7 Reasons you should apply for Portugal’s Golden Visa

Portugal offers a Golden Visa (residency through investment) program and recently dropped the amount of time you need to hold residency before applying for citizenship from six years to five.

  1. Property is an acceptable form of investment for the Golden Visa program

The minimum investment requirement in a Portuguese property depends upon where the property is located and how old it is. This ranges from €280,000 for a property over thirty years old in a low-density area up to €500,000 for a property newer than 30 years and not located in a low-density area.

For the full list of investment amounts for property, please click here.

2. Lots of different types of investment are eligible for Portugal’s Golden Visa Program

In addition to property, applicants for Portuguese Residency by Investment can include capital transfers into Portugal of at least €1 million; starting a business and creating ten jobs; acquiring a Portuguese business for €350,000; or making a donation of at least €250,000. The investment amounts can vary based upon different incentive structures and we advise you to speak with our attorneys to discuss the various options. For example, if you open a business in a low-density area then you are only required to create eight jobs.

3. There are low physical presence requirements rates Portuguese residents through the Golden Visa

Portugal requires a short stay of 14 days every two years to maintain residency. Given its beautiful beaches, dynamic cities, and stunning countryside, this requirement is not especially burdensome. If you require a lower physical presence requirement, you should investigate that Grenada Citizenship by Investment Program, which does not require you to ever visit the island even once you hold citizenship.

4. Preferable tax rates for Portugal Golden Visa Holders

Unless you spend more than half the year in Portugal you will not be liable for normal Portuguese taxes after obtaining the Golden Visa. Since you only need to be physically present for a fortnight every two years, you can easily stay below this taxation threshold. That said, if you do wish to move your primary tax residency to Portugal, the country offers tax benefits and income tax exemptions for non-habitual residents.

5. You can include your family in the Portugal Golden Visa Program  

The primary applicant for Portugal’s Golden Visa can also include a spouse, children under  18, unmarried children under 26 still in education, and parents over the age of 65. These family members do not require their own separate application.

6. Portugal has a strong passport

If you hold residency for five years, then you become eligible for a Portuguese passport. It is one of the strongest in the world with visa-free access to over 135 countries. Portuguese citizens can travel unencumbered in the Schengen travel zone and are eligible for a visa waiver to the United States. Portugal surprisingly does not hold an E-2 Treaty with the United States and while there are absolutely no guarantees we think that it may be one of the next countries to sign one. An E-2 Treaty Investor Visa can move to the US for the purposes of investing in and running a business.

7. Access to the entire European Union

Portugal has been a member of the European Union (EU) since 1986. The EU guarantees four fundamental freedoms across all 27 members: goods, people, services and capital. This means that once you hold Portuguese citizenship (after holding residency for at least five years) you can live and work in any other EU member state. So if you ultimately wish to live in Berlin, Paris, Dublin or Stockholm, Portgual could be the gatway to achieving that aim

More about Portugal’s Golden Visa Residency-by-Investment Program

Portugal has operated its Golden Visa Residency-by-Investment Program for almost ten years. Thousands of people have successfully obtained residency and subsequently citizenship in that time. Donation starts at €250,000 and investment from €280,000. For more information please click here.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.


Cyprus Ends Citizenship Program – What are the Alternatives?

Cyprus has announced it is closing its popular citizenship by investment program from next month, so what alternative options are available?

Under the Cyprus program, dual citizenship could be obtained within just six months in exchange for a €2 million investment on the island. Since Cyprus is a European Union member, Cypriot citizenship offered the opportunity to live and work in any one of the 27 EU member states (28 until Brexit).

Maltese Citizenship by Investment

The closure of the Cyprus program leaves Malta as the fastest route to European Union citizenship. The Maltese citizenship program requires a €650,000 donation, a €150,000 investment, as well as a commitment to reside in Malta and meet a threshold cost for the rent or purchase of a home.

EU Residency to Citizenship

The alternative European Union programs are more focused on residency by investment with the opportunity to progress to citizenship after a period of residency has been maintained. Bulgaria offers a fast transition from residency to citizenship, while the UK differs depending upon how much you invest, and for Italy it takes ten years. (More on this below)

Montenegro Citizenship by Investment Program

There is a candidate for European Union membership that offers citizenship by investment for those willing to wait an undetermined period of time to become and EU citizen. Montenegro offers a time-limited citizenship by investment program that is running to the end of 2021. The Montenegro program requires a minimum €250,000 investment in Real Estate (more capital is required in economically developed parts of the country) as well as a €100,000 donation to the public coffers. Not only is Montenegro a candidate for EU membership, it is also a member of NATO.

Turkish Citizenship by Investment

Another nearby NATO member, Turkey, also offers an enticing citizenship by investment program. The Turkish program is cheaper than the Montenegro program in that it only requires a €250,000 investment in Real Estate to be maintained for three years or more. Alternatively, Turkish citizenship could be obtained by maintaining €500,000 in deposits with a Turkish bank for three years.

Access to the United States E-2 Treaty Investor Visa

One of the many advantages of Turkish citizenship is that it offers access to the sought-after United States E-2 Treaty Investor Visa. This visa allows a person to move to the US with their families for the purpose of running a business. While the primary applicant must run the business, the spouse can apply to work in the United States.

You must hold citizenship of an E-2 Treaty country. Check our list to see if your country is on there. Citizens of many countries, including India, China, Vietnam, South Africa, Russia, Nigeria are not eligible for the E-2 visa. Combining an E-2 application with citizenship by investment is relatively straightforward. Click here or contact us to learn more.

Grenada Citizenship by Investment

Another country that offers access to the US E-2 Treaty investor visa is Grenada in the Caribbean. Its citizenship program is even more cost effective than the Turkish program. Investors can choose between making a donation to the government of $150,000 or making an investment in Real Estate starting from $220,000. The Grenada program has fast processing times – it can take less than two months to obtain citizenship. Grenada has a strong passport with visa free access to the UK, the EU and the People’s Republic of China.

Comparison of Citizenship by Investment Programs

United Kingdom Residency by Investment

Back to Europe, and the alternative options are to obtain residency by investment as a pathway to citizenship over the medium term. The United Kingdom, for example, offers residency in exchange for a minimum £2 million donation. Higher investment amounts reduce the amount of time before you can obtain settled status, termed indefinite leave to remain. For £2 million the time period is five years; for £5 million that is reduced to three years; and for anything upward of £10 million it requires just two years before you can apply for settled status. Twelve months after obtaining indefinitely leave to remain, a person can apply for UK citizenship.

UK Investor Visa Options

Italian Residency by Investment

Italy offers something similar to the United Kingdom. Recently, in response to Covid-19, the Italian government reduced the investment requirement for its investor visa. Italian residency by investment can be obtained in one of the four ways listed below. The investor must maintain ten years of residency before they can apply to naturalize as an Italian citizen.

at least 250.000 Euros in an innovative start-up company incorporated in Italy; 

at least 500.000 Euros in equity instruments of companies incorporated and operating in Italy; 

at least 2 million Euros in Government Bonds issued by the Italian Republic

philanthropic donations of at least 1 million Euros, in the field of culture, education, immigration, scientific research, recovery of cultural assets and landscapes

Portugal Residency Permit

Portugal offers a residency permit in exchange for an eligible investment. The permit is granted for a two year period, but can be renewed in two year instalments. After five years, the permit holder can apply for permanent residence or citizenship.

Investment options include, real estate, bank deposits, government bonds, setting up a company, and more. For real estate, the minimum requirement is €350,000 for old houses and €500,000 for newer builds. That amount is reduced in areas of low population density.

Greece Residency Permit

Greece offers residency permits for a cost-effective €250,000 investment in real estate. The permit is granted for five years and can be continuously renewed provided the underlying property ownership is maintained. Lease and timeshare options may also qualify.

United States Investor Visa

The United States EB-5 program offers a Green Card in exchange for a $900,000 investment. The applicant, a spouse, and any children under the age of 21 can be covered by a single investment. A Green Card offers permanent residency in the United States and can subsequently be converted to citizenship, provided residency conditions are met.

The investment must create and sustain ten American jobs and must be made in a Targeted Employment Area (outside of these areas the investment required doubles to $1.8 million.) While you can make and manage the investment yourself, most applicants opt invest with “Regional Centers”.

These organizations aggregate investors into new commercial ventures usually involved in construction. These job-hungry projects help ensure compliance with the requirements of the EB-5 program. While the capital is at risk, careful due diligence of the project and Regional Center will mitigate that risk.

Conclusion

This is not an exhaustive list. Other countries like Spain, Ireland, St Kitts & Nevis, and Dominica all offer residency and citizenship by investment programs. The abrupt departure of the Cyprus from the industry does not end the dream of global mobility by investment. The best thing to do is to share your goals and budgets with an immigration attorney who can advise on the best option to suit you, your family, and your business.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.