Can I Get Residency in Portugal if I Buy a House?

For many foreign investors, Portugal’s sunny climate, beautiful landscapes, and attractive lifestyle make it a desirable destination to call home. One of the most popular ways for non-EU citizens to obtain residency in Portugal has been through the country’s Golden Visa Program, which allows individuals to qualify for residency by making specific investments, including purchasing real estate. But how does it work, and are there any changes you need to be aware of?

Portugal’s Golden Visa Program was launched in 2012 to attract foreign investment, and it quickly became one of the most successful residency-by-investment programs in Europe. The program allows non-EU citizens to obtain a residency permit by making qualifying investments in Portugal, including purchasing real estate.
Historically, one of the most popular investment routes has been buying property worth at least €500,000 (or €350,000 in some cases, depending on location and renovation needs). The Golden Visa grants investors and their families residency rights, including the ability to live, work, and study in Portugal, as well as visa-free travel within the Schengen Area.
One of the major benefits of the program is that it offers a pathway to permanent residency and citizenship after five years, provided that the individual maintains the investment and meets the minimum stay requirements.
However, recent changes to the Golden Visa program have shifted the landscape for real estate investment, especially in popular urban areas.

Property Investment: What’s changed since October 2023

In October 2023, the Portuguese government made significant changes to the Golden Visa program, particularly in relation to property investment. The most notable change is the complete removal of real estate investments as a qualifying route for the Golden Visa. This means that both residential and commercial property investments are no longer eligible. This shift reflects the government’s desire to redirect investment into other sectors of the economy, focusing on sustainable and innovation-driven growth.

Changes in the work of the immigration service

As of October 29, 2023, the SEF immigration service was disbanded and replaced by the new Integration, Migration and Asylum Agency (AIMA). Applications for the Golden Visa are now made to AIMA.

What Alternative Investment Avenues Remain in the Golden Visa Program?

If property investment in restricted areas is no longer an option, there are still other ways to qualify for the Golden Visa. Here are some alternative investment routes:
● Capital Transfer: One option is to make a capital transfer of €1.5 million to Portugal. This can be done through various means, including bank deposits or bonds.
● Investment in Business or Job Creation: Another route is to invest at least €500,000 in a Portuguese business or create 10 jobs within the country. This option encourages business development and local employment.
● Cultural or Scientific Contribution: A lower investment threshold of €250,000 is available for those who wish to support Portuguese arts, culture, or scientific research.
● Fund Investment: Investing in approved Portuguese venture capital or private equity funds with a minimum investment of €500,000 is another option. These funds are typically focused on sectors like real estate, technology, and infrastructure.

Living in Portugal: What to Expect as a New Resident

Once you obtain your Golden Visa and become a resident of Portugal, you’ll enjoy many of the benefits the country offers. Portugal is known for its high quality of life, affordable living costs compared to other Western European countries, and excellent healthcare and education systems.
As a Golden Visa holder, you are only required to spend a minimum of seven days per year in Portugal to maintain your residency status. This makes it ideal for those who may want to split their time between Portugal and other countries.
Portugal’s mild climate, vibrant culture, and safe environment make it an attractive destination for both retirees and families. Whether you choose to live in a bustling city or a quiet rural area, you’ll find that Portugal has something for everyone.

Tax Implications for Property Owners and Residents

As a property owner and resident in Portugal, it’s important to understand the tax implications. While purchasing a property does not automatically make you a tax resident, you may still be subject to certain taxes. These include:
● IMT (Property Transfer Tax): Paid at the time of purchase, this tax rate varies depending on the value and location of the property.
● IMI (Municipal Property Tax): This is an annual tax based on the property’s value, ranging from 0.3% to 0.45%.
● Capital Gains Tax: If you decide to sell your property in the future, capital gains tax may apply.

Long-Term Prospects: From Residency to Citizenship

One of the most appealing aspects of the Golden Visa program is that it offers a pathway to Portuguese citizenship. After holding your Golden Visa for five years, you can apply for permanent residency or citizenship, provided you meet the following criteria:
● Maintain your investment in Portugal.
● Fulfill the minimum stay requirements.
● Pass a basic Portuguese language test (A2 level).
Once you obtain Portuguese citizenship, you’ll enjoy the full rights of an EU citizen, including the ability to live and work in any EU country, visa-free travel within the EU, and access to Portugal’s public services.

In summary, while recent changes to the Golden Visa program have removed property investment as an option, there are still plenty of opportunities for foreign investors to obtain Portuguese residency through other avenues like venture capital funds, business creation, or cultural donations. If you’re interested in navigating these changes and securing Portuguese residency, Relyon Relocation can assist you every step of the way. Our team provides expert guidance on the Golden Visa process, ensuring that your application is completed correctly and efficiently. Additionally, we can help you explore pathways to Portuguese citizenship, leveraging our extensive experience to make the journey as smooth as possible. Whether you’re investing in Portugal’s future or planning long-term residency, we offer personalized support tailored to your needs.