the tourism industry has led to a higher demand for rental properties and a surge in rental prices. Investing in short-term rental operation in Portugal has become a viable business model, attracting more and more investors.

If you’re considering making a Portugal real estate investment, this is a smart move. However, bear in mind that investing in real estate is no longer an eligible investment route to apply for the Portuguese Golden Visa, following the changes that came into play following the More Housing Bill in October 2023. 

Portuguese residency by investment

Since its inception in 2012, over 20,000 Golden Visas have been awarded to families from across the world, and over €7 billion in funds have been raised, making it one of the most popular passports by investment programs in the world.

The Golden Visa program gives investors and their families the right to work, live, and study in Portugal and permits free movement in Europe’s Schengen Area.  By keeping your investment project for at least five years in Portugal, you will be eligible for permanent residency, and you can then apply for Portuguese citizenship. 

Our partners at Global Citizen Solutions have a great Portugal Golden Visa complete step-by-step guide by local experts that provides essential details about this attractive program. 

It’s important to note that it is no longer possible to invest in real estate and be eligible for the Golden Visa.

 

Portuguese residency by investment benefits

Considering Portugal for your investment project is an excellent option. Here are the main benefits you get from the Portuguese residency by investment:

1- Access to 27 nations in the EU & visa-free travel to 198 countries.

2- Five years until you qualify for a European passport.

3- Option to become a non-habitual resident and pay little to no tax for ten years.

4- Short stay requirement ― no need to permanently reside in Portugal throughout your investment cycle.

5- Your dependent children and dependent parents qualify for the same benefits.

6- A second residence in a safe, stable country.

 

Golden Visa tax benefits

The Golden Visa scheme offers strong tax incentives for investors looking to get residency in Portugal. Investors only get taxed on their worldwide income if they are residing in the country for over 183 days in any given year.

 

Apply for Portuguese citizenship: How Portugal visa investment works?

The Portugal Golden Visa is a residency by investment program and an indirect pathway to Portuguese citizenship. After holding your investment in Portugal for five years to be eligible for permanent residence and subsequent citizenship, provided you meet all the additional requirements under Portuguese nationality law.

 

Portugal’s Golden Visa investment requirements

The main factor that makes you eligible for the Portugal Golden Visa is the investment you make, and you must fulfill some investment program requirements that include: 

• Maintaining the investment for a minimum period of five years
• Spending a minimum of seven days in Portugal during the first year, then no less than 14 days in each subsequent two-year period.

 

Best foreign investment in Portugal

The current Golden Visa investment options can be found below: 

• Fund subscription: Make a contribution to a qualified investment fund worth at least €500,000
• Artistic production or reconstruction of national heritage: Make an investment of at least €250,000
• Scientific research activities: Science or Technology research contribution of at least €500,000
• Creation of jobs: Creation and maintenance of ten jobs during the required period
• Share capital and job creation: Incorporation of a company or reinforcement of a company’s share capital, in either case with an investment of €500,000, combined with the creation of five or maintaining ten jobs (five of them permanent)

Portugal Golden Visa qualified investment fund

Choosing the investment fund option is a viable way to obtain the Portuguese Golden Visa. If you’re wondering how this works, you should know that the respective funds are managed by corporate experts who are accredited by the country’s regulatory body. An allocated funds manager ensures that the fund investments are managed properly in start-ups or medium-sized projects with strong growth potential. 

For the Portugal Golden Visa qualified investment fund, you can choose from a range of sectors ― including but not limited to ― energy, industry, technology, and real estate. 

 

Investment funds for the golden visa: Benefits

There are various benefits to choosing to invest in funds to obtain Portuguese residency. These include:

• Funds are managed by vetted experts that are regularly audited.
• Portuguese residency starts with a €500K investment.
• Venture capital funds are tax-efficient.
• Investment can be done remotely.
• Some funds offer a minimum return hurdle rate.

The booming real estate market in Portugal is growing so fast, to the point that the Portuguese government tried to regulate the situation by adding some laws and changes to the areas that qualify for real estate investment. 

Expats buy properties in Portugal for many reasons including tourism purposes, second homes, and retirement plans. And Portugal meets all the requirements for any plan you may consider. Compared to other European countries on the investment list, Portugal wins with its safe atmosphere, charming views, and stable social, political, and economic environment, and that’s exactly what any investor is looking for. 

When you decide to invest in Portugal’s real estate market, you may consider investing in a newly built property to make sure your property will be rented out easily with great profit. Check out how to invest in luxury real estate in Portugal that meets your requirements.

Advantages of investing in newly-built property

Here are some of the main advantages you get from investing in a newly-built property in Portugal: 

1. Five-year guarantee by Portuguese developers
2. Energy-efficient
3. Fiscal incentives
4. Easier to sell and rent
5. Modern features
6. Good insulation and equipped with air-con
7. Potential upside in the value of up to 30% from purchase to delivery

Check out our article: Buy-to-Let: An Overview.

Goldcrest advice: What is the best place to invest in Portugal?

At Golcrest, you are our concern, and that’s why we care about providing you with the best available options to ensure that you make the perfect investment that suits your needs. 

 

Procedures and time frame of the Portugal Golden Visa Residence Permit Program

You should be aware that the Portuguese Golden Visa application processing time usually takes between three to six months to be approved and for your residence card to be issued. Once you get approval and receive your card as a resident, this residence permit will be valid for two years.

After two years, as long as you keep your investment in the country, you can renew the Residence Permit for two more years. The third time to renew the Residence Permit will be the last time because you will then be able to secure permanent residence. After a total of five years of process, you will be eligible for applying for a Portuguese passport. 

The Golden Visa requires the primary applicant to travel to Portugal two times during the Golden Visa application procedure:

1. To choose the qualifying investment option, begin the legal process, and open a Portuguese bank account. A Portuguese bank account is recommended to avoid international transaction fees.
2. To provide biometric data and original documents. The other family members will also be required to provide biometric data.

There will also be processing fees that you will need to pay. When the residence permit is received, the client must provide the biometric data and updated original documents when it needs to be renewed.

Our team works diligently to ensure the correct steps have been carried out, safeguarding you from poor property investments. For the past decade, we’ve been building our inside knowledge of the local property market, as well as fostering extensive connections across the country, enabling access to an exclusive list of properties and investment routes.

Get in touch now, and let’s handle the process and help you find what you’re dreaming of.