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Invest in Portugal: The Ultimate Guide to Residency by Investment

Portugal is famous for its pleasant climate, beautiful landscapes, and rich cultural heritage. However, over the past few years, Portugal has also become a popular destination for international investors looking for investment opportunities and an attractive place to live.

The Portuguese Golden Visa program has become one of the most popular routes investors choose to apply for residency in Portugal. This stunning country situated in Western Europe offers a growing economy and a safe and stable environment, making it an ideal place to invest, relocate, and enjoy a high-quality lifestyle at an affordable cost.

In this article, we will guide you through the various investment options available if you plan to invest in Portugal. We will also explore the benefits of the Portugal Golden Visa program and offer key insights into making the most of Portugal’s vibrant investment landscape.

Why invest in Portugal?

According to the 2024 Global Peace Index, Portugal is the seventh safest country in the world. It attracts investors, expats, retirees, and digital nomads interested in living in Portugal from across the globe with its safe, affordable, and high-quality lifestyle, as well as its natural beauty and vibrant culture.

Over the last few years, Portugal has become a thriving hub for international investors in search of financial growth and, for those who want to relocate to the country’s sunny shores, an unmatched quality of life.

Due to Portugal’s geographical location, there are ample opportunities for investment in the tech, renewable energy, real estate, and tourism sectors. Portugal is also a technology and innovation leader, with startup incubators and co-working spaces attracting all types of professionals and entrepreneurs to the country.

The capital city of Lisbon is now the annual host of the Web Summit, a tech conference that brings together tech professionals and local and international companies redefining the tech industry. Making a Lisbon real estate investment has also become a lucrative opportunity. Additionally, Porto was recently awarded third place in Financial Times magazine’s European Cities and Regions of the Future awards.

Portugal also has a thriving tourism sector, which adds significant value to the country’s real estate market as foreign investors have become increasingly interested in buying property in Portugal.

Not only do iconic regions like Lisbon and the Algarve continue to attract expats, investors, and tourists, but emerging areas like Central Portugal, the Silver Coast, and the Alentejo are also becoming popular tourist destinations.

In fact, it was recently revealed that Portugal is home to the best cultural destination in the world. Parques de Sintra monument and parks won the Best Cultural Destination award in the 2024 World Luxury Travel Awards.

Can I invest in Portugal for residency?

There are many reasons why foreign investors are keen on investing in Portugal with the goal of obtaining Portuguese residency and eventually becoming Portuguese citizens.

However, investing in Portugal for citizenship or residency is not possible simply by investment, but you can apply for an investment program such as the Portuguese Golden Visa to help you facilitate your move and begin your application for residency.

The Portuguese Golden Visa is an indirect route to Portuguese citizenship. By making an investment in Portugal through the program, you will be granted a temporary residence permit.

After living in Portugal on your residence permit, Golden Visa holders can apply for citizenship after five years. It is important to note that real estate investments are no longer qualifying investment options for Golden Visa investors.

Exploring the Advantages of Foreign Investment in Portugal

Portugal investment citizenship: A pathway to citizenship

In addition to Portugal’s (D7 Visa (also known as the Passive Income Visa or Retirement Visa) and the Digital Nomad Visa, the Golden Visa program is a significant draw for expat investors. The program offers legal residency to Golden Visa applicants who make qualifying investments using qualifying investment pathways such as venture capital funds or job creation. It provides a pathway for Portuguese citizenship to apply for Portuguese citizenship after five years.

Affordable real estate investments

Portugal offers investors a thriving real estate market with affordable Portugal house prices, especially in major cities like Lisbon and Porto. These cities offer access to the coast, vibrant city life, and historic areas that attract expats and tourists alike.

Additionally, the cost of residential properties and commercial properties in Portugal are fairly affordable compared to other Western European countries, making a Portugal property investment an attractive option.

In 2024, the average asking price per square meter in the Lisbon Metropolitan Area was €4,935, while it stood at €3,937 per square meter in the Porto Metropolitan Area. Prices will vary depending on the location and type of property you purchase.

Quality of life

Portugal is the seventh safest country in the world according to the 2024 Global Peace Index and is renowned for its high quality of life, pleasant climate, beautiful landscapes, and rich cultural heritage.

These factors attract investors, expats, retirees, and digital nomads from across the globe. Portugal also has a stable political environment and a commitment to fiscal responsibility, showcasing consistent economic growth in recent years.

EU Citizenship

Portugal’s membership in the European Union enhances its appeal. Investors benefit from the economic and trade advantages that come with EU membership, which adds an extra layer of security and opportunity to live work and study in any EU member country.

Investing Portugal: About the Portugal Golden Visa Residency by Investment Program

Introduced by the Portuguese government in 2012 as an initiative to attract foreign investment to strengthen the Portuguese economy, the Golden Visa is an investment program that allows non-EU citizens to make a qualifying investment in the country in order to acquire a Portuguese residence permit and become a Portuguese tax resident.

Also known as the Portugal investment visa, the Golden Visa scheme offers several investment program routes, including investment or venture capital funds. Golden Visa applicants must first open a Portuguese bank account to manage their investments and comply with local financial regulations.

Once accepted into the program, Golden Visa holders, including their families, gain the right to live, work, and study in Portugal. They also enjoy visa-free travel within the Schengen Area, with minimal physical stay requirements, which consist of 14 days of living in the country every two years.

After five years of living as a legal resident in Portugal, Golden Visa holders can apply for permanent residency or even Portuguese citizenship, which comes with the benefit of a Portuguese passport.

Golden Visa investment options

As a popular residence permit program, the Portuguese Golden Visa offers several attractive investment opportunities, including donations, job creation, and research activities in the Portuguese market.

Golden Visa applicants can choose any of these investment options, which we list in full below. The minimum investment threshold is €250,000.

Fund subscription: Make a contribution to qualified investment funds (such as private equity funds or a venture capital fund) worth at least €500,000
Investment or donation in the arts or reconstruction of national cultural heritage with a donation of at least €250,000
Scientific research: Science or Technology research contribution of at least €500,000
Creation of ten jobs: Creation and maintenance of at least ten jobs during the required period
Share capital and job creation: Incorporation of a commercial company in the national territory or reinforcement of a company’s share capital (this company must have its head office in the national territory), in either case with an investment of €500,000, combined with the creation of five or maintaining ten jobs (five of them permanent)

Recent Golden Visa investment changes

Over the past couple of years, the Portugal Golden Visa program has undergone significant changes. The introduction of the Mais Habitação bill in October 2023 changed the status of real estate investments as one of the most popular ways for investors to qualify for the Golden Visa.

To address the national housing crisis, the new law ended real estate and real-estate-related funds or transferring capital as qualifying investments for the program. However, the investment program offers several alternative investment routes that still qualify under the Golden Visa program.

Even though making a Portugal real estate investment is no longer a qualifying investment route for Golden Visa applications, these investment opportunities are still popular with Golden Visa applicants who are looking to obtain Portuguese residency through investment avenues.

Understanding the Portugal Golden Visa Qualified Investment Fund

Portugal has become a highly-sought-after European investment destination, and fund investment through a residence permit program like the Golden Visa is a popular route for international investors to obtain residency in Portugal.

Once you have made your donation to the investment fund of your choice, financial experts accredited by the Portuguese Securities Market Commission (CMVM) manage the fund investments by ensuring they are utilized wisely and that the funds have growth potential. Golden Visa investors can select from a range of key markets, including energy, industry, and technology.

Advantages of the Investment Fund option

Golden Visa applicants who choose the investment fund option will benefit from the advantages listed below, as well as receive a residence permit and will be able to apply for Portuguese citizenship after five years:

Portuguese residency for a €500,000 fund investment
Financial experts managing donated funds
Regularly investment fund audits
Tax efficiency for venture capital funds
Potential investment income, depending on the fund

Portugal Investment Residency: How to Get Portuguese Residency by Investment

To qualify for the Portugal Golden Visa program and acquire Portuguese residency by investment, you must meet the Golden Visa eligibility requirements, which include being either non-EU, non-Swiss, or non-EEA national, having a clean criminal record, making a minimum investment of €250,000, in one of the range of investment routes the program offers, and spending an average of 7 days per year living in Portugal.

In the sections below in this Invest in Portugal guide, we will cover the Portugal Golden Visa application process and requirements to help you along your journey toward European citizenship.

Applying for the Portugal Golden Visa

The first step is to apply for the Golden Visa program online or at your local Portuguese Embassy. Your application for investing in Portugal for residency then goes for analysis and pre-approval, a process that can take up to 18 months.

Once your application has been approved, your biometric data will need to be recorded, and your two-year Portugal residency visa will be issued. Golden Visa applicants will need to travel to Portugal twice during the application process:

For the investment process: The first trip will entail selecting your investment option, beginning the legal process of the Portugal investment, and opening a Portuguese bank account so you can avoid international transaction fees when paying investment funds or other costs like legal fees.
For the visa application: The second trip will be to provide biometric data and original documents to AIMA, the Portuguese entity that manages foreign documents, permits, and visa renewals in Portugal.

Be sure to budget for your travel and accommodation expenses, visa processing fees, and other government fees required for biometric data and updating original and supporting documents if they need to be renewed.

Keep your investment in Portugal

Once you have made the investment of your choice and acquired your Portuguese residence permit, you will need to maintain your investment in Portugal for at least five years if you plan on applying for Portuguese citizenship through the Golden Visa. As mentioned before, you will also need to fulfill the minimum stay requirement of living in Portugal for at least 14 days within a two-year period.

Apply for citizenship

If you have maintained your investment in Portugal for five years and have kept to the minimum stay period, you will be able to apply for permanent residence, citizenship, and a Portuguese passport. To qualify for Portuguese citizenship, you will also need to meet the following requirements:

Have a clean record of criminal history
Paid all outstanding taxes in Portugal (including any Capital Gains Tax or taxes like Municipal Property Tax for property owners)
Pass a Portuguese language examination (A2 level)

Required documents for Portuguese citizenship

During the application process, you will need to provide the required documents listed below:

All the correct application forms must be complete
Valid passport, ID, or birth certificate from home country (Main applicant and family members)
Proof of passing the required Portuguese language test (CIPLE)
Clear criminal record certificate

A document from AIMA confirming that you have been a Portuguese resident for a minimum of five years

Investment Portugal: Investing in the Portuguese Real Estate Market

Even though real estate investments are no longer a qualifying investment route for the Golden Visa resident permit program, real estate investors are still drawn to Portugal’s dynamic and varied real estate market.

Portugal offers a vast range of property types, from modern apartments to beach villas, where you can secure an affordable property for rental income or as your new dream home. Plus, real estate prices in Portugal are affordable compared to other Western European countries.

Property prices

In 2024, the average asking price per square meter in the Lisbon Metropolitan Area was €4,935. In the Porto Metropolitan Area, it stood at €3,937, while in the Algarve and the Alentejo, prices averaged €4,385 and €3,181, respectively. Bear in mind that the cost of residential properties and commercial properties in Portugal will vary based on the location of purchase.

Rental yields in Portugal

If you plan on investing in Portugal real estate and entering the rental property market, the table below showcases 2023 rental property yields that prospective real estate investors can consider. Similar to property prices, the rental yields will vary depending on where you are investing in Portugal.

Lisbon Neighborhood	2024 Rental Yields (%)
Lisbon Metropolitan Area	6.8
Porto Metropolitan Area	6.6
Algarve	5.6
Cascais	5.5
Sintra	6.8

Is now a good time to invest in Portugal real estate?

Portugal’s real estate market is thriving. A recent RICS/Ci Portuguese Housing Market Survey conducted on the Portuguese real estate market by RICS and Confidencial Imobiliário shared that the market is steady and that property prices and buyer demand are consistently increasing.

In addition to the fact that there are no regulations against international real estate investors buying property in Portugal, the country also has strong potential capital appreciation and high rental yields. With the influx of digital nomads, tech companies, tourists, and expats, Portugal’s desirability remains high, and investors will be entering a stable and well-regulated real estate market.

Why work with BE Global?

BE Global Properties is the discerning property investors’ gateway to meticulously curated properties that transcend ordinary listings. Look no further when searching for your next dream home or investment property in the Portuguese luxury real estate market.

Explore our exclusive listings page and work with our experts, who offer market insights, smart investment choices, and exceptional customer service to find the property investment for sale that is perfectly tailored to your lifestyle.

Contact BE Global Properties today and start your search to find your global haven.

Frequently Asked Questions about Investing in Portugal for Portuguese Residency

What is the Portugal Golden Visa program?

Also referred to as the residence permit program, the Portugal Golden Visa program is a five-year residency-by-investment scheme for non-EU nationals. Qualifying investors who apply for the residence permit program acquire the right to live, work, and study in Portugal as well as enjoy visa-free travel in the Schengen Area.

How to get Portuguese citizenship?

You must apply for any of the visas offered by the Portuguese government, including the Portugal Golden Visa program, Portugal Retirement Visa, or Portugal Digital Nomad Visa, to acquire Portuguese residency and ultimately citizenship. If you choose to take the Golden Visa route, you must make a qualified investment of at least €250,000 and hold your investment for a minimum of five years in the country. After five years, you can apply for a permanent residence permit and Portuguese citizenship.

How long does it take to get Portuguese citizenship?

To qualify to apply for Portuguese citizenship, one must have lived in the country on a valid residence permit for about five years.

How to get Portugal residence by investment?

Can I buy property to get an EU passport?

No, real estate investments are no longer a qualifying investment route for the Golden Visa resident permit program

What are the Portugal residency requirements?

The residency requirement for the Golden Visa is a stay requirement. Golden Visa holders need to spend seven days per year within a two-year period living in Portugal.

What are the Portuguese citizenship benefits?

Portuguese citizenship benefits include the right to live, work, and study in Portugal and to enjoy visa-free travel in the Schengen Area.

Can you buy a Portuguese passport?

Non-EU citizens can’t buy a Portuguese passport. However, making an investment through the Portugal Golden Visa program offers the opportunity to apply for Portuguese citizenship and a passport after five years of legal residency. Below we share more about the Portugal Golden Visa and why the program became a popular investment route:

Golden Visa program: A residency-by-investment program offering a path to citizenship
Investment options: Real estate, capital transfer, and job creation
Residency benefits: Visa-free travel within the Schengen Zone, tax incentives, and eligibility for Portuguese citizenship after five years
Non-Habitual Resident (NHR) Regime: A tax benefit program for new residents

However, many of the Golden Visa investment routes and rules have changed. Our residency and migration partner, Global Citizen Solutions, offers more detail in their comprehensive Portugal Golden Visa guide.

What is the Golden Visa price?

The minimum investment fee for the Golden Visa program is €250,000. This excludes legal, travel, administrative, and government fees and other costs associated with the process.

Is Portugal good for investment?

Yes, Portugal is a great country to invest in, and it offers a pleasant climate, beautiful landscapes, and a rich cultural heritage. By investing in Portugal through the Golden Visa you can acquire permanent residence and Portuguese citizenship after five years and enjoy benefits such as the right to live, work, and study in Portugal and to enjoy visa-free travel in the Schengen Area.

Can foreigners invest in Portugal?

Yes, there are no restrictions on foreigners investing in or buying property in Portugal and becoming property owners. There are also no restrictions on foreigners who want to invest in Portugal for citizenship or residency.