February 19, 2021
Background
The Golden Visa regime, in force since 2012, enables third country (non-EU) nationals, that intend to conduct investment activities in Portugal, to obtain a temporary residence permit. The latest legal amendment (currently in force) happened in 2017, further broadening the eligible investment activities.
With the publication of the 2020 Portuguese State Budget, it was also anticipated a future review of the Portuguese Golden Visa regime with “the objective of promoting the investment by foreigners into low density regions, especially through urban rehabilitation, cultural heritage, activities of high environmental or social value, productive investment, and job creation”. These changes were recently enacted on February 12th, 2021, with the publication of the Decree-Law no. 14/2021.
Notwithstanding, these changes will come into force only in January 1st, 2022. Until then, the current Portugal Golden Visa rules and requirements will remain the same.
The beneficiaries of Golden Visa are entitled to live and work in Portugal, further benefiting from a visa exemption for travelling within the Schengen Area. They can also request family reunification, apply for permanent residence and, eventually, apply for Portuguese citizenship, by naturalization, provided all other requirements set out by the Nationality Act are fulfilled. In parallel, the Golden Visa application procedure is becoming more agile.
But what is going to change in 2022?
The key impacts of these changes are, as follows:
1. The minimum amount of some typologies of investment has increased
The minimum investment amounts will be increased, as follows:
- Capital transfer: amountwill increase from € 1,000,000 to € 1,500,000.
- Research and Development: amount will increase from € 350,000 to € 500,000.
- Investment Fund: minimum subscription amount will increase from € 350,000 to € 500,000.
- Job & Company Creation: minimum incorporation amount will increase from € 350,000 to € 500,000 and the number of jobs will remain at 5.
2. Which real estate property will no longer qualify for the Golden Visa regime?
The minimum investment amounts will remain the same, while there will be geographical restrictions for some typology of real estate on the qualifying areas.
The main change refers to residential real estate properties, in which, after 1 January 2022, to be eligible under the regime, the related investment must be made – exclusively – in the less-densely populated areas.
Entry into force
As mentioned, these changes will come into force only in January 1st, 2022. During 2021, the existing regime will still apply.
What’s next?
From the above, please consider the above foreseen changes in case you (or your clients) have investments plans for Portugal for the short term.
For more details, please check our brochure, which briefly describes the regime for the Golden Visa Regime Program in 2021 and after 2022 (inclusively).
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The information presented above is not intended to be an exhaustive analysis of all the changes to the current legal regime, but rather a selection of those that we believe to be the most relevant, and does not preclude consultation of our Company and / or legislation to which it refers.
For more information contact: Catarina Breia (+351 91 7575 832 or cbreia@pt-nexia.com) from our Tax Department.
