In a much-welcome turn of events following initial reports of the Portugal Golden Visa Program’s possible termination, the Portuguese Government has surprised the world with its proposal that seeks to not only retain the program but also introduce a revamped direction.
The Golden Visa program, renowned for its popularity among foreign investors seeking residency through investments, is set for a new trajectory.
The Portuguese government’s proposed adjustments to the Golden Visa Program align with the nation’s developing priorities. It introduces revisions to the existing investment avenues for aspirants of the Portugal Golden Visa. One of the key proposed reforms is that all real estate investment options either directly or indirectly shall be terminated. However, several other investment routes are open to those who wish to invest in Portugal for permanent residency.
As of 21st August 2023, the Mais Habitação (“More Housing”) Bill was sent back to the Parliament for amendments. This decision means that it will take up to another month before the bill is passed. In hindsight, this means that investment as per the old law is still permissible until the new bill becomes law.
Revised Golden Visa Program Requirements
The Portuguese government is not discontinuing the Golden Visa Program. Instead, it redirects it through the following options:
- Creating a minimum of 10 job opportunities.
- Transferring at least €500,000 to public or private institutions focused on scientific research.
- Allocating €250,000 or more to support cultural heritage preservation, artistic production, or recovery.
- Investing €500,000 or more in venture capital funds or other investment avenues.
- Capital transfer of 500,000 euros, accompanied by the creation of at least five permanent positions within a business over three years.
What Remains Unchanged
- For applications in progress and renewals, the current rules will still apply. If investments are revoked in the future, renewals will be considered under the Entrepreneur Permit rules. The requirement of spending 183 days a year in the country won’t apply – instead, a special rule of 7 days a year will be used.
- The proposed changes will start right after they’re published officially in the Assembly Gazette and there won’t be any extra time for adjustments.
- The rights for renewals, bringing families together, and applying for permanent residency will stay the same without any changes for previous cases.
- Renewals for Residency permits will follow the same rules as before.
Revised Golden Visa Program Requirements
The Portuguese government is not discontinuing the Golden Visa Program. Instead, it redirects it through the following options:
- Creating a minimum of 10 job opportunities.
- Transferring at least €500,000 to public or private institutions focused on scientific research.
- Allocating €250,000 or more to support cultural heritage preservation, artistic production, or recovery.
- Investing €500,000 or more in venture capital funds or other investment avenues.
- Capital transfer of 500,000 euros, accompanied by the creation of at least five permanent positions within a business over three years.
What Remains Unchanged
- For applications in progress and renewals, the current rules will still apply. If investments are revoked in the future, renewals will be considered under the Entrepreneur Permit rules. The requirement of spending 183 days a year in the country won’t apply – instead, a special rule of 7 days a year will be used.
- The proposed changes will start right after they’re published officially in the Assembly Gazette and there won’t be any extra time for adjustments.
- The rights for renewals, bringing families together, and applying for permanent residency will stay the same without any changes for previous cases.
- Renewals for Residency permits will follow the same rules as before.
How Does This Impact An Existing Investor
This depends on the investor’s risk tolerance and specific situation. However, there’s a general recommendation:
- If your investment is already done but some personal paperwork is missing, it’s advised to proceed and file the application and make the most of the opportunity.
- If you haven’t paid for the investment yet, try to get a refund guarantee if you can’t complete the application before the new law takes effect. Alternatively, consider changing to eligible investment options as per the newly approved terms. Make your decision within this week.
- As a new investor, pick investment options that align with the new rules. This way, you won’t risk being ineligible.
What The Delay In Implementing The Bill Means For Investors
Despite initial hints that the program might be closing down, the government’s ongoing discussions about the Mais Habitação legislation have actually extended the time window for interested investors. Now the bill is expected to be passed sometime in September. This delay, though eventually leading to closure, is turning out to be a chance for investors to make the most of the situation.
Interestingly, legal challenges against the unexpected changes introduced have played a role in keeping the program going. This has provided a reassuring level of stability for investors. As everyone awaits the new set of rules, applicants who wish to acquire the Golden Visa Via the old route can continue to do so as per old laws. Pending applications are being transitioned into the more advantageous D2 Entrepreneur Visa category.
One positive aspect is that the original plan to require a seven-day stay in Portugal for visa holders has remained unchanged. The initially proposed requirement for property use during renewals has been dropped. This is a significant step that’s boosting investor confidence in the program.
Like several other countries that support residency through start-ups, Portugal invites investments from foreigners. For those interested in seizing this opportunity, time is of the essence. The range of available properties is limited, so quick action is advised.
Some Frequently Asked Questions About The Portugal Golden Visa (FAQs)
- What is the Impact on Existing Residency Permits?
Modifying Portugal’s Golden Visa program will not affect existing residency permits acquired before the new regulations. Holders of current permits will continue to enjoy the privileges associated with their permits. - How does this affect Portugal’s Real Estate Market?
While excluding real estate investment options from the Golden Visa program could lead to a temporary slug in the real estate market but also open up more housing options for locals. , it is anticipated that alternative investment avenues such as job creation and capital transfers to research institutions will attract a new wave of investors eager to contribute to Portugal’s flourishing economy. - Can An Investor Combine Investment Options?
Certainly, investors can combine multiple investment options to meet the prerequisites of the Golden Visa program. For instance, an investor can simultaneously create job opportunities while supporting artistic production through capital transfer. - Timeline For Proposed Changes?
Portugal’s President has vetoed the “Mais Habitação” Bill, requiring further parliamentary discussion extending the opportunity under current laws. The government can revise and resend the bill or confirm it via a majority vote. Parliament’s summer break makes law change unlikely before September’s end. - Can An Investment In Portugal Still Lead To Permanent Residency?
Yes, it can. Portugal continues to support investments from foreigners seeking residency. To know more about the investment routes and the fastest pathway to citizenship, get in touch with the expert team at Nova Quinta.
