The Portuguese Golden Visa is a once-in-a-lifetime opportunity, and with the proposed changes taking place next year, now is the right time to apply!
Portuguese Golden Visa Outlook 2021/2022
- The Portuguese Government declared in February 2021 that investors will no longer be able to purchase Golden Visas through Residential properties in Lisbon and Porto starting January 2022
- From 2021, the cost for a Portuguese Golden Visa application will not change when applying through a property or real estate investment transaction - this means that the €350K and €500K options will still exist in their current format with the 20% reductions applicable in low-density areas
- The new amount for investment funds will be €500K, increased from the €350K currently required (the terms of the application remain the same)
- The new requirement for Capital Transfer will be €1.5 Million, increased from €1 million currently (the terms of the application remain the same)
- The new amount for investing in Science and Research will be €500K which is increased from the current €350K threshold (the requirements for the application remain the same)
- The new amount for job creation will be €500K along with creating 5+ new jobs in Portugal
Portugal currently has one of Europe's most popular immigration and residence permit schemes, granting investors the right to live, work, and study in the country and visa-free travel within the Schengen Area. If you are considering taking advantage of the Portuguese Golden Visa application and getting a permanent residence, now is a smart time to get started because changes to the programme are being set into motion in January 2022, which means investors will no longer be able to purchase residential properties in the high-density areas.
Even though the Portuguese Golden Visa programme won't change before the end of 2021, the first steps to apply, such as getting a Portuguese tax number and opening a Portuguese bank account, are taking a bit longer due to the high demand seen lately. Hence, if you're intending on applying to the programme in its current format, it's our advice to start the application before the second week of November, at the latest.
Portuguese Golden Visa program application figures
Covid, like any other aspect of life, has wreaked havoc, with investment levels dropping by 12.8% in 2020. Despite that, the Portuguese citizenship-by-investment programme still raised €647 million last year. Given the devastating effects of the coronavirus outbreak on other economies and real estate markets around the world, the Portugal Golden Visa program still managed to achieve impressive results, being the 3rd country that granted more residence permits. This further demonstrated that, while the real estate industry may fluctuate due to natural factors such as disease outbreaks, or even political and governmental reasons, it never actually deteriorates or drops over time.
Investing in premium locations for recapitalization and profitability
What’s more, Covid has prompted foreign investors to reconsider the reasons behind their real estate investment in Portugal and, as a result, many are now placing a much greater focus on their family, rather than just the benefit to their professional endeavours.
Thus, Portugal has grown incredibly popular, with the opportunity to invest in the real estate industry to lay solid foundations for family life and provide Portuguese citizenship to family members and dependent children. Hence, it’s easy to see why more and more people are flocking to Portugal, far beyond its geographical allure and the possibility of visa-free travel across Europe. Diversity is also a primary consideration when investing in Portugal.
- Who is eligible for a Portuguese Golden Visa?
- Portugal is the perfect hotspot for Digital Nomads
- Lisbon is among the best for real estate investments in Europe
- The best investment for the Portuguese GV: venture capital and investment fund
- Taking the Portuguese CIPLE language test
Frequently Asked Questions on Portuguese Golden Visa Changes 2021/2022
What are the Portuguese Golden Visa changes 2022?
The Golden Visa is going to change at the end of 2021 which means that you will no longer be able to purchase real estate in major cities such as Lisbon, Porto and certain areas in the Algarve. The market will change considerably in terms of the outlook of what you can invest into next year.
What do I need to do between now and December 31st to be granted a PT Golden Visa?
If you’re looking to get the Golden Visa before the end of the year, and you still want to purchase in the premium areas of Portugal, we advise you to invest as soon as possible. You don’t need to physically be in Portugal as we have been dealing with clients remotely for many years, and we have a trained team of experts that will guide you through the whole process.
Although you have till December 31st, the first steps and processes that you need to take till November are:
- Get a tax number in Portugal
- Open a bank account before we can start the application process
Because there’s such a big influx of clients, it’s taking around 4 to 6 weeks to get these processes done. Your lawyer also needs to check the documents of the property and there are certain formalities that have to be done so our advice is to have your property purchased, or that you know you want to buy at the very least, and have your applications for your tax number and bank account submitted by at the latest second week in November. Any time after that would be very risky.
What is the best Golden Visa investment option for me?
The 500K and 350K Golden Visa Options.
The country offers several investment routes, being one of them the €350K GV application, which saw a brimming growth in 2020, as applicants became aware of the highly competitive market that Portugal, specifically Lisbon, has turned into. For the hardened investor, Lisbon is one of the best real estate investments in Europe at the moment.
It becomes important to mention that, with the increase of international demand and due to the changes to the programme, the 350 option is undergoing a shortage of supply, meaning that properties eligible for this option in premium areas like Lisbon or Porto are getting less and less - these are cities that offer huge recapitalisation and profitability to those who invest here. Our advice is to stretch to the €500K option as it will give you a much better investment in Lisbon, but the truth is that with the market being the way it is now, any real estate investment in Lisbon is always going to make a good return on investment over the next five to ten years. The time is now to benefit from the full options of investment in the most cost-effective way, as there are still eligible properties for investors to select from and find the best investment route before the end of the year.
It’s clear that demand has started to increase as now there’s only a seven-month window to work with. As such, real estate investors who plan to buy properties in Lisbon, Porto, or coastal cities are speeding up. There’s also been a great surge from Hong Kong as investors there felt they may not have enough time to do the transaction because the process of obtaining a Golden Visa will usually involve onboarding, getting a Portuguese bank account and fiscal number, making the investment, gaining pre-approval, followed by a biometric visit and only then the issuing of the Visa itself.
It becomes important to mention that the real estate market in Lisbon has seen a growth of 10 to 15% per year, meaning that the historical centre has gone up at least 50% over the last 6 years and has doubled in some areas. This, all in all, has turned the Portuguese capital into the first choice for residency-by-investment for those wanting to invest in the sunny capital. A motivation for investors to pick this avenue is also the possibility of renting out the house they purchased, and its easy-to-comply requirements. You can learn more about all the requirements for the Portugal Golden Visa here.
- Building your real estate investment portfolio at the heart of Lisbon
- Portugal was elected the best country for Americans who want to get a permit
- Buying real estate is one of the safest investment options
- What taxes and costs do I have to pay after purchasing real estate in Portugal?
What’s more, with Portugal Homes’ After Sales service, overseas investors have the chance to have their real estate investments looked after alongside capable professionals who are ready to offer the proper assistance and able to guarantee both the investment’s safety and a healthy return on investment.
We have created a unique service for our investors through the After Sales Department. Our team will:
- Take care of your real estate investment
- Manage your property
- Provide Fiscal Representation
- Attend Condominium Meetings on your behalf
- Personal services, from picking you up from the airport to making restaurant reservations
- Keep you up-to-date through monthly reports on your purchase, whether you’re an off-plan client or a golden visa investor (see what type of client you are here)
- Assist during the building of the project, while you’re away
What if I only want to purchase a Golden Visa in 2022?
If the second week of November is too soon for you in regards to timelines, you can expect to have a lot of good options next year, as well. We will still have touristic projects in central Lisboa and O'Porto, and we’re going to be looking at projects in university towns in and around Portugal; we will also have good investment opportunities in the more remote and Golden Visa 2022 qualified areas where you get more eco-tourism. Learn more about our new and upcoming investment areas here.