This is a fast-track visa, which means the country will process and accelerate a visa approval quicker as it is designed as a mutually beneficial program to boost the Portuguese economy. This also means it is a quick way to gain Portuguese citizenship by investment and consequently a Portuguese passport; once obtained you can live and work anywhere in the European Union.
The golden visa is a residency by investment program, which came into force in Portugal in October 2012. It provides applicants with a temporary residence permits and enables them to live and work in Portugal, with minimum stay requirements of only 7 or more days, in the first year, and 14 or more days, in the subsequent years.
In addition, applicants can enjoy visa-free travel through the 26 Schengen area countries.
After 5 years of temporary residence, the applicant may apply for permanent residency. After 6 years of legal residence, the applicant may apply for Portuguese citizenship, by naturalization, provided all requirements set out by the Nationality Act are fulfilled.
In order to qualify for the Golden Visa, you need to be a citizen of a third country (i.e. Portuguese, EU and EEE nationals are not eligible for the Golden Visa program). You must then opt for an investment route, as an individual or through a company.
This program is designed to be a mutually beneficial system; Portugal Golden Visa financial requirements have been constructed to boost economies in less developed areas, as well as established and urban areas.
How can individuals qualify for Portugal Golden Visa?
The Golden Visa program is known as the investor’s visa because it can be obtained by individuals who are looking to invest in the country. This is not necessarily a direct fiscal investment but can be acquired by creating opportunities and resources in Portugal:
- Invest 1 Million Euro into Portugal. This is a no-restriction payment, which means you can choose to buy multiple properties or invest in a number of start ups or promising companies.
- Invest 280 – 500 Thousand Euro on Portugal property/ies. This option does have restrictions and requirements regarding the location and age of property.
- Demonstrate a minimum of eight permanent job opportunities in Portugal.
HOW TO BUY A PROPERTY IN PORTUGAL?
Reservation of Property
If a payment is requested at this preliminary stage (the “reservation fee”), it is important to ensure that the reservation agreement clearly states that the payment is fully refundable, should the purchase not proceed for any reason, whether linked to the property, the seller or the purchaser (for example, if financing is not approved).
The Promissory Contract
The Promissory Contract (Contrato Promessa de Compra e Venda) contains all the terms and conditions of the purchase. A deposit is payable (directly to the seller and not held in escrow) and the amount is usually 10%, but this is negotiable. A date is set in the contract for completion.
Before entering into the Promissory Contract, you should be provided with updated documents to ensure that everything is in order with the property. In addition, if you are seeking financing for your purchase, you should consider including a financing clause in the Promissory Contract. Please note that if any of the parties is in breach and does not complete, the purchaser can lose the deposit paid or the seller may have to return the deposit paid, to the seller, in double.
*The process of Golden Visa or investing in Real Estate it can be very complex. We can help with advice, consultancy and service on these areas. Contact us if you need help.