If you’ve been following our reporting on Portugal in recent months, you’ll know the residential property purchase way to obtain a five-year Golden Visa has been discontinued. (And also, that my colleague Jeff Opdyke has acquired a digital nomad visa in the country and is now living there.)
That has led many careless people to publish headlines claiming Portugal’s Golden Visa program has ended. That is untrue. Golden Visas are still available… but they’re not called that anymore, and investing in real estate won’t get you one.
Portugal’s rationale for offering long term residence in exchange for investment has always been to achieve specific economic goals. And there are plenty of goals the country still wants to achieve this way.
In the immediate aftermath of the global financial crisis of 2008, the country decided to allow foreigners to participate in its real estate market to boost property prices and strengthen the local banking sector. That worked extremely well—so much so that property became unaffordable for many locals. That was the rationale for terminating the residential Golden Visa option.
But Portugal still wants to attract money and skills from abroad. To that end, it has doubled down on its digital nomad and independent means visa categories, encouraging foreigners to relocate to the country rather than simply buy a property and visit for a few days a year.
But overlooked in the reporting is the fact that there are still several ways to get long-term residency rights through investment. The following will get you a five-year renewable residency visa under the D2 (entrepreneur) category:
- Any investment that creates at least 10 jobs immediately.
- A €500,000 investment in scientific research.
- A €250,000 investment in the arts or Portuguese national heritage.
- A €500,000 investment in Portuguese companies, either through
- Purchase of share capital of an existing company, or
- A Portuguese investment fund that devotes 70% or more of its capital to Portuguese companies, excluding the real estate sector.
Portugal is clearly offering a choice. You can get long term residency by donation, which won’t earn you any yield… or you can invest in Portuguese business and potentially make a profit.
Based on discussions with my local contacts, the Portuguese government is hoping to attract scientific, technological, and cultural talent with its “donation” options. The investment options, on the other hand, are aimed squarely at creating jobs and boosting the Portuguese economy in a sustainable way. So, let’s have a closer look at some of the investment possibilities.
The details of an “investment that creates 10 jobs” aren’t yet clear. There are no details on whether this involves starting a brand-new business, or investing in an existing business in a way that expands its workforce by a minimum of 10 employees. But locals tell me that the goal is primarily to support small and medium enterprises.
On the other hand, the share capital and investment fund options are straightforward. A potential applicant could approach a Portuguese company with an offer to purchase €500,000 of their shares. Or you can give an investment fund the same amount and let them invest it on your behalf.
My bet is that most potential visa applicants will choose the fund route. It requires far less preparatory work and risk. Instead of trying to find a business yourself, with the potential for failure and risk, you can place your capital with an experienced investment house and improve your chances of success.
That implies the focus of energy is about to shift from the Portuguese real estate sector to its financial industry. Instead of seeing advertorials presented by people selling Portuguese houses, you’ll start to see them coming from fund managers instead.
That’s exactly what’s happening. Just the other day, my inbox included a link to an article by a Portuguese investment partnership, explaining why you should trust your money to its new “Golden Opportunities Fund.”
Is that something you should do? Not yet. It’s important to let experts investigate the fund’s structure and performance first. Fortunately, having written financial investment newsletters for years, I qualify for that.
So as part of my new Global Citizen service, I’m going to be scanning the Portuguese market for qualified investment funds and giving you my opinion on their prospects for long term profit.
After all, if you’re going to be gaining residency rights in this fabulous country, you might as well make some money whilst you’re at it.
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