What is the Golden Visa?

The Golden Visa is a Citizenship By Investment program that allows non-EU nationals to obtain Portuguese residency and citizenship through various investment channels. Those who hold a Portuguese Golden Visa are granted the freedom to live, work, and study in Portugal and throughout Europe as well. After five years, applicants are also eligible to apply for Portuguese citizenship.

The Golden Visa was introduced in Portugal in 2012 and has been extremely popular with applicants from all over the world. In just over a decade, Golden Visas in Portugal have been granted to approximately 13,000 applicants and more than 20,000 family members while the total value invested exceeds €7.3 billion.

Eligibility and Investment Options

To qualify for the Golden Visa, applicants must demonstrate that they have made an eligible investment. The investment options include:

• Creating a minimum of 10 jobs in Portugal.

• Investing a minimum of €500,000 in research activities at public or private research institutions within Portugal’s scientific and technological framework.

• Investing a minimum of €250,000 in the arts or in the preservation of Portugal's cultural heritage.

• Investing a minimum of €500,000 in shares of investment funds or venture capital geared towards Portuguese companies.

• Investing a minimum of €500,000 in setting up a new business in Portugal that creates at least five permanent jobs, or in expanding an existing business that results in the creation or maintenance of jobs.

Application Process

Initial Application

The first step involves submitting an application through the ARI Portal. This requires creating a profile and attaching all necessary documents, such as a valid criminal record certificate and proof of investment. This phase may take 1.5 to 2 years for pre-approval.

Family members of the main applicant can also apply at this stage. This includes the spouse, dependent children, and other direct relatives under certain conditions.

A fee of €580.31 is applicable at this stage.

Residence Permit Application

Upon pre-approval, the applicant must schedule a visit to submit original documents and for biometric data collection. This phase concludes with the approval of the residence permit, which can take an additional six months to one year.

A fee of €5798.58 is required at this stage.

Issuance of the Residence Permit

The residence permit card is issued within approximately 90 business days after the fee payment. Holders must comply with investment maintenance and minimum stay requirements: 7 days in the first year and 14 days in subsequent two-year periods.

Renewal

The residence card, initially valid for two years, can be renewed for further two-year periods, with a renewal fee of €2899.34.

Benefits

The Golden Visa offers several advantages, including:

• Freedom to travel within the Schengen Area for up to 90 days as a tourist without a visa.

• Access to the Portuguese National Health System, educational system, and legal system.

• Eligibility for Portuguese citizenship after five years of legal residence.

• Opportunity to obtain a permanent residence permit after five years.

This comprehensive program is structured to attract investment and offer significant benefits, including the potential for residency and citizenship in Portugal to investors and their families.

What is a Golden Visa Fund?

In November 2018, the Portuguese Government amended the Golden Visa legislation to allow applicants to invest via a new route – the Golden Visa Investment and Venture Capital Funds.

In order to qualify, the investment fund or venture capital fund must be registered in Portugal and have at least 60% of its capital invested in Portuguese-registered companies. Golden Visa Funds invest into a variety of sectors including growth businesses, stocks & bonds, renewable energy, technology, agriculture, and other start up ventures. Some funds choose to specialise whilst others tend to diversify. It is important to carefully review the characteristics of each Golden Visa Fund and decide which one you feel most comfortable with.

What are the benefits of the Golden Visa Funds?

You’re probably curious about the benefits of investment into a Golden Visa investment fund so we’ve laid out the most significant ones below:

1. Faster process: Subscribing to a Golden Visa Fund in Portugal is typically simpler and more efficient than sourcing and acquiring real estate

2. Tax efficiencies: Taxes on dividends and capital gains can be reduced or even exempt depending on your tax structure and that of the fund itself

3. Qualified managers: These Golden Visa Funds are managed by experts in their fields so there is an understanding that your investment will be in safe hands

4. Carefully regulated: The Portuguese Securities Markets Commission (CMVM), Bank of Portugal and the tax authorities all have a role in regulating the funds to make sure they are in compliance with strict rules and are being managed properly.

Who can invest in a Golden Visa Fund?

The official government decree states that a Golden Visa Fund applicant is eligible to apply via a...

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 capitalization 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 are realized in commercial companies with head office in national territory.

In certain cases, the funds may demand additional information which would require the applicant to:

• Be a ‘qualified investor’ which usually relates to total wealth and a knowledge of financial instruments and investment products

• Prove the source of funds

How to choose the right Golden Visa Fund for you?

It is important to review and compare the various Golden Visa Investment Funds in order to understand how they work and decide which of them may be best suited to your preferred investment strategy and risk profile.

1 Sector

• A fund's chosen investment sector should play a key role in your investment decision.

• Golden Visa Funds are permitted to invest across a range of sectors and the variety of funds is increasing as the overall ecosystem becomes more mature.

• As of October 2023, Golden Visa Funds can no longer invest in traditional real estate but fortunately, there is a selection of top funds exploring opportunities in agriculture, biotech, eco-tourism, food retail, growth businesses, and venture capital.

• Impact investing or ESG investing is starting to play a bigger role in Golden Visa Funds' investment principles and strategies.

• Golden Visa investors should consider which sectors they feel most comfortable with and think about whether environmental and social investment principles form part of their investment decision.

  2 Risk Profile

  It is vital for Golden Visa investors to align their appetite for risk with the corresponding risk profiles of each of the Golden Visa Funds. We use three labels:

  • Conservative - The least risky profile. These are usually yield-generating funds (e.g. logistics centres & agriculture) which typically have a lower returns and lower upside potential. Conservative funds appeal to Golden Visa investors focused on capital preservation rather than profits.

  • Moderate - Medium-risk. Most funds fall into this category as they try to balance medium returns via development projects & growth-business investments. Moderate funds appeal to Golden Visa investors who want to generate healthy returns on their investment.

  • Ambitious - The most risky profile with the highest upside potential. Usually reserved for pure venture capital funds that are focused on startups & new technologies. Ambitious funds make educated bets on pioneering businesses with big breakout potential & they appeal to Golden Visa investors who are comfortable risking their capital for higher returns.

  Note: Funds with the same risk profile may not operate in exactly the same way so it's important to investigate their strategies closely. Some Golden Visa Funds consider themselves to work across two risk profiles - e.g. Conservative/Moderate or Moderate/Ambitious

  3 Diversification

  • Golden Visa investors are permitted to spread their €500,000 investment across multiple funds but you may also find the diversification you need within a single fund that has made diversification a core element of their investment strategy.

  • Diversifying your Golden Visa investment is an important consideration because it allows you to blend sectors, risk profiles, and, in some cases, different geographical markets.

  • Keep in mind that investing in multiple Golden Visa Funds will require more paperwork and could slow down your application process. Most Golden Visa applicants limit their investments to just one or two funds.

Can Golden Visa holders travel freely within the European Union?

Yes, Golden Visa holders in Portugal enjoy the freedom of movement within the Schengen Area. Portugal is a member of the Schengen Zone, which comprises 27 European countries without internal borders.

Portal Golden Visa holders can travel freely within 27 European countries for business, tourism, or other purposes without the need for additional visas. This flexibility is a significant advantage for investors and their families, enhancing both business and leisure opportunities across the Schengen Zone.

What are the key eligibility criteria for the Portugal Golden Visa program?

To be eligible for Portugal’s Golden Visa program, applicants must meet the following criteria:

Investment requirement: Applicants must choose an eligible investment option and meet the minimum investment threshold. This can include real estate, capital transfer, job creation, or cultural heritage projects.
Clean criminal record: Applicants must have a clean criminal record both in their home country and in Portugal.
Good health: Applicants must demonstrate good overall health, often requiring a medical examination as part of the application process.

Meeting these eligibility criteria is crucial for a successful Golden Visa application. Engaging legal representation with expertise in immigration law can help navigate the complexities of the application process and ensure compliance with all requirements.