Portugal Visa And Residency

Portuguese residency and citizenship are highly sought after. A Portuguese passport gives you access to visa-free travel to over 150 countries. Five years of continuous residency allows you to apply for citizenship and a Portuguese passport—although you’ll need to demonstrate a high level of Portuguese proficiency to pass the citizenship test.

The Golden Visa

 

The Golden Visa Program was launched by the Portuguese government in October 2012. This program, aimed at attracting foreign investment to Portugal, is a fast-track method for foreign investors from non-EU countries to obtain residency in Portugal. There are no tax incentives associated per se with the Golden Visa. Nevertheless, a Golden Visa applicant may be eligible for Non-Habitual Resident status (NHR), whereby new tax residents can apply for NHR status and enjoy tax benefits including a 10% tax rate on pension income and reduced or no income tax on other income.

Flexibility is part of the appeal of this residency program. Going this route, you’d be required to spend but a week a year on average in the country. The invest-for-residency option suits someone looking for a path to EU citizenship but not wanting or able to spend the majority of his or her time actually living in an EU country.

As long as the investment is secured in Portugal, the Golden Visa Residency Permit does not expire, provided it is renewed. You have to keep your investment for Golden Visa Residency Permit purposes. Decree-Law N. 14/2021 of Feb. 12, 2021 introduced several changes to the successful residency-by investment program. The changes focus on minimum investment thresholds and geographic restrictions. The increase in minimum thresholds was transversal to most types of investments.

The new list promotes investment in inland areas, urban requalification, cultural heritage, activities of high environmental or social value, productive investment, and job creation.

Real Estate Investments

Not all properties will qualify for a Golden Visa eligible investment. Eligibility will be restricted to the Azores and Madeira Autonomous Regions or inland districts, as per specific ordinances. Investment in commercial property is not geographically limited.

The options in real estate are the following:

1. Acquisition of real estate worth at least 500,000 euros;
2. Acquisition of real estate worth at least 400,000 euros in a low-density or low-income area;
3. The acquisition of real estate for a minimum purchase price of 350,000 euros (if the property is at least 30 years old or is located within an urban regeneration area and the buyer renovates it);
4. The acquisition of real estate for a minimum purchase price of 280,000 euros (if the requirements in #3 are met, and the property is located in an eligible zone).

 

Capital Investments

1. Bank deposit or investment into financial products and in Portuguese public debt instruments valued in excess of 1.5 million euros;
2. Acquisition of shares in commercial companies for 1.5 million euros;
3. Invest a capital amount equal to or greater than 500,000 Euros to acquire participation units in venture capital funds, with a maturity date of five years, investing at least 60% in Portuguese companies’ capital.

Business Investments

1. Start a local business and creating a minimum of 10 jobs;
2. Invest a capital amount equal to or greater than 500,000 euros for the incorporation or capitalization of a Portuguese company, combined with the creation of five jobs for a minimum of three years;
3. Incorporating a company is still an eligible investment but the required initial capitalization has increased from 350,000 euros to 500,000 euros.

Arts & Science Patronage

1. Invest a capital amount equal to or greater than 250,000 euros, to invest in or support art production, or the restoration and maintenance of national cultural heritage through services carried out by a range of public or private entities;
2. Invest a capital amount equal to or greater than 500,000 euros for scientific research purposes.
3. Incorporating a company is still an eligible investment but the required initial capitalization has increased from 350,000 euros to 500,000 euros.

D7 Or Passive Income Earner Residence Permit

The Passive Income Earner Residence Permit (PIERP) is a good option if you’re not willing or able to qualify for the Golden Visa Program. As its name suggests, it’s for people who have income or capital that allows them to live in Portugal and not be a burden to the Portuguese state…

To qualify for this residence permit, you must meet a minimum income requirement. Officially, this is tied to the minimum wage, which is 650 euros per month or about 7,800 euros per year. However, we recommend you have more than this available: you should have between 12,000 and 15,000 euros per year in liquid assets for the best chances of having your application accepted.

The authorities that process PIERP applications have discretionary power, and there have been cases of people with lower monthly incomes being rejected. Each application is its own unique case. Generally, younger applicants need to prove a higher threshold than older people that are just coming to Portugal for retirement.

The liquid assets you can use to qualify for this residence permit can be pensions, dividends, royalties, salary (as long as it’s not Portuguese sourced), or capital.

Obtaining your residence permit involves two steps. It starts with applying for a residency visa, which is valid for 120 days. This is your window of opportunity to come to Portugal and then apply for the appointment to covert that into a residency permit.

This residency permit is designed for you to spend most of your time in Portugal. It requires you to spend at least 16 months in the country during the first two-year period. By doing so, you will trigger tax residency. You will have to file taxes in Portugal, though this doesn’t necessarily mean that you’ll have a huge tax bill (in some cases, you won’t owe any tax at all).

The Application Process

Residency applications must begin in your home country. In addition to your passport and a visa application, you must do the following:

• Prove that you’ve made your chosen investment or prove sufficient income for subsistence;
• Be in Portugal legally (have an address to show);
• Show that you are covered by health insurance;
• Provide an affidavit saying that you promise to comply with the ongoing terms of the visa.