Email UsKeeping up with Real Estate: Changes to Portugal’s Golden Visa Program. The Portuguese government has recently announced the end of its Golden Visa residency program, which had been in operation for over ten years.
In short, the Portugal Golden Visa is an EU residency program for non-EU nationals who have made a significant investment in Portugal through real estate, capital investment, or creating employment opportunities. Applicants will be eligible to live, work, and study in Portugal whilst also traveling freely within the Schengen area, and be able to apply for a Portuguese passport after five years.
The program had been a significant driver of foreign investment in Portugal, particularly from China and other Asian countries. This investment had helped to fuel the growth of the country’s real estate market, which had been one of the strongest in Europe in recent years.
Critics of the Golden Visa scheme have argued that it has driven up real estate prices in Portugal’s major cities, making it difficult for locals to afford housing. As a result, the decision to end the program was made in response to concerns about rising housing costs and a shortage of affordable housing, although predictions state that any changes to the Portuguese Golden Visa will not take effect until the end of 2023 to allow investors already in the process to complete their applications.
Does this mean I can no longer obtain residency to relocate to Portugal?
Not, with no set end date being announced as of yet, Golden Visa real estate opportunities are still available – contact us today at Regency Luxury Property to find your suitable investment options! Furthermore, if you are a non-EU citizen looking to invest in Portugal’s real estate market, the recent changes to the Golden Visa program shouldn’t deter you from exploring the country’s other residency options.
Portugal has great alternative options such as their “digital nomad visa” and the “D7 visa” which are attracting a lot of interest from remote workers and entrepreneurs – these could be the perfect answer for you.
At Regency Luxury Property, we have an extensive range of luxury properties within our listing portfolio that are ideal for investors looking to take advantage of Portugal’s residency programs. Whether you’re looking for a vacation home, a buy-to-let property, or your dream family home, our team of experts can help you find the perfect opportunity. We also have a large selection of unadvertised properties, as many of our exclusivities are ‘unlisted’ for our vendors’ privacy.
Here at Regency Luxury Property, we are relocation experts. We understand that for non-EU citizens, the process of purchasing property in Portugal can be complex, confusing, and time-consuming. With our extensive knowledge of the Portuguese real estate market, we can help you navigate the complexities of the visa application process and ensure that your investment is secure. Contact us today!
What is the difference between the Digital Nomad and D7 Visa?
In October of last year, Portugal launched a digital nomad visa that allows remote workers from non-EU countries to live and work in Portugal for up to five years. Applicants must make at least four times the national minimum wage. According to data from the Ministry of Affairs, Portugal approved 200 digital nomad visas in the program’s first three months with most of the successful applicants coming from the US, UK, and Brazil.
It is predicted that the popularity of this digital nomad visa will only continue to grow, with many remote workers choosing the beautiful Algarve as their new home base (and who can blame them?!), all while incorporating new knowledge and skills from diverse professions into the country.
Before the digital nomad visa was introduced, remote workers and entrepreneurs made use of the D7 visa (also known as the passive income visa) to achieve local residency status. The D7 visa requires applicants to make an income of only €8,460 per year (+50% for a spouse and +30% for a child), to qualify, however, the income must be the result of passive investment streams, such as real estate or equity in a company, as opposed to a monthly salary.
The D7 visa in Portugal is a popular option for non-EU citizens who wish to stay in the country for an extended period (outside of the 90 days per 180), allowing its holder to live in Portugal for up to a year and can be renewed annually for up to five years. One of the main advantages of the D7 visa is that it provides the holder with the right to work, study, and purchase property in Portugal.
With other benefits that can make the process of purchasing property in Portugal easier and more affordable, it is understandable why this has become a popular residency option. The visa holder will be exempt from paying income tax on foreign income for the first ten years of their stay in Portugal (NHR scheme). This can provide significant savings for investors who are interested in generating rental income from their property.
We understand that the options available in Portugal can be especially daunting for first-time property buyers looking to make the move to the Algarve. By working closely alongside some of the best lawyers in the area we can ensure that your move to the Algarve goes as smoothly as possible! Get in touch with us if you would like to receive any further information regarding what the best route may be for you, we are always happy to help.
