Portugal’s Golden Visa program remains a standout on the global stage, showcasing remarkable resilience and adaptability. Despite the removal of its most popular investment route—real estate—the program has emerged stronger, now offering a diverse range of investment options that attract a new wave of global applicants.
Today, the Golden Visa provides one of the most straightforward pathways to EU citizenship, with the recent law amendment allowing the five-year residency countdown to begin from the date of the Golden Visa application, making the path to an EU passport more accessible than ever. It is clear why the program continues to be among Europe’s most sought-after investment migration schemes.
Growth of investment fund route
Recently, venture capital and private equity investments have become attractive options for investors looking for higher returns and active engagement in Portugal’s entrepreneurial ecosystem. To qualify for the Golden Visa, investors must contribute €500,000 or more to venture capital funds that are free of real estate ties. These investments must adhere to specific Portuguese regulations and be managed by certified professionals.
According to reports, the investment fund route has seen a steady increase in demand that coincided with increased interest in Portugal’s golden visa among American investors. This has been a constant trend as the number of applications under the investment fund category jumped by more than 130 per cent in the same year, from 4.06 per cent in 2020 to 9.35 per cent in 2021. Both applications from American nationals and under the investment fund category doubled in 2022.
Capital transfers as innovative pathways
Under the revised law 23/2007 of 4th July 2023, the Portuguese Residency by Investment program can no longer be obtained through investments directly or indirectly linked to real estate. Instead, the program offers various capital transfer options aimed at supporting other critical sectors of the economy.
The capital transfer option has gained traction following the removal of real estate as an eligible investment. Through this pathway, investors can make a EUR 500,000 capital transfer to a commercial company that creates at least five permanent jobs, promoting economic growth and innovation while offering investors a stake in Portugal’s future. This hands-on approach not only generates financial rewards but also contributes to Portugal’s positioning as a hub of entrepreneurship.
Alternatively, investors can contribute to Portugal’s economy with a minimum capital transfer of EUR 500,000, or EUR 400,000 in low-density areas, aimed at scientific research. Cultural production investments have also seen increased interest from international investors. As per the new regulations, investors can make a capital transfer of EUR 250,000, or EUR 200,000 in low-density areas, to support the arts and culture. This option includes funding artistic projects like theatre productions, art exhibitions, concerts, or literary events, or donating to preserve cultural heritage such as historical landmarks, cultural archives, or archaeological sites. While these routes may not offer financial returns, it appeals to investors passionate about philanthropy, scientific progress and the arts.
Additionally, IMI Daily highlights the prioritization of renewable energy investments, particularly in solar infrastructure. This investment requires a capital transfer of EUR 500,000 or more to support research activities conducted by public or private scientific research institutions. This shift positions Portugal’s Residency by Investment program as a leader in sustainable development, aligning it with the global trend of ESG (Environmental, Social, and Governance) principles that are becoming the cornerstone of modern, thriving economies.
Set to break all records
The renewed energy towards the Portugal Golden Visa is palpable. In fact, according to IMI Daily, Portugal’s Golden Visa’s investment fund is set to break records in 2024, having grown by 121% a Year Since 2019. One reason cited for this positive momentum is that the funds can provide greater returns for investors. This is because investors can increase their profit by choosing funds with higher yields instead of relying on 3-5% rental ROI, which will decrease due to taxes and property management fees.
Against this backdrop, Portugal’s Golden Visa program continues to thrive and evolve, demonstrating its resilience and adaptability in the face of change. With a renewed focus on innovation, sustainability, and economic growth, Portugal’s Golden Visa remains a beacon of opportunity for savvy investors seeking a brighter future in Europe. The program is positioned to have one of the best years since its introduction a decade ago.
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