Invest in Portugal Low Density Areas | An Oasis of Calm

Portugal matches today’s definition of luxury: authenticity, innovation, and creativity. This is especially true with regard to commercial properties and residential real estate investment opportunities in low-density areas of the country. Investors and the media never tire of “discovering” this part of Portugal that surprises visitors — the off-the-beaten part of the country that provides ample opportunities to invest in property. Indeed, there’s a broad range of opportunities on offer to invest in Portugal low density areas, with more and more investors scrambling to tap into this wealth of opportunity.

One of the reasons for this is because of Portugal’s Residence Permit Program or the Portugal Golden Visa. This is a five-year residency-by-investment scheme for non-EU nationals, which has become one of the most popular residency-by-investment schemes in the world since its inception in 2012. Indeed, foreign investments have contributed €4 billion to the Portuguese economy, and recent interest is focusing on the low-density areas of Portugal.

The Portugal Golden Visa Program provides several options for those looking to invest in Portugal. However, there are important location restrictions that apply and the price points vary depending on whether a property sits in one of the “low-density” areas of Portugal – one of the key reasons to invest in real estate in these areas.

Why invest in Portugal? And why in one of the country’s low-density areas? This guide walks you through the Golden Visa 2022 options, including which areas qualify, and what terms such as “interior areas” and “low-density areas” mean in practice.

Portugal Golden Visa Investment Options

The Portuguese Golden Visa Program for residence by investment is considered one of the best in the world. The program grants a temporary residence permit for non-EU citizens that intend to invest in Portugal. Changes from 1 January 2022 mean that certain location restrictions apply. For a complete overview of the changes, consult this Portugal Golden Visa Changes Guide from our residency and citizenship division, Global Citizen Solutions. 

Property investment options in line with the 2020 Golden Visa changes

To be eligible for the Portugal Golden Visa, the following real estate investment routes are available:

• Buy residential real estate in designated interior areas of Portugal that are worth at least €500,000 (or €350,000 if investing in a rehabilitation project). If the residential property is located in a designated “low-density” area, then a 20 percent discount will apply.
• Buy commercial real estate anywhere in the country that is worth at least €500,000 (or €350,000 if investing in a rehabilitation project). If the commercial property is located in a designated “low-density” area, then a 20 percent discount will apply.
• Buy residential and commercial real estate anywhere in the autonomous islands of Madeira and the Azores, worth at least €500,000 (or €350,000 if investing in a rehabilitation project). Note that the entire islands of Madeira and the Azores are classified as high-density, so there is no 20 percent option when investing in the islands.

Which areas are eligible to invest in Portugal with the Golden Visa?

The Portuguese government is looking to nurture investments in the following areas:

• Low-density areas
• Urban requalification
• Cultural heritage
• Activities of high environmental and social value
• Job production and productivity

The Portuguese authorities have altered the real estate investment routes to account for this, creating a classification system of what areas you can invest in Portugal. These areas are called “interior” and “low density”. It is important to note that these are very different terms.

Here, we will run over these different terms to provide you with a clear understanding of each.

Interior areas

Interior areas are areas where you can make a residential real estate investment to qualify for the Portugal Golden Visa.

For commercial real estate, there are no location restrictions in place (i.e. you can invest anywhere in the country as long as the property is classified as a “commercial” property).

This map highlights Portugal’s interior regions. Note that properties that belong to “interior” Portugal qualify for residential AND commercial real estate investment, although commercial properties can be purchased outside the “interior” parameters (highlighted in blue).

Low density areas

Low-density areas are defined as territorial units (NUTS III) that have less than 100 inhabitants per square km or a GDP per capita that is less than 75 percent of the national average. Low-density areas determine whether a 20 percent discount rate is applicable to your investment or not. While low-density areas often refer to districts that are mostly made up of single-family houses or buildings with a few units, high-density areas are usually urban settings with many-unit buildings.

It is very important to note that an area can be both interior and high-density. If this is the case, you can purchase residential real estate but no discount will apply.

Low-density areas are shown in light grey below (areas that fall outside the low-density zone are shown in dark grey).

As an example, there are low-density areas in the Algarve in which you will be unable to invest for the Portugal Golden Visa. Although it is classified as a low-density area, it is not considered a completely interior part of the country. Currently, there is a list of Portuguese urban regeneration areas considered as low-density AND interior areas, and this includes Aljezur, Odeceixe, and Sagres. In these areas, you will be able to buy a residential property or invest in a residential rehabilitation project.

Portuguese urban regeneration areas are great options for real estate investment as you are able to purchase buildings at relatively affordable prices, redo them, and rent them out. Investors can usually expect a relatively high return when choosing this route to invest in Portugal.

Invest in Portugal: Golden Visa Real Estate Options

This map provides an overview of the areas of Portugal that are eligible either for:

• High-density property investment in non-interior areas (commercial only).
• Low-density real estate investment in non-interior areas (commercial only).
• High-density property investment in interior areas (residential and commercial, but a discount does not apply).
• Low-density property investment in interior areas (residential and commercial, 20 percent discount applies).

Interior and low-density Residential Real Estate

You can buy a residential property that falls under both the categories of a “low-density” and “interior” area in Portugal. Some properties that will qualify for the Golden Visa will even be in areas that have a high-growth potential – such as the Douro Valley, Aljezur, and Peneda Gerês.

Each of these offers excellent, spacious properties that are very good value for money. You will be able to find properties with a private swimming pool and large areas of land for roughly €400K.

Real Estate Investment in Portugal’s Low-Density Areas: 280K Investment Option

For newly arrived non-EU/EFTA third party nationals, Portuguese citizenship serves as a springboard to access the EU and all the advantages that prestigious status bestows, not least the ability to sponsor your family members to move with you and, consequently, the freedom to live and work anywhere in the EU’s 27 member states.

For a basic investment of at least €280.000, investors can purchase a property in a low-density area in Portugal and obtain all the benefits of EU residency through the Golden Visa.

To be eligible for the €280.000 investment option and obtain the 20 percent discount, the applicant must:

• Invest in a commercial rehabilitation project that is located in a low-density area.
• Invest in a residential rehabilitation project located in a low-density area AND that is also classified as “interior”.

How does the Golden Visa €280,000 investment option work

The €280k Portugal Golden Visa investment system is a pretty open path to Portuguese residency and subsequent citizenship. Because this route is categorized as a “restoration and refurbishment” residency by property investment option, the requirements of the €280k Portugal Golden Visa are quite similar to the €350,000 Golden Visa. These are the rules that apply for the €280k low-density investment option.

Your property must be situated in one of Portugal’s low-density areas that have been designated as such. They are places with a population density of fewer than 100 inhabitants per square kilometer and a per capita GDP below the 75 percent national average.

• The total cost of the renovations and the property’s worth must equal at least €280,000.
• The building must be older than 30 years old or in need of refurbishment.
• You’ll need to show proof that you’ve asked the appropriate authorities for permission to do the required renovations or proof that you have planning permission and a contract in place for making the renovations.
• In addition, you must open a Portuguese bank account in your name and deposit the difference between the property’s purchase price and the required minimum renovation investment.

If you had previously thought about the €350k option, you would notice that the requirements for this more cost-effective €280k alternative are extremely similar. The main distinction is that the €280k option must be situated in a low-density area and that it is considerably more cost-effective. This is because it essentially represents a route designed to provide a 20 percent discount on the €350k option in an effort to promote inbound investment in particular locations that could profit from development.

Advantages of Investing in Low-Density Areas

The €280.000 option is very attractive due to:

• A  low investment threshold, with the opportunity to earn high rental returns.
• Very affordable in comparison with other Portuguese Golden Visa options.
• In low-density areas, investors are likely to find much bigger and better properties with two to three units to rent.
• Profitability is around €12.000 per year, which makes the case for owning several units quite attractive.
• As the capital needed to invest is low, investors have more freedom for other business investments.
• Away from the crowds, these low-density areas of Portugal are great for new beginnings and offer a high quality of life.
• Cities in the interior of Portugal are becoming popular with students and, as the young population grows in these cities, the need and opportunity to serve them intensifies
• European and local investors buy in these areas.
• Yearly growth of five percent
• Promising areas to develop eco-tourism, wellness, innovation, and luxury projects.

Invest in Portugal: Full list of low-density areas

The full list of 165 counties and 72 parishes that are categorized as low-density are outlined below.

Low-density counties in Portugal:
1. Abrantes
2. Aguiar da Beira
3. Alandroal
4. Alcácer do Sol
5. Alcoutim
6. Alfândega da Fé
7. Alijó
8. Aljezur

9. Aljustrel
10. Almeida
11. Almodôvar
12. Alter de Chão
13. Alvaiázere
14. Alvito
15. Ansião
16. Arcos de Valdevez
17. Arganil
18. Armamar
19. Arouca
20. Arraiolos
21. Arronches

22. Avis
23. Baião
24. Barrancos
25. Bej
26. Belmonte
27. Borba
28. Boticas
29. Bragança
30. Cabeceiras de Basto
31. Campo Major
32. Carrazeda de Ansiães
33. Carregal do Sal
34. Castanheira de Pêra
35. Castelo Branco
36. Castela de Vide
37. Castro Daire
38. Castro Marim
39. Castro Verde
40. Celorico da Beira
41. Celorico de Basto
42. Chamusca
43. Chaves
44. Cinfães
45. Constância
46. Coruche
47. Covil
48. Crato
49. Cuba
50. Elvas

51. Estremoz
52. Évora
53. Fafe
54. Ferreira do Alentejo
55. Ferreira do Zêzere
56. Figueira de Castelo Rodrigo
57. Figueiró dos Vinhos
58. Fornos de Algodres
59. Freixo de Espada à Cinta
60. Fronteira
61. Fundão
62. Gavião
63. Góis
64. Gouveia
65. Grândola
66. Guarda
67. Idanha-a-Nova
68. Lamego
69. Lousã
70. Marção
71. Macedo de Cavaleiros
72. Mangualde
73. Manteigas
74. Marvão
75. Meda
76. Melgaço
77. Mértola
78. Mesão Frio
79. Miranda do Corvo
80. Miranda do Douro
81. Mirandela
82. Mogadouro
83. Moimenta da Beira
84. Monção
85. Monchique
86. Mondim de Basto
87. Monforte
8. Montalegre
89. Montemor-o-Novo
90. Mra
91. Mortágua
92. Moura

93. Mourão
94. Murça
95. Nelas
96. Nisa
97. Odemira
98. Oleiros
99. Oliveira de Frades
100. Oliveira o Hospital
101. Ourique
102. Pampilhosa da Serra
103. Paredes de Coura
104. Pedrógão Grande
105. Penacova
106. Penalva do Castelo
107. Penamacor
108. Penedono
109. Penela
110. Pedo da Régua
111. Pinhel
112. Ponte da Barca
113. Ponte de Sor
114. Portalegre
115. Portel
116. Póvoa de Lanhoso
117. Proença-a-Nova
118. Redondo
119. Reguengos de Monsaraz
120. Resende
121. Ribeira de Pena
122. Sabrosa
123. Sabugal
124. Santa Comba Dão
125. Santa Marta de Penaguião
126. Santiago de Cacem
127. São João da Pesqueira
128. São Pedro do Sul
129. Sardoal
130. Sátão
131. Seia
132. Sernancelha
133. Serpa
134. Sertã

135. Server do Vouga
136. Soure
137. Sousel
138. Tábua
139. Tabuaço
140. Tarouca
141. Terras de Bouro
142. Tondela
143. Torre de Moncorvo
144. Trancoso
145. Valpaços
146. Vendas Novas
147. Viana do Alentejo
148. Vidigueira
149. Vieira do Minho
150. Vila do Rei
151. Vila do Bispo
152. Vila Flor
153. Vila Nova da Barquinha
154. Vila Nova de Cerveira
155. Vila Nova de Foz Côa
156. Vila Nova de Paiva
157. Vila Nova de Poiares
158. Vila Pouca de Aguiar
159. Vila Real
160. Vila Velha de Ródão
161. Vila Verde
162. Vila Viçosa
163. Vimioso
164. Vinhais
165. Vouzela

Low-density parishes in Portugal:

Águeda
União das freguesias de Belazaima do Chão, Castanheiro do Vouga e Agadão
União das freguesias do Préstimo e Macieira de Alcoba
Amarante
Ansiães
Candemil
Gouveia (São Simão)

Jazente
Rebordelo
Salvador do Monte
União das freguesias de Aboadela, Sanche e Vázea
União das freguesias de Bustelo, Carneiro e Carvalho de Rei
União das freguesias de Olo e Carnadelo
Vila Chã de Marão
Amares
Bouro (Santa Marta)
Goães
União das freguesias de Caldelas, Sequeiros e Paranhos
União das freguesias de Vilela, Seramil e Paredes Secas
Caminha
Dem
União das freguesias de Arga (Baixo, Cima, e São João)
União das freguesias de Gondar e Orbacém
Castelo de Paiva
Real
Condeixa-a-Nova
Furadouro
Guimarães
União das freguesias de Arosa e Casteiões
Loulé
Alte
Ameixial
Salir
União das freguesias de Querença, Tôr e Benafim
Marco de Canaveses
Várzea, Aliviada e Folhada
Ourém
Espite
União das freguesias de Freixianda, Ribeira do Fárrio e Formigais
União das freguesias de Matas e Cercal
União das freguesias de Rio de Couros e Casal dos Bernados
Pompal
Abiul
Ponte de Lima
Anais
Ardegão, Freixo e Mato
Associacão de freguesias do Vale do Neiva
Bárrio e Cepões
Beiral do Lima
Boalhosa
Cabaços e Fojo Lobal
Cabração e Moreira do Lima
Calheiros
Estorãos
Friastelas
Gemieira
Gondufe
Labruja
Labrujó, Rendufe, e Vilar do Monte
Navió e Vitorino dos Piães
Poiares
Serdedelo
Porto de Mós
São Bento
Santarém
União das freguesias de Casével e Vaqueiros
Silves
São Marcos da Serra
Tavira
Cachopo
Santa Catarina da Fonte do Bispo
Tomar
Olalhas
Sabacheira
União das freguesias de Além da Ribeira e Pedreira
União das freguesias de Casais e Alviobeira
União das freguesias de Serra e Junceira
Vale de Cambra
Arões
Junqueira
Valença
Boivão
Fontoura
União das freguesias de Gondomil e Safins
União das freguesias de São Julião e Silva
Viana do Castelo
Montaria
Viseu
Calde
Cavernães
Cota
Ribafeita
São Pedro de France
União das freguesias de Barreiros e Cepões

Benefits of the Portugal Golden Visa

Once the temporary permit is granted, investors may:

• Freely travel within the Schengen Area.
• Apply for family reunification.
• Live and work in Portugal.
• Obtain permanent residence (after five years, subject to terms and conditions).
• Obtain Portuguese citizenship (after five years minimum, subject to terms and conditions).

Get in Touch

If you have found your dream property in Portugal, seek help from a specialized property investment firm such as Goldcrest. Whether you are simply looking to buy Portugal land or a luxury home with waterfront views, we are here to help. Experienced professionals guarantee purchase advantages, and work through the requirements, hidden costs, and fine print smoothly and efficiently.

Contact the Goldcrest team to access exclusive information on the property market in Portugal and find out how much you can save on your international investment.