Golden Visas end this year in Lisbon and Porto

This comes as negotiations have started for next year’s budget.

Of course, just because someone in the government says that something will happen, it doesn’t mean it actually will. However, if you’re looking to get a Golden Visa in Portugal by investing in real estate, I’d recommend that you hurry up!

Here’s an article in Portuguese with more details (just use Google Translate):

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Wouldn’t it make more sense to give more time before changes take effect since due to the pandemic, from March 2020, till the present and perhaps for unforeseen time in future, a substantial number of applicants/ investors will not be able to visit Portugal and get the process started ? And some (like me) are still waiting for their SEF confirmation after submission of initial application.

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It’s not at all clear that it “will end this year” like this headline reads. The specifics of the regulation are not yet known, and this might just be part of some political play needed to get support for the next budget. Either way I’d be surprised if they would exclude those who already completed a real estate purchase and have submitted the initial SEF application, those investors would likely be grandfathered in.

That’s true. But one thing I say to all my clients is: Portugal good sense, specially, its government is somewhat different of the rest of the world.

As reported above if exclusion are implemented it applies primarily only to two cities. ( Lisbon and Porto). But from my personal experience these investors are not looking to reside there for long periods, and program itself is designed in such a way that requires them limited days in country each year. Bottom line is if someone has the financial capacity to go for this program they are generally not looking for long periods of stay so interior / country side locations are perfect for them. May be everyone may not :+1: (agree) with me.
But getting a passport is :key: and that is still possible :thinking:
:innocent:

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Does anyone have any updates on this? I have all but given up on finding 3 funds that are worthy of investment.

no news is good news?

But getting a passport is :key: and that is still possible :thinking:

Are you aware that citizenship, and thus a passport, is not automatic with the Golden Visa? And that one of the requirements is to have been a resident for 5 years?

By today 221220 resolution of the Council of Minister, the changes to Golden Visa will advance, gradually determining the decrease in their application in the regions of Lisbon, Porto or Algarve. This resolution creates a transitional regime that will come into force on July 1, 2021 and will operate until 2022, in which “the value of the planned investments is successively increased and the possibility of its application to metropolitan areas will be reduced”. Only Intermunicipal Communities (CIM) of the Interior and Autonomous Regions will become eligible. As a result, the allocation of golden visas will no longer “apply to coastal and metropolitan regions, safeguarding the possibility of renewing residence permits already granted”. No changes were announced for the remaining formats to obtain a Golden Visa, thus assuming that they will not be targeted under this new regime. The final wording of the amendment to the law has not yet been released.

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Hi,

For the Portugal GV program, you can apply for citizenship after 5 years of your temporary residency. But you DO NOT need to live in Portugal, the requirements is only 14 days every 2 years.

Portugal government had already announced the end of property investment channel for Golden Visa in coastal areas and metropolitan cities such as Lisbon & Porto. New regulation will be effective by July 1st, 2021. There will be a transition period between July 1st 2021 to end of 2022, where the investment threshold for these cities will gradually increase.

There are different routes you can take before and after the new changes come into effect. We have outlined the 4 main strategies here.

  1. Invest in target cities/ regions before the effective date of July 1st, 2021

Pros
-Able to make the investment that you have initially targeted

Cons
-Need to take actions immediately to catch the timeline for the property purchase, documents gathering and so on

Remarks
The whole process of property purchase to GV online submission can be done within 1 - 2 months. However, It is crucial to have documents on hand and have a team ready to support you on every stage (eg. lawyer, real estate agents, translators, etc). Stay tuned for another post about the steps and processes you need to take to catch the timeline!

  1. Invest in venture capital funds (lowest entry 350K)

Pros
-Not affected by the regulatory changes
-Can go ahead with your own timeline
-There are funds focusing on the real estate market
-Less transactional cost
-Not subject to tax if you are non tax resident

Cons
-Funds and real estate investment are two different type of asset class. Some investors may not feel comfortable with investing in financial assets or may want to focus on real estate asset for asset allocation purposes

Remarks
Investment through funds has always been the alternative for GV, with less hassles and less cost. There are fund options focusing on different industries. Expected returns ranges from 5% - 15% per year on average.

  1. Invest in low density areas (lowest entry 280K)

Pros
-Not affected by the regulatory changes
-Can go ahead with your own timeline
-Lower entry threshold of 280K

Cons
-Not as many options at the moment for total rehabilitation projects, but it is anticipated that there will be more projects coming out with the new regulatory changes
-May not be easy to find tenants or property management company for rental if the property is too remote

Remarks
It would be a good choice if you would like to live in the country side as your main or second resident.

If for investment purpose, we suggest to choose refurbish developments, preferably with rental options and/ or guarantee rent for easier management of your property.

  1. Invest in target cities/ regions with the new changes and before the end of 2022

Pros
-Have more time to choose the property and prepare for the whole application process

Cons
-Still not clear what the new investment threshold will be after July 1st
-More cash lay out

Remarks
This may be a good strategy if you have the cash and wish to buy a larger property, a property in a more luxury area or several properties. There are plenty of options. For example, properties of 3 bedrooms+ in luxury areas such as Cascais, Estoril and in certain areas of Lisbon, Porto and Algarve. These type of properties are very popular with or without GV purpose to local and expat market.

Five years of temporary residence with the GV means 5 years as a resident. Being a resident is independent of how long you need to live in Portugal during the permit’s valid period.