Portugal Golden Visa Rule Changes 2022
Last updated on June 7th, 2021
After a year of ambiguity, speculation, and unofficial announcements, the Portuguese Government published the updates to the Golden Visa law on February 12, 2021. The changes will come into effect on January 1st, 2022.
Let’s dive into what will change and how this should affect you.
What will change in 2022?
There will be two main changes:
- Where you can buy a property in Portugal to qualify for a Golden Visa
- How much you need to invest to qualify for a Golden Visa
You can no longer invest in Lisbon, Porto, or the Coast
In order to qualify for a Portugal Golden Visa through real estate acquisition, the property will need to be in certain designated areas. The minimum investment amounts will not change.
As of January 1st, 2022, you can only make a property acquisition in the interior mainland of Portugal, or the autonomous regions of Madeira and Azores. You can find a list of qualifying areas here.
Properties purchased in Lisbon, Porto, or anywhere on the coast of the mainland will not be eligible for a Golden Visa application. Yes, that includes Cascais, Sintra, the Algarve, and the Silver Coast.
Mind you, not all real estate property types are created equal. The geographical restrictions will only apply to residential properties in Portugal. The changes will not affect any other type of property, they can still be purchased anywhere in Portugal to qualify for a Golden Visa.
Increased minimum investment for Funds to €500,000
The real estate changes were well expected for over a year. I was thinking the €350,000 investment in Portuguese investment funds would be the savior option. Perhaps I was wrong.
The minimum investment amount for the funds will increase from €350,000 to €500,000.
On the bright side, there are plenty of funds that you can invest 350,000€ in 2021 and qualify for a Portuguese Golden Visa before the amount increases in 2022.
Other minimum investment requirements also Increased
Some other, although less popular, investment methods also went through changes.
- Minimum capital transfer requirement will increase from €1M to €1,5M
- Minimum R&D investment amount will increase from €350,000 to €500,000
If you are generous enough to donate €250,000 to Arts and Culture in Portugal, that option will not change. Neither will the requirement to create 10 new jobs through a company.
When Will It Change?
The changes will come into effect on January 1st, 2022.
The changes will not apply retroactively. This means that if you apply for a Golden Visa before December 31st, 2021, you won’t be affected by the above changes.
So, you can take advantage of the current low investment amounts and wide real estate choice if you apply for your Golden Visa in 2021.
What should You do?
Well, if your plans involve any of the following, then you better rush!
- Purchasing real estate in Lisbon, Porto, Cascais, Sintra, or any other coast
- Investing €350,000 in a Portuguese fund
Both property acquisition and fund subscription takes a fair amount of time to close the deal.
While you research your options, it is best that you start getting together the necessary documentation to submit your application.
I highly recommend that you work with a local investment advisory company in order to decide on your investment and with a local law firm in order to submit your GV application.
I like to stay as an independent third party at an equal distance to all firms. But, I am human too. I have formed some favorites after my extensive research on the program. Feel free to contact us to get an opinion and an introduction to the right person at the right team.