Yes they are responsible for residence permits but, perhaps importantly, they are not responsible for citizenship applications, that is a separate agency (the civil registry or something?)
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Then courts will get to decide whether a promise by one government agency is binding on another government regarding a matter where there is overlapping nexus of authority (SEF certifies that the conditions for citizenship are met).
Let’s say I check the FDA web site to understand the policy on importing prescription medication to the USA for personal use. I print out the FDA information page and comply with the policy in exacting detail. All of my documentation is nicely presented in a 3 ring binder, sheathed in sheet protectors. Then USCIS intercepts me and says “no we say it’s not allowed period, off to airport prison for you!” I think a judge would cast a skeptical eye on this, and consider that the FDA would be regarded as an authoritative source by any reasonable person.
I think your points about government agencies making promises and guidelines are valid, however, we should look at this in the context of Portuguese law instead of American law. While there might be similarities, the structure of the legal systems are very different.
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Of course, he was just providing an analogy to something he knows.
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Here is my write-up so far. As for what the SEF web-site states. It is all backed up by amendments to the actual ACT, i.e. immigration law. I just need to sit and translate them to include them in this. My constitutional analysis is pulled from my own analysis and then backed up by the various articles I have read and other web-sites I am reading.
Background:
In 2012 the Republic of Portugal through its elected Assembly of the Republic and the President of the Republic promulgated an extensive scheme referred to as ARI - Autorização de Residência para Atividade de Investimento also known as the Golden Visa or Golden Residence Permit in shorthand.
At the time this ARI scheme was put in place, Portugal among other countries had gone through the great recession followed by the sovereign debt crisis that impacted the entire Euro union of countries. Portugal like many other countries needed direct foreign investment and therefore created the following ARI Scheme via extensive amendments to existing Acts of the Portuguese Republic to entice investors and guarantee their rights while going through this process to gain Permanent Residence and/or Citizenship.
This ARI scheme was amended once going into effect on 1/1/2021 in an effort to address what was a perceived, but not proven belief that ARI real estate investment along the densely populated coastal regions was impacting housing.
The ARI scheme was amended, not repealed, to only allow for certain types of real estate investments in the coastal and densely populated areas and all types of real estate investment in interior areas depending on the defined criteria of population density and GDP.
The English version of the requirements as captured on 3 April 2023 from the Serviço de Estrangeiros e Fronteiras (SEF) web-site at conteudo-detalhe (sef.pt): are as follows: (the Portuguese language version is attached as captured on 2 April 2023)
ARI - Residence permit for investment activity
What is required:
The rules governing the granting of Residence Permit for Investment (ARI / Golden Visa), in force from 8 October 2012, enable third country nationals to obtain a temporary residence permit to conduct business activities with visa waiver to enter national territory. The beneficiaries of ARI / Golden Visa are entitled to:
• Residence visa waiver for entering Portugal;
• Living and working in Portugal, on condition that they stay in Portugal for a period of 7 or more days, in the first year, and 14 or more days, in the subsequent years;
• Visa exemption for travelling within the Schengen Area;
• Family reunification;
• Applying for permanent residence (pursuant to the Aliens Act – Act number 23/2007 of 4 July with the current wording). To the citizens holding a residence permit for investment purposes and their family members, complying with the requirements provided in article 80 of the Aliens Act and wish to be granted with a permanent residence permit, a permanent residence permit for investment purposes shall be issued, exempt of the provided in article 85, n.ºs 2, 3 and 4, subparagraph b) of the same diploma (cancellation of the right due to absences from the national territory, see article 65-k of the Regulatory Decree 84/07 of 5/11, as amended). The Permanent Residence Permit for investment purposes may be subject to specific fees of analysis and issuance, to be regulated by amendments to Ordinance 1334-E/2010, of December 31;
• Applying for Portuguese citizenship, by naturalization, provided all other requirements set out by the Nationality Act are fulfilled (Act number 37/81 of 3 October, with the current wording);
Eligibility – Who may apply?
All third country citizens who conduct an investment activity, as an inpidual businessperson or through a company set up in Portugal or in another EU Member State and who, in addition, are stably settled in Portugal, provided these citizens fulfil the quantitative requirements and the time requirements set out by the relevant legislation, may apply for a Residence Permit for Investment, by one of the following routes:
All third country citizens who conduct an investment activity, as an individual businessperson or through a company set up in Portugal or in another EU Member State and who, in addition, are stably settled in Portugal, provided these citizens fulfil the quantitative requirements and the time requirements set out by the relevant legislation, may apply for a Residence Permit for Investment, by one of the following routes:
i. Capital transfer with a value equal to or above 1.5 million Euros;
ii. The creation of, at least, 10 job positions;
iii. The purchase of real estate property with a value equal to or above 500 thousand Euros;
iv. The purchase of real estate property, with construction dating back more than 30 years or located in urban regeneration areas, for refurbishing, for a total value equal to or above 350 thousand Euros;
v. Capital transfer with a value equal to or above 500 thousand Euros for investing in research activities conducted by public or private scientific research institutions involved in the national scientific or technologic system;
vi. Capital transfer with a value equal to or above 250 thousand Euros for investing in artistic output or supporting the arts, for reconstruction or refurbishment of the national heritage, through the local and central authorities, public institutions, public corporate sector, public foundations, private foundations of public interest, networked local authorities, local corporate sector organizations, local associations and public cultural associations, pursuing activities of artistic output, and reconstruction or maintenance of the national heritage;
vii. Capital transfer of the amount of 500 thousand Euros, or higher, for the acquisition of units of investment funds or venture capital fund of funds dedicated to the capitalisation of companies, capital injected under the Portuguese legislation, whose maturity, at the moment of the investment, is, at least, of five years and, at least, 60% of the investments is realized in commercial companies with head office in national territory;
viii. Capital transfer of the amount of 500 thousand Euros, or higher, for constitution of a commercial society with head office in the national territory, combined with the creation of five permanent working jobs, or for the reinforcement of the share capital of a commercial society with head office in national territory, already existing, with the creation or keeping of working jobs, with a minimum of five permanent jobs, and for a minimum period of three years.
Portuguese, EU and EEE nationals are not eligible for the ARI / Golden Visa scheme.
Where may I apply?
Mandatory Online pre-registration is available at http://ari.sef.pt.
For more information, please contact SEF’s Contact Centre, available from 09:00 to 17:30, through the numbers – 217 115 000 (fixed network) or 965 903 700 (mobile network).
What is required to apply?
What is the cost?
Fees - in maintenance
Additional Information
Applicable Law
The Aliens Act - Law n. 23/2007 of 4 July (as subsequently amended)
Regulatory Decree n. 84/2007 of 5 November (as subsequently amended)
Decree n. 305-A/2012, of 4 October
For further information, please consult:
Portuguese Immigration and Border Service [Serviço de Estrangeiros e Fronteiras - SEF]
Ministry for Foreign Affairs [Ministério dos Negócios Estrangeiros - MNE]
Development Agency [Agência para o Investimento e Comércio Externo de Portugal - AICEP]
Also including the specified times for renewals of the temporary residence permits, application for permanent residence and citizenship as follows:
Summary of Legal Requirements for ARI Card Issuance and Renewals
Initial Period|
2 years
Stay Requirements: 14 Days per period
See Article 65c and fn3
Starting point is article 90-A pasted below.
Additional requirements;
Clean Criminal Record.
Maintain Investment
Renewal Periods
2 Years
Stay Requirements: 14 days per period
Additional Requirements:
Clean Criminal Record.
Maintain Investment
Permanent Residency
5 Years
Stay requirement: None specified, but a 7 day stay requirement per year may be inferred. See fn 1.
Citizenship
Stay Requirement: None
See Fn4.
Fn1 Regulatory Decree no. 9/2018 11 September . Pursuant to Article 65-K of this decree, it appears that ARI applicants seeking permanent residence are exempted from paragraph b) of paragraph 2 and in paragraphs 3 and 4 of article 85. These articles address stay requirements for permanent residents.
Fn2. Article 65b
Minimum time requirement for investment activity
The minimum time requirement of five years for the maintenance of the investment activity shall be counted from the date of granting the residence permit.
Fn3. Article 65c
Minimum periods of stay
For the purpose of renewing a residence permit, applicant citizens referred to in Article 90a of Law No 23/2007of 4 July, in their current wording, shall comply with the following minimum periods of residence:
(a) 7 days, followed or interpolated, in the 1st year;
(b) 14 days, followed or interpolated, in subsequent two-year periods.
Without prejudice to any special legal provisions (in this case the renewal deadlines), with the amendment introduced to article 75 of the Aliens Act, by article 192 of Act n.º 75-B/2020 of 31 december – State Budget to 2021 in force since 01/01/2021 and to 2021, the temporary residence permit for investment purposes is valid for two years [and not just one] from the date of issue of the corresponding title.
Fn4.
• Applying for Portuguese citizenship, by naturalization, provided all other requirements set out by the Nationality Act are fulfilled (Act number 37/81 of 3 October, with the current wording);
1 – The Government grants Portuguese nationality, by naturalisation, to foreigners who satisfy each of the following requirements: a) Be of age or emancipated under Portuguese Law; b) Have resided lawfully in Portuguese territory for a minimum of six years; c) Have sufficient knowledge of the Portuguese language; d) Have not been convicted of a crime punishable under Portuguese Law with imprisonment up to a maximum equal to three years or more.
Current Situation:
On February 16, 2023, The Government of Prime Minister Antonio Costa at a Press Conference announced a proposal to address the issues of affordable housing in the country, but especially the larger cities such as Lisbon and Porto. One of the items he addressed was the ARI Scheme stating incorrectly that only 22 ARI investors had been to create jobs. Astonishingly, a group within the Council of Ministers was established in the fall of 2022 by The Government of Prime Minister Costa which was to examine the impact of the ARI program and present a report. Such report has not been forthcoming to date.
However, the real facts were published on blogs by many ARI real estate investors and Mercan Properties, one of the largest ARI investment developers, the number of people employed because of the ARI program is in the 1000’s if not 10,000’s because of commerical real estate investments via companies such as a Mercan Properties. Yet on March 30, Prime Minister Costa stated that no one should get special treatment and that The Government of Prime Miniter Costa would end the ARI scheme effective February 16, 2023.
Analysis:
The Government of Prime Minister Costa has determined that neither he nor his Government is bound by the Constitution of the Republic of Portugal. As many constitutionalists and lawyers have stated, his proposals
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Violate Article 13 of the Constitution of the Republic of Portugal which affirms the principle of equality and consider nationality as a factor that should NOT result in negative discrimination. Prime Minister Costa’s Government’s proposals clearly violate this principle of equality, as a specific group of citizens – foreign citizens and investors in Portugal – are treated discriminatorily based solely on their status. A status which until 1/1/2022 when the ARI scheme was amended were encouraged, welcomed and promoted by 100’s of advisory firms, lawyers, real estate firms and equity investors.
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Violate Article 15 of the Constitution of the Republic, such that the rights system of the Consitution of the Republic of Portugal favors equal treatment between Portuguese and foreign citizens. This implies that the lack of equal treatment under the Constitution couple with the principle of equality will results in claims to the European Court of Human Rights, European Courts of Justice and the UN Human Rights Authorities because of the diversity of nationalities.
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Violates the principle of the protection of citizens’ trust and legitimate expectations derived from the rule of law principle in Article 2 of the Constitution of the Republic of Portugal. Per Article 18 changes to legislation should not be applied retroactively, jeopardizing rights, freedoms, and guarantees, such as the right to private economic initiative. Additionally, such changes should not be unjustified to the extent that they frustrate the legitimate expectations of investors.
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Violates Portuguese Republic’s “duty of good faith” and, since it is true that the law may change, in addition the restriction exists with regard to retroactivity into force. This just clearly demonstrates fom this day forward that ANY law aimed to attract investment can later be revoked with retroactive effect, irreversibly affecting acquired rights without any care for the legitimate interests of those who have invested in the national territory.
If the Government of the Prime Minister, the Assembly of the Republic or the President of the Republic do not act in accordance with the Constitution of the Republic of Portugal, all ARI investors will have not choice but to appeal to administrate courts in which they can request the annulment or nullity of the administrative act which deny an individuals legitimate claim which can then involve recourse to the Constitutional Cort for the above violations of the Constitution of the Republic of Portugal
Also, as recourse, all ARI investors should take action under Article 22 of the Constitution of the Republic of Portugal which allows for the compensation of damages caused. Based on the current action of the Government of Prime Minister Costa which has already obtained international press in Forbes, on Reuters, in the Financial Times of London to name a few, all ARI investors already have a claim that the value of all possible investments is now diminished because of the above carelessness. As stated early such changes are justified to the extent that they frustrate the legitimate expectations of investors to the return on their investment, i.e. permanent residence and then citizenship in the Republic of Portugal and increase in property values over the required period to obtain such rewards, i.e. 8-10 years based on SEF response time.
Finally, the Government of the Prime Minister and the Prime Minister himself is liable for the fraudulent claims made that all ARI investments and applications files in the ARI portal after February 16 will not be adjudicated as and ARI investmen because his and other statements willfully violate article 18 regarding retroactivity of laws. The Prime Minister and many of his Fellow Ministers have made fraudulent statements which will never be true because until whatever proposal is voted into law by the Assembly of the Republic and promulgated by the President of the Republic any change will not take effect. Unknowingly he has frustrated the legitimate expectation of investors who were planning to make an investment but did not because of his purely fraudulent claims.
Solution:
If the Assembly of the Republic as representatives of all Portuguese citizens wish to eliminate the ARI investment scheme and the President of the Republic agrees, then a sunsetting of the ARI scheme should be set with ample time for all applicants to obtain permanent residence or Citizenship or drop out of the ARI program. This will not be a year or two, but rather 10-15 years because of the speed at which the SEF and other authorities work to process the applications, temporary residence permits, renewals and permanent residence permits and citizenship. This should allow sufficient time as of a future date outlined in the promulgated law for all ARI investors to complete the process as outlined above to obtain permanent residence or citizenship.
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I got this from one of the investment companies i was reviewing in the past. I can’t confirm this but is quite promising if true.
"This weekend, we had major news from the government. This news, will accelerate the legislative process, allowing us all to see and clearer end to the program. As of now, these are the key aspects the government has revealed:
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It has been confirmed that there will be no retroactive effects, meaning that present and new applications can be submitted until the new legislation is in force. This ends the so-called rumor “Golden Visa applications after the 16th of February will no longer be valid or considered”.
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Pending applications or future applications will be converted into an Entrepreneurs Residency Permit, with minimum stay requirements of 7 days in the first year and 14 days in subsequent two-year renewal periods. This means that, once the new law comes into force, your golden visa application will be considered as Entrepreneurs Residency Permit, retaining all its original requirement stays.
This important news, further bring two important insights we would like to share with you:
On one hand, one of the most important concerns for our clients has been cleared out: If you apply to the GV before the law changes, your GV will pass on as Entrepreneurs Residency Permit, retaining both its end (A Portuguese passport) and its advantages throughout the process (7 days the first year and 14 days on the subsequent two-year renewal periods). On the other hand, this new development accelerates the conclusion of this process: The legislative process has now lost one of its major obstacles: the possibility of the president vetting it for being unconstitutional. Because of this, we expect to hear definitive news when it comes to deadlines on the next update."
I am in the process of applying along with my spouse in the next few weeks. I have applied for a NIF and the bank account is the next step.
Looking through the previous posts in this forum is somewhat disconcerting as it looks like the process has been extremely arduous for previous applicants. I am starting this topic to see if there are other people that are actively applying in May 2023 so that we can help guide each other during this process.
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Applied 28 April. Not May but might as well be. I invested with Mercan. It’s nice to have other people to share our misery I agree haha. Good luck!
Based on recent news about June 2022 application volume, I imagine people applying today are probably going to see pre-approval in 2-3-4 years :[
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No problem! I had not seen this thread before. Lots of useful information here!
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Can I ask how you picked Mercan? Reading through this community, there seems to be positives and negatives with Mercan.
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Of course, you can ask me anything 
I initially got in touch with Global Citizen Solutions. Lovely people. Picked their brains about all my options. This was back in early 2022. Then slept on the idea. Got in touch with them again earlier this year after November’s announcement. Mercan had already come highly recommended on most of the forums, and with GCS’s seal of approval, I went for it. I trust their judgement and they had absolutely nothing to gain from referring me to Mercan. If anything they lost potential commissions from keeping me as a client. They refunded me my on-boarding fee and oversaw my transition into an investment with Mercan, and my communications with IAS.
I recommend both of them
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Re: I trust their judgement and they had absolutely nothing to gain from referring me to Mercan
I believe I read on this or another forum that most referrals in this space earn a commission of some sort from the developer (Mercan in this case) if they refer you and you make the purchase. I would assume it’s above EUR 1,000 if the referral results in a purchase. Given the agencies probably consult with 20 people and talk to them for at least 30 minutes (if not more including preparation/follow-ups) I would think 1,000 would be the bare minimum for a sustainable business.
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If they do, I believe they fully earned it.
Hold that thought until you see whether or not you get your money back in 10 years 
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No kidding. Being funneled into the ARI program with wishful thinking about timelines, woo!
Hi all, for those applying with or recently applied with Mercan, did they agree to signing a side letter to give a full refund if the government restrictions affect your application? We just got a response from them saying they’re not doing that anymore.
I’m also curious about the buyback guarantee. The clauses in the contract state if they cant do the buyback, they will pay us a monthly fee and then eventually we may have to sell the shares ourselves. But…who will buy back shares in a hotel? Did anyone have any luck revising this language to guarantee the buy back? Thanks in advance!
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I’m curious about this. Did they state why? I also always wondered about why this side letter was even necessary given that they anyway offer a buyback in case you’re not granted the residency permit.
The contract states that they are required to buy you back, which is legally enforceable in Portugal (I’m told it’s a relatively easy process). You’d then essentially be converted into a creditor who even in the case of default would be first in line to get any money coming out of the property. The penalty and option of selling yourself are just in addition to this.
Not individuals at least. Most likely a large institutional investor who’d try to acquire the shares of several investors and gradually take over the entire property. Even with just some ownership stake they could cause a lot of issues for Mercan, hence making it much more desirable for Mercan to buy out investors directly than ever needing to deal with this. Of course, this wouldn’t be at market value, so not an option to rely on if you’re hoping for a full refund.
Not that I’ve seen.
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