Portugal's Golden Residence Permit

(Source: Gov of Portugal, SEF)

ABOUT PORTUGAL

Portugal is the westernmost sovereign state of mainland Europe, bordered on the west and south by the Atlantic Ocean and on the north and east by Spain. Its territory also includes the Atlantic archipelagos of the Azores and Madeira, both autonomous regions with their own regional governments.

Portugal boasts a rich and diverse culture, Mediterranean climate, and a safe and stable setting ideal for raising families, conducting business or travelling. Portugal is a founding Member of the EURO Zone, member of EU and Schengen countries & member of the UN, NATO and WTO.

 

OVERVIEW

The Portugal Golden Residence Permit Program, or "Golden VISA", is a five-year residence-by-investment program for non-EU nationals. The residence permit gives the right to live, work, and study in Portugal and allows free circulation in Europe's Schengen Area.

 

LEGAL FRAMEWORK

Meant to charm foreign investments to the country, program offers residency permit in Portugal to non-EU investors who could invest in Portugal under the following conditions:

• Investors should hold no criminal record
• Investors can enter Portugal for the first time on their valid Schengen visas.
• The investor should stay for at least seven days for the first year, 14 days for subsequent two-year periods etc.
• The investor must submit proof of investing funds generated from outside Portugal.
• The investor must pay filing, application and processing fees when and where relevant.
  

 

Legislation

The Golden Resident Permit Program is foreseen by Law 23/2007, of July 4th and subsequent amendments and is filled at the Foreign and Borders Office (SEF) under the tutelage of the Ministry of Foreign Affairs.

Benefits of Portugal Golden Visa

• Right to live, work, and study in Portugal.
• Visa-free travels and mobility in Europe’s Schengen Area.
• Minimal Residency requirement (seven days during the first year of residence, 14 days for the two following years, that could be considered to citizenship eligibility after five years if applicable)
• Great educational opportunities in Portugal, at international and Portuguese schools and universities
• International quality healthcare clinics and hospitals
• High quality of life, great weather.
• Safety, Stability and Security.
• Eligibility to apply for permanent residency and or citizenship after five years as a legal resident while maintaining other citizenship(s) – dual nationality is accepted.

 

Requirements

• At least five years period Investment, or until permanent residency or citizenship issuance;
• The investor must be over 18 years old - children under 18 can be reunified;
• No criminal record (both in the residence country and in Portugal);
  Portuguese Tax Number (for investment purposes);
• Bank account in Portugal;
• Health Insurance Policy.
  

 

Residency Permit Renewal, Permanent Residency (PR) and Citizenship Application

• Residency is renewed at the end of year 1, year 3, and year 5;
• Family maintains residency for 5 years;
• Reside minimum 7 days during the 1st year residence permit period;
• Reside minimum 14 days for each two-year residence permit period;
• Apply for Permanent Residency after 5 years if eligible;
• Apply for Citizenship after 6 years if eligible
  

(Ref; Law on Nationality, Article 167 and 169(2) of constitution. SECTION 3, Article 6 Requirements.
b) Legally residing in the Portuguese territory for at least five years.
c) Know the Portuguese language sufficiently.)

FAMILY APPLICATIONS

Family members can be included in Portugal's Golden Visa application:

• The application for Family Reunification can be made simultaneously with the application of the family member/ Golden Visa Investor
• It is always subject to the approval of the Golden Visa application

Family members are defined as:

• The spouse of the applicant
• Minors or incapable children under guardianship of the couple or of one spouse
• Minors adopted by an unmarried applicant, by a married applicant or by the spouse, following decision taken by the relevant authority of the country of origin, provided that its legal framework comprises the same rights and duties of natural filiations and provided that such decision is acknowledged by Portugal
• Children who are of legal age, unmarried and dependent on the couple or on one of the spouses, and who study in an education establishment, regardless of the Country in which that establishment is located
• First-degree relatives in the direct ascending line of the resident or his/her spouse, provided that they are dependent on them
• Minor siblings provided they are under the tutelage of the resident, in accordance with a decision made by the relevant authority of the country of origin, and provided that such decision is recognized by Portugal.
  

TYPES OF INVESTMENT

Investment in Property

Investor to choose one of the following choices:

1. EUR 500,000 minimum real estate purchase (residential property is limited to designated interior areas) “EUR 400,000 in a low population density area”
2. EUR 350,000 minimum real estate purchase for the refurbishment of residential properties older than 30 years or in an area of urban regeneration, including the cost of renovations (If in residential property it is limited to designated interior areas)

EUR 280,000 in a low population density area

The Portuguese government has new regulations concerning the Portugal Golden Visa. Portugal's new law restricts the 'qualifying' areas for real estate investment within Portugal.. The changes took effect on 1 January 2022.

Residential purchases are being restricted by geographical location (residential property is limited to designated interior areas) EUR 280,000 in a low population density area.

However, if investing in projects, as they are for commercial -touristic purposes, and not habitational purposes, they are still eligible, no matter the location. They are not impacted in by latest changes that were lately implemented in Portugal.

Investment in Business

Investor to choose one of the following choices:

1. Creation of a minimum of ten new jobs. “8 new jobs in a low population density area”
2. EUR 500,000 for the incorporation or increase of the share capital of a company that is registered in Portugal, generating or maintaining a minimum of 5 permanent jobs for a period of three years

A low population density area is well-defined as less than 100 residents per km² or with a GDP per capita below 75% of the national average.

Investment in Capital Transfer

Investor to choose one of the following choices:

1. EUR 1.5 million minimum capital transfer into a Portuguese bank account or approved investments.
2. EUR 500,000 for the acquisition of investment fund or venture capital fund units committed to the capitalization of companies incorporated under the Portuguese law, with a maturity of at least five years and with at least 60% of the investment portfolio in companies with a registered office in the national territory.
3. EUR 500,000 for research activities of public or private entities that are part of the national scientific and technological system. EUR 400,000 in a low population density area.
4. EUR 250,000 in care of artistic production or in the recovery or conservation of national cultural heritage. EUR 200,000 in a low population density area

PROCEDURES & TIMELINE

1. Applicant Assessment
2. Decision to invest on the Project
3. All Agreements and Power of Attorneys signed at Portugal Embassy
4. Prepare for funds transfer
5. Funds received in investor account in Portugal and transferred to escrow bank account (in Portugal) and execution of deed of sale
6. Submit online residence permit application (mandatory online pre-registration)
7. Prepare for visitor’s visa
8. Landing in Portugal to:
• Prove legal entry and stay in Portuguese Territory;
• Legalize all agreements;
• Get biometric data collected at SEF
9. Receive the Residence Permit after SEF decision
10. Keep the Residence Permit for 5 years
11. Apply for Permanent Residence
    

ARTICLE 80 OF THE ALIENS ACT, IN CONJUNCTION WITH ARTICLES 64 AND 65-K (FOR HOLDERS OF A RESIDENCE PERMIT FOR INVESTMENT PURPOSES) OF THE REGULATORY DECREE N.º 84/07 OF 05/11, AS AMENDED
ORDER NUMBER 1563/2007, OF 11/12

COSTS AND FEES

The following is a list of fees that will be incurred when obtaining a Golden Residence Permit from Portugal. Contact GLI for the current cost for each item below:

Service Fees:

• Advisory Fee
• Legal fees (ME) - Main Applicant
• Legal fees (ME) / Dependent
• Translations to Portuguese + certifications
• Tax Representative/Couple/year (ME)

Attestations:

• At Portugese Embassy

Real Estate Investment:

• Real estate purchase
• Refurbishment works
• VAT on refurbishment contract

Taxes & Investment-Related Fees:

• Property Transfer Tax (IMT)
• Stamp Duty
• Notary & Public registry
• Bank expenses
• Health Insurance per person

Government Fees:

• Application fee - Main Applicant
• Application fee - Dependent(s)
• Residence Card fee per person