The Golden Visa Might End, and Why It isn't Bad for Portugal (2024)

FAQs

Why is Portugal stopping the golden visa? ›

Countries across Europe are scrapping their 'golden visa' schemes citing security risks and inflated house prices. The European Union has urged member states to end programmes allowing investors to get citizenship and called for stricter checks when issuing residency permits.

Yes. The announcement made by the Portuguese government on February 16, 2023, confirms that the Portugal Golden Visa program is indeed ending. Further updates on 30 March reinforced this.

The biggest downside of the golden visa when compared to other Portuguese residency visas like the D7 is the cost. This isn't necessarily the investment cost (e.g. buying a property) which obviously is expensive, but the application fees that go with this particular visa.

To address the housing crisis in Portugal, the government has passed a new set of laws and regulations aimed at curtailing short-term rentals and the sale of visas. These changes include a ban on granting new licenses for short-term rentals in urban centers, a move that will effectively eliminate new city Airbnbs.

If the application is returned due to deficiencies in the data or incomplete documents, it will be rejected electronically after 30 days. The application will also be rejected if it is returned three times due to deficiencies in the data or failure to complete the required documents.

Portugal Golden Visa reviews are quite good. Many international investors favor the program, thanks to its easy rules, benefits, and different investment options.

As an update to the closure of the Golden Visa, a new draft law indicates that the program will be cancelled (the exact date of closure has not been confirmed) except for those donating to cultural institutions in Portugal (the exact amount of the donation required has not been published).

Is it easier to get residency in Portugal or Spain? Spain's Golden Visa program has a faster processing time of three months. However, Portugal's Golden Visa scheme provides a lower investment threshold.

Retirees from non-EU countries need a visa to move to Portugal. After you move to Portugal, you must apply for a residence permit. You can also apply for permanent residency or citizenship after five years.

Portugal – a favourable tax regime

There is no income tax liability for Golden Visa applicants unless they decide to move to Portugal and register the country as their main place of residency.

How long can I stay in Portugal with a Golden Visa? ›

Yes, if you qualify for a Golden Visa for Portugal, you will receive a Portugal residence permit. This will allow you to travel to other countries in the EU and Schengen Zone, for a period of up to 90 days in any 180-day period.

Portugal Golden Visa through an Investment Fund

In Portugal, these are known as "fundos de capital de risco" and are investment funds that support Portuguese businesses. The investment fund option used to be the cheapest option at €350,000, but since January 2022 the minimum amount has risen by €150,000.

According to the latest reports, the short-term rental industry will witness unprecedented growth in the coming years. This means that Airbnb rentals will also be profitable and prove to be a good investment for real estate investors.

House prices in Portugal

The price of houses in Portugal has differed from the average across the EU since 2015. While price increases have slowed in the last couple of years, dipping by 5.9% in 2020 compared to, and slowing down again the following year, prices still soared throughout 2021 and 2022.

D7 Visa Portugal 2023 Requirements: Eligibility Criteria

Be a non-EU national. Minimum income requirements: earn a passive income of at least €760 per month (your income can come from pensions, transferable equity, real estate, intellectual property, or financial equity) Show proof of a place to live in Portugal.

Estonia rejected the highest share of visas from India in 2022 - 56% of 1,986 applications. Malta had a 45% rejection rate, while Slovenia rejected 44.5% of 2,732 visas. Germany had the lowest rejection rate for Indians.

The Golden Visa in Greece is one of Europe's cheapest and easiest routes to obtaining permanent residency permits. The program has a fast application processing time of two months, no residency requirements, and provides an opportunity of including the entire family in the application.

The Portugal Golden Visa processing times usually takes between three to six months for the approval and issuance of your residence card.

Both Portugal and Spain have long, storied histories and robust cultures that'll charm you when you visit. If you're interested in seeing more famous artworks and experiencing the more influential culture, Spain probably edges Portugal out by virtue of its size. But remember that Portugal is no second fiddle.

How much does a lawyer charge for Portugal Golden Visa? ›

Portugal is shutting down its "golden visa" scheme as part of its efforts to fight the housing crisis. Under the program, foreigners who purchased property worth €500k could receive residency status. Portugal's D7 and digital nomad visas are still open for remote workers and entrepreneurs.

Countries that offer Golden Visa programs include: Canada, Cyprus, Greece, Malta, New Zealand, Portugal, Singapore, Spain, Switzerland, the UK, and the United States of America.

The most popular are probably the D7, which is aimed at those with a passive income such as a pension or social security, the D2, which is aimed at entrepreneurs, and the digital nomad visa, which is aimed at those with a salary or regular income from clients.

Golden Visa applicants have the right to live, work, and study in Portugal for the first five years of their process. After five years, in case they decide to get their citizenship in Portugal, the same rights are valid all across the European Union countries.

If you registered as a non-habitual resident before 31 March 2020, your foreign source pension income is generally tax-free. If you are registered from April 2020 onwards, your foreign pension income is generally taxed at 10%.

Generally, people who are not U.S. citizens may receive U.S. Social Security benefits while outside the U.S. only if they meet certain requirements. However, under the agreement, you can receive benefits as long as you reside in Portugal regardless of your nationality.

For non-residents, you'll pay a flat tax rate of 25%, while residents are taxed on a progressive scale from 14.5% to 48%. Like the US, the Portugal tax year is the calendar year. Returns must be filed by March 31st, and you are required to pay any additional tax owed by that date.

What is 0% tax in Portugal? ›

In Portugal there is no wealth tax or capital duty, and an inheritance or a gift received by a spouse, descendant or ascendant is tax exempt. Inheritance or gifts received by other individuals will be either not taxable under territoriality rules, or else may be subject to a flat 10% stamp duty.

According to the Portuguese tax law in force since January 2015, an individual is deemed to be resident in Portugal for tax purposes if one meets either of the following conditions: Spends more than 183 days, consecutive or not, in Portugal in any 12-month period starting or ending in the fiscal year concerned.

Once you become a Portuguese citizen, you can live and work anywhere in the European Union and get the world's 4th best passport. That means you can live in Germany or in the Netherlands if you prefer.

Can American citizens move to Portugal? Technically you're allowed to enter the country visa-free and stay there for up to 90 days. If you wish to live there long-term, then you need to get a residence permit.

You need to apply for residency in order to retire in Portugal as an American. The process is straightforward, but it may take a while. You need to provide (1) your passport, (2) proof of income, (3) proof of health insurance, (4) criminal background check, in order to apply.

D7 is also called the passive income visa. It is mainly aimed at retirees and people who depend on their passive income and plan to stay in Portugal permanently. On the other hand, Portugal Golden Visa is the investment-based road to the kind of residency that doesn't need you to stay in Portugal for most of the year.

The Portugal residence permit program allows you to purchase commercial property in the capital city of Lisbon to qualify for the golden visa. Lisbon property for sale includes hotels, restaurants, shops and offices in the centre of the city.

Even if the potential rewards of owning a short-term rental are exciting, there's always risk involved. One is property damage. Normal wear and tear is expected, but many owners worry their guests will do more severe damage to the property — from breaking furniture to causing water damage.

There are many expenses that come with having an Airbnb. For instance, you will have utility bills that may be higher than usual since guests don't really care how much electricity they use. You will also have cleaning expenses if you are not willing to do it on your own.

What is the prediction for Airbnb 2023? ›

With the pandemic finally over, this year we're expecting over 300 million guest arrivals on Airbnb. Now is the perfect time to introduce millions to the magic of staying with a Host.

According to Moody's, Portugal will not escape a correction in house prices in the near future, meaning that house prices in Portugal in 2023 could be about to drop. The financial rating agency considers that property prices in the country "exceeded the intrinsic values" of the assets, i.e. they are overvalued.

Buying property in Portugal in 2022

In general, and when it comes to buying a house in Portugal, most real estate experts believe that, despite the current circ*mstances, now is is a good time.

The short answer is yes! Buying property in Portugal is a great way to invest your money, whether you're looking for a holiday home, a retirement property, or an investment to rent out. We've seen that the returns from short-stay property lets are particularly profitable in Portugals tourist and student-heavy cities.

Once implemented in 2023, each and every traveler entering Europe without a visa will need one. The purpose of ETIAS is to enhance border security to the EU. It is designed for short-term (90 days or less) visits to the EU and will be required for entry to the EU after the projected ETIAS launch date of November 2023.

Portugal Visa and Residency

North Americans are welcome to visit Portugal for up to 90 days as tourists, but if you fall in love with the country and wish to remain longer, you'll need to apply for a long-stay residency visa. The process is straightforward and begins in your home country.

In mid-to-late 2023, U.S. citizens and nationals of over 60 other countries will need an electronic travel authorization to visit much of Europe. Travelers to any Schengen-zone country will have to register with a European Travel Information and Authorization System (ETIAS).

Portugal is smaller in population, and the area offers more advantages to expats as compared to Spain. Affordable living, residency, easy access to social activities, and a pleasant year-round climate make Portugal preferable to Spain.

Portugal Golden Visa

The Golden Visa program in Portugal allows applicants to invest in the country and obtain Portuguese resident cards. The Golden Visa residence permit allows you to live, work, and study in Portugal and travel freely across the Schengen Area.

If you have social security credits in both the United States and Portugal, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.

How much is the cheapest golden visa in Portugal? ›

Portugal Golden Visa through an Investment Fund

In Portugal, these are known as "fundos de capital de risco" and are investment funds that support Portuguese businesses. The investment fund option used to be the cheapest option at €350,000, but since January 2022 the minimum amount has risen by €150,000.

When to renew a Portugal residence permit? The Portugal Golden visa program requires investors to renew their cards every two years. After five years of holding a Portugal residence permit, one can apply for permanent residence or citizenship.

U.S. citizens may enter Portugal for up to 90 days for tourism or business without a visa. Your passport should be valid for at least three months beyond the period of stay. If you plan on transiting a Schengen country, review our U.S. Travelers in Europe page.

Both the D7 and the D2 will get you a residence and work permit. The difference is that if you come to Portugal with for example a job offer in Portugal, or the clear goal to set up a company, you would have to go for the D2, if you solely have a passive income, you would have to go for the D7.