Portugal Golden Visa 2024: Guide For New Rules

Portugal Golden Visa: 2024 Change of rules

Portuguese Golden Visa Guide

The Portuguese Golden Visa serves as an entry way to Europe for investors providing both residency and possibility of citizenship benefits. It specifically targets non-EU/EAA/Swiss citizens, presenting an efficient pathway to residency through investment and allowing free movement in European Union and Europe's Schengen area.

Break Front has a team of legal experts that can navigate you through the process with ease.

Portugal 2023 update

In 2023, significant changes were made to Portugal's Golden Visa program, primarily due to the "Mais Habitação" ("More Housing") law, which was enacted on October 7, 2023. The most notable change is the elimination of real estate investments as a qualifying option for the Golden Visa. Previously, purchasing property was a popular route for obtaining residency in Portugal, but this option has now been entirely removed.

These changes reflect the Portuguese government's focus on directing foreign investments into areas that support economic development and job creation, rather than inflating the real estate market.

Country Info

Population: Approximately 10.3 million (as of 2023).

GDP: Around $260 billion USD (2023 estimate).

Economy: Portugal has a diverse economy, driven by industries such as tourism, agriculture, textiles, and technology. It is known for its strong exports, particularly in wine, olive oil, and automotive components. The services sector, including tourism and finance, plays a significant role in the country's economy.

Language: The official language is Portuguese, spoken by the vast majority of the population.

Currency: The currency used is the Euro (€).

Geographical Position: Portugal is located in southwestern Europe on the Iberian Peninsula. It is bordered by Spain to the east and north, and the Atlantic Ocean to the west and south. Portugal also includes the autonomous regions of the Azores and Madeira, located in the Atlantic Ocean.

Portugal is known for its rich history, cultural heritage, and high quality of life, making it an attractive destination for both tourists and investors.

Life Quality Index

As of 2024, Portugal ranks 12th in the Global Quality of Life Index. The country scores particularly well in areas like sustainable development, environmental quality, and freedom, making it a highly desirable location for both residents and expats. The high quality of life is complemented by Portugal’s welcoming attitude toward migrants, a relatively low cost of living (outside major cities like Lisbon), and a stable political environment. These factors collectively contribute to Portugal's strong performance in the global rankings.

Portuguese Golden Visa Benefits

Visa-free travel in EU and Schengen space

Five years until you qualify for European passport

Affordable investment in high ROI market

Option to become non-habitual resident and pay little to no tax in 10 years

Becoming a Portuguese Golden Visa holder offers numerous benefits:

Access to the European Union: As a Golden Visa holder, you gain the right to live, work, and study in Portugal, and can travel freely within the Schengen Area, which includes 26 European countries.
Pathway to Citizenship: After maintaining your investment and residency for five years, you can apply for permanent residency or citizenship in Portugal, without the need to relinquish your original citizenship. Portuguese citizenship grants you the right to live and work across the EU.
Favorable Tax Environment: Portugal offers a Non-Habitual Resident (NHR) tax regime, which can provide significant tax advantages, including a flat 20% tax rate on certain Portuguese-sourced income and exemptions on foreign income for up to 10 years.
High Quality of Life: Portugal is renowned for its high quality of life, with a pleasant climate, excellent healthcare, and a relatively low cost of living compared to other Western European countries. It’s also known for its safety and peaceful living conditions.
Educational Opportunities: Portugal offers access to high-quality education systems, including international schools and universities, which are increasingly popular among expatriates.
Cultural Richness and Lifestyle: Living in Portugal provides access to a rich cultural heritage, a vibrant arts scene, world-renowned cuisine, and beautiful landscapes ranging from beaches to mountains.
Investment Returns: Portugal’s stable and growing economy provides opportunities for returns on investments, particularly in sectors such as real estate, technology, and renewable energy.
No Residency Requirement: The Golden Visa program requires minimal physical presence in Portugal—just seven days in the first year and 14 days in each subsequent two-year period, making it highly flexible for international investors.

These benefits make Portugal’s Golden Visa program one of the most attractive residency-by-investment programs in Europe.

Family reunification

Portugal's Golden Visa program allows for family reunification, enabling the main applicant to include certain family members in their residency application. This benefit is particularly attractive for those looking to relocate with their family or ensure that their loved ones can join them in Portugal.

Eligible Family Members:

Spouse or Legal Partner: The legal spouse or partner in a recognized civil union.
Dependent Children: Children under 18 years old, and children over 18 who are unmarried and financially dependent on the main applicant, such as those enrolled in full-time education.
Parents: The main applicant’s or their spouse’s parents, provided they are financially dependent on the applicant.
Minor Siblings: Minor siblings of either the main applicant or their spouse, if they are legally responsible for them.

Process for Family Reunification:

Application Submission: Family members can be included in the initial Golden Visa application or added later after the main applicant has been granted residency.
Documentation: Each family member must submit documentation proving their relationship to the main applicant, such as marriage or birth certificates, as well as evidence of financial dependency where applicable.
Residence Permit: Family members granted reunification will receive the same type of residence permit as the main applicant, with the same rights to live, work, and study in Portugal.

Rights and Benefits:

Equal Residency Rights: Family members benefit from the same residency rights as the main applicant, including access to healthcare, education, and social services.
Pathway to Citizenship: After five years of residency, family members can also apply for permanent residency or citizenship, under the same conditions as the main applicant.

Family reunification under the Golden Visa program ensures that investors can bring their immediate family members to Portugal, offering them the same opportunities and benefits that come with residency in an EU country.

Right to live, work and study in Portugal

Successful applicants are given the residency and have access to the public services including free healthcare, education and other public services.

After the period of five years, Golden Visa holders can apply for the Portuguese citizenship if all the required criteria is met.

Short stay requirement

When granted Portuguese Golden Visa there are a couple of rules applicants have to follow and one of those rules is the stay requirement which in Portugal luckily is just 7 days in a year which is very flexible and represents a significant advantage to it's holders.

This feature makes it perfect for people that need to travel often for work or personal reasons while enjoying the benefits of Portuguese residence.

Tax benefits

Income tax benefits are a big plus for foreign investors when choosing Portugal over other countries. Golden Visa holders are not required to pay taxes on income produced outside pf Portugal.

Also, there is a option to register as a tax resident in Portugal. This is a fantastic option that will grant you benefit from Portugal's Non-Habitual Tax (NHR). NHR is a generous tax regime that has many benefits to your global income. Basically, it offers tax-free incentives on certain categories for a period up to 10 years.

Types of income that qualify under the NHR:

- Dividends

- Real Estate Income

- Capital Gains from the disposal of real estate

- Occupational pensions

- Royalties

- Business and self employment profits from eligible occupations.

Also, any Portuguese sourced income will be taxed at a flat rate of 20% during the first ten years.

Additionally, there is a possibility of passing your wealth to a spouse or dependent family member without incurring inheritance.

Future of NHR?

State Budget Law for 2024. determined the end of the NHR regime from 1st January 2024.

But, certain individuals can still apply until 31st March 2025, and the scheme is being replaced by the Tax Incentive for Scientific Research and Innovation, which has now been implemented.

Golden Visa Eligibility criteria

To qualify, you must meet the following Portuguese Golden Visa Requirements Criteria:

Have a clean criminal record, if you can't provide one a lawyer should analyse your case.
Be either non EU, non-Swiss or non-EEA national.
Minimum investment of €250,000 with a variety of investment options to choose from
Spend average of 7 days in Portugal and total of 14 days during the validity of each residence card.

Investment options

Starting in 2024, the Portugal Golden Visa program offers several new investment options after the elimination of real estate as a qualifying category. Here are the updated investment routes:

Job Creation:
- Requirement: Create a minimum of ten jobs in Portugal.
- Details: This option is geared towards businesses that can generate employment opportunities, contributing to the local economy.
Research and Development:
- Requirement: Invest at least €500,000 in research activities.
- Details: This can be done through investments in public or private research institutions engaged in scientific or technological innovation.
Cultural and Artistic Investment:
- Requirement: Invest a minimum of €250,000.
- Details: This option involves supporting artistic production, cultural preservation, or the maintenance of Portuguese cultural heritage.
Investment Funds:
- Requirement: Invest at least €500,000.
- Details: The funds must have a minimum maturity of five years, with at least 60% of the investments made in Portuguese-based commercial companies.
Business Investment:
- Requirement: Invest €500,000 in a Portuguese company.
- Details: The investment can be used to start a new business or support an existing one. The business must either create five new permanent jobs or retain at least ten jobs.

Note:

Minimum investment fund for investment or donation in arts or reconstruction and scientific research may be reduced by 20% when the investment is made in low-density areas.

Required documents for Golden Visa

To apply for Portugal's Golden Visa in 2024, you will need to gather and submit the following detailed documents:

Valid Passport: A copy of the main applicant's passport, along with copies for any dependents included in the application.
Criminal Record Certificate: A police clearance certificate from your country of origin and any other country where you have resided for more than a year. This document must be issued within the last 90 days.
Proof of Health Insurance: Documentation proving that you have valid health insurance coverage in Portugal.
Proof of Investment: Depending on the investment route you choose, you must provide evidence of the qualifying investment. This could be proof of transfer of funds for investment in a fund, a business, or other eligible investments.
Portuguese Tax Identification Number (NIF): You must obtain a Portuguese NIF and open a local bank account. These steps are required to make the investment and manage other financial matters in Portugal. This can be done through 3rd party.
Declaration of Compliance: A sworn statement confirming that you will maintain the investment for at least five years.
Biometric Data: After submitting the online application, you must attend a biometric data collection appointment in Portugal.
Additional Documentation: Depending on your specific circumstances, additional documents may be required, such as proof of residence, marriage certificates, and birth certificates for dependents.

These documents need to be translated into Portuguese if not originally in the language and must be properly legalized or apostilled as per Portuguese requirements.

Legalizing documents

Documents must be legalised and translated into Portuguese and then certified.

Documents can be legalised by the Portuguese Consulate or according to the Hague Apostille Convention.

Translating documents

Original documents must be followed by translation in Portuguese certified by one of three:

A Portuguese Consulate
A Portuguese lawyer
An official Notary

Break Front has a team of Legal experts that can translate the documents for you.

Golden Visa application process

To obtain Golden Visa in Portugal you have to make a qualifying investment and keep it for five years. To submit your application it is advised to consult with one of our Golden Visa lawyers to see what documentation you need on top of the investment

When applying for the Visa process is straightforward but there are steps necessary in order to obtain it.

Onboarding: Initial discussions with the legal teams and covering the process and answering the questions. Collect necessary documents and correct paperwork
Bank account and NIF: To get NIF in Portugal we will grant you a fiscal representative. After obtaining NIF we are helping you open your bank account. This can be done by Break Front remotely
Make the investment: We begin with the investment process and also guiding you through all the necessary documents and any other requirements.
Application: Creating your online application
Pre-approval: your application will be pre-approved if all the necessary documents and requirements were met.
Biometrics: When you book your interview it takes about 2 months until you can attend a biometric collection session in person
Golden Visa: After the biometrics, your Golden Visa needs to be approved by AIMA. Pay the government issue fee. Then we can collect your residence cards on your behalf and send them to you.

Processing time

Year 0

The Visa application and supporting documents are submitted to AIMA. Once approved interview in person is necessary. Then a waiting period between 9-12 months to get residence permit which is valid for 2 years.

Year 4

Residence permit again has to be renewed and it can be renewed for a period of two more years.

Year 2

After the 2 years have passed the residence permit must be renewed. The second permit is also valid for two years

Year 5

You can apply for permanent residency and Portuguese citizenship at the end of the fifth year. Once granted you can get a Portuguese passport.

Why choose Break Front?

Global expertise with local insight: A team of seasoned local case executives, immigration lawyers, and investment specialists.

Independent service: We are not affiliated with any marketing agencies or specific projects. You’ll have access to all eligible Golden Visa options, allowing you to choose the best path for your needs, supported by the legal due diligence services of a reputable law firm.

High approval rate: We pride ourselves on our high approval rates while having successfully assisted hundreds of clients from over 25 countries.

Comprehensive support: Our dedicated onboarding and immigration teams guide you through the entire process, providing a seamless experience with a single point of contact.

Transparency: Our fees are clearly outlined and comprehensive, with no hidden costs involved in the entire process.

Privacy: Your personal information is securely stored in a GDPR-compliant database.