Blog Layout

The Socialist Party didn’t approve the end of Portugal’s Golden Visa

Dec 02, 2022

At the Web Summit in Lisbon, the Portuguese Prime Minister, António Costa announced that the government is currently evaluating the possibility of terminating the highly popular golden visa. The possibility caused instant speculation and worrisome among investors interested in the Portuguese Residency-by-Investment program.

This matter was since debated on the Portuguese parliament and, during session held on the 22^nd November, the Prime Minister's own Socialist Party voted against the proposal of abolishing Portugal’s Golden Visa, along with another proposal to evaluate the program's impact.

Earlier in 2022, the government has made changes to the Golden Visa program, which increased the minimum investment in venture capital and private equity funds to €500,000. It also limited the purchase of residential properties in high density areas such as Lisbon, Porto, and the coastal touristic areas of the Algarve. The recent changes to the Portuguese golden visa came into effect in January, more than a year after its announcement. Therefore, any amendment is applied to the Portuguese Residency-by-Investment program, it will have a period before it enters into force.

There are multiple routes to obtain legal residency in Portugal. The D7 visa is well known for people earning passive income and wanting to relocate to Portugal permanently. On the other hand, the new Digital Nomad visa is suitable for remote workers earning an active income from sources outside of Portugal. Both options have significant stay requirements in Portugal, which often makes it less attractive for businesspeople who still need to stay close to their own businesses. The Golden Visa program is the only residency permit in Portugal with no significant stay requirements and allows the holder to enter Portugal, the EU or the Schengen Area, enjoying free movement in 26 countries.

Portugal’s Golden Visa program is Europe’s most successful residency-by-investment programme targeted at non-EU citizens and it is still growing, despite SEF’s temporary closure and the processing delays seen earlier in the year. In the latest data released by SEF – The Immigration and Border Service, Golden Visa approvals are increasing once again. From January to September 2022, a total of 926 main investors have been approved: 94 in January, 94 in February, 73 in March, 121 in April, 112 in May, 155 in June, 80 in July, 77 in August and 120 in September.

< Older Post Newer Post >

Benefits of Personal Income Tax for Young Professionals

by Diogo Pedro • 07 May, 2024

Over the past four years, young workers who earned their first income as employees or self-employed individuals have been eligible for a tax benefit in their personal income tax, known as 'IRS Jovem”. This benefit is intended to offer young workers the possibility of minimising their tax obligations, allowing for a higher amount of disposable income. To enjoy this benefit, taxpayers are required to comply with the following requirements: Have a complete course of level 4 or higher studies on the National Qualifications Framework (high school level acquired through double certification and aimed at pursuing higher education such as a bachelor’s degree, a master’s degree, or a PhD). Age between 18 and 26 years old. Considered independent, i.e., no longer included in the parent’s household for tax purposes. The specified age limit includes individuals up to 26 years old, inclusive. However, this limit is extended to 30 years old for taxpayers who have completed a degree at level 8 of the National Qualifications Framework (PhD). In 2024, this tax benefit has been improved, with increased tax exemption rates and an expanded range of applications over time. In this sense, upon completing the course of studies required, the individual may qualify for an exemption from personal income taxes for a duration of 5 years, as explained in the following details: 100% of the income in the first year with a cap of 40 times the Social Support Index – “IAS” value (€20.370,40). 75% of the income in the second year with a cap of 30 times the IAS value (€15.277,80). 50% of the income in the third and fourth year with a cap of 20 times the IAS value (€10.185,20). 25% of the income in the fifth year with a cap of 10 times the IAS value (5€.092,60). Moreover, the exemption can only be used once by the same taxpayer and should be requested when preparing and filing the personal income tax return. It is also important to acknowledge that this benefit has implications for withholding tax, allowing adjustments to the value subject to withholding tax. However, be aware that, while the withholding tax rate applied corresponds to the total amount of income earned, it is only applicable to the portion that is not exempt. If you have any questions or need assistance with this or related matters, feel free to reach out . We would be delighted to help you.

Being an urgent process, this legal action has priority over legal actions not deemed to be urgent.

My application has been pending for months with the Immigration Office - AIMA. What can be done?

by Sara Ferreira • 29 Apr, 2024

It is known to the general public that the Portuguese Immigration Office (AIMA) has not been able to timely approve residency authorisation requests within the legal timeframe defined to do so, thus resulting in residency applicants having their applications on hold for months, in some cases even years. One way to tackle this inaction from the Immigration Office is to file a legal action, namely the Subpoena for rights, freedoms and guarantees of the citizens.