How to Obtain a Portugal Residence Permit by Investment

Resumption of the Portugal Residence Permit by Investment Program.

In June 2022, Portugal's immigration service (SEF) resumed accepting applications from investors for residence permit status. Officially, the residency program continued to operate, but only for candidates who submitted their documents in 2021. The six-month pause was due to bureaucratic delays within the government.

Starting in 2022, the relevant department changed the conditions for participating in Portugal’s residency-by-investment program. Now, the option for immigrant investors to obtain residency through the purchase of real estate is available with some restrictions.

Updated Conditions for Immigrant Investors to Obtain Portugal Residency

In January 2022, immigration service providers announced changes to the minimum investment limits. The cost of participating in the program increased by 1.5 times in four areas:

• For investments in investment fund shares – by €150,000;
• For business investments – by €150,000;
• For investment in scientific research – by €150,000;
• For opening deposit accounts in Portuguese banks – by €500,000.

Additionally, the Portuguese authorities have geographically restricted the choice of real estate properties to attract foreign capital to other regions of the country. Now, immigrant investors seeking residency can purchase residential property only in:

• Madeira;
• The Azores;
• Portugal’s inland municipalities are away from major cities and resort areas.

These restrictions do not apply to commercial real estate, which can still be purchased throughout Portugal.

In the future, the country's authorities plan to change the application submission process as they intend to dissolve the current immigration service. As a result of the reform, SEF’s administrative powers will be transferred to the new agency APMA, while law enforcement duties will be handled by the GNR and PSP divisions.

Ways to Obtain a Portugal Residence Permit Through the Investment Program

Wealthy individuals who wish to become residents of a Schengen Agreement country must apply through a licensed agent of the residence permit program. Based on investment capital, candidates may be granted a residence permit for 5 years. The possible investment activities include:

• Purchasing real estate;
• Business immigration;
• Financing the country’s economy;
• Investing in non-profit funds.

Initially, Portugal's "Golden Visa" is issued to the investor for 1 year, with subsequent renewals for 2 years each. After this period, a temporary resident who maintains investor status can apply for permanent residency in Portugal.

The procedure for obtaining residency remains the same:

1. Selecting the investment object.
2. Obtaining tax identification numbers for the immigrant investor and their family.
3. Transferring investment funds to a Portuguese bank account.
4. Purchasing real estate and making investments according to the chosen direction.

Most investors consider purchasing property in Portugal the most profitable option due to the country’s steadily rising housing prices. According to Eurostat data, residential property prices have increased by 50% over the past 10 years. The high liquidity of real estate is the main criterion that allows investors to recoup their investment after 5 years.

Briefly About the Program: Portugal Residence Permit for HNWIs

A residence permit in Portugal opens up a wide range of rights and opportunities for its holders, due to the country’s membership in the European Union and several international organizations.

The government actively encourages the inflow of foreign capital into Portugal. One of the mechanisms of this policy is the immigration program for financially independent foreign citizens. It is designed for non-EU nationals who are ready to live in Portugal while receiving their main income from abroad.

Participation Requirements

• A permanent residential address in Portugal – this can be private property or long-term rental accommodation.
• A bank account with sufficient funds to cover living expenses in Portugal for the main applicant (at least €15,960) and their relatives (€7,980 for each adult and €4,788 for each child) for 2 years.
• A permanent passive income from outside Portugal of at least €1,500 per month.
• No criminal record.

Individuals who can participate in the program along with the main applicant:

• Spouse;
• Children under 18;
• Children aged 18 to 24 if they are dependents;
• Parents and other financially dependent relatives (siblings, etc.).

Benefits of the Residence Permit for HNWIs

• The right to live in any EU country for up to 3 months in six months and in Portugal without time restrictions.
• The possibility of obtaining EU citizenship after 5 years.
• No tax on worldwide income if you do not become a tax resident of the country.
• Exemption from taxes on worldwide income for 10 years if you become a tax resident of the country.

Summary

• The frame to obtain a residence permit for HNWIs: is 4-9 months.
• Minimum required funds (in a bank account): €15,960 for the main applicant, +50% for each adult relative, and +30% for each child.
• Passive income: from €1,500 per month.
• Duration of the residence permit: 2 years, with subsequent renewals for 3 years.
• Possibility of transition to permanent residency or citizenship: permanent residency or citizenship after 5 years.

Special Considerations for Obtaining a Portugal Residence Permit for Retirees

Who wouldn’t want to spend their retirement in a warm European country by the azure sea, forgetting about tiresome worries? Moving to Portugal and obtaining a retirement residence permit is a great decision for those who are not afraid to fulfill their dream.

To ensure a carefree retirement, you will need to take care of many issues in advance. But life in Portugal during retirement is well worth the effort.

Program Conditions for Retirees

To live in Portugal after reaching retirement age, you need to obtain a residence permit without the right to work. EU residents will not face significant difficulties in obtaining such status. However, retirees from Russia, Ukraine, Belarus, and other countries will need to meet three main program conditions:

• Purchase mid-level housing in Portugal;
• Prove sufficient income from foreign sources;
• Spend at least 183 days a year in the country.

The last condition is the easiest to fulfill. Most people decide to move to sunny Portugal precisely because they want to spend most of their time there. Retirees are unlikely to get bored. Walks on the beaches, regular local festivals, exhibitions, hobby clubs, and the opportunity to pursue long-desired activities like gardening, painting, surfing, or becoming a writer – all become accessible during retirement in this country.

Buying a property will require significant funds. According to the program’s conditions, you must purchase housing of at least mid-level pricing in the chosen region. While housing costs in Portugal are lower than in many EU countries, they are still quite high. Buying an apartment will cost around €85,000-125,000, and a private house – €170,000-250,000.

You must also provide documents confirming that all your income comes from foreign sources. This income can include:

• Pension from your home country (in convertible currency);
• Rental income;
• Other sources (business, royalties, etc.).

The retiree must receive at least €530 per month for themselves and half of this amount for their spouse. Thus, the total income for a family of two retirees should be €795.

To obtain a residence permit and move to Portugal, you need to submit documents to the consulate, including:

• Applicant's form (for visa C);
• Three 3x4 photos;
• Passport;
• Proof of financial guarantees;
• Proof of ownership of real estate;
• Consent to the processing of personal data by the Portuguese police;
• International criminal record certificate;
• Medical insurance.

How to Receive a Pension in Portugal?

To transfer your pension to Portugal, you need to send certified documents annually confirming your permanent residence in Portugal, your banking details at a Portuguese financial institution, and a transfer request.

Additionally, by December 31st each year, you need to send your home country’s pension authorities a confirmation that the pensioner is still alive. According to the Social Security Agreement, legalization of this documentation is not required.

By following these simple steps, you can ensure a comfortable retirement in a warm, welcoming Portugal.