During the crisis ridden years of the early 2010’s, when Europe faced mounting pressures of increasing debt and complicated cross-border bail-out programs many European countries had to decide how they would ride the storm and plan an economic future and recovery. As well as making economic changes at home there would need to be a way to invite outside investment into the country, to ignite a stagnant property market and to increase tax revenues and fees. What could Portugal offer to worldwide citizens to entice them to invest into Portugal? With no financial strength to back any government bonds and with no ability to promise an attractive headline interest rate, Portugal couldn’t offer a financial return that would justify anyone’s investment.
Portugal had to look closer to its soul. What were the real riches it had to offer? Were the mega rich, the well-off, the affluent after more income, more ‘return on investment’ or could they be charmed into realising that all this wealth has a purpose and a destination. Would investors put aside their spreadsheets and instead open the patio doors, feel the sun warm their skin, breathe some Atlantic air and suck in the best quality of life that this country has to offer? The answer to this can be put very objectively in terms of figures;
Since 2012 the following has happened;
Six billion Euros of investment – €6,000,000,000
9,000 Residency Permits Issued (ARI)
16,000 Residency Permits Issued for Family Members
To put that into perspective, on average, that is an annual investment of around €700 million, or monthly of €55 million, or daily of €2m into Portugal (mainly the property market) since 2012.
The Golden Visa Scheme became one of the most successful and in-demand ‘residence by investment’ programs in the world due to the attributes of Portugal (clean, safe, beautiful), the acceptable entry level of €500,000 and not overly demanding ‘occupation rules’.
Purchase real estate worth more than 500,000 euros. However, if it is in a low-density area, the minimum amount drops 20% to 400,000 euros.
Acquire real estate that is older than 30 years old, in an urban rehabilitation area, and renovate it for a minimum of 350,000 euros. However, if it is in a low-density area the minimum amount drops 20% to 280,000 euros.
The minimum amount is the total of both the renovation works and original property investment. Also, these amounts can be spread across more than one property. Two individuals (or more) can invest higher amounts in total as long the total investment covers the number of applicants. I.e. Dual ownership of a 1 million apartment.
There is a requirement that each applicant comes to Portugal for at least 7 days in the first 2-year period and 14 days in Portugal over each of the following 2-year periods. At the end of the 5-year period you can apply for citizenship or permanent residency. Both of these options require a Portuguese test. If you cannot go through the Portuguese test then you can keep renewing the temporary 2-year residency. With citizenship you are able to sell the investment. Both residency options require the investment to be retained.
You need to provide the following documents in order to apply for the Golden Visa;
With effect from January 2022 only certain areas within Portugal will qualify. Highly populated areas and the majority of coastal areas will not be accepted. This is due to demand out-stripping supply in built-up areas such as Lisbon, Porto and the Algarve. The government were concerned about providing affordable housing to the local population and as such the Golden Visa scheme will continue in more 'interior' areas (albeit some parts of the Algarve still quality). Commercial and touristic property can still be bought throughout Portugal.
There were discussions at parliament regarding the Golden Visa. One option for the Government was to remove it all together before they decided to make the changes detailed above. It is now expected to stay in this format for the foreseeable future.
The reasons for the launch back in 2012 are no longer here. The property market is currently buoyant – and has been for some time - and Portugal has repaid much of its debts and stands in a far healthier position. The Golden Visa triggered a renewed appreciation of Portugal among many parts of the world not familiar with it. With nearly 10,000 successful applicants and 17,000 family members it proves how popular and desirable the scheme has been.
We have helped many clients through the Golden Visa application. We have perfect properties to fit any criteria and can recommend the best legal advisors who will undertake all of the procedures with the necessary authorities. The next step is to contact us and we will be delighted to help.