Now is the time to consider the Portuguese Golden Visa and its alternative investment options

The amount of investment in venture capital funds in Portugal reached around €25 million until now. Investors were able to gain Portuguese residency through this option. According to the national Immigration and Borders Service of Portugal, all of them are foreign investors.

Golden Visa in brief

You can be a Portuguese resident and even an EU citizen through this program. The first thing you need to do is to make an eligible investment. You can find the details of these investment types in the below sections.

Second thing is to apply for the program upon completing the documentation process. Following the approval, you receive a residency card with your family in Portugal.

Recent increases in the amount of minimum investments

Portugal has recently amended some sections related to Golden Visa investments. According to the amendment, the option of fund investment in venture capitals increased from €350,000 to €500,000. However, it will take effect after January 1st, 2022.

The Portugal Golden Visa investment fund option is quite new compared to other Golden Visa investments. Still, it drew much attention from international investors. The number of investors choosing this option in 2020 increased around seven times more than it was in 2019. When it was only 7 in 2019, it reached 48 in 2020.

The minimum property investment amount will stay the same

The minimum real estate purchase amount will not change after 2022. However, there is another slight change regarding the location of real estate.

According to this recent amendment, you will not be allowed to buy property in Lisbon and Porto anymore. These cities have been the most preferred destinations since the beginning of this program. This is why the government drew attention to the inland rural areas in Portugal.

The investment threshold for this option will be at least €500,000. If you find a property in a low-density area, you can buy it for a minimum amount of €400,000.

Two other alternatives are available for this option. €350,000 option is available if a property is 30 years at least, or in a rehabilitation field. If it is also in a low-density field, you can buy it at an amount of at least €280,000.

How can you become an EU citizen through a Golden Visa program?

There is a certain stay period you need to fulfill. As a Golden Visa holder, the average duration is seven days of stay per year. You must continue doing this for five years. In the meantime, you need to renew your residency card. The renewal dates are at the end of the second and fourth and sixth years. Due to the pandemic, the renewal times are reduced to the second and fourth years. Before this, it was at the end of the first, third, and fifth years. Note that it may change again according to the course of the pandemic.

So, an application for citizenship will be available after these five years.

What are other advantages before you become an EU citizen?

  • Residency in Portugal means residency in the EU. You will get this right after around three to six months following your Golden Visa application. So, if you plan to shift your place as soon as possible, this may serve your interest.
  • Travel around the Schengen countries will be available easily. You will not need a visa to enter these countries.
  • Family members can also get all these benefits like you. It is possible if they are your:
  • Spouse,
  • Kids under 18,
  • Children under 26 and not married, and studying, and
  • Parents if over the age of 65.

Points to consider when investing in a fund

Although the interest in the fund option has recently increased, it is better to know some points before investing.

  • Note that you’re not on your own when investing in a fund. You will have a third-party fund manager. Furthermore, there will be a commission called CMVM and the bank of Portugal which manage your fund.
  • Be aware of how long they keep your money in.
  • It’s important to know whether your fund manager extends the duration of the fund. Similarly, it is important to learn for how long they will.
  • Know if your fund obeys the rules of the Portuguese Securities Market Commission (CMVM).
  • Knowing the fund manager’s credentials is also a benefit.