PORTUGAL GOLDEN RESIDENCE PERMIT

Table of Contents

Background and Guide - Portugal Golden Visa Programme
Why Invest in Portugal Business or Property?
Requirements for Portugal Residence Permit (ARI / Golden Visa)
Portugal Private Equity Fund - Features and Benefits
Tax and Fiscal Advantages of Equity Fund
No Property Purchase in Lisbon and Porto after 1 January 2022
New Amendments to the Portugal Golden Visa
Benefits of the Portugal Golden Visa
Step by Step Process - Portugal Golden Visa
Supporting Documents for a Portugal Golden Visa
Contact VisaConnect! - Portugal Golden Residence Permit and Buying Property in Portugal
Office Address and Telephone - VisaConnect Portugal
Useful Links - Portugal Golden Visa

Background and Guide - Portugal Golden Visa Programme

The Portugal Golden Residence Permit (Portugal Residence by Investment Program) is designed to encourage investment from non-EU/EFTA nationals, who are High Net Worth Individuals. In 2023, the Portuguese Golden Residence Visa Programme offers a fast-track to obtaining a residency permit in Portugal for non-EU investors who invest a minimum amount as defined by law, in Portugal Property (Real Estate), Private Equity Funds or in Business.

Since the Portugal Residence by Investment Golden visa program started in 2012, more than 4,200 Portuguese Golden visas have been approved, representing more than €2.5 billion Euros investment in Portugal. The Portugal Golden Residence Permit financial investment requirements have been established to boost economies in less developed areas, as well as established and urban areas of Portugal.

In 2023, contact VisaConnect's specialist Consultants, together with our partner Portugal Lawyers, by telephone or complete the online Form or visit us in our offices in Brisbane, Australia, Singapore, Hong Kong, London, UK and Lisbon, Portugal for advice and assistance with your Portugal Golden Visa to obtain a Residency Permit in Portugal!

Why Invest in Portugal Business or Property, in 2023?

Tram in Lisbon, Portugal - Residence Permit

English Speaking - English is widely spoken in Portugal. Generally, Portuguese people speak fluent English. Studies have highlighted that when English speaking levels are assessed at a global scale, Portugal ranks 15th out of 70 countries.
EU Member Country - Portugal is a Member of the European Union, since 1986, which allows for free movement of people, goods, services, and capital within the internal market. In addition, Portugal has access to the Schengen zone, in Europe. Portugal was one of the first countries to adopt the Euro currency, on 1 January 1999. Also, Portugal enables open door access to Portuguese speaking countries, including Brazil and Angola.
Mild Climate - Portugal enjoys a mild climate all year round, with 220 sunny days in a year and 7.7 daily sunshine hours. Summers are hot and sunny, especially in the south, with an average July temperature in the Algarve of 24°C.
Portugal Ranks 6th in the Global Peace Index - 2022 - Portugal continues to be one of the most peaceful countries in the world in 2022, and has maintained its reputation as being one of the safest. It is ranked in 6th place in the "Global Peace Index 2022", with 1.301 points score.
Lisbon - Capital City - Lisbon has one of the highest rates in quality of life, low crime, good transport links, international schools and health care. Lisbon is in an excellent European location, with 5 airports, and has a spectacular shoreline, captivating scenery of seven hills and rich heritage. It is a walkable city, with a relaxing vibe, and has free museums, including: Gulbenkian and Jardim do Principe Real. In 2019, Lisbon was elected the Best City Break Destination, for the third consecutive year. In 2021, Lisbon was ranked as the 3rd best city out of 420, by InterNations.
Major Companies are Based in Portugal - Microsoft has based their Language Development Centre in Portugal. Also, EDP, the energy provider in Portugal, is the 4th largest company in wind power and the biggest company in the energy business, within the Iberian Peninsula.
Culture and History - Portugal possesses 14 sites registered at UNESCO, including the cultural landscape of Sintra, Porto's historic centre, Luiz I bridge and the Serra do Pilar or Hiéronymites monasteries, and the famous Belém tower.
Beautiful Landscape - Located on the Atlantic Coast, Portugal has some stunning landscapes. Its western coastline has intriguing rock formations that soar out of the water below. Further inland there are mountain ranges such as Serra da Estrela and Serra de So Mamede, plus national parks and nature reserves, beaches on the south coast, and the volcanic islands of Madeira and the Azores
Food and Drink - Portugal has a great selection of fish and seafood right on its doorstep. Portugal has many native wine grapes in its vineyards and is home to the famous fortified wine known as port. You can enjoy some unique gastronomical delicacies in Portugal, such as pastéis de nata (custard tart).
Golf Courses - Living in Portugal is heaven for golfing enthusiasts. It is home to what are often described as the best courses in Europe or even the world! The top-rated courses include Monte Rei, Oitavos Dunes and Oceanico.
Low Cost of Living - Most expats consider the cost of living to be lower in Portugal than in their home countries. This is most evident in terms of grocery shopping, eating in restaurants and rent prices.
Portugal's Property Market - In the first quarter of 2022, The Housing Index in Portugal increased to 182.64 points from 175.96 points in the fourth quarter of 2021. Portugal house prices grew 12.9% YoY in Mar 2022, following an increase of 11.6% YoY in the previous quarter. YoY growth data is updated quarterly, available from Mar 2010 to Mar 2022, with an average growth rate of 6.3%. House price data reached an all-time high of 12.9% in Mar 2022 and a record low of -8.3% in Jun 2012.
Pandemic of 2020 - 2022 effect on Real Estate Prices - In spite of the current pandemic setting, most of the market analysis focused on the evolution of the Real Estate segments point to some positive indications: A. Levels of investment in premium sub-segments have not decreased; B. Levels of demand and new projected premium developments have not diminished; C. The market expects a sound recovery of these sub-segments after the localized impact of the pandemic crisis. According to Cushman & Wakefield, in 2022, the demand from foreigners is expected to continue to rise post-pandemic and international clients will continue to see Portugal as a prime location for investing in residential property.
Housing Loans in Portugal, in 2020 - In the first seven months of 2020, €6.27 billion in new housing loans were granted, with a monthly average of €897 million. This volume is 6% above the same period in 2019, showing that financing activity to the residential sector remained stable during the pandemic period.
Free Healthcare - A World Health Organization (WHO) ranking of global healthcare systems places Portugal’s at number 12. The National Health Service of Portugal (Serviço Nacional de Saúde) is available to citizens as well as both temporary and permanent residents.
Free Education - Excellent Universities - Education in Portugal is free and compulsory until the age of 18, when students complete their year 12. There are 24 International Schools in Portugal that teach their curriculum in English. Most International schools follow International Baccalaureate (IB) curriculum. Tuition fees for bachelor’s and master’s degrees average around €950 to 1,250 per year (~US$1,140-1,500) while fees for doctorate programs are around €2,500 to 3,000 per year (US$2,400 to 3,600). The Universidade NOVA de Lisboa earned a place in the QS ranking of the world’s top 50 universities under 50 years old, the Universidade Católica Portuguesa (UCP) has a world-class Masters in Management.
Increasing Tourism Numbers - In February 2022, tourism rates recorded in Portugal showed significant increases compared to the previous month, indicating that the industry is marking its major comeback after almost two years of limited activity due to the COVID-19 pandemic. According to data published by the Portuguese Statistics Institute (INE), accommodation facilities in the country received 1.2 million guests during the second month of the year, with those spending 2.9 million overnight stays. These rates represent increases of 507 per cent and 527.1 per cent, respectively.
Gross Domestic Product - Gross Domestic Product of Portugal fell 0.2 in the first quarter of 2022 compared to the previous quarter. This rate is 28 -tenths of one percent less than in the previous quarter, when changed 2.6%. The year-on-year change in GDP was 6.9%, 50 -tenths of one percent less than the 11.9% recorded in the first quarter of 2022. The GDP figure in the first quarter of 2022 was $63,926 million, Portugal is number 35 in the ranking of quarterly GDP of the 53 countries monitored by 'Country Economy' reports.
Economic Growth - 2022 and 2023 - Real GDP is projected to grow by 5.4% in 2022 and 1.7% in 2023. Robust public investment, boosted by EU funds, and the return of tourism exports are set to support the recovery.
Tax Exemptions - The tax rule introduced in 2009 allows a flat rate of 20% personal income tax for activities carried out in Portugal and a tax exemption, including pensions, on all foreign income.
Low Cost of Living - The cost of living in Portugal is among the lowest in Western Europe. 9% cheaper than Madrid. 14% cheaper than Brussels. 22% cheaper than Munich.
Technology in Lisbon - In 2018, Lisbon signed a 10-year contract with Web Summit to host the world's largest technology conference (until 2028), with 70,000 participants from 163 countries coming every year. This opened the way for Portugal to become the Silicon Valley of Europe. Also, High speed optic fibre internet is available across Portugal, and wifi is easily available.

Requirements for Portugal Residence Permit for Investment (ARI / Golden Visa)

To be eligible for the Portugal Golden Visa (Portuguese Residency by Investment Programme), the applicant must meet at least one of the categories listed below:

Capital transfer of at least €1 million Euros into Portugal
The creation of at least 10 Job positions in Portugal
The Purchase of Real Estate (Property) in Portugal worth at least €500,000 Euros
The Purchase of Real Estate (Property) in Portuguese Urban Regeneration areas at least 30 years old, for refurbishing, to the value of at least €350,000 Euros
The Purchase of Real Estate (Property) in Portuguese Urban Regeneration areas at least 30 years old, for refurbishing,where the value of this investment may be reduced by 20% to €280,000 Euros provided it is made in sparsely populated areas (less than 100 inhabitants per sq.km., or where the GDP per head is below 75% of the national average).
Investment of at least €350,000 Euros in Scientific research in Portugal
Investment of at least €250,000 Euros in Portuguese Arts, Culture and Heritage
Investment of at least €500,000 Euros in a Portugal Private Equity Fund, as at 1 January 2022, to be eligible for the Portugal Golden visa.
Investment of at least €500,000 in Small and Medium Businesses in Portugal

Portugal Private Equity Fund - Features and Benefits

Portugal Private Equity Fund vs Portugal Residential Property

The main features of a Portugal Private Equity Fund are as follows:

Structure - Type Fundo Capital de Risco | Venture Capital/Private Equity Fund
Regulated by Comissao do Mercado de Valores Mobiliarios (CMVM) - Portuguese Securities Market Commission - Registration Code: 0000
ISIN
Fund Manager - Long history as trusted and experienced professionals in fundraising, deal flow and analysis and execution of investments, in their sectors of specialisation.
Investment Adviser or General Partner
Legal/Tax Adviser
Custodian Bank
Auditor
Fund Launch (Seed Investors)
Subscription Period from date Until date - usually around 15 - 21 months
Liquidation Period Starting - eg. First Quarter 2028
Fund Term - usually 7 - 10 years, with possible extensions of 1 or 2 x 12 months.
Current Fund Size
Fund Size Target - eg. €35 - 60 Million
Minimum Participation - for example: €50,000, €150,000 or full €500,000
Full investment for Golden Visa
Requirement- €352,500
Setup Fee - 3-5%
Fund Management Fees and Expenses - 1% (p.a.)
Performance Fee - 5 - 12% or 20% with a hurdle rate of 3%
Yearly Gross Yield or Fund Expected Return - 6 % - 15 % or Overall return distributed at Redemption
Fund Focus - exclusive focus on Capital Preservation or focus on High Yield
Yearly Expected appreciation - 4 - 8% (Conservative Scenario)

Tax and Fiscal Advantages of Equity Fund

Portugal Investment Fund - Taxation Advantages

The Tax and Fiscal benefits of a Portugal Private Equity Fund are as follows:

1. Witholding Tax - Tax Exempt - Fund distributed Dividends to Non-resident Investors are Tax Exempt - No Witholding Tax.

2. Return of Capital - Tax Exempt - Return of Invested Capital to Investors is Tax Exempt.

3. Fund Capital Gains - Tax Exempt

4. Interest - Tax Exempt - Interests from Funds and Subsidiaries Finance to the Fund are Tax Exempt.

5. Tax Benefits of Investment over Purchase of Property - Purchase of Property requires the following taxes, which are not required for a Private Equity Fund: Municipal tax on transactions, Stamp tax, Municipal tax on Real Estate, Capital Gains tax and Income tax on rents.

Fund Team and Track-Record

The following factors are important considerations in choosing a Fund:

1. Leadership - Leadership Team should demonstrate extensive executive management experience within tier-1 private and public companies in markets such as venture capital, energy, water, banking, telecom’s, consulting and distribution.

2. Experience - 20 - 30 Years - Extensive experience within the venture capital market and key institutions.

3. Funds Managed - >€500 m - Funds managed directly by Fund Manager in previous Comapnies and Funds.

4. Returns of 15 - 20% - Average returns of previous funds under direct management by members of the executive management team.

Property Purchase in Lisbon and Porto Not Allowed after 1 January 2022

The objective of the law amendment of 22 December 2020, approved by Portugal's Council of Ministers is to increase foreign investment across the interior of Portugal, specifically in low-density regions. Previously, the majority of Golden Visa investment has been focussed within the main metropolitan hotspots, namely Lisbon and Porto and coastal regions such as the Algarve.

This new law means that Properties acquired for residential purposes after 1 January 2022 are limited to the Azores, Madeira or any of the interior regions of the country. Therefore, Applicant Investors looking to purchase a second home in the booming Lisbon and Porto residential market or in the coastal areas are no longer considered eligible under the Golden Visa law.

Note that Commercial properties in Lisbon, Porto, and Algarve (offices, stores, hotels) can continue to be considered as eligible investments.

New Amendments to the Portugal Golden Visa - effective from 1 January 2022

Portugal Golden Visa - Processing Timeline

Outlined below are amendments to the Portuguese Golden Visa Program regarding Investment amounts:

1. Capital Transfer of funds to Portugal equal to or above €1.5 million euros - Formerly, that amount was 1 million Euros.

2. The transfer of €500,000 Euros for the acquisition of participation units in investment funds or venture capital - Purpose is for incorporation of a commercial company with registered address in Portugal, together with the creation of five permanent jobs, or to reinforce the share capital of an existing commercial company with registered address in Portugal, with the creation or maintenance of a minimum of five permanent jobs and for a minimum period of 3 years.

3. The transfer of €500,000 Euros for incorporation of a commercial company with registered address in Portugal - This Investment amount was formerley €350,000. Also, the creation of five permanent jobs, or to reinforce the share capital of an existing commercial company with registered address in Portugal, with the creation or maintenance of a minimum of five permanent jobs and for a minimum period of 3 years.

4. The acquisition of Real Estate Properties - These Investment amounts have not been increased, and remain at least, €500,000 or, at least, 350,000 if the construction was completed, at least 30 years ago or is located within an urban rehabilitation area and rehabilitation works will be performed. However, since 1 January 2022, the Golden Visa can only be granted for housing purposes if the real estate asset is located within the Autonomous Regions of Azores or Madeira or in less densely populated areas, listed and identified in specific legislation.

Benefits of the Portugal Golden Visa

Processing Time for Portugal Private Equity Fund

Outlined below are the benefits of obtaining the Portugal Residence Permit (Portugal Golden Visa):

Permanent Free Entry to Portugal and the Schengen Area - Residence visa waiver for entering Portugal. Free Movement in the 26 Schengen Area European countries
Freedom to Live, Work and Study in Portugal
Flexible Residence Requirements - The minimum stay requirements are 7 days in the first year and 14 days during each of the two subsequent 2-year periods, whether or not consecutive, which is 35 days in 5 years.
Become a "Non-Habitual Resident" of Portugal for Tax Purposes - Anyone residing in Portugal for 183 days or more during a single calendar year must pay taxes in Portugal on worldwide and local income. Non-residents - those who reside in Portugal fewer than 183 days per year are not required to pay tax on worldwide income.
Eligible for Permanent Residence - After 5 years of having made the initial investment, the applicant can apply for Portugal Permanent Residence
Acquire Portuguese Citizenship - Option to acquire Portuguese Citizenship and Portugal Passport, by naturalization, as per the Nationality Act, and obtain all rights of an EU National, after 5 years of having made the initial investment.
Dual Citizenship - You do not need to renounce your previous nationality to become a Portuguese citizen.
Portugal Passport is Ranked 6th in the World - The 2023 Q1 Henley Passport Index ranks the Portugal Passport as 6th most powerful passport in the world, and it allows visa free access to 187 countries worldwide.
Family Residency - The Applicant's family members are eligible for Residence, including: the spouse or partner, under-aged or financially dependent children and Parents of Main Applicant or Parents in Law, who are financially dependent.
Fast Processing Time - 3 to 6 months until the Golden Visa application is approved, and the Residence Card is issued for an initial period of 1 year, and renewed for periods of 2 years

Step by Step Process - Portugal Golden Visa

Portugal Investment Fund - Process and Timeline

Outlined below are the Steps to obtain a Portugal Golden visa. Note that the Fees and Values listed below are subject to change:

1. Appoint a Visa Agency - VisaConnect - we provide personal and cusomized assistance to you including: finding a Portuguese Lawyer, assistance with Document preparation, Co-operation with the Portuguese Lawyer to expedite the process, Introduction to Portugal Funds or Properties, Checking and reviewing all Fund and Property Agreements, on your behalf, and assistance with Bank account opening and Golden visa application.

2. Appoint a Portuguese Lawyer - Your trusted Visa Agency will introduce you to experienced Portuguese Lawyers for you to select based on cost, service and personal connection. Sign a Power of Attorney with the Portuguese Lawyers and certify passports.

3. Due Diligence checks

4. Open a local Portuguese bank account and obtain a NIF (Tax ID Number).

5. Client Investor signs Funds document - and Fund Manager approves the Investor. Then the Investor transfers money from his overseas bank account to his new Portuguese bank account and then transfers the funds from his local Portuguese bank account to the Fund's account.

6. Make Fund or Property Investment (€ 500 K) - and retain investment in Portugal for at least 5 years. The Fund Manager and Depository bank issue declarations for the Golden visa application.

7. Gather all required documentation from country of origin - get documents legalized (e.g., with an apostille of the country of origin), translated into Portuguese, less than 90 days before the submission of the online application.

8. Gather required documentation in Portugal - along with proof of investment (Fund Subscription declaration).

9. Submit Application to SEF - Fill out, upload documentation and submit the Golden Visa application for Temporary Residency on the SEF website.

10. Include Family in Application -The main applicant can include their spouse, their children under 18 years old, their dependent adult children who are full-time students up to 26 years old and not married, dependent parents of either spouse, any other dependents (e.g. such as minor siblings) to their application.

11. Pay Application processing fee - Fee of €533.90 for the main applicant (plus €83.30 for each additional family member).

12. Pre-Approval from SEF - Wait until SEF sends a pre-approval- usually within 3 months from date of Golden visa application, and then schedule 1 in-person biometrics appointment (fingerprints, etc.) and bring the original documentation (done for each applicant).

13. Final Approval Payment - After the final approval a payment of €5,336.40 is due for each applicant.

14. Temporary Residency card is issued - valid for 1 year with 7 days mandatory stay. This initiates the Golden Visa 5 years term.

15. Renewal of Residence Permit - this process should be renewed (90 days before the current residence card expires) - 3 additional times, each time valid for 2 years with 7 days mandatory stay per year (or 14 days combined).

16. Renewal re-Processing Fees - during the renewal process, all the applicants will pay a re-processing fee of €533.90 for the main applicant (plus €83.30 for each additional family member), must redo their biometrics, provide up-to-date criminal records and pay an approval fee of €2,668.20 for each applicant.

17. Apply for Permanent Residency or Citizenship - after the 5th year, the applicant should do a 3rd Temporary Residency renewal and in tangent apply either for Permanent Residency or Passport/Citizenship (otherwise they may continue renewing the Temporary Residency every 2 years.

Supporting Documents for a Portugal Golden Visa

Lisbon, Portugal - Golden Residence Permit

Outlined below are the supporting documents that must be provided to the Portuguese Immigration and Borders Service (Servico De Estrangeiros E Fronteiras - SEF) for the Golden Residence Permit:

1. Passports - of all applicants, certified copies.

2. NIF and Bank Account details

3. Portugal Visitor or Business Visa - evidence of legal entry into Portugal, such as a Schengen visa.

4. Health Insurance - Minimum coverage of at least 30,000 EUR. It should cover all member states of the Schengen Area and cover any expenses which might arise in connection with repatriation for medical reasons, urgent health attention and/or emergency hospital treatment or death. Coverage should be for the length of the Residency duration.

5. Criminal Record Certificate - All applicants over 16 years of age. Issued from your Country of Residence, within the last 3 months, before applying. Applicants must have a clean criminal record - they should not have any criminal records in any country that they have previously resided in. Complete form to authorize SEF to retrieve Portuguese Criminal records.

6. Evidence of Dependent Children - evidence may include a University letter and confirmation of payment of tuition fees.

7. Receipt of payment of Visa Fees - payment of the Portuguese Golden visa application fees.

8. Documents showing a good standing - with the Portuguese Tax and Customs Authority and Social Security.

9. Evidence of having made the Investment in Portugal - Bank statement for financial investment, employment contracts for job creation or deeds of purchase for real estate investment or Fund Subscription Declaration.

Contact VisaConnect! - Portugal Golden Residence Permit and Buying Property in Portugal

For information about the Portugal Property (Real Estate) and how our Immigration Consultants and Portugal Lawyers can assist you, click on the following VisaConnect website pages:

Office Address and Telephone - VisaConnect Portugal

Contact VisaConnect's Consultants at our Lisbon, Portugal office below:

VisaConnect Portugal
Avenida do Atlântico, Nº 16, escritório 5.07,
1990-019, Parque das Nações
Lisboa
Portugal

Telephone: (+351) 304 501 939