Portugal’s Golden Visa changes reapproved in Parliament

Maria Matos de Almeida | Immigrant Consultant

A month after the presidential veto on the “Mais Habitação” bill, the Portuguese Parliament has once again endorsed the changes to Portugal's Golden Visa programme, which are scheduled to come into force in October 2023.

There are just a fortnight remaining for submitting real estate Golden Visa applications, but after the new law comes into effect, alternative pathways will still be available for consideration:

1. Creation of at least 10 job positions;
2. A transfer of capital for research activities carried out by public or private scientific institutions that are part of the national scientific and technological system must be €500,000 or greater;
3. Capital transfers of €250,000 or more can be made to support the investment or artistic production, recovery, and maintenance of national cultural heritage through public institutes and central or peripheral direct administration services, entities in the public business sector, public foundations, private foundations with public utility status, inter-municipal entities, entities in the local business sector, municipal associative entities and public cultural associations, which develop projects related to artistic production or the recovery and maintenance of the national cultural heritage;
4. Capital transfers in the amount equal to or greater than €500,000, intended for acquiring participation units in investment funds (non-real estate collective investment entities) or venture capital funds focused on the capitalisation of companies, constituted under the Portuguese legislation, with maturity, at the time of the investment, of at least five years and at least 60%. of the value of the investment is made in commercial companies based in national territory;
5. Capital transfers in the amount equal or superior to €500,000, destined to the incorporation of a commercial company with headquarters in the national territory, combined with the creation of five permanent jobs, or to increase the share capital of a commercial company with headquarters in the national territory, already existing, with the creation of five permanent jobs or maintenance of 10 permanent jobs, for a minimum period of three years.

On the contrary, it will no longer be possible to invest through:

• Capital transfers in the amount of 1.5 million euros or more;
• Acquisition of real estate, with a value equal to or greater than €500,000;
• Acquisition of real estate, whose construction has been concluded at least 30 years ago or located in an area of urban rehabilitation and execution of rehabilitation works of the acquired real estate, in the total amount equal or superior to €350,000.

Furthermore, it is crucial to acknowledge the following:

• The new law will not have a retroactive effect;
• Portuguese funds that are directly or indirectly related to Real estate investments will no longer be eligible for GV investment purposes;
• This legislative amendment will not prejudice the possibility of renewing residence permits for investment activity granted under the current legal regime.
• The new law will also not affect applications for the granting or renewal of residence permits for family reunification;
• These changes will also not affect citizens holding a residence permit for investment activity and their family members who, fulfilling the legal requirements, wish to apply for a residence permit for investment activity.
• Future renewals will be converted into regular residence permit for Entrepreneurs, also known as D2, without the minimum stay requirement of approximately 183 days per year, keeping the same minimum requirement of the Golden Visa programme, namely a minimum period of stay of seven days, consecutive or interpolated, in the first year and 14 days, consecutive or interpolated, in the following two-year periods. subsequent two-year periods;
• It is also determined that applications for the granting and renewal of residence permits for investment activity through real estate investment that are awaiting a decision from the competent entities on the date of entry into force of the new law remain valid, as well as for applications that are pending prior control procedures in the municipal councils. These applications will also be converted into regular residence permit for Entrepreneurs (D2).

The revisions made to the Golden Visa programme are bound to have an impact, which is to be expected when considering the real estate investment option was a prevailing trend and primary choice. However, as with any changes, the market will need to adapt, not only in terms of providing alternative offerings, but also by introducing innovative and refined projects in various sectors where the country currently requires investment, such as the environment, technology, culture, and education.

If you have further questions regarding this matter, get in touch with Maria Matos de Almeida and she will be delighted to assist you.