Golden Visa: Investing in Portugal

Introduction

A recent set of investment-friendly policies made Portugal emerge as one of the most
attractive European Countries for foreign individuals to invest in. Among such policies
is the Residence Visa for Investment Purposes, commonly known as Golden Visa.

This legal frame allows foreign individuals to acquire the status of tax residents in
Portugal by investing in the Country, therefore allowing the investors and their closest
family members to live in Portugal (or simply to freely enter the Country) as well as to
travel with no limitations to all Countries within the Schengen space.

The Golden Visa programme has been immensely successful, since the benefits for
wealthy non-European citizens are significant.

Forms of Investment

A foreign individual may acquire the status of tax resident in Portugal by completing
one of the following forms of investment:

1) Acquisition of Real Estate Property

a) Acquisition of one or more real estate properties of at least EUR. 350.000 given
that (i) the construction of the property was completed at least 30 years ago, or
(ii) the property is located in Urban Rehabilitation Areas (may also grant
reduction or exemption of taxation regarding the real estate properties); or
b) Acquisition of one or more real estate properties of at least EUR. 500.000.
The above-mentioned thresholds may be reduced in 20% should the investment be
made in areas with low density of population.

Real estate properties may be acquired in co-ownership and its owner may use it for
personal purposes or, alternatively, lease or rent the property.

2) Transfer of Funds to Portugal

a) Transferring funds of at least EUR. 250.000 to be invested in financing cultural
or artistic activities;
b) Transferring funds of at least EUR. 350.000 to be invested in financing public
and private entities performing scientific research;
 c) Transferring funds of at least EUR. 500.000 to be invested in financing small and
medium-sized companies; or
d) Transferring funds of at least EUR. 1.000.000 with no investment obligations.

3) Job Creation
Creating, at least, 10 new jobs also entitles foreign investors to obtain a Golden Visa.
This threshold may be reduced in 20% should the investment be made in areas with
low density of population.

Other relevant features and obligations

Once the Golden Visa is granted, a temporary residence visa is issued for a period of 1
year, being renewable for consecutive periods of 2 years, considering that the
mandatory requirements are met. Investment requirements should be maintained for
a minimum period of 5 years.

In contrast with the general regime for tax residency in Portugal (which requires
individuals to stay in Portugal for, at least, 183 days in any given financial year) holders
of a Golden Visa have extremely reduced mandatory periods of permanency in the
Country, which are 7 days in the first year and 14 days in the following years.

After 6 years of residency in Portugal, the investor may apply for Portuguese
citizenship.

The investment may be made individually by the investor or through a company

(provided that the company is owned by a single investor) with registered office in
Portugal or in another European Union Member-State, case in which the company
should have a Permanent Establishment in Portugal.

Contact Us

MC&A has experience in Golden Visa proceedings and will be delighted to provide all
necessary support in this regard.

Should you wish to obtain further details on this matter please feel free to contact us.