Portugal increases its investment in the golden visa from January

Despite the increase, the golden visa program in Portugal offers a simple door for permanent residence in Europe

By Suresh Rajan

The Portuguese government will soon change the regulations of the Portugal Golden Visa program, which grants permanent residence to foreigners investing in the country.

The new measures, which will come into force on January 1, 2022, increase the minimum amount of investment required by almost all forms of visa application for the Portugal Golden Visa.

Additionally, Lisbon, Porto and the Algarve will be removed from the list of regions where investors are eligible to purchase residential properties.

Read: Indians among the best nations to get Portuguese visas (September 17, 2021)

The changes are significant and we have seen growing interest in the Portugal Golden Visa from foreigners all over the world, including Indian nationals, who have applied in recent months to take advantage of the current investment amounts. .

As of January 1, 2022, the minimum investment amounts will increase up to 50% for certain types of investment, according to an official statement released by the Portuguese government.

The minimum investment for the capital transfer goes from 1 million euros to 1.5 million euros.

The minimum investment for the transfer of capital to invest in research activities as well as the acquisition of shares in investment funds or venture capital funds will increase from € 350,000 to € 500.00.

However, the minimum investment for the transfer of capital to invest in artistic production or support the arts, or for the reconstruction or renovation of national heritage remains at € 250,000.

Since the advent of the Portugal Golden Visa program in 2008, the most popular route to obtain this visa is through the acquisition of real estate. In recent years, the growth of the Portuguese real estate market has ended up inflating the value of residential properties, especially in Lisbon.

To reduce inflation and extend urbanization to other regions, the government is implementing these very important changes for those who wish to invest in Portugal.

As of January 1, 2022, the Portuguese government is removing regions such as Lisbon, Porto and the Algarve from areas eligible for the purchase of residential properties under the program, with the aim of attracting more investment and people in rural areas and small urban centers.

Please note that these changes only apply to the purchase of residential properties. Commercial properties in Lisbon, Porto and the Algarve (offices, shopping malls and hotels) will continue to be eligible for the Portugal Golden Visa program in 2022, with no change in the minimum investment requirement for commercial real estate, which begins currently at € 500,000.

Another increasingly popular way to invest in Portugal is investment funds. The fund market is highly regulated, making it a safe option that offers peace of mind to international investors, as the fund manager, the custodian bank and the Portuguese Securities Market Commission (CMVM) oversee everything. of the process.

The minimum amount to be invested in the investment fund option eligible in Portugal Golden Visa is currently € 350,000; however, on January 1, 2022, this amount will increase to € 500,000. The option of investment funds has grown in popularity since the pandemic made travel abroad more difficult.

While it is possible to buy a residential property without an in-person visit, many people do not feel comfortable entering into such transactions with only virtual tours, prompting investors to take a closer look at the investment fund, which does not require travel.

Although it is probably too late for new investors to start the process now and take advantage of the regulations in effect before January 1, 2022, this fund modality remains very attractive, even at a higher level of investment.

Read: Portugal introduces new changes to its Golden Visa program, starting January 1 (November 19, 2021)

In addition, the Portugal Golden Visa program offers other interesting investment opportunities, such as the passive investment program for the rehabilitation of hotels, which will not be affected by the changes coming in January.

The Portugal Golden Visa program is now and will continue to be a simple gateway for families seeking to obtain permanent residence in Europe and to diversify their investments abroad.

(Suresh Rajan is Executive Chairman and Founder of LCR Capital Partners)

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