Golden Visa Programs in Europe: Why Portugal Stands Out

Golden Visa programs have become a cornerstone for non-EU investors seeking residency and eventual citizenship in #Europe. To provide a comprehensive perspective on why Portugal remains a top choice, EQTY CAPITAL consulted with four leading Portuguese immigration law firms.

João Cunha Vaz , Senior Partner at EDGE - International Lawyers ; Filipe Eusébio , Partner at Ana Bruno e Associados - Sociedade de Advogados R.L. ; Joana Martins Farinha , Partner at LEGALSQUARE ; and Vanessa Rodrigues Lima , Partner at Prime Legal - Portugal , offered their expert insights. These esteemed professionals shed light on the program’s enduring appeal, recent updates, and its pivotal role in driving foreign investment into Portugal.

Program Popularity and Success

Portugal's Golden Visa program, since its inception in 2012, has been one of the most successful in Europe, attracting over 12,000 main applicants and more than 20,000 family members. With over €7 billion in foreign direct investment generated, the program has significantly contributed to the Portuguese economy.

João Cunha Vaz highlighted the substantial impact on the real estate market: "The numbers show that approximately 90% of the total investment linked to the Golden Visa has been directed towards real estate, boosting urban rehabilitation and fostering the growth of less-explored regions. This influx of capital has been instrumental in driving economic development in the country."

"The recent updates to the program (October 2023) reinforce its strengths, aligning it with strategic policies that bolster its appeal and economic impact," added Joana Martins Farinha . This shift “means access to robust, diversified, and professionally managed investment opportunities, providing a solid platform to invest in Portugal’s economy with greater confidence”

Why Portugal's Golden Visa Stands Out

Portugal’s Golden Visa program offers unique advantages that distinguish it from other European programs:

1.        Flexible Residency Requirements  Portugal's 7-day annual stay requirement is significantly more flexible than most other programs, allowing “investors flexibility and ease of management without the burden of extensive physical presence requirements while keeping full access to the Portuguese Welfare State structure and EU citizenship eligibility.”, according to Joana Martins Farinha.

2.        Quick Path to Citizenship Investors can apply for Portuguese citizenship after just five years of residency and with minimal stay requirements, with processing time now counted toward this period. " This adjustment means that applicants’ waiting time is recognized as part of the residency period, allowing them to reach citizenship eligibility more efficiently," explained Vanessa Rodrigues Lima .

3.        Diverse Investment Options  The program allows investment in venture capital funds, job creation, artistic production, and cultural heritage preservation. "This diversity ensures a broader range of opportunities for investors, and we have seen increasing interest in these areas," remarked João Cunha Vaz.

4.        Streamlined Processing and Modernization Following the establishment of the Autoridade para as Migrações e Asilo (AIMA) in 2023, efforts are underway to reduce the backlog of applications. "AIMA has been implementing organizational measures and technical upgrades, and while delays persist, the government has committed to clearing the backlog by mid-2025," said Filipe Eusébio . "Therefore expectations are that the timelines to receive the initial Golden Visa card after submission of the application may be gradually reduced and are able to return to pre-Covid timelines."

5.        Family Inclusion  The program facilitates family reunification, including dependent children and parents, making it attractive for applicants looking to relocate with their loved ones.

6.        Tax Benefits  Through the Non-Habitual Resident (NHR 2.0) regime, Portugal offers attractive tax incentives, which can be combined with the Golden Visa. "This dual advantage of residency and favorable taxation makes Portugal especially competitive for investors," said Vanessa Lima. "It’s particularly attractive for those looking for long-term tax benefits."

Recent Changes and Future Outlook

 Portugal’s Golden Visa program has undergone notable changes, including the removal of real estate as an investment option. Instead, it focuses on investments that directly benefit the economy, such as investment funds.

“Applicants to the program still look at it as one of the most attractive residency-by-investment governmental initiatives in the World, the majority of them choosing the fund investment route as the most convenient one to proceed with their applications”, said Filipe Eusébio

Additionally, the government has reinforced AIMA’s capacity by hiring more staff and collaborating with external professionals to address the backlog of 400,000 applications. "While processing times remain longer than desired, applicants can take comfort in knowing that AIMA is focused on improving procedures and addressing the needs of investor’s residency requirements for citizenship begin counting from the application submission date," noted João Cunha Vaz.

"The Portuguese Government's commitment to clearing the backlog by mid-2025, along with the clear path to citizenship after five years, provides much-needed clarity for applicants," remarked Filipe Eusébio. "With these measures in place, we expect the program to continue attracting a steady flow of investment."

In conclusion

Portugal’s Golden Visa program stands out in the European landscape due to its flexibility, streamlined citizenship pathway, and diverse investment options. "Portugal’s unique combination of economic resilience, competitive investment opportunities, and a path to EU citizenship keeps it ahead of its European counterparts," said Joana Martins Farinha.

"Overall, the program remains one of the most attractive residency-by-investment initiatives globally," concluded Vanessa Lima. "The flexibility, tax incentives, and reduced processing times make it a long-term option for those seeking European residency."

As #Portugal strengthens its processes and modernizes its approach, the program remains a compelling choice for global investors seeking a secure and efficient route to European residency and citizenship.

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