The Different Types of Investment for Applying to the Portuguese Golden Visa

The Different Types of Investment for Applying to the Portuguese Golden Visa

In our previous article about The Portuguese Golden Visa Program 2018, where we presented the various advantages and benefits of obtaining the Portuguese Golden Visa, we received several questions regarding what qualifies for applying for the Golden Visa itself. So, if you are interested in applying for the Golden Visa Portugal any time soon, this article is for you. We will cover the updated requirements to make the Visa application and most importantly, what are the types of investment needed and let you decide which one suits you better.

You are probably wondering what Portugal has to offer and why investors from all over the world are flocking there. Mainly because Portugal, since 2014, it’s one of the fastest growing countries in residency by investment, with its Golden Visa being one of the most popular ones available.

This phenomenon is largely due to its appealing investment requirements to wealthy investors. However, Portugal, to its credit, is not handing out Golden Visas, but on another hand, it has a very flexible stance on residency.  When obtaining a Golden Visa, an investor simply has to hold it for 5 years before he’s eligible to apply for Permanent Resident status and they are eligible to apply for Citizenship a year after that. And the most attractive aspect is that having a visa from Portugal will allow them to travel to 171 countries worldwide, including most of Europe, visa-free.

Types of Investment for applying to the Golden Visa

The requirements to apply for the Golden Visa, though not as strict as some of their counterparts, were established to attract those that will, in turn, enrich and surpass upon the country, if not by actively making improvements than by contributing to the financial growth of the country.

These are made through investments. Investors are required to make investments prior to submitting their application for a Golden Visa and there are different types of investment. A potential investor must choose one of three ways to invest:

1. Property Investment

A potential investor can choose to purchase a property in order to make their investment in Portugal. The investor can choose a property with a price of over €500,000, or they can choose a property starting at €350,000(See an exclusive opportunity to apply for the Portuguese Golden Visa for only 350.000€, with 7% minimum guaranteed yield on investment.)

In order to qualify for the Golden Visa at the lower rate, the property must have been completed at least 30 years prior or be located in an area of urban regeneration. An investor must maintain their property through the 5 years prior to applying for residency, though they are under no obligation to reside there.

It is important for you to know that: 

 – All property types qualify (residential, commercial or land);
 – An investor can choose to purchase multiple properties;
 – A bank loan is possible for the properties, as long as the property is purchased at the minimum amount;
 – There is the possibility of co-ownership.

2. Capital Investment

Another type of investment is through a capital investment. There are four different options here, but it’s important to note that, although there are several alternatives, a majority of investors choose either purchasing a property or the very first item below:

   – Bank Deposit: An investor can transfer funds of €1,000,000 or more into one of Portugal’s banks. This money can later be used to purchase properties or other contributions to life in Portugal, but it must not be removed from Portugal during the 5 years it takes to establish residency. These funds ultimately remain in the control of the investor.
 – Transfer funds above €250,000 in investment or support to artistic production.
 – Transfer funds above €350,000 in research activities of public or private institutions.
 – Transfer funds above €500,000 as an investment in small and medium-sized companies. Though not as common as the bank deposit, this is more common than investing in research activities or artistic production.

3. Job Creation

This one seems a bit more difficult and isn’t quite as common as the bank deposit or purchasing the property. In order to use this form of investment to solidify your Golden Visa, you must either:

– have a successful business that you can move to Portugal (a solid investment with their tax programs)
– or you must have enough revenue and a solid business plan to demonstrate that you will be able to provide at least 10 full-time positions at your company for a duration of 6 years. Though not impossible, it is less feasible than relocating a company that already exists.

There is no minimum investment value regarding this type of investment and also, the area and activity of the employees are not limited. However, these newly created jobs will need to be in compliance with Social Security obligations. In cases of low-density population areas, the investment amount may be reduced by 20 percent (to a total of 8 employees). These are dependent on circumstances.

Portugal is a beautiful country that is quickly becoming an ideal spot for investors to relocate. For those living in less developed countries, Portugal gives them the freedom to access other countries around the world, visa-free. For those in more developed countries, those investors are able to become global citizens, learning about other cultures, enjoying the ease of travel, having the option to relocate if desired and being able to share a global lifestyle with their families.

Portugal offers affordable choices, the possibility for investors to include their families and flexible living arrangements. Almost all other countries with the Golden Visa require a period of residency before granting a Permanent Resident Visa. (Take a look at our latest blog post about Choosing between the Portuguese Golden Visa vs the Spanish Golden Visa)Portugal gives investors the freedom to live where they want and travel to Portugal when they wish, without denying them the opportunity to become citizens. Portugal is the top European destination for those interested in obtaining a Golden Visa. A beautiful country, a global economy, rich culture – Portugal truly has it.

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