Portugal Golden Visa

Portugal Golden Visa FAQ's

How much does the Portugal Golden Visa cost?

Portugal’s Golden Visa programme has several investment categories. The original Golden Visa legislation requires investors to purchase any type of real estate for a minimum of €500,000 or above. Later, the government introduced some lower cost routes from €280,000, plus fees. Projects at this investment threshold must be in a “low population density” area. It is also possible to invest in certain properties at €350,000, providing the project is undergoing renovation and the building is over 30 years old. The legislation changed in 2022. Visit this link to find out more on the various golden visa investment categories.

What family members can I include in my Portuguese Golden Visa Application?

The main investor applying for Portugal’s Golden Visa programme can include:

▪ A spouse or partner

▪ Children under 18 years old

▪ Dependent children over 18 years old, as long as they are unmarried and enrolled in full-time education

▪ Dependent parents of either spouse or partner, over 55 years old. No need to provide evidence of dependency if they are over 65 years old

▪ Siblings under 18 years old of either spouse or partner if legally under their supervision

Can I include children over 18 years old?

Children over the age of 18 years old can be included, however, they must remain dependent for each year until citizenship is achieved. There is no official age limit for dependent children, but we would advise no older than around 22 or 23 years as they need to remain dependent for the five-to-six-year period following. In reality, it can be much harder to prove a 28 year old child is still dependent, unmarried and in full time education, although it is possible.

Do I have to take a Portuguese language test?

For the initial Golden Visa residency application, there is no language test required. The language test is only applicable when applying for Citizenship, so applicants have 5-6 years to prepare for this step. Anyone under the age of 10 years old does not need to take the language test. The language test is an A2 level (conversational level) and most of the test is in a multiple-choice format.

Do I have to pay tax in Portugal?

Unless you reside in Portugal for 183 days of the year or more, you will not be taxed on your worldwide income. As a non-tax resident, you only need to pay tax in Portugal if you earn any income in Portugal, for example, a rental return from your property. If you do choose to reside in Portugal, there is a favourable Non-Habitual Residency (NHR) program. This grants certain tax exemptions for overseas income tax for the first 10 years of residence.

Can I purchase the property through my company?

This is a possibility; however, it will make the process slightly more complex. Investors would need to incorporate their company in Portugal and personally be the sole owner. They will also need to set up a company bank account in Portugal. This can take longer than doing it on an individual basis. When the funds are transferred from a company it is very important to justify why and provide clear evidence of the origin of funds. (such as company dividends).

It is also important to consider that if you have set up your company in Portugal, you will also need to file an annual company tax return in Portugal each year.

Do I get access to free healthcare in Portugal?

As a Portuguese resident, you can gain access to Portugal’s national health service (SNS), providing you are a fiscal resident.

However, as part of the Golden Visa application process, you must provide evidence of a private health insurance policy to be granted the residency visa. Price can vary depending on the individual’s health and any pre-existing conditions. If you are not residing in Portugal full time, as many Golden Visa holders will not be, we would advise continuing with a private healthcare policy.

Can I apply for a Golden Visa in Portugal through a fund investment?

Yes, you can. There is a fund investment route available starting from €500,000. However, it is important to weigh up the pros and cons versus the typical real estate investment route.

In 2020 fund investors made up just 48 of the total 1182 approved for the Golden Visa. The figures are similar for 2021 so far. The low uptake means many funds could end up being undersubscribed and this comes with more risk. Please see this article for a full explanation.

Can unmarried or same-sex couples apply for Portugal's Golden Visa programme?

If you are cohabiting with a long-term partner, sometimes referred to as a common-law partner, it is possible to apply for most of the European Golden Visa programmes under one joint application. In Portugal, unmarried couples who have been residing together for a minimum of 2 years are eligible to apply together, providing they can supply evidence of their relationship. Official documents confirming they share an address, have joint assets or evidence that they have children together would be sufficient to support the case. It is also possible for same-sex couples to apply together under the same application. More info on our website here.

How many applicants have been approved for Portugal's Golden Visa programme?

Since Portugal introduced their Golden Visa programme in 2012, at the time of writing in 2021, over 11,000 main investors have now been approved for Portuguese residency, with over 18,000 family members also being accepted. The total revenue generated by the programme is now over €5.3 Billion.

Is Portugal's Golden Visa programme open to all nationalities?

The Golden Visa programme in Portugal is open to all non-EU Citizens. This now also includes British citizens, following Brexit. There are no non-EU citizens that are prohibited from applying, however, certain nationalities such as Iranian citizens and Russian citizens may find it difficult to open a Portuguese bank account, due to the EU’s banking compliance process. This is not to say it is not possible. If you have any concerns, please contact La Vida’s experts for more advice.

What happens if my Golden Visa application is rejected?

In theory, the only reason an application would be rejected is if an applicant has a criminal record, has been dishonest on the application, or has not fulfilled the minimum investment requirements. It is a document-driven process and La Vida’s advisors, and legal partners will work closely with you throughout the process to compile your file to ensure your application is successfully approved.

What documents are required for the Portugal Golden Visa?

▪ Valid Passport, Schengen Visa and travel documents

▪ Deed/Contract of Purchase of property, or signed Promissory Contract, with payment of deposit, above €280,000 or €350,000

▪ Declaration from a bank in Portugal confirming the transfer of the
funds

▪ Absence of criminal conviction in Portugal and of interdiction to
enter the country

▪ Criminal certificate from country of origin (absence of
conviction of relevant crime)

▪ Absence of notice from the Portuguese Immigration
Authorities or Schengen Services

▪ Declaration from the investor confirming compliance with
the investment requirements

Where do Portugal's Golden Visa applicants come from?

In the early days of the Portugal Golden Visa program China was the dominant source country. Today it is the USA. The growth in the US market has been quite staggering. Over 40% of all investors through La Vida are now from the US. Other popular source countries include Nigeria, Lebanon, India, South Africa, Turkey and since Brexit, the UK.

What investment methods are available for the Portugal Golden Visa?

While real estate investment counts for over 92% of all applications for the Portuguese Golden Visa the government has tried to encourage other routes. They include:

▪ Capital Transfer: Minimum €1.5m

▪ Fund Subscription: Minimum €0.5m

▪ Company creation: With minimum 10 jobs created

▪ Donating a minimum €250,000 to national heritage.

▪ Investing a minimum €500,000 in Research & Development

▪ If you are interested in any of these options, please contact us for further details.

Did Portugal reduce the Golden Visa investment requirement

Yes. On 1st January 2022 the rules changed, and it is now no longer possible to apply for the Golden Visa in Portugal through purchasing a residential property for €500,000. Development projects have to meet geographic location and development rules or be deemed commercial projects in order to qualify. It is critical to ensure the right advice is obtained before embarking on such investment. Read more on the new golden visa rules  La Vida has experience of many applications and projects for the reduced initiative since its introduction. Please contact us for details on our real estate investments.

 

Is the Portugal Golden Visa set to end?

The government are proposing to close the golden visa for future applications. Such proposal is to be debated in the coming weeks and may get amended when the public, business and other interested groups have their say. Around the middle of March 2023 the amended proposal is scheduled to be debated and possibly approved by Parliament. If approved it is likely to take several months minimum before it becomes law. The last golden visa legislation change took over 12 months. In the meantime it is still possible to apply for the Portuguese Golden Visa.