New regulations about the Portugal Golden Visa have been implemented recently by the Portuguese government. The changes are about the requirements of real estate and the capital transfers investment. These updates will take effect on 1st January 2022.
Real state updates:
- Investors will not be able to invest in areas with high-density population such as Lisbon, Porto, and the Algarve, as well as coastal towns like Setubal and the Silver Coast.
- In inland territories or in the Autonomous Regions of the Azores and Madeira, only real estate investors will be eligible to acquire the Portugal Golden Visa if the housing properties are worth €280K and up (acquisition) than or equal to €350K (rehabilitation).
Capital transfers changes:
- The requirement of the amount of the capital transfer will increase from 1 million euros to 1.5 million euros.
- The minimum subscription requirement of the Investment Fund will increase from 350,000€ to 500,000€.
- Will increase investment in research from 350,000€ to 500,000€.
- Investment into an existing Portugal-registered business will increase from 350,000€ to 500,000€.
It has to be taken into account that applicants have until the end of 2021 to take advantage of the current Portugal Golden Visa scheme.
The suspended rules of the Golden Visa of Portugal will continue in 2022
Due to the COVID pandemic, the government’s new Portugal Golden Visa rules had been suspended in 2020. They are now scheduled to move forward again. In fact, legislative amendments to Portugal’s Golden Visa program will go into effect in January 2022, preventing investors from buying properties in the areas named above.
These changes of the Portugal Golden Visa are designed to drive investment in low-density locations of the country, relieving pressure from metropolitan areas and encouraging foreign investment in other areas of Portugal.
Portugal Golden Visa new rules: the property sector expected to be affected
Real estate professionals have expressed concern about the changes, as they can hurt the real estate market. Therefore, it was expected that the suspended changes of Portugal Golden Visa would not go ahead.
However, the Golden Visa new rules will help boost low-density areas and balance out the property market.
There are low density areas with high growth potential that offer excellent property locations for Portugal Golden Visa investors and their families. Some examples are Douro Valley, Aljezur and Peneda Gerês. For only €280K, individuals can invest in low-density areas renovation projects and become eligible for the Portugal Golden Visa Program.
Will the Portugal Golden Visa changes impact existing investment in Porto and Lisbon?
You will not be impacted by the Portugal Golden Visa updates if you are in the process of purchasing a property in a high-density town.
However, if you are interested in purchasing a property in Lisbon, Porto or the Algarve, now is the time to do so as changes, because the new rules will come into effect on the 1st of January 2022.
The rest of Golden Visa’s investment routes will not be affected by the updates and will remain available. If you are not particularly interested in investing in real estate, the Portugal investment fund golden visa is a very attractive investment route. You can become a Portuguese resident for a minimum investment of 350,000€.
Portuguese Golden Visa, acquisition process
To apply for the Portuguese Golden Visa, applicants must prepare their documents and submit their residence application. Upon approval and payment of the permit issue fee, the residence certificate will be released with a validity of one year. In order to successfully obtain the permit, applicants must stay in the country for at least 7 days during the first year, and 14 days in the two following years.
Once you have the Portuguese Golden Visa, you will have the option to later apply for Portuguese citizenship, wherein you will be a holder of one of the most valuable passports: the Portuguese passport.