How to invest in Portugal and get citizenship – The Ultimate Guide

Posted: - Updated: September 25, 2020

Thinking of investing in Portugal for citizenship but don’t know where to begin? This ultimate guide takes you through everything you need to know about investing in Portugal so that you can obtain residency and/or citizenship in Portugal.

The guide covers:

Why invest in Portugal?

Foreign investment in Portugal is gaining international traction due to Portugal’s open access to key markets, skilled human resources, competitive labor costs, and top infrastructures.

Portugal foreign investment advantages

Portuguese legislation that protects investors
Portuguese legislation that protects investors
Portugal has a liberal foreign investment scheme and offers a favorable legal framework for foreign investors.
Ripe business opportunities
Ripe business opportunities
Portugal’s vivacious tech startup scene ― boosted by accelerator funding and tech incubators ― has attracted entrepreneurs from all over the world.
Skilled and cheap labour force
Skilled and cheap labour force
If looking to start a business venture in Portugal, then the cheap but skilled labour force will ensure you get optimal returns on your investment.
Tax advantages
Tax advantages
Investors can get great tax incentives, alleviating some of the burdens that come with doing business abroad.

Portugal real estate market outlook

In recent years, Portugal has become a preferred market for real estate investors. A 2019 study conducted by PricewaterhouseCoopers identified Lisbon as the most interesting European city for property investment.

As Portugal’s real estate market has expanded, opportunities to make a profit from real estate investments have skyrocketed. With foreign property ownership requirements and mortgage rates being so reasonable, investors buying into the property market are benefitting from significant capital gains.

Portugal also offers an attractive rental market.  In 2019, more than 27 million tourists visited Portugal. This unprecedented growth in the tourism industry has led to a higher demand for rental properties and a surge in rental prices. Investors have caught on. Breaking into property letting has become a viable business model, attracting more and more investors.

Portuguese Residency by Investment

Since its inception in 2012, over 20,000 Golden Visas have been awarded to families from across the world, and over €4 billion in funds have been raised, making it one of the most popular passport by investment programs in the world.

The Portugal Golden Visa scheme grants qualifying investors and their family members the right to live, work, and study in Portugal and permits free movement in Europe’s Schengen Area. 

Opportunities to become a permanent resident or citizen is possible, provided that the qualifying investment is kept for at least five years. 

Interested to know more about the Portugal Golden Visa and how it works? Check out our Portugal Golden Visa Ultimate Guide below.

Portuguese residency by investment benefits

The Portugal Golden Visa Program is a fantastic opportunity for foreign investors to expand their portfolios, obtain a high quality of life, and get EU residency in a short time-frame.

Access to 26 nations in the EU & visa-free travel to 183 nations Access to 26 nations in the EU & visa-free travel to 183 nations
5-years until you qualify for a European passport 5-years until you qualify for a European passport
Option to become a non-habitual resident and pay little to no tax for 10 years Option to become a non-habitual resident and pay little to no tax for 10 years
Short stay requirement ― no need to reside in Portugal during your investment Short stay requirement ― no need to reside in Portugal during your investment
Your dependent children and dependent parents qualify for the same benefits Your dependent children and dependent parents qualify for the same benefits
A second residence in a safe, stable country A second residence in a safe, stable country

Our Portugal Golden Visa consultants are here to help

Our team at Global Citizen Solutions has a 100% success rate with Golden Visa applications. With our extensive knowledge of the Portuguese market and legal system, we can provide you with personalized advice throughout the process, ensuring that you always make the best possible decisions with your investment. Our pricing is competitive and transparent, which means you will always know what to expect.

Get in touch with a member of our team for a free initial consultation.

Portugal Golden Visa tax benefits

The Golden Visa Portugal scheme offers strong tax incentives for investors looking to get residency in Portugal. Investors only get taxed on their worldwide income if they are residing in Portugal for over 183 days in any given year. Despite this, even if you declare yourself to be a registered resident in Portugal, you can benefit from the Non-Habitual Resident scheme and enjoy tax-free privileges for up to ten years.

 

How Portugal visa investment works

To acquire the Portugal visa investment or in other words, the Portugal Golden Visa,  all you need to be is non-EU, EEA, or a Swiss citizen who can make a qualifying investment in Portugal. You can either make the investment independently or through a government-approved legal entity.

Portugal Golden Visa Program investment requirements

Along with making your qualifying investment, you must fulfill some program requirements. 

These include:

  • Maintain the investment for a minimum period of five years
  • Spend a minimum of seven days in Portugal during the first year, then no less than 14 days in each subsequent two-year period.

Best investments in Portugal

When thinking about what the best investments in Portugal, the Portugal Golden Visa offers several attractive investment options. These include: 

Invest €500K or more in a property of your choosing in Portugal Invest €500K or more in a property of your choosing in Portugal
Invest €350k or more in renovations projects. The property must be at least 30 years old and undergoing renovation Invest €350k or more in renovations projects. The property must be at least 30 years old and undergoing renovation
Contribute €350K in investment funds.  Contribute €350K in investment funds. 
Invest €280K in renovations projects in classified low-density areas. Invest €280K in renovations projects in classified low-density areas.

Portugal Golden Visa qualified investment fund

Investing in private equity funds or venture capital funds is a viable way to obtain residency in Portugal. The respective funds are managed by corporate experts who are accredited by Portugal’s regulatory body, the CMVM. An allocated funds manager ensures that the fund investments are managed properly in start-ups or medium-sized projects with strong growth potential. 

For the Portugal Golden Visa qualified investment fund, you can choose from a range of sectors ― including but not limited to ― energy, industry, technology and real estate. 

Investment funds for the golden visa benefits

There are various benefits to choosing investment funds for Portuguese residency. 

These include:

  • Funds are managed by vetted experts that are regularly audited
  • Portuguese residency starting from a €350K investment 
  • Venture capital funds are tax-efficient
  • Investment can be done remotely
  • Some funds offer a minimum return hurdle-rate

Portugal real estate investment 

Buying Portugal real estate to get residency is a popular route many foreign investors take. 

Portugal is viewed as a prime location among foreign investors, with a booming real estate market and high rental yields. Many expats buy properties in Portugal to serve for tourism purposes, a second home, or a retirement destination. Combined with its safe and solid economic status, investors looking for stable medium to long-term gains are highly attracted by Portugal.

Advantages of investing in newly-built property

  • Five-year guarantee by Portuguese developers
  • Energy-efficient
  • Fiscal incentives
  • Easier to sell and rent
  • Modern features
  • Good insulation and equipped with air-con
  • Potential upside in the value of up to 30% from purchase to delivery

Invest in second-hand property

Invest in used property for the Portugal Golden Visa starting from €400,000. The respective property must have been built more than 30 years ago, and is located in an urban rehabilitation area, or low-density area. These types of properties can be found in some up-and-coming neighborhoods of Lisbon.

Advantages of investing in second-hand property

  • More competitive pricing for sqr meter
  • More variety
  • Can be renovated to taste
  • Fiscal incentives
  • Can maintain its quaint and unique characteristics

Buy property and get Portugal EU residency

When considering investment risks, return potential, and market prospects, buying property to get Portugal EU residency is highly recommended. Foreign investors who’ve bought property in Portugal have been rewarded with a Portuguese residency permit, giving investors the right to live, work and study in an EU country and travel freely in Europe’s Schengen area.

If you’re unsure about what it takes to secure property in Portugal, check out our ultimate guide to buying property in Portugal below.

Property Guide

 

Global Citizen Solutions pick: What is the best place to invest in Portugal?

While the best place to invest in Portugal depends on a lot of factors, if you’re looking at investing in Portugal real estate, then consider Porto, Portugal’s second-largest city.

  • Liquidity is on the rise so finding a home is easier than buying property in Lisbon
  • Porto offers competitive advantages in terms of labour costs and cheaper living standards
  • Lower property prices for high returns

How can we help you?

Speak to one of our Portugal Golden Visa consultants today, where we can advise you on the best investment routes to achieve your objectives and set you forth on a path of success.

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Frequently asked questions about investing in Portugal for citizenship

What is the Portugal Golden Visa program?

The Portugal Golden Visa program, also known as the Residence Permit Program is a five-year residency-by investment scheme for non-EU nationals. It.grants qualifying investors and their family members the right to live, work, and study in Portugal and permits free movement in Europe’s Schengen Area.

How to get Portugal citizenship?

To get Portugal citizenship, you must go through the Portugal Golden Visa program and hold your investment for a minimum of five years in the country. Provided that you meet these requirements, you can get a Portuguese passport in five years.

How long does it take to get Portugal citizenship?

To get Portugal citizenship, it takes roughly five years.

How to get Portugal residence by investment?

To get Portugal residence by investment, you must first make a qualifying investment and meet the minimum investment threshold of €280,000. At present, most investors choose to invest in funds or real estate.

Can I buy property to get a EU passport?

No you cannot buy property to get a EU passport in Portugal. You can purchase property from €280,000, depending on what area of Portugal you pick and how new the property in question is. You must then hold this property investment for five years, after which you can apply for a Portuguese passport.

What are the Portugal residency requirements?

One key advantage of the Golden Visa in Portugal is its very low ‘stay requirement’. In order for you to maintain your Golden Visa residency, you will only need to spend seven days in the first year and 14 days in the subsequent years (consecutively or non-consecutively) in Portugal.

What are the Portuguese citizenship benefits?

There are many Portuguese citizenship benefits, including the right to work, live and study anywhere in the EU, as well as the right to access quality healthcare, education, work opportunities, and vote in Portugal.

Can you buy a Portuguese passport?

No, you cannot buy a Portuguese passport but the Portugal Golden Visa program offers you a direct route to European Citizenship after 5 years.

What is the Golden Visa price?

Excluding legal costs, the Golden Visa price starts from €280K.