Golden visa Portugal, what changes in 2022

There are three ways by which an investor can avail of the Golden Visa Portugal:

  • An investor can make an outright purchase of real estate property whether for private or commercial purposes.
  • An investor can invest capital into the Portuguese economy.
  • An investor can start a company that will employ Portuguese nationals for at least three years

Changes to the Golden Visa Portugal will be effective starting January 1. 2022. The Portuguese parliament has approved Decree Law 14/2021 of Feb. 12 that modifies the conditions for access to the Golden Visa Portugal Program.

These changes will apply only to new applicants and not to those who have existing Golden Visas Portugal.

Golden Visa Portugal investment in real estate

The Portuguese government would like to transfer the focus of real estate investments from the high-density areas like Lisbon, Porto, the Algrave, and the high-density coastal towns like Setubal and the Silver coast to low-density areas like the Azores, Madeira and the cities and towns in the interior of Portugal.

Fortunately, the investment amounts have not changed.  Commercial properties and properties with a tourism license are exempt from the Golden Visa changes.

  • €280,000 for existing properties older than 35 years old and requiring renovation in low-density areas
  • €350,000 for existing properties located in urban re-generation areas
  • €500,00 for all other properties in Portugal

Golden Visa Portugal capital investment

Investing in private equity funds or Golden Visa Portugal venture capital funds is a good option for acquiring residency in Portugal. The funds are managed by fund managers who are accredited by Portugal’s regulatory body, the CMVM. Your dedicated fund manager ensures that the Golden Visa Portugal fund investments are appropriately managed in start-ups or medium-sized projects with optimal growth potential.

  • The present capital transfer of at least € 1million has been increased to €1.5 million.
  • The present €350,000 business investment in the form of either the purchase of shares in a Portuguese company or setting up a company in sectors like energy, industry, technology, and real estate has been increased to €500,000 and must generate at least five permanent jobs for at least three years.
  • The present €350,000 investment in companies that are scientific or technological in nature in public or private institutions has been increased to €500,000.

Advantges of the Golden Visa Portugal

Portugal lies on the Atlantic coast of the Iberian Peninsula in Southwestern Europe and hugs 832 kilometers stretch of the Atlantic coastline.  It enjoys sunny weather for most of the year and boasts of excellent fresh produce and a delectable cuisine of mostly seafood like sardines and cod fish. It is an excellent option for expat families as they can avail of quality education, easy access to healthcare and an overall high quality of life.

This is ideal country for those looking to invest in a second passport without giving up your citizenship or for businesses looking to set up European Union operations, a Portuguese passport is now easily available through the Golden Visa Portugal or Portugal Passport by Investment Program that is the most successful residency program in Europe and is the most popular investment immigration program in the world.  This is because of the following reasons:

  1. There are many diverse and cheaper real estate properties available in comparison to the other countries in Western Europe.
  2. Portuguese investments promise a high return on investments. This is due to a stable and dynamic economy that is fueled by a continuous growth in the tourism sector that has led to a rise in the profitability of short and long term rentals.
  3. Portugal offers very generous tax incentives that include tax reductions or total exemptions over a ten-year period.

A Golden Visa Portugal allows the holder free movement meaning that one can live, work, and study in Portugal and anywhere else within the European Union, European Economic Area, Switzerland and the United Kingdom.

For a minimum investment of €500,000 the Golden Visa Portugal has the following benefits:

  • Travel visa-free to 186 countries
  • Includes family members
  • Renewable every two years with no residency requirements
  • Citizenship is possible in 5 years.

Golden Visa Portugal tax benefits

  • Golden Visa Portugal’s income tax benefits are a big draw for foreign investors looking to get the most out of their financial contribution. Visa holders don’t need to pay extra taxes on income produced outside of Portugal.
  • There’s also an option to register as a fiscal resident for tax purposes in Portugal. This is a fantastic option as it’ll allow you to then directly benefit from Portugal’s Non-Habitual Tax (NHR) Regime. NHR is a generous tax program with numerous benefits pertaining to your global income. It offers tax-free incentives on certain categories for a period of up to ten years.
  • Additionally, any Portuguese-sourced income would be taxed at a flat rate of 20% during the first ten years and there is also the ability to pass on your wealth to a spouse or dependent without incurring inheritance or gift taxes.