The revised Portugal Golden Visa programme
The Portugal Golden Visa programme has been making waves in the global investment and real estate markets since its introduction back in 2012 and it’s not hard to see why. As one of the cheapest and most accessible residency by investment avenues in the EU, it’s attracted more than 12,000 applicants and enabled participants in the programme to receive a residence permit that allows them to live and work in Portugal, travel freely within the Schengen Area, and eventually apply for Portuguese citizenship.
The programme has had enormous success, generating more than €7 billion in revenue for the Portuguese government. However, as with any programme of this scale and popularity, it has not been without its share of controversies and debates, including concerns about the impact on property prices in specific regions and debates surrounding the benefits of such programmes for the local economy.
This has resulted in various amendments and updates, designed to strike a balance between attracting foreign investment and addressing these concerns.
This article looks at the most recent changes to the Portugal Golden Visa programme, the reasons behind them and their implications for future applicants.
The Mais Habitação (More Housing) Bill
On the February 16th of this year, the Portuguese government put forward a series of measures designed to address the country’s housing crisis after concerns were raised that Portugal’s Golden Visa Programme was pricing locals out of the market, particularly in major cities like Lisbon and Porto and coastal towns on the mainland where most of the foreign investment was being directed.
The announcement caused uncertainty around the future of the programme and led many to incorrectly conclude that the programme would be scrapped entirely. The measures put forward by the Portuguese Prime Minister, António Costa, were to include major changes to the programme, but would not abandon it completely.
The final version of the bill was subsequently approved on July 19th, but then vetoed by Portuguese president, Marcelo Rebelo de Sousa and sent back to parliament for further revision.
The bill was eventually passed on October 7th, and while it does not do away with the golden visa completely, it has removed the real estate and capital transfer investment options.
What are the remaining available investment avenues?
While investment in real estate and capital transfers are no longer permissible as investment options for the golden visa, there are several other avenues which still remain:
- A minimum capital transfer of 500,000 euros allocated to research activities conducted by either public or private institutions involved in the national scientific and technological system.
- A minimum capital transfer of 250,000 euros designated for investments in or support of artistic production, preservation, or maintenance of Portugal’s cultural heritage.
- A minimum capital transfer of 500,000 euros intended for the acquisition of shares in non-real estate collective investment schemes. These schemes must have a minimum maturity of five years, with at least 60% of the investment directed toward Portuguese-based companies.
- A minimum capital transfer of 500,000 euros to establish a commercial company in Portugal or increase the share capital of an existing commercial company based in Portugal. This investment must be coupled with the creation of at least five permanent job positions or the retention of a minimum of ten job positions, including at least five permanent employees, for a duration of no less than three years.
Existing residence permits and pending applications
The new law took effect on October 7th. However, it is important to note that the renewal process for any existing residence permits will still follow the original regulations and any applications that are currently pending with SEF (The foreigners and borders service) will still be assessed according to the laws in place at the time of their submission. With regards to any Golden Visa holders that wish to obtain residency for dependents, the rules that will apply will be consistent with those at time of original application.
How can The Knightsbridge Group help?
The Knightsbridge Group has over 20 years of experience in the domain of corporate structuring and wealth management. We have unparalleled knowledge of business practices and legal requirements in the UAE as well as an international network of contacts and a deep understanding of the needs of modern-day high net worth clients and international businesses.
We can help you obtain the Portugal Golden Visa, advising you on the latest legislation and the investment avenue which best meets your unique requirements and circumstances and how it affects your application, assisting with gathering all the necessary documentation and liaising with government bodies on your behalf to ensure a smooth and successful application.
If you need help with this or any other immigration, financial or corporate structuring issue, please don’t hesitate to contact us on info@kbgroup.ae and we will be happy to help.
