Residence Permit for Investment Activity (ARI / Golden Visa)
The Golden Visa will be valid for one year, renewable for two-year periods provided that you maintain 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 a year in the country or having a dwelling in Portugal with the intention to hold it as your 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 full 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 non-consecutive period of 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 an interview, show ties to the country, be able to speak Portuguese and possess knowledge of Portugal's history, culture and values.
Creation of 10 job positionsIf you are an entrepreneur who has started a business in Portugal and has created at least 10 job positions, you may be eligible for a residence permit. There is no minimum investment required, nor limitation on areas or activities, as long as jobs are created. Grants and incentives may be available.
This requirement may be reduced to 8 job positions, provided the investment is made in sparsely populated territories (NUT III level with less than 100 inhabitants per sq.km, or with GDP per head less than 75% of national average).
- Social security certificate issued within the previous 45 days confirming that the employees are registered
- Individual employment contracts.
European Economic Area
Dual citizenship is recognized in Portugal. You are not required to renounce your previous nationality to become a citizen of Portugal.
- 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)
- Social security certificate regarding employees
- Employment contracts of Portuguese citizens
- 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 -
- Investment Family 4 -
- Minimum annual income -
- Time to citizenship 72
- Time to permanent residency 60
- Visa-free countries 188
- Financing available No
permanent residency benefits
temporary residency benefits
It also includes the autonomous regions of the archipelagos of the Azores and Madeira located in the northern hemisphere of the Atlantic Ocean. Portugal has a population of over 10 million people. Its capital and most populated city is Lisbon, its official language is Portuguese and its official currency is the Euro (EUR). The country is classified as 19th in terms of quality of life, and has one of the best healthcare systems worldwide.
Visa Free Travel
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 there.
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.
For 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 the 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 (CFC) 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 the 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%, and 7.5% if the 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 the purchaser is a resident of a black-listed jurisdiction tax is increased to 10%.
Inheritances and gifts are subject to a stamp duty of 10%. An exemption may apply when the recipient is a direct ascendant or descendant.
There are no taxes on personal net worth in Portugal.
The 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. We have 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