Knowledge

Recent changes carried out by Law no. 29/2012 of August 9th, regarding the entry and permanency of foreigners in national territory regulated by Law no. 23/2007, of July 4th, allows temporary residence permits to be granted without the need to previously obtain a residence visa, when nationals of third party countries pursue personally or through a company, significant investment activities in Portugal. Golden Visa holders may gain access to a permanent residence permit, as well as to Portuguese citizenship in accordance to the current legal provisions.

1. INTRODUCTION

Pursuant to Article 90-A of Law no. 23/2007, of July 4th, granting residence permits to foreign nationals for pursuing investment activities in Portugal shall only be permitted after certain requirements are fulfilled.
The conditions for the special arrangements provided hereof, are included in Order no. 11820-A/2012 of September 4th (as amended by Order no. 1661-A/2013 of January 28th), which sets the rules and conditions for applying to a Golden Visa in Portugal.
Golden Visas are attributed for an initial term of one year, renewable for two year terms as long as the conditions under which the Visa was granted remain unaltered, after which, Portuguese citizenship may be applied for.

2. WHO CAN APPLY?

Foreign nationals who pursue significant investment activities, either personally or through a company, that leads to at least one of the following situations for a minimum period of five years:
• Property Investments – Acquisition of real-estate of a value equal to or greater than EUR 500.000 (five hundred thousand euros);
• Capital Investments – Capital transfers in the amount exceeding EUR 1.000.000 (one million euros);
• Job creation.
Golden Visas also apply to stock holders of a company based in Portugal or based in another EU state but with a permanent establishment in Portugal.

3. INVESTMENT REQUIREMENTS

The investment must be maintained for a minimum period of five years and attested by a declaration under oath followed by the subsequent requirements.

3.1. ACQUISITION OF REAL-ESTATE OF A VALUE EQUAL TO OR GREATER THAN EUR 500.000:
• Purchasing or demonstrating firm intention (promissory sale or purchase agreement) of acquiring property real-estate, accompanied by a title recorded statement from a financial institution authorized to operate in the country, attesting to the effective transfer of capital for the acquisition or signal of commitment to purchase, in an amount equal and up to 500 thousand euros;
• The acquisition may be in full ownership or by joint venture, provided that each joint investor participates with an amount equal to or exceeding 500 thousand euros. The sole owner may also charge his joint investors for a value greater than 500 thousand euros to lease the property for commercial, agricultural or tourist purposes; and
• Modern land registry certificate evidencing the ownership of the property is needed and promissory sales or purchase agreements, must always be registered.

3.2. CAPITAL TRANSFERS OVER EUR 1.000.000:
• Declaration of an authorized financial institution attesting to the effective transfer of capital in the amount exceeding EUR 1 million to an account, where the investor is the sole owner or the first holder of capital, or the acquisition of shares in companies. If the investment is made by a corporation the participation in capital or the proportional capital investment to which it corresponds must always exceed EUR 1 million; and
• Certificate of Business Registration attesting to the arrest of social participation in society.

3.3. JOB CREATION:
Demonstrate to have created at least 10 jobs and proceeded to enroll those workers in social security, through an updated certificate of Portuguese social security.

4. MANDATORY PERMANENCY

For the renewal of a residence permit the following minimum periods of stay must be demonstrated:
• 7 days, consecutive or otherwise, in the 1st year; Or
• 14 days, consecutive or in subsequent periods of two years.
Cost of renovation: € 2,568.75

5. FAMILY REUNIFICATION

Holders of Golden Visa may request the entry and residence of family members whenever they are outside the national territory without the family members needing to make any kind of investment, as long as they comply with the general requisites.

6. SCHENGEN AREA

Holders of Golden Visas may move within the Schengen Area (*1).

7. TAX IDENTIFICATION NUMBER (TIN) AND LEGAL REPRESENTATIVE

The TIN may be obtained from the Tax and Customs Authority and does not require the presence of the applicant upon presentation of an Attorney.
The tax representative must be a resident in the national territory and possess a Portuguese TIN, but can also be nominated and accept that representation by power of attorney before the Tax and Customs Authority. The presence of the applicant is, once again, not necessary.

8. OPENING OF BANK ACCOUNT IN PORTUGAL

Required in case of transfer of funds, recommended in the others cases and requeires the following documentation:
• Portuguese Tax Identification Number;
• Passport, and
• Proof of Profession.
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(*1) Countries included in the Schengen Area: Austria, Belgium, Denmark, Slovakia, Slovenia, Estonia, Finland, France, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Norway, Czech Republic, Europe Netherlands, Poland, Portugal, Sweden and Switzerland.

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