For many years now, Portugal has been a magnet for investors from all over the world and programs such as the Golden Visa have played a key role in the arrival of foreign citizens who want to invest and eventually live in the country.
The Residence Permit through Investment (ARI), commonly known as the “Golden Visa“, is intended for foreign citizens who do not have European citizenship and requires an investment in Portugal that must be made and maintained for a minimum period of five years.
Recently, due to inflation in the rental market and the buying and selling of real estate, the Portuguese government adopted some measures to deal with the housing crisis in Portugal.
Thus, on October 6, 2023, Law No. 56/2023 was published, which implements the measures of the “Mais Habitação Program“, eliminating the granting of residence permits for investment activity through the following investment routes:
- Capital transfers of €1,500,000.00 or more;
- Investment activities that include the acquisition of real estate worth €500,000.00 or more;
- Acquisition of real estate, whose construction has been completed for at least 30 years or located in an urban rehabilitation area and carrying out rehabilitation works on the real estate acquired, for a total amount equal to or greater than € 350,000.00;
However, it should be noted that the extinction of these investment modalities does not affect the authorizations/family reunifications already granted and does not apply to the processes already submitted and which are awaiting a decision from the competent authorities, or which are pending prior control procedures at the municipal councils.
With regard to the renewal of this type of residence permit, it will be converted into a residence permit for entrepreneurial immigrants, with holders having to comply with a minimum period of stay of 7 days, consecutive or interpolated, in the first year and 14 days, consecutive or interpolated, in subsequent two-year periods.
So what are the modalities that remain eligible for the Golden Visa program in Portugal today?
- Creation of at least 10 jobs;
- Transfer of capital in an amount equal to or greater than € 500,000.00, which is applied in research activities carried out by public or private scientific research institutions, integrated in the national scientific and technological system;
- Transfer of capital in an amount equal to or greater than €250,000.00, which is applied in investment or support for artistic production, recovery or maintenance of national cultural heritage;
- Capital transfers of €500,000.00 or more for the acquisition of shares in non-real estate collective investment schemes, where 60% of the value of the investments is made in commercial companies based in Portugal;
- Transfer of capital in an amount equal to or greater than €500,000.00, intended for the incorporation of a commercial company with its registered office in Portugal, combined with the creation of five permanent jobs, or to increase the share capital of a commercial company with its registered office in Portugal, already incorporated, with the creation of at least five permanent jobs or the maintenance of at least ten jobs, with a minimum of five permanent jobs, and for a minimum period of three years.
In the legislative wording that mentions the investment routes currently available, there are two relevant changes:
- With regard to the type of investment in collective investment undertakings, the wording of the rule was amended to change the expression “acquisition of units in investment or venture capital funds” to “acquisition of shares in non-real estate collective investment undertakings”;
- In order to increase the share capital of a commercial company already incorporated in Portugal, the number of jobs required has been increased, requiring “the creation of at least five permanent jobs or the maintenance of at least ten jobs, with a minimum of five permanent jobs”, instead of “the creation or maintenance of jobs, with a minimum of five permanent jobs“.
In addition to the changes mentioned above, it is important to note the following:
- No type of investment can be aimed, directly or indirectly, at real estate investment.
- The investment modalities that are still eligible will be subject to evaluation every two years as to their impact on scientific and cultural activity and on the promotion of foreign direct investment and job creation.
Last but not least, on October 29, 2023, Order No. 307/2023 of October 13 came into force, updating the administrative costs associated with the process, which will be paid by investors and their families to AIMA (Agency for Integration, Migration and Asylum):
- €773.74 per person, when the application for a residence permit is submitted;
- €7,730.11 per person, once the application has been approved and the first residence permit has been issued;
- €3,865.79 per person, when submitting the application for renewal of the residence permit and when issuing the second residence permit.
