Thousands of expats have leveraged Portugal’s property scheme to secure citizenship and tax benefits for themselves and their families. This program, requiring an investment of €500,000 (£428,450) in real estate, has been a popular route to residency. However, the program faced termination after concerns arose about its role in inflating property prices and its limited impact on local communities. Despite this change, Portugal continues to offer the golden visa through alternative investment avenues.
Clarifying the Status of the Golden Visa
After several months of uncertainty regarding the Golden Visa in Portugal, it is time to clarify the status of this popular residency investment program. The government’s announcement last February and the subsequent changes implemented in October led many to declare the program’s end mistakenly. However, the opportunity to obtain a visa through real estate investment has ceased, not the program itself. Non-EU investors can still secure residency and eventually citizenship in Portugal by investing in various assets, with private equity funds becoming an increasingly favored option.
Advantages of Private Equity Investments
Private equity investments offer numerous advantages over real estate. They are ten times faster, involve lower taxes and fees, allow for sector diversification, and are hassle-free. According to SEF indicators, non-real estate investments comprised 65% of total investment for Residence Authorization through Investment (ARI) in Portugal in 2023. Capital placements in funds for the Golden Visa application quadrupled between 2021 and September 2023, underscoring the growing appeal of this investment route.
Portugal’s Golden Visa Diverse and Regulated Investment Opportunities
Portugal offers a diverse range of eligible investment funds, allowing investors to place their money in sectors such as hospitality, self-insurance, bonds, R&D companies, renewable energies, and sustainable mobility. These funds typically provide an annual return starting at 4%, potentially reaching up to 8% in some cases. The minimum investment remains €500,000, to be maintained for at least five years. Investors can allocate their capital in a single fund or across multiple funds, ensuring a diversified portfolio and mitigating financial risk.
Regulated by the Portuguese Securities Market Commission (CMVM), these funds adhere to strict regulations and are subject to audits, ensuring compliance with Portuguese law and tax legislation. Unlike real estate purchases, investment funds have lower rates and taxes and offer tax-efficient dividends and capital gains, with potential withholding tax exemptions for non-tax residents. The benefits of the Portuguese Golden Visa remain unchanged, including residency for investors and their families, citizenship, free movement within the Schengen zone, and reduced minimum stay requirements. Portugal continues to offer one of the best investment residency programs globally, reaffirmed by its top ranking in evaluations of golden visa programs based on factors such as quality of life, process duration, time to citizenship, and total expenses.
Expert Guidance from Apex Capital Partners
Apex Capital Partners, a leader in the citizenship by investment industry, is adept at guiding investors through these changes. With over three decades of experience, Apex Capital Partners offers expert advice on the new investment opportunities in Portugal’s Golden Visa program, ensuring that clients can still achieve their goals despite the evolving landscape. For those interested in starting the investment process and applying for the Portuguese Golden Visa, Apex Capital Partners and its legal and fund management partners provide comprehensive, transparent guidance to ensure a smooth and secure process.
While Portugal’s property-based golden visa option has ended, numerous alternative investment opportunities remain. These changes highlight the importance of adapting to evolving global trends in citizenship by investment, a challenge that Apex Capital Partners is well-equipped to handle. With our expertise, investors can continue achieving their aspirations of securing European citizenship and enjoying its myriad benefits.
