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Updated: March 30, 2023

Invest in Portugal for Citizenship

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?
  • How can Goldcrest help you through the process? 

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 sixth in the 2022 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 real estate investment in Portugal, you will need to know more about the low-density & interior-eligible areas for the Portugal Golden Visa 2022.

Invest in Portugal: Residential property located in Portugal's interior areas + the autonomous islands of Madeira & Azores

As mentioned above, the Portuguese Government has set some new Golden Visa changes and laws regarding real estate investment to decrease the focus on the main areas like Lisbon, Porto, and the Algarve. 

You should know that investing in residential property located in Portugal’s interior areas for the Golden Visa starts from €500,000. The amount is reduced to €400,000 if located in an interior part of Portugal AND a low-density area. Note, that the autonomous islands of Madeira and Azores are eligible for a real estate investment, although they are considered high-density, to no discount, is possible.

Advantages of investing in Portugal’s low-density areas

  1. More competitive pricing per sqr meter
  2. More variety
  3. Can be renovated to taste
  4. Fiscal incentives
  5. Can maintain its quaint and unique characteristics

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 €4 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. 

 

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. Despite this, even if you declare yourself to be a registered resident in Portugal, you can benefit from the Non-Habitual Resident scheme and enjoy tax-free privileges for up to ten years.

Our partners, Global Citizen Solutions, have created a complete guide to the Portugal NHR tax regime, where you can find more detailed information.

 

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

With all the mentioned above, let’s tell you more bulleted details about the best investments options that you can consider: 

  • Invest €500K or more in a commercial property of your choice in Portugal (investment amount reduced to €400K if located in a low-density area of Portugal).
  • Invest €500K or more in residential property located in Portugal’s designated interior areas (investment amount reduced to €400K if located in an interior AND low-density area of the country).
  • Invest €350K in commercial renovation projects anywhere in the country (investment amount reduced to €280K if located in a low-density area of Portugal).
  • Invest €350K in residential renovation projects in Portugal’s designated interior areas (investment reduced to €280K if located in an interior area AND low-density area of Portugal).
  • Contribute €500K in investment funds.

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.

Portugal real estate investment

With its prime location next to the Atlantic Ocean and its reasonable cost of living, Portugal has been attracting many expats for many years, who are not simply visiting the country but considering settling and investing in Portugal. 

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.

Buy property and get Portugal EU residency

Considering investing in Portugal is your easy way to get a Portuguese Residence Permit and ultimately qualify for Portuguese Citizenship, after five years, provided that you meet the additional requirements under Nationality Law. Obtaining the Portuguese passport won’t be just a second passport, but a strong passport that will allow you to work, live, study and travel freely around Europe. 

Your family will also be eligible for the same rights as you, and this can be a great start for the whole family to have a brilliant future for your children and various opportunities for better living conditions and academic education. Learn more about education in Portugal and the universities in Portugal for more information.

 

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

At Gold Crest, 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. 

If you’re considering the real estate investment route for the Golden Visa, we advise you with the following: 

Remember that the viable ways to gain residency in Portugal through the Golden Visa are many – one of the significant advantages of the program. Golden Visa options include capital transfer, investment into scientific research, company incorporation and the creation of ten jobs, and a donation to the arts. The investments costs for each can be found below:

 

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 three 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.

How can we help you?

At Goldcrest our team will be delighted to help you find the perfect property for your investment. We offer expert and impartial advice, working with you to find you the perfect home or substantial real estate investment in Portugal’s most desirable locations and at the best possible terms. 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. 

 

Frequently asked questions about investing in Portugal:

Is Portugal good for investment?

Portugal is the perfect European country for investment, where you will find a mix of amazing nature, affordable prices, an attractive tax system, and a great environment for your investment to grow. Choosing Portugal will ensure you a stable investment profit. In case you’re choosing a real estate investment, you should be confident enough to know that your property will be rented out easily and the real estate market looks set to continue growing. 

Does Portugal give citizenship by investment?

By going through the Portugal Golden Visa program and holding your investment for a minimum of five years in the country. Provided that you meet the investment requirements, you can get a Portuguese passport in five years.

How much does it cost to invest in Portugal for citizenship?

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. Here are the available investment options for the Portugal Golden Visa: 

  1. Invest €500K or more in a commercial property of your choice in Portugal. (Investment amount reduced to €400K if located in a low-density area of Portugal).
  2. Invest €500K or more in residential property located in Portugal’s designated interior areas. (Investment amount reduced to €400K if located in an interior AND low-density area of the country).
  3. Invest €350K in commercial renovation projects anywhere in the country (investment amount reduced to €280K if located in a low-density area of Portugal).
  4. Invest €350K in residential renovation projects in Portugal’s designated interior areas. (Investment reduced to €280K if located in an interior area AND low-density area of Portugal).
  5. Contribute €500K in investment funds.

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