Real Estate Investment in Lisbon & Porto will no longer be eligible under the Golden Visa from 2021
Portugal's Parliament has approved the budget for 2020 which included provisions regulating the Portugal Golden Visa programme. The budgetary provisions approved in the Portuguese Parliament indicate that the issuance of golden visas under the real estate option would only be eligible for those investing in the autonomous communities of the Azores and Madeira as well as inland municipalities.
Portugal's members of parliament have finally given the green light to the measures proposed in the 2020 budget. Among the various proposals, important amendments were done to Portugal's Golden Visa programme. The approved amendments indicate that the issuance of a residence permit under the Golden Visa programme for those investing in real estate would be affected in a way that only those investing in Madeira, the Azores and inland municipalities would be eligible. This change thus affects property investments in Lisbon and Porto, the most popular cities in Portugal, since purchasing property in these two cities would not make one eligible for the Golden Visa. The main aim for this change is to attract investors to purchase property in other localities in Portugal, mainly low density population areas.
Amendments to come into effect in 2021
Although the Portuguese parliament has approved the budget, the changes to the programme are not yet in force. Before the changes announced in the budget can take effect, the President must promulgate the budget measures. In the mean time the Portuguese government has confirmed that the changes will only come into effect in 2021 and those investors who want to purchase property in Lisbon and Porto, and be eligible for the Golden Visa, can do so this year.
Investor Visas under the programme are given for a period of one year and renewed every two years. After five years of legal residency, applicants are eligible to apply for Long Term Residency status and Portuguese citizenship.
To be eligible to apply under the Portugal Golden Visa investors are to:
- Purchase property in Portugal with a value equal to or above €500,000, or
- Purchase property in Portugal with a value equal to €350,000 (building must be older than 30 years and in urban regeneration areas)
- Purchase property in Portugal with a value equal to €280,000 (building must be older than 30 years and in areas with less than 100 habitants per km)
How can we assist?
Our Residency & Citizenship team can guide applicants on the requirements and tax and legal implications of the Portugal Golden Visa programme and indicate expected time frames based on the specific circumstances and nature of your application.
