The changes regarding the Portugal Golden Visa program that will redraw the legal regime outlines have now been published.
Contrary to the government’s earlier dates, we see that all the program changes will only come into force on January 1st of 2022. This is a respite for the investors and providers, and gives them ample time to reorganize their projects and timings.
The changes made in the Portugal Golden Visa program are very surgical and mainly aim to redirect investment to inland areas, encourage urban renewal and cultural heritage, and job creation.
What are the changes in the Portugal Golden Visa program?
- The changes maintain the eight investment options already available, through an occasional update of the minimum investment amounts:
- For the simple transfer of capital (bank deposit, acquisition of public debt instruments of the Portuguese State, accession of securities or other equity investments), the minimum value is updated from €1,000,00.00 to €1,500,00.00, as of 2022;
- The program requires creation of 10 jobs;
- Acquisition of any kind of real estate for €500,000.00;
- In an overall amount equal to or greater than €350,000.00, acquisition of real estate, which was constructed at least 30 years ago or is located in an area of urban rehabilitation and the execution of rehabilitation works of the acquired real estate;
- Increase in the minimum investment of €350,000.00 to €500,000.00 as of 2022 for transferring of capital applied in research activities developed by institutions integrated in the national scientific and technological system;
- Transfer of capital in the amount equal to or greater than €250,000.00, which is applied in investment or support of artistic production, recovery or maintenance of national cultural heritage;
- Acquisition of participation units in investment funds or venture capital funds focused on the capitalization of companies, increases the minimum investment from €350,000.00 to €500,000.00, as of 2022, thus raising the investment requirement in one of the most wanted options by investors in 2020; and
- Increase from a minimum investment of €350,000.00 to €500,000.00 from 2022 for transferring capital for incorporation of a national commercial company, with the creation of 5 permanent jobs, or increasing the share capital of an existing national commercial company, with creation or maintenance of 5 positions;
- The minimum value of an investment in real estate acquisition has not changed and remains to be €350,000.00 and €500,000.00, respectively.
The introduction of a significant change in the scope of real estate properties determines that acquisition of concerned real estate intended for housing purposes is possible under the Portugal Golden Visa program if it is located in Azores and Madeira islands or certain inland areas of the country.
How can you benefit?
This small window would require you to consider planning. Therefore, if you are looking for the fund route and residential route, you should act now! Further, if you are interested in the real estate properties in Porto and Lisbon, you must start planning your investment plans along with specialists to make sure you can benefit from the respective changes.
It is important to note that under the current regime, the residence applications requested until December 31st, 2021 are safeguarded. Therefore, the investors will benefit from current laws – inexistence of geographical limits or increases in the minimum investment amounts.
It seems like 2021 will be the year of Portugal Golden Visas. With a significant increase in applications from nationals of the United States of América, South Africa, India, Vietnam, United Kingdom, the trend of growing interest will only likely continue.
Despite the changes announced, the Portuguese Golden Visa program is the gateway to the country’s security and quality of life. It also gives the investors the opportunity to benefit from the most favourable tax regime for non-habitual residents (NHR) and access to one of the strongest passports worldwide and consequent European citizenship.
Acquest Advisors is an Investment Immigration Advisory specialising in Citizenship and Permanent Residency through Investment Immigration programs run by governments esp. America, Canada & Europe.