Changes announced by the Portuguese government in late 2020 to be enacted in coming weeks
The Portugal Golden Visa program, one of the most popular immigrant investment programs in the world, will undergo considerable change in the near future. These changes will certainly affect the two investment forms—purchasing residential property and buying into specific investment funds—most commonly used by foreign investors seeking permanent residency in Portugal.
Taking effect on January 1, 2022, the new measures will increase by up to 50% the amount of some types of PGV investments and remove Lisbon, Porto, and the Algarve from the list of regions where investors are eligible to purchase residential properties.
The removal of large urban centers from the areas where applicants can invest in residential properties to fulfill their PGV eligibility aligns with the Portuguese government’s plans to increase population and economic development in rural areas such as Madeira. Investors should note that this change applies only to the purchase of residential properties. Commercial properties—offices, shopping centers, and hotels—in Lisbon, Porto, and the Algarve will continue to be eligible under the Portugal Golden Visa program in 2022, with no change in the minimum investment requirement for commercial real estate, currently starting at €500,000.
Since the creation of the Portugal Golden Visa program in 2012, the most popular path to obtaining this visa has been through real estate acquisition. The fund modality, which was initiated in 2018, has gained interest from applicants in recent years and, despite the upcoming price increase due to the new regulations, is expected to become even more popular. The Portuguese fund market is highly regulated, making it a safe option that offers peace of mind for international investors, especially since the fund manager, the Depositary Bank, and the Portuguese Securities Market Commission (CMVM) oversee the entire process.
Another option, passive investment through property rehabilitation, will not undergo a price increase and will continue to be an attractive option—it’s the investment type with the lowest required investment amount of €280,000/€350,000, depending on the location and age of the property.
LCR Capital Partners has conducted due diligence on many investment options that are eligible for the Portugal Golden Visa application, and we offer a range of investment types. The Portugal Golden Visa program will continue to be an excellent doorway to families looking to achieve permanent residency in Europe and to diversify their investments abroad.