Insights
Many countries encourage investment in their nation from foreigners through various means. One of the most popular is the golden visa scheme, operated by many European countries. In its most basic form, a golden visa scheme offers citizens of non-EU countries a way to gain residency in an EU nation by investing in property or business. However, each country sets its own thresholds for investment, and recent Portugal Golden Visa News has revealed that the threshold has changed.
In this article, we'll first assess exactly what the Portugal Golden Visa offers and why investors might feel that the Portuguese option is the most appropriate for them, and then we'll examine the recent Portugal Golden Visa Updates and what they mean for investors.
The Portuguese golden visa, or residency by investment, has been popular with investors since its inception, thanks to its lower-than-average minimum of €280,000 or €350,000 for real-estate investments. At the time, this was much lower than the €500,000 required for most similar programs in other countries like Spain and Italy. While other routes to the golden visa exist, this was by far the cheapest option, excluding some of the smaller island countries, such as Cyprus and Malta.
The program also provided a faster route to permanent residency; in Portugal, it took just five years, compared with ten in other EU nations. As well as obtaining a Portuguese passport after five years as a resident, investors could also benefit from low taxation, with a flat rate of income tax for foreigners and no need to declare non-Portuguese investments.
Additionally, unlike most countries, once obtained, the golden visa only had to be renewed by a one-week visit every year, making it the easiest option for overseas investors to obtain. Once the golden visa was obtained, the investor and their immediate family were also granted free travel across the 26 Schengen zone nations, greatly benefiting those looking to capitalise on business opportunities in other European countries.
It was announced that the Portuguese government would discontinue the €280,000 and €350,000 real estate investment routes to the golden visa. This option will be replaced with a new €500,000 fund investment route, bringing it in line with other participating nations. The Portuguese parliament passed the bill in July 2023, and the change is expected to take effect at the end of September 2023 at the earliest.
The Portuguese government has cited several reasons for the changes, including increased competition from other EU nations and a need to diversify their investment portfolio. The new €500,000 fund investments route will still be significantly cheaper than the investments needed for similar programs in other countries, and thankfully, little else has changed, and the new version of the golden visa can still lead to permanent citizenship after five years.
The Portugal Golden Visa program has been popular among investors seeking EU market access. While imminent changes are coming to the program, it is still one of the most attractive options for those looking to benefit from Portuguese residency. Investors can still take advantage of low taxation, free travel in the Schengen zone, and a fast route to permanent residency. With the new fund investment option, investors will have access to more diverse investment opportunities and a larger network of business contacts across Europe.
Despite the Portugal residency by investment updates, there are still plenty of reasons to invest in the Portuguese Golden Visa scheme. Here are just a few of the great benefits of the Portuguese golden visa:
Portugal's high ranking in the Global Peace Index (#7) provides assurance to investors of the country's stability and safety. As a member of the European Union, Portugal adheres to strict regulations that protect investments and assets. This commitment to security, both in terms of personal safety and financial protection, makes Portugal a safe haven for investors worldwide. The tranquillity and security of the country, combined with its robust legal framework, ensure that investments are safeguarded and yield promising returns.
Portugal is known for its competitive tax rates, which are lower than those in many other EU countries. This favourable tax environment makes Portugal an attractive option for foreign investors, who can benefit from various tax incentives and deductions. Lower taxes mean higher net profits, making the investment more lucrative and appealing. Moreover, Portugal's transparent tax system ensures that investors have clarity on their tax obligations and can plan their investments accordingly.
Obtaining a Portuguese Golden Visa provides investors with a high degree of flexibility. Apart from having the right to live, work, and study in Portugal, Golden Visa holders also enjoy the freedom to travel across the Schengen area without any restrictions. This travel liberty enhances personal convenience and opens up broader business opportunities across Europe, facilitating networking and expansion.
The application process for obtaining a Portuguese Golden Visa is straightforward and user-friendly. It is designed to be completed online, eliminating the need for physical paperwork or visits to the consulate. This easy and efficient application process reduces hassles for investors, making it more convenient for them to secure their Golden Visa. Furthermore, the Portuguese authorities provide clear guidelines and support throughout the application process, ensuring investors a smooth and hassle-free experience.
Portugal ranks highly in terms of quality of life, securing the 20th spot globally, two points ahead of the United Kingdom. The country offers a high standard of living, with excellent healthcare, education, and infrastructure. Moreover, Portugal is blessed with a pleasant climate, stunning landscapes, and a rich cultural heritage. The warm and welcoming local community further enhances the living experience, making Portugal an ideal destination for investors seeking a balanced and fulfilling lifestyle.
Portugal's membership in the Schengen area provides an additional advantage to Golden Visa holders. Unlike the UK, being part of the Schengen area means that investors and their families can enjoy visa-free travel across Europe. This freedom of movement facilitates ease of travel for both personal and business purposes, making it easier for investors to explore new opportunities across Europe.
In addition to its competitive domestic tax rates, Portugal does not levy taxes on income generated from sources outside of Portugal. This 0% taxation policy on foreign income is a significant draw for foreign investors, as it allows them to retain a larger portion of their global income. This tax benefit, combined with Portugal's stable economy and attractive investment climate, makes it an ideal choice for foreign investors.
The Portuguese Golden Visa programme offers a fast track to residency. Applicants are required to spend just seven days in the country in the first year and a total of 35 days over five years (14 days each in the 2nd and 3rd year, and 14 days in the 4th and 5th year). This minimal physical presence requirement provides flexibility for those who cannot or do not wish to relocate permanently, making it a highly convenient option for investors worldwide.
These are just some of the reasons why a Portugal Golden Visa is still one of the best options for investors looking to gain residency in Europe. With low taxation rates, visa-free travel and access to a wide network of business contacts, there are plenty of opportunities to be had with a Portuguese Golden Visa.
Ultimately, the Portuguese Golden Visa scheme remains one of the best ways to gain residency and potentially citizenship in the European Union. Despite the recent changes, the program continues to offer a range of benefits to investors and there has been no slowdown in applications, despite the Portugal golden visa updates.
Ultimately, the Portuguese Golden Visa scheme remains one of the best ways to gain residency and potentially citizenship in the European Union. Despite the recent changes, the program continues to offer a range of benefits to investors and there has been no slowdown in applications, despite the Portugal golden visa updates.
Ultimately, the Portuguese Golden Visa scheme remains one of the best ways to gain residency and potentially citizenship in the European Union. Despite the recent changes, the program continues to offer a range of benefits to investors and there has been no slowdown in applications, despite the Portugal golden visa updates.
Get in touch to discuss how we can help you with your citizenship or residency by investment goals. One of our investment migration experts will contact you to discuss your case. With over 16 years of combined experience our team has helped hundreds of families achieve freedom.
