Over 50% of wealthy people worldwide have a second passport, and every year this number continues to increase. Still, according to research by Knight Frank LLP, an estate agency & property consultancy, investors prefer to apply for European citizenship. They find opportunities to use reliable banking systems, scale up their business in the EU and educate their children in the best schools in the world as beneficial and attractive. However, getting a passport in Europe means paying €880,000 or even more. If compared with the prices of other investment programs, this amount seems excessive. So what are the options for those looking for the EU option only but want to have a hot deal? There is only one answer — a Portugal Residence by Investment, which quickly turns into full-fledged Portuguese citizenship. What are the benefits and how to get a residence permit, read on…
Residence Permit in Portugal: Program Changes
On January 1, 2022, some program changes for gaining a residence permit in Portugal by investment will come into force. The government will increase the investment range for some available options and finally define the areas for buying real estate and the Golden Visa.
Investors who submitted applications before 01.01.2022 will not be affected by the changes, nor will they affect the residence permit extension. New investors aimed at getting a residence permit in Portugal will expect the following changes:
• The investments in securities or bank accounts will be increased from €1 million to €1.5 million.
• The investment in the shares of Portuguese funds will be increased from €350,000 to €500,000.
• The amount of investment in real estate will remain the same with significantly limited available areas. Coastal territory, Lisbon, Porto, and their suburbs will be excluded. Real estate will be available on the inner mainland of Portugal, Madeira, and the Azores.
• The option with investments in a company with the following 10 jobs will change from €350,000 to €500,000.
• The minimum investment in scientific and research activities will increase from €350,000 to €500,000.
These changes will not affect commercial real estate: an opportunity to purchase commercial properties in Lisbon, Porto, and their suburbs will remain. Coastal hotel projects will also meet for Portugal Residence Permit Program. A 20% reduction in investment when buying real estate in sparsely populated regions also remains unchanged.
What are the Portugal Residence Permit requirements?
Before considering how you can apply for a residence permit by investment in Portugal (or the Portugal Golden Visa), let's find out the benefits of this program:
• Not only an investor but the whole family can gain a residence permit in Portugal. The application can include a wife/husband, unmarried children, and parents.
• An investment residence permit in Portugal allows the investor and the family to enter and travel within the Schengen area freely.
• An investor may open accounts with European banks and use their services. Thus, the investor does not have to worry about their finances.
• The Portugal Golden Visa allows doing business both in the country and in Europe. An investor can create it from scratch or open representative offices of the existing business.
• Portugal's tax regime is attractive for investors. There are special tax incentives for non-residents and new residents.
• In addition, a Portugal residence permit for financially independent people makes it possible to get citizenship in the future. It is enough to have a golden visa for 5 years to make it happen. Then the investor and his family can apply for permanent residence or immediately for a Portuguese passport.
• At the same time, an investor can keep the residence permit if he comes to Portugal for only 7 days per year. The rest of the time, the investor and the family can be in any other part of the world.
• Visa-free travel to all Schengen countries.
Now let's consider how to obtain a residence permit in Portugal. Firstly, you need to meet several requirements, but please no worries — the conditions for getting a residence permit in Portugal are simple:
• be over 18 years old
• pass Due Diligence
• not have any criminal records and not be under investigation for felonies
• not be listed as the Denied Persons in the EU countries, the USA, the UK, and Canada.
Just four simple requirements — and you can get a residence permit in Portugal.
The government of the country provides several options for giving a residence permit in Portugal. Find the one right for you:
• contribution to the objects of national, cultural, and natural heritage — you need to make a non-refundable contribution of € 250,000 or more, these funds will go to the restoration and preservation of the cultural and historical heritage of Portugal
• contribution to scientific and technical research — you need to make a non-refundable contribution of €350,000 or more.
• purchase of old real estate — you need to buy a building requiring restoration aged 30 years old of €350,000 or more
• purchase of real estate — you need to buy a building of any type and age of €500,000
• contribution to your business — you need to create 10 jobs in your company and invest more than €500,000
• contribution to the Portuguese economy — you need to purchase securities or stocks or open an account of €1 million.
Based on the listed options, we can conclude what income is needed to obtain a residence permit in Portugal.
Residence Permit by Investment in Portugal
An opportunity to invest in Portuguese property and obtain citizenship is worthy of note. It is the most profitable option of all offered by the government, and here is why:
• First of all, an investor who will buy real estate, but does not want to live there, can rent it out. Every year thousands of tourists visit the country and look for a place to stay. Thus, real estate turns into an excellent source of passive income.
• In addition, real estate in Portugal shows steadily rising prices — this means that an investor could earn extra money on the margin if they want to sell the property. Buying and reselling real estate is a trendy type of business in Portugal. Please note: to extend the residence permit for the first 5 years, you must always have a real estate of €500,000 or more.
• Portugal is considered as one of the safest countries in the world. If an investor wants to create a wonderful future, then this country is the best one. In addition, retirement residency in Portugal is a perfect option for your parents.
Summary
Although Portugal only offers a Golden Visa, the benefits of the program are undeniable. And the opportunity to get a passport, permanent residence in Portugal, and citizenship just in 5-6 years makes the offer even more attractive.
FAQ
Who can get a residence permit together with an investor?
• Spouse (monogamous marriage).
• Children of the main applicant and/or spouse under 18 who are not married and are fully financially supported by the main applicant.
• Children of the main applicant and/or spouse aged 18-23 years old who are not married, study at a university and are fully financially supported by the main applicant.
• Parents and grandparents of the main applicant and/or spouse, who are fully financially supported by the main applicant.
• The ex-spouse cannot receive a residence permit.
• A marriage certificate from a third country can be provided.
How long is a Portugal residence permit valid?
The residence permit in Portugal is issued for 1 year with its subsequent extension for 2 years.
Is it possible to become a Portuguese citizen by investment?
Yes. First, an investor gets the Portugal Golden Visa and afterward Portuguese citizenship in 5 years.