Resumption of Portugal's Residence Permit by Investment Program
In June 2022, the Portuguese Immigration and Borders Service (SEF) resumed accepting applications from investors for residence permit status. Officially, the residency program continued to operate, but only for candidates who submitted documents in 2021. The six-month pause was due to bureaucratic delays within the government.
At the beginning of 2022, the relevant authority changed the conditions for participation in Portugal's residence permit by investment program. Now, the option for immigrant investors to obtain residency through real estate acquisition comes with some restrictions.
Modified Conditions for Obtaining a Residence Permit in Portugal for Immigrant Investors
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 across four categories:
- For investments in investment fund units – by €150,000;
- For business investments – by €150,000;
- For investments 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 the development of other regions of the country. Now, immigrant investors seeking residency can only purchase residential real estate:
- In Madeira;
- In the Azores;
- Portugal’s inland municipalities are remote 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 process itself, as they intend to dismantle 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 country’s GNR and PSP departments.
Ways to Obtain a Residence Permit in Portugal Through the Investment Program
Wealthy individuals wishing to become residents of a Schengen country must submit their application through a licensed agent of the residence permit program. Based on their investment capital, candidates may be granted residence permit status for 5 years. Investment options 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 the option to renew it twice for 2 years each. After this period, a temporary resident who maintains investor status may apply for permanent residence in Portugal.
The process for obtaining residency remains unchanged:
- Choosing an investment object.
- Obtaining tax numbers for the immigrant investor and their family.
- Transferring investment funds to an account in a Portuguese bank.
- Purchasing real estate and making investments in the chosen direction.
Most investors consider acquiring property in Portugal to be the most advantageous option due to the country’s steadily increasing property values. According to Eurostat statistics, residential property prices have risen by 50% over the past 10 years. The high liquidity of real estate is the main criterion that allows investors to recover their funds after 5 years if desired.
Summary of the Residence Permit Program for FNIs
A residence permit in Portugal grants its holders extensive rights and opportunities due to the country’s membership in the European Union and various international organizations.
The government actively encourages foreign capital investment in Portugal. One of the mechanisms for this policy is the migration program for financially independent foreign nationals. It is designed for citizens of non-EU countries who are willing to reside in Portugal while earning their primary income from abroad.
Participation Conditions:
- A permanent residence address in Portugal—this can be privately owned property or long-term rented accommodation.
- A sufficient amount of funds in a bank account to cover living expenses in Portugal for the main applicant (at least €15,960) and their family members (at least €7,980 for each adult and at least €4,788 for each child) for 2 years.
- A stable passive income from outside Portugal of at least €1,500 per month.
- No criminal record.
Individuals who can participate in the program alongside the main applicant:
- Spouse;
- Children under 18;
- Children aged 18 to 24 if they are dependent;
- Parents and other financially dependent relatives (siblings, etc.).
Advantages of a Residence Permit for FNIs:
- The right to live in any EU country for up to 3 months in six months and in Portugal without time limits.
- The possibility of obtaining EU citizenship after 5 years.
- No tax on global income if you do not become a tax resident of the country.
- Exemption from taxes on global income for 10 years if you become a tax resident of the country.
Summary
Time to obtain a residence permit for FNIs: 4-9 months.
Minimum necessary 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 of 3 years each.
Possibility of obtaining permanent residence or citizenship: Permanent residence or citizenship after 5 years.
Features of Obtaining a Residence Permit in Portugal for Retirees
Who wouldn’t want to spend their golden years in a warm European country by the azure sea, free from exhausting worries? Moving to Portugal and obtaining a retirement residence permit is the perfect solution for those who are ready to make their dreams come true.
To ensure a worry-free retirement, many questions need to be addressed in advance. But living in Portugal during retirement is 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. For EU residents, obtaining such status is relatively straightforward. 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 specifically to spend most of their time there. Retirees are unlikely to get bored. Walking along beaches, attending regular local festivals, exhibitions, and hobby clubs, and engaging in long-desired activities such as gardening, painting, surfing, or writing all become available during retirement in this country.
Significant funds will be required to purchase real estate. According to the program’s conditions, you must buy housing that is at least mid-range in the selected region. While property prices in Portugal are lower than in many other EU countries, they are still quite high. An apartment purchase will cost approximately €85,000–125,000, while a private house will cost €170,000–250,000.
You will also need to provide documents proving that your income comes exclusively from foreign sources. Income includes:
- Pension from your home country (in convertible currency);
- Rental income;
- Other sources (entrepreneurial, royalty, etc.).
At the same time, the retiree must receive at least €530 per month for themselves and half that amount for their spouse. Thus, the total income of a family of two retirees should be €795.
To obtain a residence permit and move to Portugal, you must submit documents to the consulate, including:
- Applicant’s application form (for visa C);
- Three 3x4 photos;
- Passport;
- Proof of financial guarantees;
- Proof of ownership of real estate;
- Consent for personal data processing by the Portuguese police;
- International criminal record certificate;
- Health insurance.
How to Receive Your Pension in Portugal
To transfer your pension to Portugal, you must annually send certified documents confirming your permanent residence in Portugal, your bank details in a Portuguese financial institution, and a pension transfer request.
Additionally, by December 31 of each year, you must send the Pension Authorities of your home country a certificate of life. According to the Social Security Agreement, legalization of this documentation is not required.
By completing these simple actions, you can ensure a comfortable retirement in a warm, welcoming Portugal.
