No real estate option for Portuguese residency from 2023 - Choose capital, scientific or cultural investment!
Published at: 31/07/2023 09:36 am
Where should you invest in Portugal for the residency permit instead of a real estate purchase in 2023?
The Portuguese Parliament approved eliminating three investment activities for the Golden Visa, including acquiring real estate, as part of the Mais Habitação programme to combat real estate speculation. The most attractive option remains investment in private investment funds or Venture Capital, starting at 500,000 euros.
The end of residence permits in exchange for investment, known as the "Golden Visa", is becoming a reality in Portugal. The government headed by Prime Minister António Costa announced last February the end of the granting of golden visas as part of the measures of the Mais Habitação programme to combat real estate speculation. Parliament has approved the law, which means there will be changes in the requirements and the real estate investment route; until now, the most popular alternative is over. In summary, from 2023, you can't obtain a residency permit in Portugal as an investor through a qualifying real estate investment. It is worth nothing that the rules of short-term rent became even stricter, so the cost of real estate investment in the most popular Lisbon, Rio and Algarve increased significantly.
You can read here our previous posts about the legislators' decisions on the Portugal Golden Visa!
However, the remaining options of the Portuguese Golden Visa are attractive! So, to settle in Portugal as an investor, you can
- invest in private investment funds or venture capital to capitalise local companies with tax benefits (500,000 euros)
- creation of at least ten jobs (or as part of a business investment, create five jobs
- support a scientific project (500,000 euros)
- or invest in cultural heritage or artistic projects to become a resident, later citizen of Portugal. (250,000 euros)
A more attractive alternative which is more straightforward and quicker, is to invest in private investment funds or Venture Capital to capitalise Portuguese companies, from half a million euros. This investment option attracts wealthy foreigners to Portugal with tax benefits as well. Tax resident individuals in Portugal who invest in private equity funds are usually not liable to pay:
- 10% final withholding tax rate on income
- 10% tax rate on capital gains.
It is also important to note that the Portuguese Entrepreneur Visa remains unaffected. Expats looking to open a business, relocate a company, or launch a new branch in Portugal can apply. Applicants can also be self-employed, entrepreneurs or professionals.
Contact our experts for advice if you want to know the details and receive information about the most attractive investment solutions!