Portugal

Residence Permit for Investment Activity (ARI / Golden Visa)

If you wish to invest in Portugal and obtain a residency, you may apply for the Residence Permit for Investment Activity (ARI), commonly known as the Golden Visa. Your dependents may be included in the application.

The Golden Visa will be valid for one years, renewable for two-year periods, provided that you still keep the investment and you have stayed in the country for at least 7 days per year during the first year, and 14 days in the two-year periods.

In addition, if you become a Portuguese tax resident (i.e. spending 183 days in a year in the country or having a dwelling in Portugal with the intention to hold it as his habitual residence), and you have not been taxed in Portugal, as tax resident, in the previous five years, you may be eligible for the Non-Habitual Resident Status. Under this regime, you may benefit from a fully tax exemption on foreign-source pensions, dividends, royalties, interest income and other investment income, during a period of 10 years.

After the 5th year of legal residency, you may apply for a permanent residence permit. The PR permit will allow you to live and work indefinitely in Portugal. To be eligible you may be required to have a place of abode in Portugal, have sufficient means of subsistence and some basic knowledge of Portuguese.

A permanent residence permit is not subject to minimum stay requirements, but it may be cancelled if you, without an acceptable justification, are away from Portugal for a period of 24 consecutive months, or for a period of non-consecutive 30 months over 3 years.

After the 6th year of legal residency, you may be eligible for naturalization. To become a Portuguese citizen, you may be required to attend to an interview, show ties to the country, be able to speak Portuguese and knowledge of history, culture and values of the country.

investment


Capital transfer in investment funds or venture capital

Capital transfer with a value equal to or above €500,000 for purchasing shares in investment funds or in venture capital geared to capitalize small and medium companies that, in turn, must present a feasible capitalization plan.


Investment must be kept for at least 5 years and may be made either as an independent entrepreneur, or as proprietor of a single member limited company.

Requirements


- Declaration issued by a financial institution accredited or registered in national territory by the Bank of Portugal, confirming an actual international bank transfer, in a sum equal to, or above, €500,000, into a bank account in the name of the applicant.
- Certificate attesting the burden-free ownership of the shares purchased.
- Declaration issued by the Fund’s Managing Company, attesting the feasibility of the respective capitalization plan;
- Excerpt of the Commercial Register (Registo Comercial) issued within the prior 45 days, in case the investment is made by means of a single member limited company, certifying that the applicant is the proprietor of that company.

Restricted Nationalities


European Economic Area

dual citizenship


Dual citizenship is recognized in Portugal. You are not required to renounce your previous nationality to become a citizen of Portugal.


Documents Required


  • Evidence of Health Insurance
  • Original Police Clearance Certificate
  • Affidavit regarding investment
  • Receipt of payment of fees
  • Bank Statement
  • Original Bank Reference Letter (Not older than 6 month)
  • Original and photocopy of passport
  • Original or Certified copy of Birth Certificate (if applicable)
  • Original or Certified copy of Marriage Certificate (if applicable)
  • dual citizenship Yes
  • Family members included Yes
  • land ownership Yes
  • Physical residence required No
  • Personal visit required No
  • Language skills required No
  • Interview required No
  • Investment Single €500,000
  • Investment Family 4 €500,000
  • Minimum annual income -
  • Time to citizenship 72
  • Time to permanent residency 60
  • Visa-free countries 171
  • Financing available No

Fees

processing fees main applicant €514,80
processing fees spouse €80, 40
processing fees dependents -18 €80, 40
processing fees dependents 18-25 €80, 40

Country details

Portugal
EUR
351
Lisbon
Europe
Portuguese
10676000
The Portuguese Republic is a transcontinental country member of the European Union. It is located in the southwest of Europe, in the Iberian peninsula. It limits to the east and the north with Spain, and to the south and west with the Atlantic ocean. It also includes the autonomous regions of the archipelagos of the Azores and Madeira located in the northern hemisphere of the Atlantic Ocean. Portugal is populated by over 10 million inhabitants. Its capital and most populated city is Lisbon. Its official language is Portuguese. Its official currency is the Euro (EUR). The country is classified as the 19th with better quality of life and has one of the best healthcare systems worldwide.

Visa Free Travel

With your new passport from Portugal you'll be able to access 171 countries visa free
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Taxes

An individual is deemed to be tax-resident in Portugal for tax purposes if he or she spends more than 183 days in a 12-month period in the country or maintains a habitual residence in Portugal.

Tax-residents are subject to tax on their worldwide income, while non-residents are taxed on their Portuguese-source income.
Personal income is taxed at progressive rates from 14.5% to 48% on annual income exceeding €80,000. Non-residents are taxed at a flat rate of 25%. A solidarity rate, which varies between 2.5% and 5%, may apply to taxable income exceeding €80,000.

Capital gains are taxed separately at a flat rate of 28%. 50% of gross gains derived from the sale of shares held on unlisted micro and small companies are subject to taxation.

Tax residents’ 50% of capital gains from the sale of real estate is taxed at marginal rates from 14.50% to 48%. An exemption may apply if property is the taxpayer’s primary residence.

Investment income is usually taxed at a 28% flat rate. However, tax-residents may opt to be taxed at marginal rates from 14.50% to 48%. Investment income from a black-listed jurisdiction may be taxed at a 35% tax rate.

New tax residents who have not been taxed in Portugal as tax residents in the previous five years, may qualify for the Non-Habitual Resident Regime. Under this regime, foreign-source pensions, dividends, royalties, interest income and other investment income is exempted from taxation during a 10-year period.

Portugal has controlled foreign company rules, under which income retained in foreign entities (non-EEA) owned by tax residents may be attributable.

A real property tax is levied by municipalities at rates between 0.3% and 0.8%. If owner is an entity in a black-listed jurisdiction tax may be increased to 7.5%. Residential real estate may be subject to an additional property tax at progressive rates up to 1%, being 7.5% if owner is an entity resident of a black-listed jurisdiction.

Municipalities also levy a transfer tax at a maximum of 6.5% on urban properties. If purchaser is a resident of a black-listed jurisdiction tax is increased to 10%.

Inheritances and gifts are subject to a stamp duty 10%. An exemption may apply when recipient is a direct ascendant or descendant.

There are no taxes on personal net worth in Portugal.

V.A.T. standard rate is 23%. An intermediate rate of 13% and a reduced rate of 6% may apply for certain goods and services.

Regarding corporate taxation, resident entities are subject to corporate income tax, a progressive surcharge and municipal surcharge. The maximum possible combined effective tax rate is 29.5% (for profits exceeding €35m). Portugal also comprises Madeira, an autonomous region with an advantageous tax regime. To learn more about Portuguese corporate taxation, legal framework and tax treaties, visit incorporatios.io/portugal.

This should not be construed as tax advice. Flag Theory | Passports.IO has access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.

  • Property tax Yes
  • Transfer tax Yes
  • Inheritance tax Yes
  • Net worth tax No
  • CFC law Yes
  • Tax residency days 183
  • Personal income tax rate 48%
  • Capital Gains tax rate 28%
  • Investment income tax rate 28%
  • Territorial taxation Yes

Procedures

Flag Theory | Passports.IO and our qualified attorney in Portugal, will guide you through each step of the process to ensure that it is as fast, efficient, pain free as possible.

First our lawyers will conduct a due diligence check on you to ensure that you are eligible and your application will be approved.

We will send you the visa application forms, and provide assistance to complete the questionnaires, translate and legalize supporting documents.

If required, we will provide you access to our network of advisors in Portugal to find the investment opportunity that best suits your needs.

If you wish, we will incorporate your Portuguese company and introduce you to Portuguese banks in order to open an account and transfer the funds required.

Once you provide the application form completed and supporting documents, application must be submitted to the Portuguese Immigration and Borders Service's (SEF). You may choose between submit the application personally or let us do it for you.

After approximately 3 months, you will be notified if the application has been approved. You may come to Portugal to get all documents and your residency permit card or delegate power of attorney to your legal representative to do so.

If you wish to be considered as a Non-Habitual resident and benefit from an advantageous tax regime, we will handle the application process.

For further information on Portuguese Golden visa and detailed procedures, contact us for a free private consultation.

Any time there is a change or new citizenship or residency by investment program, we'll send you an update via email. Your email will not be shared.