Updated: November 4, 2024
Portugal’s Golden Visa is a residency by investment program that offers a fast track to citizenship for foreign investors through significant financial contributions to the country.
The program comes with tax benefits, particularly for those seeking a favorable environment for crypto investment or capital gains, and allows holders to travel freely across the Schengen Area.
In this article, we’ll look at the various residency by investment options, what is required for a successful application, and the benefits you derive from being a Golden Visa holder.
Portugal Citizenship by Investment Program: An Overview
The scheme has become highly attractive to global entrepreneurs and high-net-worth individuals seeking residency and strategic advantages such as tax efficiency and enhanced global mobility.
One of the program’s major appeals is its flexibility. Investors must maintain the investment for five years and only spend an average of seven days per year in Portugal.
After five years, they can apply for permanent residency and citizenship, provided the applicant meets language proficiency requirements and has maintained a clean criminal record.
However, Portugal is by no means the only citizenship-by-investment country. Around 12 countries offer formal residency by investment (RBI) programs, which offer residency through a significant financial investment in the host country, often in real estate, government bonds, or national development funds.
Benefits of Citizenship by Investment
Although the Portugal Golden Visa is a residency by investment program and not a citizenship by investment program, there is the possibility to secure citizenship after five years. Below, we outline the advantages of the Portugal Golden Visa program.
Citizenship: After five years of maintaining a qualifying investment and meeting residency requirements, you can apply for Portuguese citizenship. This grants you full European Union (EU) citizenship rights, including the ability to live, work, and study anywhere in the EU.
Minimal stay: Portugal’s Golden Visa has minimal residency requirements unlike many residency programs. You must only spend seven days per year in Portugal to maintain your residency status. This makes it ideal for investors who wish to keep their primary residence elsewhere.
Visa-free travel: As a Golden Visa holder, you gain the right to travel visa-free across the Schengen Zone, which includes 26 European countries. This is highly beneficial for frequent travelers and business professionals.
Family members: The Golden Visa extends to immediate family members, including spouses, dependent children, and in some cases, dependent parents. This allows your family to enjoy the same residency benefits, including access to Portugal’s education and healthcare systems.
Tax benefits: Portugal offers favorable tax incentives for residents under the Non-Habitual Resident (NHR) Tax Regime. For example, many foreign-sourced incomes are tax-exempt for up to ten years, which is particularly attractive to retirees, entrepreneurs, and investors.
Is NHR ending?
The State Budget Law for 2024 determined the end of the NHR regime from 1 January 2024. However, certain individuals can still apply up until 31 March 2025, and the scheme is being replaced by the Tax Incentive for Scientific Research and Innovation, which has now been implemented.
Portugal's Citizenship by Investment Eligibility
The Portugal Golden Visa is intended for non-EU citizens who wish to obtain temporary residency in Portugal through substantial investments in the country. To qualify for the Portuguese investment visa program, individuals must:
- Be non-EU, non-Swiss, or non-EEA nationals
- Be able to demonstrate the source of their investment funds (with a minimum investment of €250,000)
- Have a clean criminal record, proving no conviction for a crime punishable in Portugal for one year or more
- Meet the minimum stay requirement of spending at least 14 days in Portugal for each two-year period
Prospective applicants will also have to open a Portuguese bank account and a Portuguese tax identification number (NIF). In some instances, applicants will be required to provide proof of medical or travel insurance.
Residency by Investment Options in Portugal
Portugal’s Residency by Investment program provides several options for investors to gain residency and, eventually, Portuguese citizenship. These investments range from €250,000 to €500,000 across different sectors. However, the real estate investment and capital transfer options were removed in 2023 and are no longer available.
Golden Visa investment funds
Investing in private equity funds or the Portuguese Golden Visa venture capital fund is a good option for acquiring Portuguese residency. The qualifying funds are managed by fund managers accredited by the Portuguese Securities Market Commission (CMVM), which is Portugal’s regulatory body. Your dedicated fund manager ensures that the Portuguese Golden Visa fund investments are appropriately managed within the eligibility scope of the Golden Visa.
For the Portugal Golden Visa fund investment route, you can choose from the energy, industry, and technology sectors. It’s important to note that the Golden Visa investment funds cannot directly or indirectly pursue real estate activities.
Scientific research
Golden Visa investors can also transfer €500,000 or more to boost innovation and support the growth of cutting-edge research in Portugal. The investment must be directed toward entities that are involved in areas like medical research, renewable energy development, or technological innovation.
Some examples of scientific research investments include:
- Funding for university-based research programs or independent research institutions
- Investment in R&D centers focused on technological, environmental, or health innovations
- Supporting startups or companies that specialize in biotechnology, renewable energy, or other scientific fields
Golden Visa arts and culture
To qualify for the Golden Visa program through arts and culture, you will need to donate or invest at least €250,000 in approved projects related to Portuguese arts, national heritage, or culture.
Your investment must be pre-approved by the Portuguese government through GEPAC. Some examples of what this could entail are:
- Renovation or preservation of historic sites and buildings
- Funding for public art projects, museums, or other cultural institutions
- Support for arts education or programs promoting cultural development
Company set-up option
Foreign entrepreneurs and investors can establish or invest in an existing Portuguese business, which may involve creating new jobs. There are two investment options in this category:
- Incorporate a company in Portugal, with a share capital of €500,000 plus creating five permanent jobs
- Increase the share capital of an existing Portuguese company by €500,000 and fulfill the job requirements as stipulated by the Portuguese Government
Creation of ten jobs
Under the program of starting a company or business, investors must create at least ten full-time jobs. In low-density population areas, this number is reduced to eight. All these positions must align with Portugal’s labor and social security standards.
Portugal Citizenship by Investment Requirements
To officially qualify for the program, you must meet a few more requirements in addition to making the necessary investment of your choice and having a clean criminal record.
Getting a Portuguese tax identification number
The NIF (Número de Identificação Fiscal) is your tax identification number in Portugal. It is a unique identifier assigned by the Portuguese tax authorities and is essential for several transactions in Portugal, such as opening a bank account, buying property, signing a contract, and paying taxes.
You can apply for an NIF by attending an appointment at the local tax office (Finanças), Citizen Shop, or at a counter that provides the Citizen Card. When you appoint a legal representative, such as a lawyer or an accountant, they will also apply for it on your behalf.
Opening a Portuguese bank account
You’ll also need to open a Portuguese bank account to apply for theresidency by investment, and should be done after getting a NIF. It is relatively easy to simply walk into a bank branch and open an account, while some banks allow you to do that online.
Cost of Portugal's Citizenship by Investment
In addition to the investment cost, there are several other fees and expenses. For example, the application fee for a single applicant is €605, the residency permit issuance is €6,045, and the renewal is €3,023, which the applicant will need to do twice. Over the five years, that’s almost €13,000.
For a couple, the fees are double as the application cost is €1,200, the residency permit is €12,090 and the renewal is €6,046.
Application legal fees
- Golden Visa legal application fees: Range from €5,000 to €8,000 for single applicants. Dependents younger than 18 years old can be included in the application free of charge.
- Additional application fees: For dependents aged 18 years and older, this will cost between €500 to €2,000. Note that children are free of charge.
- Renewal legal costs: For a single applicant: €1,000 to €2,500.
Portugal Residency by Investment Application Process
Applications for residency by investment in Portugal can be a lengthy process. However, it is advised to consult with a Portugal Golden Visa consultant to assist you with the paperwork and ensure your application gets accepted.
Generally, the application process is as follows:
- Onboarding: Initial discussions with the onboarding and legal teams and collect the necessary documents to ensure the correct paperwork.
- Bank account and NIF: Our residency and citizenship division, Global Citizen Solutions, will appoint a fiscal representative for you to obtain the tax identification number (NIF) in Portugal. After obtaining your NIF, we can help you open a bank account in Portugal. We can do this remotely, and Global Citizen Solutions will help you.
- Make the investment: We can begin securing your investment and will guide you through the necessary paperwork.
- Online application: Lodge your application online.
- Pre-approval: Your application will be pre-approved on the basis that you fulfill the necessary requirements.
- Biometrics visit: From the time you book your interview, it takes around two months until you can attend a biometrics collection session in person.
- Golden Visa issuance: After your biometrics, your Golden Visa has to be approved by the Agency for Integration, Migration and Asylum (AIMA) and you’ll have to pay the government permit issue fee. We’ll then collect the residence cards on your behalf and send them to you.
How long does it take?
Once you have all the correct documents, made the investment, AIMA approves your application, and the agency captures your biometrics, you’ll need to wait between 9 and 12 months before your residence permit is issued.
Once granted, the initial permit is valid for two years and can be renewed thereafter for another two years. At the end of the fourth year, it can again be renewed for another two years but you can apply for permanent residency and citizenship after five years.
Goldcrest: How We Can Help You
Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.
If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.
Why choose Goldcrest?
- Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
- Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
- Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
- Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
- Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.
Frequently Asked Questions About Portuguese Citizenship by Investment
What is Portugal's Citizenship by Investment program?
Portugal offers citizenship through its Golden Visa program. Investors can qualify by making specific investments in the country, such as creating jobs or investing in scientific projects, arts, and culture. After maintaining the investment and residency for five years, applicants can apply for permanent residency or citizenship.
What types of investments qualify for the Golden Visa?
Qualifying investments include creating at least 10 jobs in Portugal, investing €500,000 in research or €250,000 in cultural heritage, or starting a business with with a share capital of €500,000.
How long does it take to obtain Portuguese citizenship through investment?
Applicants can apply for Portuguese citizenship after maintaining their investment for five years and fulfilling the residency requirement. During this period, applicants must spend at least seven days per year in Portugal.
Do I need to live in Portugal full-time to maintain my Golden Visa?
No, you only need to spend a minimum of seven days per year there. This makes it one of the more flexible citizenship-by-investment programs.
What are the benefits of obtaining Portuguese citizenship?
Portuguese citizens have the right to live, work, and study in Portugal and other EU countries. They can also travel visa-free to more than 180 countries and enjoy the benefits of living in a stable, EU-member state.
Can I include my family members in the Golden Visa application?
Yes, the Golden Visa allows you to include family members such as your spouse, dependent children, and dependent parents in your application. They will receive residency permits and can also apply for citizenship after five years.
What taxes do I have to pay as a Golden Visa holder?
Portugal has a favorable tax regime, particularly for new residents. You may benefit from the Non-Habitual Resident (NHR) program (if you meet certain conditions), which offers tax exemptions on foreign-sourced income for 10 years. However, you will still need to pay taxes on any income generated within Portugal.
Can I apply for Portuguese citizenship directly after investing?
No, citizenship cannot be obtained directly. You must first apply for the Golden Visa, maintain the investment and residency for five years, and then you can apply for permanent residency or citizenship.
What are the language requirements for Portuguese citizenship?
To be eligible for Portuguese citizenship, you need to pass a basic A2-level Portuguese language test, assessing elementary-level skills.
What happens if the Golden Visa rules change after I invest?
Typically, once you have secured your Golden Visa, any rule changes do not retroactively apply to you. However, it’s important to stay updated on policy changes to ensure compliance.