The end of Golden Visa through real estate in Portugal? 

Living in Portugal and travelling freely throughout most of Europe. This is what the Golden Visa program in Portugal - also known as the Golden Resident Permit Program (GRPP) - makes possible for non-EU nationals and their families. However new laws have been approved by government in July 2023 and once the President of Portugal will publish the new laws we will know as per which date the option to request a Golden Visa through the purchase of real estate in Portugal will end. Currently it is still possible to start your application (31-7-2023).

Update 31st of July 2023 

Portugal's Golden Visa program has proven to be one of the world's most popular. Since the Portuguese Golden Visa program was launched in 2012, 11,535 permits have been granted. With billions of direct investments resulting from the Golden Visa programme (654 million alone in 2022!), the program shows to be very popular and successful.  In 2022 we have seen an increase of 42% on the investment through Golden Visa. Probably as then the discussion began to terminate the program. That discussion supported people deciding to buy/invest now rather than later as it is the best and most successful residency-by-investment program in Europe for people who do not want to live in the country. 

Although it has been very succesful, the Portuguese government wants to stimulate housing for permanent living and obtaining a visa in exchange for buying a home for € 500.000 will therefore no longer be an option. Once the President has published the new laws we will know as per when it will no longer be possible to apply for a Golden Visa through the purchase of real estate. Currently each day there are still submissions happening to request for a Golden Visa. Luckily there are also other visa's that can be requested. 

Other visa's remain available - D2 visa, D7 visa and Digital Nomad visa 

Important to know is that Golden Visa is not the only way to achieve a visa for Portugal. There is also the option to get a D2, D7 or Digital Nomad Visa. The same as with the Golden Visa, also with these visa's it is possible to combine the beneficiary NHR-tax regime which might give you huge tax advantages!
With the Golden Visa thorugh acquisition of real esatate ending soon, these three visa's will become more popular for sure. Each visa type has its own conditions/requirements. Read more details in the blog about D2, D7 and Digital Nomad Visa. 

Do you want a visa? Ask our help to see which visa is the best opion for you. 
Read more below about the Golden Visa. 

The benefits of the Portugal Golden Visa

The Golden Visa offers a wide range of benefits:

• Free travelling throughout the entire Schengen Area, which consists of 26 European countries.
• Once you become a citizen, you can live and work anywhere in the EU/EEA and get the world’s 4th best passport for nomads and global citizens. 
• Visa holders are only required to spend an average of 7 days per year in Portugal to qualify for renewal and eventually citizenship.
• Portugal can also offer favorable tax benefits for newcomers, called the NHR ("Non-Habitual Residency")  that can provide a range of tax benefits. 
• After 5 years you can apply for Portuguese citizenship.
• You can include
  • your spouse and your children - provided that they are younger than 18, or younger than 26 if they are single, and are studying full-time.
  • your parents and those of your spouse if they are over 66, or over 55 if they depend on you for care.
  • you or your spouse’s, siblings if they are under the age of 18.
• Unlike many other Golden Visa programs in Europe, Portugal is not blacklisted by the OECD, the Organization for Economic Cooperation and Development. You are therefore using a reliable visa program.
• Portugal is a safe and stable country with an excellent and affordable quality of life, good healthcare and education options, well-connected airports, and the best climate in continental Europe. 

With the Golden Visa program non-EU nationals receive a Portuguese visa for themselves and their entire family. This residence permit is valid for five years and it not only gives you access to Portugal, but offers you the possibility to travel freely up to 90 days for any 180 day period throughout the entire Schengen Area. 

After five years, you have the opportunity to apply for a Portuguese permanent residence permit. A year later, once you have been registered as a resident of Portugal for six years, you are eligible for Portuguese citizenship. Your Portuguese passport then offers you the opportunity to travel freely throughout no fewer than 182 countries.

Although other countries in Europe also have their own investment program to obtain a visa and ultimately European citizenship, Portugal's Golden Visa program stands out. It distinguishes itself by being easy, fast, and cheaper than other Golden Visa programs in Europe, and it gives immediate access to the very attractive NHR tax regime, which can provide fiscal benefits as well.

 Golden Visa and the attractive NHR tax regime

As a Portuguese Golden Visa holder you automatically qualify for the Portuguese Non-Habitual Tax Regime. This attractive tax regime can exempt you from (or give discount to) paying taxes on various sources of income locally or abroad, such as on income from real estate, shares, and income from the sale of real estate abroad.

If you receive additional income in Portugal, you can be eligible to pay only the flat rate of 20 percent tax during the first ten years, if your profession is on the list of specific professions. And you only pay a flat rate of 10% on income that you collect outside of Portugal. Finally, you can also give a part of your money to your spouse or a dependent family member tax-free! 

Portugal Golden Visa Investment options. 

Acquiring a visa through investment in real estate is a great success since its launch in 2012. While most years regulation has stayed the same, in 2022 some changes were applied. Therefore it is important to have the most recent information on which properties are eligable for your Golden Visa application.
In January 2022 the rules have changed. Portugal wanted to boost investment in:

• Low-density regions* 
• Urban requalification
• Cultural heritage
• Activities of high environmental or social value
• Productivity and job production 

*Low-density areas determine whether or not a 20 percent discount rate applies to your investment. 

To boost interest into the interior of the country, the government applied that residential properties could only be eligable for Golden Visa investment once they are located in an area appointed as interior area. The rule for a 20% discount on minimum investment value for properties located in low-density area remained. To understand what the minimum investment is in a certain area and if the property you like is eligable for Golden Visa, it is important to know which areas are low or high density areas and which areas are appointed as interior or non-interior areas. 

The changes from January 2022 make that the following properties are eligable: 

• Purchase a residential property of at least € 500,000 located in a high-density area classified as interior area of Portugal.  
• Purchase a residential property of at least € 400,000 in a low-density area that is located in an area classified as interior area of Portugal. 
• Purchase a commercial or touristic licensed property (can be an apartment or house with touristic license or a B&B/hotel/aparthotel with touristic license) for at least € 500,000 anywhere in Portugal or a touristic property with a minium purchase price of € 400.000 when being located in a low-density area.  
• Purchase a residential property of € 350,000 located in an interior area appointed as urban rehabilitation area OR a property constructed 30 years or more ago. Either the price of the property should be € 350,000 or when the purchase price + renovation works is a total investment of € 350,000 this is also eligable. For a property to be eligable for Golden Visa € 350,000 minimum investment it has to be located in an area classified by the State as an "ARU domain area" (=Área de Reabilitação Urbana). There areas are designated for urban regeneration. A property classifying for Golden Visa investment of € 350,000 must be located in one of these appointed areas of "urban rehabilitation" OR be older than 30 years. Acquisition of such real estate in a high-density area should have a minimum investment (purcahse price + renovation costs) of € 350,000. Acquisition of such real estate in a low density area provides 20% discount, which then means a minimum investment of € 280,000 to apply for your Golden Visa (purchase price and renovation works must equal or be greater than € 280,000). 

Untill the president has not publishes the new laws (after the approval in July 2023), Golden Visa applications through purchase of real estate can still be submitted. 

Besides being located in an urban rehabilitation area OR be older than 30 years are the rules that apply for a 280,000 investment are:

• 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. 

For example: these apartments in Albufeira have a touristic license and are located in Albufeira, Algarve. The apartments are values above € 500.000 and are eligable for Golden Visa. 

Another example: buying in the Alentejo. The Alentejo region is a rural tourist spot in Portugal. It’s home to many wineries and the region is famous for its tranquil atmosphere. It’s a 2-hour drive from Lisbon and it is connected to the soutern Algarve area. It’s not a touristic area but it’s still open to new developments and renovation projects which makes it an ideal place to make a real estate investment. The whole of the interior is classified both as interior area and low-density area. Meaning that investments on residential or commercial properties are possible as from € 400,000. And investments on urban rehabilitation properties or properties built more than 30 years ago are eligable from a total investment of € 280,000 onwards. See here our properties in the Alentejo. 

Portugal’s Golden Visa through the purchase of property

Purchasing real estate is the most popular option to obtain a Golden Visa in Portugal. More than 90 percent of the Visas are given through the purchase of real estate in Portugal. 
There are also other types of investment possible to apply for a Golden Visa, such as: 

• The investment of at least € 500,000 in a qualified Investment Fund.
• Make a capital transfer of at least 1,5 million euros in a Portuguese bank account.
• Invest at least €500,000 for the creation of a commercial company or to reinforce the share capital of a commercial company, through which you create at least five full-time jobs.
• Make a capital transfer of at least €500,000 for research activities in science or technology by either public or private scientific research institutions.
• Launch a company in Portugal and create at least ten new, full-time jobs for Portuguese nationals.
• Make a capital transfer of at least €250,000 to support the arts.

When do you qualify for a Golden Visa through property investment?
 

In order to be eligible for a Golden Visa in Portugal  the property you buy needs to be eligable for the application. You can buy a commercial/touristic licensed property throughout Portugal (all locations) or when you are buying a residential property (= a property with a habitation license), since January the 1st 2022, this property needs to be located in an interior area of of Portugal. When being located in a low-density area a 20% discount on the minimum investment value is applicable. 

Areas that are classified as low-density areas in the Algarve are the councils of:

• Alcoutim
• Aljezur
• Castro Marim
• Monchique
• Vila do Bispo

Also a few parishes in the Algarve are appointed as low-density areas. These are the parishes of:

• Alte, Ameixial, Salir, and the parish of Querença, Tôr and Benafim,  located in the council of Loulé.
• São Marcos da Serra, located in the council of Silves. 
• Cachopo and Santa Catarina da Fonte do Bispo, located in Tavira council.

However there are other types of investment to get the Golden Visa permit, these do not bring the same benefits of when buying a property in Portugal to obtain your visa.

Additional benefits of buying a property are:

• The opportunity to have your own family vacation spot in Portugal, where you are guaranteed a sunny climate and safe living environment (Portugal is ranked 4th in the ranking of safest countries in the world (!!), in the Global Peace Index 2021)
• The possibility of renting out your property as a holiday home in Portugal for an attractive return on investment, thus generating additional income.
• The possibility to increase the value of the real estate and therefore your investment, simply by keeping it in your possession (which you are obliged to do for five years in order to keep your Golden Visa, see below).

Golden Visa Portugal: rules and conditions

As an non-EU national investing in Portuguese real estate, what should you take into account if you want to be eligible for a Golden Visa?

• You must be over the age of 18, and own the money that you invest.
• The property you purchase must meet the requirements described above and it is important that you keep the property in your possession for at least five years.
• You are required to spend only seven days in Portugal in order to keep your visa.
• Finally, you must not have a criminal record if you want to obtain a Golden Visa.

Do you meet the necessary conditions to start the Golden Visa application? You can expect the procedure to take approximately three to six months.

 Golden Visa Portugal: costs to be aware of:

The costs that the Portuguese government charges for obtaining a Golden Visa are relatively low:

- To apply for a visa, the amount due is slightly above 500 euros (plus around 80 euros for every family member who also wishes to apply for a visa).

- If the application for the Golden Visa is granted, a fee of approximately 5,200 euros per visa holder will be added.

- The visa must be renewed at the end of the first and third year. This entails a cost of around 2,600 euros per visa holder.

- In subsequent years, the renewal fee is around 500 euros per person.

The step-by-step plan for a real estate investment in order to obtain a Golden Visa for Portugal

If you choose to invest in real estate in order to obtain your Golden Visa, we recommend that you first gather reliable information about the Portuguese real estate market.

What are the most attractive regions of Portugal for making an investment that meets your wishes? On which real estate investments can you make a good return? Which region is the best for rentals? Which regions in Portugal are appealing to you if you plan to regularly spend time in your holiday home? 

Divine Home can assist you in the preparation. Because we know Portugal so well, we give you the best advice regarding the most attractive regions for making a real estate investment that matches your personal wishes. When doing a proper preparation your time in Portugal can be spent wisely. We can show you the various options that match your criteria and help you with the purchase of your property, and with the legal proceedings that you must go through when purchasing a property in Portugal. We can advise you a lawyer you can organise the Golden Visa for you and help you get a fiscal number, and bank account. 

Click here to see the properties eligable for Golden Visa. 

See below map for specification on councils and parishes in the Algarve that are eligable for Golden Visa. 

Are you planning to make a real estate investment in Portugal, and do you want us to help you? Contact us for expert advice.