Portugal - Approval of adjustments to the ARI "Golden Visa" program.

Under the legislative authorization granted by the State Budget Law of 2020, which expired on December 31, 2020, the Portuguese Government decided to revise the investment-based residency program, commonly known as the “Golden Visa”.

The decision was made today at the Council of Ministers, approving a decree law that legally amends investment-based residence permits, with the aim of promoting foreign investment in low-density areas, particularly through urban regeneration, cultural heritage, high-value environmental or social projects, efficient investment, and job creation.

According to the final statements issued by the Council of Ministers, the new regime will take effect on July 1, 2021, with a transition period expected until 2022. The renewal of approval procedures under the current regime, as well as subsequent family reunification requirements, will not be affected.

Therefore, the granting of a “golden visa” will no longer be eligible through real estate investment in coastal areas and urban areas, and the acquisition of real estate made in inland intercity communities (CIMs) and in autonomous regions will qualify.

It should be noted that, although the final text has not yet been released, it is expected that these changes will reinforce the growing trend of investors seeking alternative investment options, specifically by investing €350,000 in acquiring equity stakes from Portuguese investment funds or venture capital funds dedicated to raising capital for companies, or in research activities developed by institutions integrated within the national science and technology system; or even €250,000.00 to invest in or support the production of arts, restoration or preservation of national cultural heritage.

The Portuguese Golden Visa program currently offers eight different eligible investment categories, thus catering to the diverse needs of foreign investors. Since its introduction, it has undergone several revisions, always presenting new arguments to maintain its competitiveness in relation to other European programs, maintaining the preference of foreign investors for investment immigration and second residence, due to the security and quality of life offered by the country, as well as the possibility of integrating this immigration program with the non-resident (RNH) tax regime, thus benefiting from higher tax efficiency on personal income.