Portugal’s Golden Visa Overhaul: Fund Investments Surge as Property Path Closes

Do you want to invest in Portugal under the Golden Visa program? New rules have been issued this year. You must now invest at least 500,000 euros in an eligible fund. These non-real estate funds must be supervised by the Portuguese Securities Market Commission (CMVM) and have a minimum maturity of five years. An investment of at least 60% in Portuguese companies and the creation of at least 10 jobs are also required. Transfers of real estate and pure capital are no longer accepted. However, the purchase of real estate in Portugal remains permitted, except that it no longer entitles to residence, reports The Portugal News.

By initiating this reform, the Portuguese government wishes to reduce real estate purchases under the Golden Visa program in favor of regulated and transparent investments that support the economy as a whole. This opportunity offered to foreigners to acquire real estate in Portugal has led to a rise in prices and made it difficult for low- or middle-income households to access housing. To end this crisis, the government has removed real estate as a qualification option in 2023.

The processing of Portuguese Golden Visa applications can take between nine and eighteen months, depending on the documentation, compliance of the funds, and volume of applications. With the CMVM, investors benefit from better protection: audited fund structures, managed by licensed professionals; custodian banks that protect investors’ capital; regulatory reports that ensure transparency.

In its new formula, the Golden Visa imposes new requirements. Funds are locked for a period of eight years: two years to raise funds, six years to invest and exit. Investors must maintain their capital throughout the period. They must prioritize the goal of obtaining residence in Portugal and not profit. Because residence provides access to the country’s EU-rate schools and universities, public and private health systems, and allows travel without a visa in the Schengen area. Investors can target key areas such as renewable energy, sustainable agriculture, healthcare, and hospitality.