When it comes to Golden Visa programs, Portugal always comes into buyers’ thoughts by being known as the most flexible, simple, and fastest route to citizenship. We’ll introduce you to the one-of-a-kind Portugal golden visa investment options and the advantages and disadvantages of each investment to help you determine which is the best for you.
Before investing in Portugal, you’ll have to get a NIF number and open a Portuguese bank account. This is one requirement for deciding on the Portugal Golden Visa program – the requirements are straightforward you can read more about the Portugal Golden Visa requirements here.
Once you’ve set up your bank account, you must pick up a qualified investment option for the Portugal golden visa. We will feature the different options offered by the Portuguese government and the pros and cons of each one.
- €280,000 investment in the renovations of property located in a low-density area.
- €1.5 million capital transfer
- Creation of 10 jobs in Portugal
- €250,000 contribution to Arts/ National heritage/ culture
- €500,000 investment in Scientific and technological research
Portugal Golden Visa Real Estate Investment
This investment option is what most investors pick to go through. It can be any property located in low-density areas (residential and commercial properties) or high-density areas (commercial properties).
However, as of January 1st, 2022, residential properties in Lisbon, Porto, and mainland coastal cities don’t qualify – you can only buy commercial properties here as they are considered high-density areas.
If you choose a property in low-density areas, you’ll get a 20% reduction on the minimum investment required. Learn more about buying properties in Portugal here.
Portugal has no restriction on foreigners obtaining properties. This choice is the most desirable as you have the chance to make investments in the developing Portuguese real property market.
Portugal Golden Visa Investment Fund
The fund investment option won a reputation in 2019 because it has a low minimal funding charge and low costs. The funds have to meet precise criteria for the Portugal Golden Visa.
Some qualifying funds focus on real estate, whereas others focus on equity, companies, startups, or commodities.
But, before investing in one, you have to know the pros and cons of the Portugal Golden Visa investment fund:
- No additional costs, disparate real estate acquisition.
- Someone else copes the fund, and you won’t need wretchedness about your investment.
- You’ll diversify your investment instead of investing in just one or two properties.
- A firm need to search and find capable funds, meaning your GV application may hold more time than those selecting the real estate option.
- It’s riskier than the real estate investment option
- Exiting may sound a bit confusing if you would like to get out before the fund dissolves
- Someone else controls your investment
If you go with a Golden Visa fund, you should expect to be presented with low to medium-risk funds and revert accordingly.
Capital Transfer Investment
This is the most straightforward route to the Portugal Golden Visa. Make a €1.5 million capital transfer, and you’re done – this investment option is the most cautious since your capital will simply plod from one place to another without investment risk.
Your capital would be sitting there, locked away safe and sound, but without the change of earning returns down the line.
If your capital drops below €1.5 million at any point, your golden visa could be revoked. Once you become a Portuguese citizen, you’re free to remove the capital from the bank.
Job creation in Portugal
There is no minimum quantity you’re required to spend on job creation. You must find or run a company for at least five years (until you become a citizen or permanent resident) and create ten jobs within the company.
The ten positions have to be newly made and full-time.
While it could be inexpensive and available to begin a company and hire an expert to run it for you, you have to have at least ten individuals employed in this company and pay them full-time salaries.
Although it is the cheapest investment option, it may take a while for a new company to see any returns on your investment.
Contribution to Arts/ National heritage/ culture
This alternative investment option appears fairly ambiguous as provided by the program. To qualify for this, you need to contribute €250,000 to Portuguese Art, National heritage, or culture.
The advantage of this option is the convenience and the affordable price tag – but you’ll be saying farewell to your money forever. There’s no return on investment with this route.
Scientific and technical research in Portugal
An accredited national institution carries out a €500,000 investment in scientific or technical research. This route’s terms are so confusing that almost nobody has selected to go through it.
The Portugal Golden Visa Program is anything but missing investment options. As a quick overview, you may go through the real estate investment route if you want to live or retire in Portugal or if you’re looking for a more trusted investment route.
Golden Port Visa has helped clients worldwide find the perfect property in Portugal and get the Portuguese Golden Visa.