Portugal Golden Visa real estate investment | After the 2022 changes
Initiated in October 2012, Portugal’s Residence Permit Program — also known as the Portugal Golden Visa (ARI) — is one of the most popular visa programs in the world. The Portugal Golden Visa program enables non-EU individuals to get a five-year residency by making a qualifying investment into the country, and, following this, they can apply for Portuguese citizenship after five years, provided they meet all the requirements set out by the Portuguese government. Many expats and investors from every corner of the world are flocking to Portugal either to settle with their families or to invest and benefit from the Golden Visa’s available options. If you’re considering the Portugal Golden Visa though making a real estate investment, and you’re interested to know all about the new rules applied in 2022, this article will provide you with information on the following:- What are the latest changes to the Portugal Golden Visa program?
- Detailed information about the eligible real estate investment options
- What is the current situation for investment in big areas like Lisbon, Porto, and the Algarve?
- A general brief about what you should consider regarding the Portugal Golden Visa
- How can Global Citizen Solutions help you speed up the process?
Your guide to Portugal Golden Visa through real estate acquisition
Portugal, with its amazing climate, has constantly been recognized as a favorite and attractive destination for expats and investors from all around the world in recent years. Regarding the country’s residency-by-investment scheme, the Portugal Golden Visa is one of the fastest and most convenient Golden Visa programs in Europe.
There are various options for obtaining the Portugal Golden Visa, and the real estate investment pathway is the most common among investors. So, we will delve into more details about the Portugal Golden Visa by real estate investment in this article. Although you can also check our Portugal Golden Visa: A complete step-by-step guide 2022 and get more detailed information about the rest of the available options for you to get the Portugal Golden Visa.
For those who are considering the Portugal Golden Visa for real estate investment, you should know that the Portuguese government applied some Portugal Golden Visa changes, updates, and new rules on the 1st of January 2022. According to the new rules you can still apply for the Portugal Golden Visa while investing in real estate, but with new conditions. It’s alright, don’t get confused, this will be explained in more detail in the coming sectors.
Portugal Golden Visa changes at a glance
To draw you a broader picture of the new changes made by the Portuguese government regarding the Portugal Golden Visa scheme, you should be aware of the two major points that were changed. They are as follows:
1- Real estate investment:
New conditions for the residential real estate options, to decrease pressure on the major areas such as Lisbon, Porto, and the Algarve.
2- Other investment options:
Investment amounts for capital transfers, cultural investments, and fund subscriptions have been raised:
- The capital transfer option has increased from €1 million to €1.5 million.
- The investment fund option has increased from €350,000 to €500,000.
- Investment in scientific research has increased from €350,000 to €500,000.
- Investment into an existing Portugal-registered business has increased from €350,000 to €500,000.
- Arts donation of €250,000 stays the same.
It takes a little more time to get to grips with the first change, as you need to be aware of the specific areas that still qualify, while the second change provides you with a specific number.
The Portuguese authorities have changed the real estate investment routes to Portuguese residency, creating a classification system of what areas of Portugal qualify for property investment. These Portuguese areas are classified as “low-density” and “high-density” areas, as well as “interior” and “non-interior” regions.
It’s very simple to explain, in “interior areas” you’re free to make either residential or non-residential property investments. However, in “non-interior” you can only invest in non-residential properties, such as commercial properties, offices, or hotels.
The following article, low-density areas in Portugal, should also be useful for you to understand more about this topic.
Eligible real estate investment options for the Portugal Golden Visa
To unpack what we just mentioned above, let’s divide the real estate investment available options for Portugal Golden Visa into two sectors as follows:
Residential real estate
Investment in residential real estate is still available, but limited only to designated interior areas in Portugal as mentioned above, and you should find a property that costs €500,000.
There is a possibility of investing in a property that costs €350,000, only if it’s a part of an urban rehabilitation project. If this residential property is in a designated “low density” area, you’re also eligible for a 20% discount on the minimum investment threshold. Buying real estate in Portugal can be a little bit of a long process, and it’s good to be up to speed on how to buy a property in Portugal to organize your thoughts.
Commercial real estate
This is the much more favorable option for investors now, with which you can apply for the Portugal Golden Visa by investing in real estate properties that are not residential. You can buy commercial real estate anywhere in Portugal, as long as it is worth at least €500,000.
There is also a possibility here to invest in commercial real estate that costs €350,000 as part of an urban rehabilitation project. If this commercial property you’re investing in is in a designated “low density” area, you’re also eligible for a 20% discount on the minimum investment threshold.
Both commercial and residential real estate
It is worth mentioning that investing in both residential and commercial real estate in Madeira Islands or the Azores will qualify you for a Portugal Golden Visa as well, and the investment amount must be €500,000. If the property you’re buying is a part of a rehabilitation project, the minimum investment amount drops to €350,000, and no discount is available as these islands aren’t included in Portugal’s low-density areas.
Real estate investment in Lisbon, Porto, and the Algarve
The Portuguese government decided to put some restrictions on residential real estate investment in these major cities: Lisbon, Porto, and the Algarve, as well as many other hotspot locations in the country. This was mainly applied to diversify the investment portfolio across Portugal, instead of focusing only on the main cities.
However, you can still buy a commercial property and apply for the Portuguese Golden Visa. The “commercial real estate” option can include hotels, offices, shops, restaurants, cafes, and licensed apartments for vacation rentals. These categories of commercial real estate have been very popular among international investors, and the good thing is that the new changes don’t affect this type of investment. If you’re not interested in commercial real estate investment, and you still want to buy residential real estate in popular spots that qualify for a Golden Visa at the same time, this is still possible.
Although the “most famous” places have been taken away from the equation, there are many locations where you can find your dream home. Aljezur, a coastal village in the Algarve, is a good example of this. It’s an ideal place where you can be away from the crowds but you’ll be a one-hour drive away from Faro, the region’s capital. Sagres is another spot that is available if you’re looking for an eligible area of the Algarve.
The Douro Valley, which is easily reachable from Porto, is another eligible area where you can buy a house and apply for a Golden Visa. Thanks to the growing eco-tourism, real estate in and around the Douro Valley is becoming very popular.
One of the major points you should also consider while deciding where to buy your property is how to buy it. That’s why there are many options for mortgages in Portugal, and the country facilitates most of the process to help through the process.
Global Citizen Solutions: Who we are and how we can help you
At Global Citizen Solutions, we have a dedicated team of professionals with years of experience helping individual investors and their families from different nationalities obtain the Portugal Golden Visa.
With offices in Portugal, the United Kingdom, Hong Kong, and Brazil, we reach a 100% success rate when it comes to Golden Visa applications, we can ensure that you find various options tailored to your needs and requirements and be your loyal consultants throughout the process.
You should also know that our real estate division located in Portugal — Goldcrest — works as an independent buying agent to help you find and acquire the best property investment suited to your needs. Goldcrest leverages local connections to ensure correct property reviews have been conducted, which is a key requisite for buyers unfamiliar with the Portuguese property market.
Get in contact
You can contact us through our social media channels, or drop us a message on the website by leaving your information and we will contact you and help you avoid the difficulties that befall many Portuguese Golden Visa investors.
Key takeaways on Portugal Golden Visa real estate investment
- Real estate investment in Portugal is still available, but with some new restrictions on residential properties.
- Yes, you can’t invest in a residential property in Lisbon, Porto, or the Algarve anymore as part of the Golden Visa program. Still, there are other undiscovered gems around the country that qualify for the Portugal Golden Visa.
- Investing in commercial real estate is still available and there are no location restrictions.
- There are some opportunities to get discounts on the properties you’re investing in if they are in urban rehabilitation areas or they need renovations.
Conclusion
Getting the Portugal Golden Visa is not impossible, and you should always check the new rules and changes before deciding to buy a property. In the end, you will definitely find out that it’s worth it, and that it is your fastest way to get the Permanent Residency and, if you so choose, obtain a Portuguese passport after five years.
You can always ask us at Global Citizen Solutions for help, and, if you’re considering the Portugal Golden Visa, you will find many useful resources on our website that will simplify all the information you need to know.
Why choose Global Citizen Solutions for your Portugal Golden Visa?
- Global approach by local experts: A team of experienced local case executives, immigration lawyers, and investment specialists based in Portugal.
- Independent service: We are not a marketing agency for any projects. You will access all eligible routes for the Golden Visa so you can decide on the best option, and your investment will benefit from the legal due diligence services of a reputable Portuguese Law Firm.
- 100% approval rate: We have the unique distinction of never having had a Golden Visa case rejected and have helped hundreds of clients from more than 35 countries.
- All-encompassing solution: Our dedicated onboarding and immigration teams will assist you throughout the process and beyond with a single channel of communication.
- Transparency: Our fees are clear and detailed, covering the entire process with no hidden costs.
- Privacy: Your personal data is stored within a GDPR-compliant database on a secure SSL-encrypted server.
Frequently asked questions about Golden Visa Portugal real estate investment:
What is the minimum investment for a Golden visa in Portugal?
If you’re into Art, then you can benefit from the minimum investment for a Golden Visa in Portugal with an art donation of €250,000.
In case you’re considering the real estate investment, then the minimum investment for the Portugal Golden Visa is 280,000 with a 20% discount. This amount is applicable only if you’re investing in either a residential property located in a designated “low density” area or a commercial property. Both of the options must be parts of an urban rehabilitation property or need renovations.
How much do you need to invest in Portugal to get residency?
There are various available options for investing in Portugal and obtaining the Golden Visa:
- The real estate option must cost €500,000, and it can go down to €280,000 only if you are investing in an urban rehabilitation property with a low-density discount.
- The capital transfer option costs €1.5 million.
- The investment fund option has increased from €350,000 to €500,000.
- Investment in scientific research needs an investment of €500,000.
- Investment into an existing Portugal-registered business with €500,000.
- Arts donation of €250,000.
Can you use a mortgage for Golden Visa Portugal?
As a foreigner or non-resident, if you are looking to buy property in Portugal and want to use a mortgage to finance the purchase, now is a good time because the banks are lending again thanks to the economic recovery and the solid real estate market. Check out this article to know more about mortgages in Portugal, the documentation required, and the criteria you need to meet to be able to get financing for a property purchase in Portugal.
Can you get residency in Portugal if you buy a property?
Of course, you can get the Portugal Golden Visa by real estate investment. You should know that you’re free to make either residential or non-residential property investments in “interior areas”. However, in “non-interior” areas you can only invest in non-residential properties, such as commercial properties, offices, or hotels. This article should also be useful for you to understand more about the low-density areas in Portugal.