Do you have an entrepreneurial spirit and dream of settling in Europe? Portugal’s Golden Visa might be your chance, provided you have the necessary funds.
What is Portugal’s Golden Visa?
The Portugal Golden Visa programme, formally known as the residence permit for investment activity (ARI), is a residency scheme for non-EU citizens who invest in the country. Launched in October 2012, the initiative aimed to attract foreign capital after the 2008 financial crisis, and it’s been a resounding success. Since its inception, the programme has generated over €7.5 billion in investments for Portugal.
How much do you need to invest?
If you’re thinking about applying, the investment options vary, and your choice largely depends on your financial capacity and personal preferences. According to Varun Singh, Managing Director of XIPHIAS Immigration, “Applicants can invest in research activities or create part-time jobs with a minimum of €500,000 (Rs 4.66 crore). Alternatively, they can contribute €250,000 (Rs 2.3 crore) to national, art, or cultural heritage programmes. A capital transfer of €500,000 is also an option, provided it results in the creation of five permanent jobs or the maintenance of ten positions for at least three years.”
There are also specific location-based investments. The government of Portugal outlines several choices, such as:
1. €250,000 – Support for cultural and artistic projects
Where: Nationwide, not tied to any specific geographic area.
Purpose: To support the arts, culture, or heritage projects.
2. €400,000 (Rs 3.7 crore) – Real estate investment in low-density areas
Where: Regions like Alentejo, inland Algarve, and the Azores.
Purpose: Invest in low-density population areas where the GDP is below the national average.
3. €500,000 – General real estate investment
Where: Major cities like Lisbon, Porto, and the Algarve.
Purpose: Purchase properties in high-demand areas.
4. €800,000 (Rs 7.46 crore) – Capital transfer
Where: Nationwide, through bank deposits, bonds, or shares.
Which investment option is the most popular?
According to Manoj Dharmani, Chief Executive of Migrate World India, the Golden Visa programme has three popular pathways: artistic production support, donations for scientific research, and investments in mutual or venture capital funds.
While real estate was traditionally the most favoured option, many investors are now turning towards business and capital investments. “Venture capital funds, especially those focused on Portugal’s hospitality sector, are growing in popularity. These funds are spread across multiple projects, and investors receive returns based on the success of these ventures,” Varun Singh explains.
The programme underwent substantial changes in October 2023, with real estate no longer qualifying as an investment option. However, existing applications remain unaffected by the changes.
How can you apply for Portugal’s Golden Visa?
1. Choose an investment
Begin by selecting one of the available investment options.
2. Gather documents
You’ll need several official documents, which must be certified and translated into Portuguese. This process takes a few months.
3. Obtain a Fiscal Tax Number (NIF) and open a bank account
It’s advisable to hire a lawyer or agency for this step, especially if you’re not residing in Portugal. They can handle meetings and paperwork on your behalf.
4. Finalise your investment
Once your Portuguese bank account is set up, you need to transfer the required funds to complete your chosen investment.
5. Submit your application through SEF
After gathering all the necessary documents, submit your application via the online portal of the Portuguese Immigration and Borders Service (SEF). Ensure that all documents are translated into Portuguese and in PDF format (maximum size: 4MB). You’ll also need to pay a processing fee of €533 (Rs 50,000).
If your family members wish to apply for the visa, their applications can be submitted simultaneously, with a processing fee of €84 per applicant.
6. Schedule an interview and biometric session
Once your application is approved, book an interview where biometric data will be collected. It’s often quicker to schedule interviews in smaller cities where wait times can be shorter. Biometric data includes fingerprinting, photographs, and signatures.
7. Approval and issuance of residency permit
Once your visa is approved, a fee of €5,325 per person is due, and after approximately ten days, you will receive your residency permit, valid for two years.
What happens after the initial two years?
After two years, you’ll need to renew your permit for another three years. This process requires updated biometric data, a clean criminal record, and another set of fees. The renewal costs €533 for the main applicant and €84 for additional applicants, with a further €2,663 per person for the renewal itself.
Once five years have passed, you can apply for either permanent residency or citizenship.
How long does the process take?
“From start to finish, the Golden Visa process usually takes around 18 months,” says Dharmani. “This timeline depends on the due diligence checks, including background, medical, and police records. If you are a politically exposed person (PEP), additional checks may be necessary, which could slow the process.”
What are the benefits of the Golden Visa?
“The Golden Visa offers residency in Portugal and free access to travel across the Schengen Area,” Singh says. “This programme is particularly appealing for business professionals and families, as it allows for easy mobility across Europe.”
Since its launch, the Golden Visa programme has been highly sought after. In 2023 alone, it generated €493 million from January to August, a 24% increase from the same period in 2022, according to Dharmani.
What other countries offer similar programmes?
Several countries offer residency or citizenship through investment programmes. Dharmani lists nations like Greece, Malta, Spain, Austria, Italy, and Switzerland. “Dubai has become a favourite among business professionals,” Singh adds, noting that the UAE’s Russell Kema Golden Visa is gaining traction. Unlike Portugal, the UAE’s programme doesn’t require real estate investments, offering more flexible business opportunities.
