Portugal's Golden Visa 2024: Trends, Challenges and Opportunities

Joana Torres Fernandes | Partner

Despite recent alterations, Portugal continues to maintain its position as the leading provider of Golden Visa programmes worldwide. This affirmation stems from the comprehensive study conducted by the esteemed consulting firm Henley & Partners, as reported by Bloomberg.

According to the study, Portugal impressively secured 75 points, ranking above a selection of 12 scrutinised nations. Notably, Austria and Greece share the second position; Switzerland, Italy, and the United Kingdom jointly hold the fourth spot; Canada and Spain are tied in fifth place.

Examining ten crucial factors including quality of life, processing efficiency, residency permit acquisition timelines, and overall expenses, the consulting firm's evaluation highlights Portugal as the pinnacle of golden visa provisions globally. Bloomberg further underscores Portugal's offering, describing it as a nation basking in sunlight, proffering a superior quality of life at sustainable costs, and an unambiguous route to European Union citizenship.

The introduction of legislative adjustments in 2023 aimed at rectifying deficiencies and enhancing the efficacy of Portugal's Golden Visa programme. Nonetheless, utmost care must be exercised to preserve the procedural integrity and facilitate the ingress of potential investors without impediment.

A pivotal aspect lies in the strategic diversification of investments into innovative, sustainable, and technological sectors. Such expansion not only fortifies the economy on a broader scale but also mitigates adverse effects associated with investment concentration into real estate sector.

The Portugal’s Golden Visa programme offers various investment avenues for prospective investors:

1. Investing €500,000 or more in participation units of investment funds or venture capital funds focused on company capitalisation under Portuguese law. These funds have a maturity period of at least five years, with a substantial portion of the investment directed towards national companies;
2. Supporting national cultural heritage through capital transfers of €250,000 or above for investment in artistic production, restoration, and upkeep. This can be directed towards public institutes, administrative services, and entities dedicated to preserving the rich cultural legacy of Portugal;
3. Contributing €500,000 or more to research activities conducted by esteemed public or private scientific institutions within the national scientific and technological system;
4. Establishing a minimum of 10 job positions;
5. Investing a minimum of €500,000 into establishing a commercial company in Portugal, alongside the creation of five permanent jobs, or increasing the share capital of an existing Portuguese company while generating employment opportunities.

We believe the shift away from conventional investment paths has prompted changes in the Golden Visa Funds sector. The program now emphasises solely on fund investments, signifying a substantial reconfiguration since 2021.

Currently, two main categories of investors influence the landscape. The first group is comprised of those already favouring fund investments due to their inherent benefits. With the evolution of funds from being predominantly property-centric to a diverse range of options, these investors now have a broader scope.

The second group, primarily interested in real estate, is gradually delving into the world of fund investments. This expansion enables investors to choose from varying risk levels associated with different sectors and business strategies.

In our view, Portugal's Golden Visa Funds will be the strategic choice for investors in 2024. And the most resilient opportunities in the market are those guided by entities with a proven track record not only in fund and investment management but also in the specific sector targeted for investment.

Portugal's Golden Visa programme, specially designed to investors seeking diversification and access to Europe, maintains its uniqueness by offering residency and a passive route to Portuguese passport and citizenship.

Should you wish to further discuss this matter, don't hesitate to contact us. Our team is dedicated to providing comprehensive support to navigate these legal waters with the utmost diligence and precision.