Recent updates to Portugal’s Golden Visa

The ARI (Residence Authorization for Investment activity) or as it is more widely known as the Golden Visa, launched to grant non-EU citizens with the opportunity of acquiring a temporary residence permit through adhering to one of the following investments in Portugal:

1)A capital transfer of €1million;
2)Creation of 10 new job posts:
3)Real estate acquisition for the sum of over €500,000 for a property that was built within the last 30 years;
4)Real estate acquisition for the sum of over €350,000 for a property that falls under all the following categories – if it was built over 30 years ago, situated in a densely populated urban area and that the investor intends to refurbish the property;
5) An investment of €250,000 in artistic productions;
6) An investment of €350,000 in funds for participation units – similar to shares – that invest at least 60% of the capital in Portuguese companies; or 7) An investment of €350,000 in a company that creates or maintains, at least, 5 job posts.

Recently the Regulative
Decree, n. º 84/2008, that was released as of 05 November – which establishes
the procedures that are to be followed in obtaining this residence permit – has reformed. Various new rules have been introduced to comply with the new kinds of investments:

Regarding the investment in real estate for the minimum sum of €350,000, having the property built over 30 years old and so forth, the applicant now requires to present a document evidencing that the property was built over 30 years ago or alternatively, present a declaration from a Portuguese City Hall stating that the property is situated in an densely populated urban area. In addition, a mandatory document is required to prove that the property is either undergoing refurbishment or will undergo future refurbishments;

The opportunity to make the investment through the acquisition of participation units. This investment option results in the investor presenting a compulsory certificate of ownership to the participation units (similar to shares) along with a declaration stating that the funds invested of at least 60% are to be invested into Portuguese companies. Furthermore, this particular investment option is to generate profits with the funds invested. The necessary documents to instruct the Golden Visa request must be obtained within the management entity of the Fund;

SEF have also released further options to make investments through the following activities: (i) the raise of the share capital of a pre-existent company or acquiring the share capital of a previous partner in addition to the creation of at least 5 new job posts or to retain 5 current employees; (ii) to incorporate a company where the share capital is to be at least the €350,000 in addition to hiring 5 employees. As a requirement for this investment route, the investor is to submit proof of this investment with the company certificate as well as the agreement related with the shares acquisition; or

The investor can choose another route to investment (for example, the transfer of €1 million to a bank account in Portugal) to be held there for the 5-year visa period during the temporary residence permit by changing their investment option. Nevertheless, the new investment must total to the exact amount as the original investment made prior.

Other investment add-ons

In some cases, the total amount of investment could be reduced by 20% if the investor chooses a location that is low income or not densely populated.

For more information, please do not hesitate to contact our team in Portugal:

Marina Andrade, Country Manager/Lawyer
Marina@coatesglobal.com
Mateus
Leite de Campos, Lawyer
Mateus@coatesglobal.

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