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.
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
- More competitive pricing per sqr meter
- More variety
- Can be renovated to taste
- Fiscal incentives
- 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.