On Feb. 16, the Portuguese prime minister announced he’s ending the golden visa program for new foreign property buyers, which since 2012, has given residency to 11,000 people who bought investment properties in the country. The prime minister points to rising property values as the reason behind ending the visa program.
Portugal’s golden visa allows you to establish residency with an investment of at least $296,000 and by spending at least seven days in the country per year, according to Schengen Visa. While not many people have the capacity to make such an investment, comparatively speaking, this is a good deal considering this is almost half of the U.S.’s sale price for homes in 2022 of $543,000, according to Statista. The program also puts you on a pathway to citizenship that lasts five years, during which time you must hold your asset.
What is a golden visa?
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Golden visas are basically an opportunity for wealthy people to “buy” their residency—sometimes, as is the case for Portugal, without even having to live in the country. These programs give residency, and for some, like Portugal, a fast-track pathway to citizenship by investing in property or by donations.
However, there has been a recent shutting down o these programs: The UK scrapped its golden visa program in February 2022 as part of a move to zero in on dirty money from Russia after the Ukraine invasion. Ireland followed suit for similar reasons, but mostly due to being vulnerable to tax abuses. Now, Portugal is ending its program, but not because of security reasons or sanctions for Russia, but because of their rising property and rent prices, according to Kron4.
What was so great about Portugal’s golden visa program?
While a lot of European countries have laws that allow foreigners to buy investment properties in their countries, Portugal allowed you to enter a special fast-track pathway to European citizenship with very relaxed rules. They allowed you to live anywhere in Europe if you wanted, as long as you spent at least one week per year in Portugal to keep the golden visa active. You must hold your investment for five years or until you get a permanent resident card. After the fifth year, the investor can apply for Portuguese citizenship, which is European citizenship.
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When will Portugal’s golden visa program end?
There is no definitive deadline as of this writing as to when the program will end. However, we know that three steps need to take place: a month-long public hearing period that lasts until March 16; a meeting to draft the final proposal, which will be presented to Parliament for a vote; and then the proposal will be forwarded to the prime minister for approval and be accepted, changed, or evaluated by the Constitutional Court, according to The Points Guy.
Back in 2021, the previous golden visa amendment took 18 months, and whatever applications come in before the amendments, will be grandfathered in, so the changes won’t affect them, according to Global Citizen Solutions. So there is still time to apply if you qualify and act quickly.
What are the benefits of getting a European Union citizenship?
If you choose to pursue the Portuguese golden visa route to get European Union citizenship, you can open many doors for you and your family in the future. Speaking strictly about Portugal, you’ll have the ability to work and go to school there, get tax incentives, and, of course, its path to citizenship.
An EU citizenship gives you free travel within the Schengen area, which comprises 27 European countries who abolished their internal borders without a visa. The benefits also extend to your immediate family: They’ll be able to reside and work with you, regardless of their nationality. You’ll have access to free education in most EU countries, and your children under age 18 will have the right to be educated. You’ll also be able to vote in elections.
Having a dual citizenship with a Portuguese passport will allow you to visit 187 countries worldwide without an additional visa (the Portuguese passport was ranked sixth, one place ahead of the United States, in the list of the world’s most powerful passports according to the 2023 Henley Passport Index).
How can you apply for a Portuguese golden visa?
The best way to get started with a Portuguese golden visa application is to speak with a Portuguese golden visa lawyer or Portuguese golden visa consultant, so they can assess you with which documents you need and which investments will work for you.
Here are some of the minimum requirements for the program:
- Be either non-EU, non-Swiss, or non-EEA national
- Minimum investment of €250,000 (or about $265,000), with a range of investment routes to choose from
- Have a clean criminal record
- Spend a minimum of seven days in Portugal for the first year, then no less than 14 days for each subsequent two-year period (this is called the “stay requirement”)
Check out this step-by-step guide for more information.