The Portuguese government today published long-anticipated details on the new terms for its golden visa program, which will apply from 2022 onwards. Minimum investments amounts will rise in several categories.
“[…] contrary to what had been voiced by the Portuguese Government,” writes João Cunha Vaz, Senior Partner of Lisbon-based Edge International lawyers, “the amendments now released will only be applicable to Golden Visa applications submitted after Decree Law 14/2021 is in force, which is to take place on 1st January 2022. This means that, until then, the existing rules and requirements shall be applicable to all investors.”
The government had initially signaled July 1st, 2021 as the starting date for a “transition period” that would last for several months, but today’s announcement indicates we’ll see a clean break between the old and new rules on New Year’s Eve at the end of this year.
The amendments published today, explains Cunha Vaz, centered around two chief features:
- Raising the minimum investment requirements for a number of categories;
- Delineating the geographic areas in which property investments may substantiate a golden visa application.
The salient amendments announced today:
- The capital investment/deposit category: Minimum investment requirement will rise from the current EUR 1 million to EUR 1.5 million;
- The investment fund category: Minimum investment requirement will rise from the current EUR 350,000 to EUR 500,000;
- The property investment category: Minimum investment requirement will remain unchanged at EUR 500,000 and EUR 350,000 (renovation properties) but qualifying for the golden visa through these options will be limited to the country’s interior as well as the autonomous regions of the Azores and Madeira;
- The job creation category: The minimum capital required for incorporation/capital injection in an existing company that then must proceed to create five new job positions sustained for a consecutive three years will rise from the current EUR 350,000 to EUR 500,000;
- The Science and Research Activities category: Minimum investment requirements will rise from the current EUR 350,000 to EUR 500,000.
Detail about real estate investment
As for investment in real estate – the most popular option to date – properties acquired for residential purposes will soon be limited to the Azores, Madeira or any of the interior regions of the country. This means that investors looking to purchase a second home in the booming Lisbon and Porto residential market or in the coastal areas will no longer be considered eligible under the Golden Visa law.
Commercial properties in Lisbon, Porto, and Algarve (offices, stores, hotels) will continue to be considered eligible investments.
Source: IMI Daily
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