What is Golden Visa?

Golden Visa is an investment program where many countries have introduced a residency by investment scheme to attract international funding. For example, buying real estate and investing in several businesses, and creating various jobs. 

Portugal also introduced this program in 2012 to get funding from many non-European countries by providing residency.  The visa provides a way to permanent residency after five years. You don’t need to live full-time in Portugal. It’s one of the most attractive programs in Europe for many investors who seek European access and start a lifestyle despite going through many changes.

Eligibility for the Golden Visa

If you want to apply for the Golden Visa of Portugal, there are several terms and conditions you must follow. You should be from a non-European country and a non-Swiss citizen, and willing to invest in the country.

You should be at least 18 years old and clean criminal record both in Portugal and in your home country. Secondly, you should have health insurance that will be usable in Portugal. An applicant must commit to maintaining their investment for over 5 years and meet the minimum time to stay physically over seven days per year. 

This opportunity is open to people and their families, including spouse, children, and parents, which allows them to make the residency uncle similar investment.

Types of Investments

Golden visa program offers many types of qualifying investments, which allow a person to choose the option according to their financial goals. A person must transfer an amount that should be 500,000 euros to the Portugal bank.

The program offers various opportunities for investment, such as supporting scientific research or cultural projects with a minimum investment of €250,000, or launching a business that generates at least 10 jobs for Portuguese citizens.

New Changes in the Golden Visa Program

The most common option was investing in real estate; however, this choice has become increasingly limited in major urban centers like Lisbon, Porto, and coastal regions. These diverse alternatives appeal to investors looking for more flexibility than merely acquiring property.

On October 6, 2023, Portugal’s Golden Visa program received significant revisions under the “Mais Habitação” law, which removed real estate investments as a qualifying alternative to solve housing affordability difficulties. Applicants can now only qualify by investing €500,000 in recognized Portuguese investment funds, €500,000 in scientific research, €250,000 in cultural or heritage projects, or creating at least ten local jobs through entrepreneurial operations.

The program has also undergone administrative changes, with SEF being replaced by AIMA and the application process being digitized through the ARI site. These changes only apply to new applications; existing Golden Visa holders and those who applied before to the reform remain protected under the old rules.

Application Process for Golden Visa

Applicants must first choose a qualifying investment strategy, such as investing in a regulated fund, conducting research, funding cultural projects, or creating jobs, before obtaining a Portuguese NIF (tax number) and opening a local bank account.

After investing, individuals gather the appropriate documents (passport, criminal record, health insurance, proof of finances, and investment proofs) and submit them online via the AIMA

Pre-approval normally takes many months, and holographic documents must be shown in person at a biometric appointment (booked automatically starting January 2025), with fees paid by card. If granted, a two-year residence permit card is provided, which can be renewed every two years and leads to permanent residency or citizenship after five years.

Benefits of the Golden Visa

Portugal’s Golden Visa is one of the most attractive residency-by-investment schemes in Europe. Since it provides a number of advantages. Holders are granted visa-free travel across the Schengen Area as well as the freedom to live, work, and study in Portugal.

The short stay requirement just seven days a year is one of the most attractive benefits. Investors who don’t want to move full-time freedom.

After five years, visa holders who fulfill fundamentals including language competency and good legal standing can apply for Portuguese citizenship or permanent residency. Additionally, the program permits family reunification, which includes parents, dependent children, and spouses. Portugal’s great healthcare, safe environment, advantageous tax structure, and high standard of living.

Cons of the Golden Visa

There are a few disadvantages to Portugal’s Golden Visa in addition to its many benefits. The initial and continuing expenses, which frequently amount to far over €500,000, can be substantial and include government fees, legal aid, and the investment itself.

Investment possibilities have also been limited by recent policy changes, especially the removal of real estate from the program, which was once the most popular avenue. Particularly during times of high demand, the application procedure can be awkward and bureaucratic, with delays in biometric appointments and clearances.

Furthermore, even if the visa provides a route to citizenship, candidates still need to pass a test on their fundamental understanding of Portuguese history and culture and meet language competence standards.

Last but not least, policy uncertainty brought on by recurring political shifts means that regulations can change swiftly, which could have an impact on investors in the future.

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