Portugal Golden Visa Changes 2022
Even with some changes, there are many benefits that attract buyers who want to invest and live in one of the best countries in Europe.
The golden visa, issued under the Residency Permit for Investment Activity (ARI) program, had its rules updated in January 2022. There are significant changes regarding the real estate part, one of the preferred means of investment of buyers.
The rule remains the same: To apply for a golden visa in Portugal, there are three possible paths, which require five years of investment:
Real estate investment
To qualify for the Portugal Golden Visa, the following real estate investment routes are available:
Buy residential real estate in designated interior areas of Portugal worth at least €500,000 or €350,000 if investing in a rehabilitation project. If the residential property is located in a designated ‘low-density’ area, then a 20% discount applies (amounting to €400K and €280K respectively).
Buy commercial real estate anywhere in the country worth at least €500,000 or €350,000 if investing in a rehabilitation project. If the commercial property is located in a designated ‘low-density’ area, then a 20% discount applies.
Buy residential and commercial real estate anywhere in Portugal’s autonomous islands of Madeira and Azores, worth at least €500,000 or €350,000 if investing in a rehabilitation project. Note, all of Madeira and the Azores are classified as high-density, so there is no 20% discount option here.
But, what changes in the purchase of real estate for a golden visa in Portugal?
As of January 1ST, 2022, residential properties in large centers such as Lisbon, Porto, and Cascais and all coastal cities (considered high density regions) are no longer eligible for the golden visa. There was a concern to limit the acquisition of real estate in areas of high population density to avoid excessive heating of this market. However, with the new rule, the possibility remains for properties in these large centers for commercial or service purposes.
The Portuguese government is looking to promote investment in the following areas:
Activities of high environmental or social value
Productivity and job production
However, it is still possible to invest for housing in other regions, also very attractive locations on the Algarve (low density regions), Alentejo coast, Alcácer do Sal, Grândola, Tróia, Comporta, Odemira, and Santiago do Cacém.
More about the Investor Visa:
The visa has an initial duration of 2 years, with the holder being able to request its renewal for successive periods of 2 years. He must stay in Portugal only 7 days a year, which can be followed or interspersed. The visa allows circulation in 26 European countries.
After holding the visa for 5 years, it is possible to apply for Portuguese nationality, taking into account the requirement to master the language. In addition, the same investment allows the investor’s household to also apply for a visa. These include spouses, minor children, adult children if they are still studying and economically dependent on their parents, and parents who are also financially dependent on the investor.
Along with the golden visa, another factor that has attracted investors to Portugal is the tax regime, but we will address this topic in a future publication.