Golden Visa Portugal DLAS

DLAS has a specialized department focused on helping all members who wish to obtain the ARI/GOLDEN VISA authorization.
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About us

DLAS – Dinis Lucas & Almeida Santos – Boutique Law Firm, is a founding member of ASSOCI’ARI, a non-profit associative institution under private law, providing support and cooperation to foreign investors, already residing or intending to reside in Portugal, which incorporation was inspired and motivated by the amendments made to Law no. 29/2012 of 9 August, which constitutes the first amendment to Law no. 23/2007, of 4 July, that regulates the legal entry, stay, exit and removal of foreigners from the national territory, and more specifically, the special system applicable to the granting and renewal of a residence permit, with the waiver of a residency visa, for investment business in the national territory (ARI / GOLDEN VISA), thereby creating the need for the development of an entity focused on the monitoring of those who intend to invest in our country, in order to assist foreign investors and in order to identify most problems on the permit ARI / GOLDEN VISA, and act near the competent authorities to solve them.

In order to develop these activities, DLAS has a specialized department focused on helping all members who wish to obtain the ARI / GOLDEN VISA authorization. Our firm is also specialized in the procedures regarding the residence permit and legal assistance in investments.

In view of the special incentive for granting and renewal of residence for those who aim to invest in Portugal (ARI / GOLDEN VISA), without needing a residence visa, DLAS provides a legal department focused on granting its members an ARI / GOLDEN VISA authorization and providing legal assistance during all the investment process. Therefore, we provide a special service regarding the ARI issuance and the following procedures.

Our legal services include not only the assistance and preparation required during the process for obtaining the ARI / GOLDEN VISA authorization and its renewals for a 5 year period, but also real state purchase (promissory contracts, purchase and sale deeds and the following registration), as well as the incorporation of a Portuguese company for that purpose.

The Golden Visa Portugal is one of the most attractive residence programs in Europe.

Automatic
residence visa

Mobility in the
Schengen Area

Possibility of obtaining Portuguese citizenship

About Golden Visa / ARI

What are the new rules?

Amendment to the minimum requirements for granting a residence permit in order to develop an “investment activity” – set forth in Order 1661-A/2013 – amended by Order 11820-A/2012, of 4 September 2012, which states the general terms and conditions to apply for a special residence permit in order to pursue an investment activity in Portugal.

The new ARI

A special incentive which grants a residence permit for those who wish to develop an investment activity, with exception from a residence permit – was considerably amended by the above mentioned Order, which entered into force on January 29th.

Possible Investments

The most relevant changes are related to the definition and the characteristics of possible investments:

  • Transfer of capital includes share investment or share purchase;
  • Creation of 10 jobs (instead of the 30 previously required);

Real Estate purchase now includes:

Purchasing under “co-ownership share scheme”, provided that each purchaser invests an amount equal to or above €500.000,00;

Purchasing under a promissory purchase agreement, with an initial deposit equal to or above €500.000,00.

Investment made through a real state purchase includes the possibility of encumbering the properties for an amount above €500.000,00, as well as it includes the possibility of renting and exploring the property for commercial, agricultural and tourism purposes.

The minimum period of time at Portugal required in order to obtain an ARI Visa (+ Schengen area) was reduced to:

– 7 consecutive or alternate days on the first year;

– 14 consecutive or alternate days, on the following two years (previously it was required 30 and 60 days, respectively).

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How it works

Investing through a company

The investment activity can be pursuit in person or through a company. The same applies to share capital holders of a company already incorporated in Portugal or other country member of EU, with a fixed place of operation in Portugal and with tax obligations in order.

When creating, at least, 10 jobs, it is required to

Proof of creating 10 jobs and registering the employees with social security.

Updated social security certificate.

Tax regulation

At Portal das Finanças website you may find all the information regarding taxation applicable to non-habitual residents and double taxation agreements endorsed by Portugal:

When transferring capital equal to or above €1.000.000,00, it is required to

Demonstrate to have an investment in the minimum amount required, including stock investment and shares.

Statement issued by a financial institution legally authorized by Portuguese authorities stating the capital transfer to the bank account where the apllicant is the only shareholder or the first shareholder of the investment; or stating the purchase of shares.

Updated certificate of the commercial registration office stating the applicant is a shareholder in a company, or in case of a company listed on Stock Exchange, a document issued by the Portuguese Securities Market Commission (CMVM) or by a financial institution legally authorized by Portuguese authorities stating the ownership of shares; or if a company is not listed on Stock Exchange, a statement issued by the Board of Directors or the Management of the company and an accounting report duly certified stating the ownership and integrity of minimum investment amount required.

When purchasing Real Estate with a purchase price equal to or above €500.000,00, it is required to

Proof the ownership of the properties, which may be:

  • Purchase under “co-ownership share scheme”, providing that each co-owner invests an amount equal to or above €500.000,00, or under a promissory purchase agreement, with an initial deposit equal to or above €500.000,00, in which shall be submitted a request to renewal the ARI visa and proof of the purchase;

Real state purchase taxes

  • Property Transfer Tax (IMT);
  • Stamp duty;
  • Municipal Tax over Real State (IMI).

Documents required

  • Passport or other valid travel document;
  • Proof of legal entry and residency within the national territory;
  • Proof of health insurance;
  • Application for a criminal record issued by SEF (Foreigner and Border Service);
  • Criminal record issued by the country of origin or the country where one has resided for longer than one year.

Other requirements

  • Absence of any criminal convictions that may in Portugal be punishable by imprisonment for a period exceeding one year;
  • Not being prohibited from entering in Portugal, followed by a removal order;
  • Have no record on the Schengen Information System;
  • Have no record on the SEF Information System for the purpose of refusing entry.

Frequently Asked Questions (FAQ)

1. What is the Residence Permit for Investment?

The Residence Permit for Investment, also known as the Golden Visa, is a residence permit granted to citizens of non-EU countries who make one of the qualifying investments set out under Portuguese law.

Yes. Once a favorable decision is issued, the applicant receives a “residence title” card, issued in accordance with EU Directives and Regulations. This card allows, among other things, free circulation within the Schengen Area and access to various public and private services.

Some key advantages include:

  • Free movement within the Schengen Area;
  • Entering and leaving Portuguese territory without restrictions;
  • Minimal stay requirement in Portugal (7 days per year);
  • Access to public and private services in Portugal, including the (mostly free) National Health Service;
  • Right to work, study, and invest in Portugal;
  • Possibility of applying for Portuguese nationality or a permanent residence permit after five years;
  • Family members can also benefit from these advantages through family reunification (see
    question 8).

The Golden Visa regime has not been revoked and is still in force under AIMA (the Portuguese authority for Immigration). It remains possible to apply for new Golden Visas. There are currently five eligible investment models for this program (see question 5).

Currently, you may apply for a residence permit for investment by making one of the following investments:

1. €500,000 in venture capital funds (FCR) or other forms of non-real-estate collective investment schemes;

2. €500,000 to incorporate a new company or to increase the share capital of an existing company, combined with the creation of five new permanent jobs or the maintenance of ten jobs (at least five of which must be permanent);

3. A donation of €250,000 in support of a cultural project certified by the Ministry of Culture;

4. Creation of at least 10 new jobs;

5. €500,000 in scientific research projects developed by public or private institutions certified by the Portuguese Government.

The investment must be maintained for a minimum period of five years, counting from the date the Golden Visa is granted.

From October 7, 2023 onward, the acquisition of real estate (with or without rehabilitation works) is no longer eligible for new applications. This change does not affect applications submitted prior to that date, nor does it prevent their renewal. New applications must rely on one of the eligible investment models (see question 5).

You can apply for a residence permit for the following family members of the investor:

  • The spouse;
  • Minor or legally incapacitated children who are dependents of the couple or one of the spouses;
  • Adopted minors (by the applicant or the spouse);
  • Adult children dependent on the couple or one of the spouses, who are single and studying;
  • Ascendants in the direct line (1st degree) of the applicant or the spouse, if they are dependents;
  • Minor siblings under the care of the resident.

Once approved, family members have the same rights as the investor (see question 3).

The Golden Visa is valid for two years, and can be successively renewed for equal periods.

After five years from the issuance of the first Golden Visa, the applicant can choose whether to continue renewing the Golden Visa or to apply for a Permanent Residence Permit. The Permanent Residence title must be renewed every five years.

Should you decide to apply for Portuguese nationality, once approved, you become a Portuguese citizen and no longer need to renew any residence permit.

Apart from the investment and costs associated with legal and tax assistance, the Golden Visa applicant should consider the following administrative costs (according to the fee schedule in effect at the time of writing):

  • Issuance of the first residence permit:
    i. Analysis fee: €605.10 (paid at the time of submitting the application)
    ii. Residence title issuance fee: €6,045.20 (paid after the in-person appointment for biometric data collection).
  • Renewals:
    iii. Renewal application analysis fee: €605.10 (paid when submitting the renewal application).
    iv. Renewed residence title issuance fee: €3,023.20 (paid after notification of a favorable
    renewal decision).

The law provides that AIMA (the Portuguese authority for Immigration) must decide within 90 working days. However, due to staff shortages and other factors, this timeframe has often been exceeded. The Portuguese government created a task force, along with a plan to reduce backlogs and hire more staff. Positive effects are beginning to be seen.

To renew the Golden Visa, the applicant must generally meet the following requirements:

1. Maintain the investment for at least five years;
2. Comply with the minimum stay requirements in Portugal (at least 7 days per year);
3. No record of being banned from entering or staying in the Schengen Information System;
4. No conviction in Portugal with a prison sentence longer than 1 year;
5. No security or public order reasons preventing the renewal.

The main requirements for applying for Permanent Residence are:

  • Demonstrating basic knowledge of Portuguese;
  • Maintaining the investment for a minimum of five years;
  • Holding a Golden Visa residence permit for at least five years;
  • Complying with the minimum stay requirements in Portugal (at least 7 days per year);
  • Having no conviction in Portugal for a prison sentence over 1 year in the previous five years.

In addition to meeting general requirements, the applicant must show they have held a Golden Visa for at least five years and that they possess sufficient knowledge of the Portuguese language.

Yes. As a Portuguese citizen, you are entitled to receive both a Portuguese Citizen Card and a Portuguese passport.

If you are not a tax resident in Portugal, any distributions or potential capital gains from selling or redeeming fund units are exempt from personal income tax (IRS) in Portugal, and you are not required to submit an annual tax return in Portugal.

Exception: If you are a tax resident in a jurisdiction considered a “tax haven” by the Portuguese Ministry of Finance, a withholding tax applies:

  • 35% if relating to redemption of fund units;
  • 28% if relating to selling the fund units.

 

If you are considered a Portuguese tax resident, the distributed income is subject to a 28% final withholding tax (no obligation to file if withheld at source).

  • Capital gains from the redemption of fund units are similarly subject to a 28% final
    withholding tax (no obligation to file), although there is the possibility of 10% to
    30% partial exclusion of the taxable amount depending on how long you held the
    units and the type of investment fund.
  • If you choose to sell the fund units instead of redeeming them, the gains are subject to a
    28% special rate, and must be reported on your annual tax return, where you may also
    check if the 10% to 30% exclusion might be applicable.

For a non-resident in Portugal, dividends are subject to a final withholding tax at a 28% rate, withheld at source by the Portuguese company.

  •  Exception: If you reside in a jurisdiction considered a “tax haven” by the Portuguese
    Ministry of Finance, the withholding tax rises to 35%.
  • A double taxation treaty (DTT) between Portugal and your country of residence may
    reduce the withholding tax rate. In such cases, the Portuguese company must apply the
    reduced rate when justified by the DTT provisions.
  • Non-residents do not need to file an annual tax return in Portugal for dividends covered
    by the final withholding tax.

 

For a Portuguese tax resident, dividends are subject to a 28% final withholding tax (again, no
separate filing required if this method is chosen). However, the shareholder may opt for
“englobamento” (adding the dividends to all other income for progressive tax rates). In that
case, only 50% of the dividends is taxed, but one must consider that all income in the same
category (Category E) is also “englobed,” potentially increasing the overall tax rate.

If you are not a tax resident in Portugal, your capital gains are generally exempt from personal income tax (IRS) in Portugal.

Exceptions:

  • If you reside in a jurisdiction deemed a “tax haven” by the Portuguese Ministry of Finance.
  • If the capital gains come from selling shares in companies whose assets are more than 50% real estate located in Portugal.

 

If you are a tax resident in Portugal, the gains obtained from selling shares are typically subject to a 28% special rate.

  • This applies to the net balance between capital gains and losses in the same tax year.
  • Capital gains from shares are compulsorily aggregated (i.e., taxed at progressive
    rates) if:
    1. The shares were held for less than 365 days, and
    2. Your total taxable income (including those gains) reaches the highest IRS bracket (currently
    any amount over €83,696).

 

Note: Gains from “micro” or “small” non-listed companies may benefit from a 50%
reduction (only 50% of the gain is taxed).

Contact us

Dinis Lucas & Almeida Santos Boutique Law Firm ® Sociedade de Advogados, SP, RL.

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  • Av. da República, 50 - 7º A 1050-196 Lisboa
  • +351 217 816 010 (Call to national fixed network)
  • geral@dlas.pt
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