GOLDEN VISA – THE PROGRAM CONTINUES

The legislative change regarding the qualification of Investments to obtain the Residence Permit trough an Investment Activity – Golden Visa – published in Decree-Law No. 14/2021 of February 12th, will come into force on January 1st, 2022.

This change introduces some alterations to the current regime and will affect applications that are submitted after the date of entry into force of the aforementioned Diploma.

The changes are essentially based on the increase in the amounts of minimum capital investment, as well as the introduction of limitations in the geographical areas allowed for real estate investment for housing purposes, by promoting inland investment and as such encourage urban requalification and the cultural heritage.

Thus, as of January 1, 2022, the main differences will be as follows:

1. Transfer of capital (bank deposit, acquisition of public debt instruments of the Portuguese State, acquisition of securities or other participations) will have a minimum amount of €1,500,000.00;
2. The acquisition of participation units in investment funds or venture capital funds aimed at capitalizing companies, goes from a minimum investment of €350,000.00 to €500,000.00;
3. Real Estate investment in properties intended for services, for tourism purposes, such as tourist aparments, aparthotels and similars with a minimum investment of 500,000.00€;

That said, it is important to emphasize that the minimum investment amount for the acquisition of real estate will not change, maintaining the amounts of € 350,000.00 and € 500,000.00, for rehabilitation or not, respectively, keeping also, the benefit of reducing this minimum investment value by 20% if the property is located in an area of ​​low population density.

One of the most significant changes in the scope of real estate investment is related to properties intended for housing purposes, and its acquisition is only eligible to obtain the “Golden Visa” if they are located in the autonomous regions of Azores and Madeira islands or in certain inland areas of the country.

Nevertheless, properties intended for services, for tourism purposes, such as offices, shops, tourist apartments, aparthotels and similar, in any part of the country remain eligible for investment under the aforementioned terms.

Real estate investment funds have been an alternative to the real estate sector, given that this type of investment allows foreign investors to remain eligible to obtain the Golden Visa, as a way of continuing to invest in assets located on the coastline and metropolitan areas of Portugal, without resorting to direct investment in residential real estate assets.

It should also be noted that all renewal processes or requests for family reunification will be safeguarded, even if requested after January 1, 2022, already under the aforementioned amendments.

All the benefits inherent to obtaining the Golden Visa remain unchanged, namely the extension of the visa to their household (spouse, children, dependent ascendants and official legal partners), as well as the possibility for the holder to apply for Portuguese citizenship after 5 years. We take the opportunity here to highlight the practical success in terms of nationality processes submitted in Portugal to Clients who have obtained the Golden Visa, who have already seen their Portuguese nationality granted.

Considering the changes arising from Decree-Law No. 14/2021, of February 12, it can be said that the Golden Visa continues to be a very appealing regime.

All the information as given by Martinez Echevarria Lawyer Firm