Golden Insight

Abode2 talks to John Mather, Director of Émigré LDA property search and relocation service, to find out what new changes to the Portuguese Golden Visa will mean

Following the recent times of uncertainty around the continuation of the Portuguese Golden Visa program, at last, a Law-Proposal has been approved by the Economy, Public Works, Planning and Housing Committee.

Following the same line of thought as the previous proposals, it appears the Golden Visa program will no longer include the possibility of applying for a Portuguese residence permit through investment in areas such as real estate and pure capital transfers.

The new measures will remove the possibility of acquiring real estate, directly or indirectly, in Portugal, and limit the qualifiable investments to ones made in Portuguese companies, job creation and culture, research and development and in pure Venture Capital Funds. However, as John Mather explains: ‘Knowing how the political process and agenda work, it could very well be postponed.’

John also adds: ‘It’s important to note that the qualifiable investment list mentioned in the approved Law-Proposal will be subject to review every two years in order to assess its impact in the scientific and cultural activities, the encouraging of foreign investment and the creation of jobs.’

Under the new approved proposal, the possibilities of requesting a residence permit for investment activity include:

• Creation of at least 10 jobs;

• Capital transfers in an amount equal to or higher than €500,000, to be applied in research activities developed by public or private scientific research institutions, integrated into the national scientific and technological system;

• Capital transfers in an amount equal or superior to €250,000, to be applied in investment or support to artistic production, recovery or maintenance of national cultural heritage;

• Capital transfers in an amount equal to or greater than €500,000 for the acquisition of participation units in venture capital funds focused on the capitalisation of companies, constituted under the Portuguese legislation, with maturity, at the time of the investment, of at least five years and, at least 60% of the investment value is made in commercial companies located in the national territory.

• Capital transfer in the amount equal or superior to €500.000, destined to the incorporation of a commercial company with headquarters in the national territory, combined with the creation of five permanent jobs, or to increase the share capital of a commercial company with headquarters in the national territory, already established.

Furthermore, it’s worth highlighting that the following considerations should be noted:

• The amendments don’t affect the possibility of residence renewal for those who submitted the application under the system currently in place;

• The same line of thought applies to family reunification applications submitted under the current process and, as such, the renewal applications shouldn’t face any constraints whatsoever;

• The same applies for permanent residence permit applicants, i.e., the renewal will determine the conversion of the residence permit into a residence permit for entrepreneurial immigrants.

• Applications for granting and renewing a residence permit for investment activity, requested in accordance with the previous wording, which are awaiting a decision from the competent authorities on the date of entry of the proposed amendment, remain valid, and in these cases the residence permit is converted into a residence permit for entrepreneurial immigrants.

• The processes that are pending prior control of Municipal Councils remain valid, and in these cases the residence permit is converted into a residence permit for entrepreneurial immigrants.

• Family reunification applications, upon the entrance into force of the new Law Proposal, won’t be allowed to be submitted if the investment made is, indeed, one of the excluded ones.

‘In view of this,’ John concludes, ‘Time is indeed of the essence and, as such, we urge all applicants to finalise any procedures still left to be undertaken in order for the applications to be duly submitted and grandfathered by the Law currently in place.’

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This article is generic, and does not constitute, nor should it be interpreted as constituting legal advice to any concrete case, which will always depend on a careful and thoughtful legal analysis of all circumstances involved.