Now is the time to act, before the changes detailed below, in relation to applying for a Portuguese Golden Visa, come into effect on 1st January 2022.
Forthcoming changes to the Portugal Golden Visa are designed to drive investment towards Portugal's low-density population areas, relieving pressure on higher density areas such as Lisbon, Oporto and the Algarve.
Investment levels will also be increasing for each of the Golden Visa routes.
Changes Regarding Real Estate
As from January 2022, investors will be blocked from buying residential properties in high density areas such as Lisbon, Porto, and the Algarve, as well as in coastal areas such as Setubal and the Silver Coast. If you are specifically interested in purchasing a property in one of these areas, now is the time to do so, before the changes come into effect. The restrictions are not applicable to commercial properties.
Other areas of Portugal, however, do offer attractive investment potential, for example; the Douro Valley, Aljezur, Peneda-Gerês, and Madeira.
To meet the new rules, individuals will need to invest a minimum €500,000 in real estate. However, individuals need only invest €350,000 in a property that is at least 30 years old which will be refurbished, or €280,000, if that same property is also located in a low-density area.
Changes to Other Investments
As of 1st January 2022, investment in any one of the non-real estate routes, will be required at the increased levels, as detailed below:
Investment by capital transfer will increase from €1,000,000 to €1,500,000; or
Investment by capital transfer in research activities, will increase from €350,000 to €500,000; or
Investment by capital transfer for the acquisition of units of investment funds or venture capital funds, designated for the capitalisation of companies, will increase from €350,000 to €500,000; or
Investment by capital transfer through the establishment of a commercial company with a head office in Portugal, and the creation of a minimum of five permanent jobs, will increase from €350,000, to €500,000.
Golden Visa Renewals
The renewal of Golden Visa permits, granted prior to 1st January 2022, will not be affected by the changes detailed above.
Acceleration of the Processing Time for Golden Visa Applications
The Portuguese Government has also announced that Golden Visa applications will now be digitalized. All documents are to be submitted digitally, and the issue of the relevant Portuguese Individual Tax Number, will also be managed digitally. This change will help reduce bureaucracy and result in a faster application process.
Summary and Indicated Action
If you are considering applying for a Portuguese Golden Visa, now is the time to act.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Source: mondaq.com / March 3, 2021