New changes to the Portugal Golden Visa Program to be implemented as of 1st January 2022.
After 10 years of grand success, the Portuguese government is set to change the investment amount for its Golden Visa Program.
This change is being implemented to attract more investment in the fields of science & technology, business and real estate in the remote and less populated areas of Portugal.
Change in conditions for real estate investment in Portugal:
For Portugal’s golden visa there is no change in the investment amount for real estate investment in Portugal. The previous current investment amounts of € 350,000 (for properties more than 30 years old or located in areas of urban renovation) and €500,000 (acquisition of real estate property of any type) will remain unchanged after 1st January 2022, but investors will not be allowed to make investments in Lisbon, Porto, and the costal and resort regions of Portugal.
After 1st January, 2022, investors can make real estate investments only in Azores, Madeira and inland regions of the country. This may result in lower rental income, and also less liquidity for investors, especially when they decide to sell the real estate.
Apart from the above two real estate investment options, there are six other investment options available to investors under the old rules. The investment amount will be increasing for some options as of 1st January, 2022.
Six different types of investments in business and financial products for Portugal Golden Visa:
- Transferring capital (bank deposit) will increase from € 1 million to €1.5 million for Portugal Golden Visa;
- Investment in VC and other funds will increase from € 350,000 to €500,000 for Portugal Golden Visa;
- Investment in scientific research will increase from € 350,000 to €500,000 for Portugal Golden Visa;
- Investment in a new and existing business with the creation of 5 jobs will increase from € 350,000 to €500,000 for Portugal Golden Visa;
- Investment in funds for preservation and restoration of heritage and cultural buildings will remain at €250,000;
- Investment in a business that will create 10 jobs will remain at 10 jobs. There is no minimum investment amount required for this option.
The investor has time until December 2021 to avail of the advantages offered by the old rules and makes an investment. However looking to the complexity of the rules, source of funds requirements and the systematic process to be followed, the time taken to process applications will be somewhat prolonged. Hence it is advisable to start the process for this visa as soon as possible.
During these COVID times, investment in funds has become a more popular option for Portugal Golden Visa than investing in real estate for obtaining the Portuguese Golden visa.
“The rules were implemented in 2017 but it was not until 2019 that the first funds became available to make an investment in compliance with immigration rules and obtain Portugal’s Golden visa,” says Prashant Ajmera, Founder and Immigration lawyer at Ajmera Law Group.
The investment funds are a safer option as these funds are regulated by the Portuguese Securities Market Commission, also known by its initials as “CMVM”. These funds are diversified into real estate located in Lisbon and Porto area.
“The investment is very safe and secure. It also beneficial to the investors as they do not have to concern themselves with the rental and maintenance of the purchased real estate” added Mr. Ajmera.