The Portugal Golden Visa (GV) is one of the most popular residency-by-investment programs in the world. Since its inception in 2012, thousands of families have successfully relocated to Portugal.
Obtaining a Golden Visa has many advantages; it allows families to live and work in Portugal and travel freely around the Schengen Zone. It presents an opportunity to the best schools and universities in Portugal and Europe whilst at the same time permitting visa free access to several countries including the USA, Canada and Japan. The GV program requires applicants to stay in Portugal for a minimum of 14 days every two years and after five years you can apply for full citizenship.
Prior to 2022 the rules for GV application were fairly straightforward; investors who bought a property in Portugal with €500k cash down could apply. However, in 2022 the rules changed and to make sense of these adjustments we thought it would be helpful to summarise things and explain the resulting changes in buying trends we are seeing from our clients.
What has changed?
Whilst GV applicants can still buy a residential property with €500,000 cash down as they could before, there are geographical restrictions on where you can buy. The limitations include densely populated areas, effectively meaning the popular coastal areas and big cities now no longer qualify for Golden Visa residential investment. The intention of this is to force investment into the less densely populated and lesser developed parts of the country.
However, there are alternatives to buying in rural areas. Properties with a touristic license still qualify for Golden Visa investment in prime areas such as Lisbon, Porto, and the Algarve. Buyers cannot live in these properties, but they can rent them out using an onsite management team. This way, you can secure your Golden Visa whilst generating a solid rental income.
The map below shows the regions which qualify.
Alternative routes
For derelict urban buildings aged over 30 years, clients can invest less—only €350,000 cash—and benefit from Golden Visa eligibility in the prime areas of Lisbon and Porto.
For rehabilitation projects in low-density areas, such as the Algarve, clients can invest even less—from €280,000 cash—and benefit from Golden Visa eligibility.
In these instances, investors buy an apartment for touristic purposes and generate a return on investment alongside consistent capital growth and rental income. Investors own the apartment in their name and hold the deed without complexity. Clients can apply for the Golden Visa straight away and secure this ahead of completion.
For these reasons, investors are taking this lower-cost, more profitable route which is why we have identified projects that fit this profile. One of those is The Society in central Lagos on The Algarve. Investors can buy fully furnished touristic apartments from €285,000 and benefit from Golden Visa eligibility and consistent net rental income through the hotel management team.
The Society is an apart-hotel rehabilitation project containing 16 studio apartments across two 18th-century buildings. It is located in Lagos—a beautiful and historic port town in Portugal’s western Algarve region, surrounded by 14th-century walls. The development boasts a beautiful lounge and rooftop terrace along with social areas, and completion is scheduled for Q3 2024. Get in touch to discuss securing your Golden Visa through this project.
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