The Portugal Golden Visa: A Straightforward Guide to Smart Investments and EU Citizenship

Often juxtaposed with Greece’s golden visa program, the Portugal golden visa wins in the battle for the world’s most popular golden visa program.

With benefits like a European residence permit, serious potential tax breaks, low physical presence requirements, and maybe even Portuguese citizenship, it’s difficult to debate the visa’s value.

But the program has changed recently, and it’s easy to get lost in the breaking news and legal details. So, I’m here to break it down for you – nice and simple.

This is your straightforward guide to the 2025 version of the Portugal golden visa program:

What Has Changed with the Portugal Golden Visa?

Let’s start with the basics. The Golden Visa used to be all about real estate. Buy a property in Lisbon or Porto for the minimum required investment of €250,000, and you were golden – literally. Approval for the golden visa came shortly thereafter.

These requirements for the Portugal golden visa just a few years ago greatly contributed to its boom in popularity. Foreign investors would buy their property, live there for a few weeks each year, rent out the property on Airbnb or other platforms, and rake in real estate income when they weren’t present.

But not anymore. The Portuguese parliament eradicated that option in October 2023.

Why Did the Portuguese Golden Visa Drop Real Estate Investment?

The real estate investment market reached a fever pitch in the summer of 2023. From the locals’ perspective, the popular golden visa program saw “too many” investors driving up property prices across the country – not just in tourist destinations like Porto and Lisbon.

In turn, locals were getting priced out from the housing market.

So, after repeated calls from the Portuguese citizenry to dismantle the real estate option from the golden visa program, the government obliged. The government cut out the real estate option and shifted the focus of golden visa investments to funds that support the country’s economy in other ways, including venture capital and private equity investments.

Portugal’s New Golden Visa Investment Options

What are the Portuguese golden visa program investment options now that real estate is no longer available? Don’t worry, there are still plenty of ways to secure your Portuguese residence permit without investing in commercial or residential property.

Separated in two categories of capital transfer and business investment, here’s a list of qualifying funds where a Portuguese golden visa holder can invest their money:

Capital Transfer

Investment Funds (Venture Capital Fund or Private Equity) — Venture capital funds will invest your €500,000 golden visa qualifying investment in new, growing businesses in Portugal. While you’re not guaranteed returns, of course, the ROI and financial rewards could be huge. If you’re looking for something a little more stable, private equity could potentially be a good option. Instead of fledgling venture capital fund beneficiaries who may not succeed in the long-run, established companies receive your fund investment in the private equity fund option. Evaluate your risk-reward profile to invest in an option aligned with your goals.
Scientific Research — By funding scientific research as part of the national science and technology system with your €500,000 golden visa investment, you may qualify for a Portugal residence permit as well.
Arts or Culture — An increasingly popular option for golden visa applicants is investment in the arts or continuation of Portuguese cultural heritage. With a €250,000 donation, investors can promote, support, or maintain an artistic production or refurbish an exhibit of national interest and heritage. Additionally, if the donation is made in an area with low population density, the investment threshold reduces to €200,000. This is the most affordable investment price for the Portuguese golden visa.

Business Investment

Job Creation — Another option is to invest the qualifying investment of €500,000 in an incorporated business that creates 10+ jobs in Portugal.

Previously, minimum investment requirements were €250,000. However, foreign investment in the golden visa program options above must now exceed €500,000 unless applicants choose to donate €250,000 to the arts or cultural heritage.

Why the Portugal Golden Visa is Still a Great Deal

Even with these recent changes in investment funds and thresholds, the Portuguese residency and golden visa program is still a sweet deal. Here’s why:

Diverse Investment Opportunities

In just the last five years, golden visas around the world have skyrocketed in interest among high-net-worth individuals. However, many countries offer applicants just one or two investment avenues.

Allowing individuals to invest in funds, businesses, and the arts, Portugal differs widely from these more narrow golden visa investment options. Plus, the Lisbon-based golden visa program gives applicants a wide variety of investment prices. While some of our clients choose to donate to the Portugal arts scene for €250,000, others prefer a financial return on their investment and, therefore, opt for the €500,000 fund investment.

Tax Benefits

While acknowledging JH Marlin are not tax experts in Portugal, let’s discuss the significant tax benefits that Portuguese tax residency may afford individuals.

For high earners, income tax in Portugal is elevated – with the highest effective tax rates reaching up to 48%. However, with a blend of tax exemptions, especially for foreign investors, high-net-worth individuals may be able to reduce their Portuguese tax dramatically.

In fact, the Portuguese tax system is one of the major reasons golden visa investors are interested in the jurisdiction.

NHR Tax Regime — While the 10-year tax holiday on foreign income called the Non-Habitual Resident (NHR) tax regime was popular, the Portuguese government ended that program as well. But, there may be a silver lining. Parliament is currently discussing the introduction of a similar program of which salaried and self-employed workers can take advantage. Stay tuned.
Capital Gains and Real Estate Income — If you make money from real estate property or investments, dividends, or interest, you could end up paying less in taxes here in Portugal than in your current jurisdiction.
Tax Exemptions — Portugal does not have an inheritance tax for foreigners or a wealth tax. Plus, they offer tax breaks on retirement and pension income as well.

These generous tax exemptions are only relevant for those who are tax resident in Portugal, meaning golden visa applicants must be present in the Iberian country for more than 183 days a year to become tax resident in Portugal and benefit from these tax exemptions.

Nevertheless, these significant tax benefits make Portugal tax residency one of the most tax-friendly jurisdictions in the European Union and all of Europe. Let’s hope the Portuguese government brings back some form of their former non-habitual tax resident regime.

Minimum Physical Presence

If one is not interested in becoming a Portuguese tax resident because they already claim lower taxes or prefer living elsewhere, another major benefit of a Portuguese residence permit is the low stay requirements imposed upon a legal resident.

However, if the individual doesn’t seek Portuguese citizenship eligibility, they just have to keep their golden visa and residence permit active and convert their temporary residence to permanent at the five-year mark. During that time, regardless of whether the golden visa holder will apply for permanent residence or citizenship, they must be physically present in Portugal for seven days on average each year – for a total of 35 days in five years. For most, this is easy.

High Quality of Life

Portugal is consistently among the top 25 countries in the world for quality of life. Based on factors like cost of living, safety, healthcare, cuisine, climate, and pollution, Portugal ranks 23rd (Numbeo) and 4th (Expat Insider).

But you’ll never know without first trying out life in Portugal for yourself. Do you enjoy warm weather year-round (300+ days of sunshine per year), fast access to the ocean and mountains, Mediterranean lifestyle and cuisine, a safe environment for your family, a highly literate and English-speaking population, a top wine culture, and connectivity with the rest of the world?

There’s a reason Portugal is one of the hottest tourism markets in Europe and the world.

For entrepreneurs and high-net-worth individuals, connectivity is critical to quality of life. While you can live a more off-the-radar lifestyle in smaller Portuguese towns, Lisbon’s airport connects to more than 120 destinations worldwide. Meaning you’re always within reach of your next vacation or business trip.

Path to EU Citizenship

Portugal’s five-year path to citizenship is among the fastest in the EU, making their golden visa increasingly attractive to those who aren’t naturalized in the European settlement bloc.

Citizenship in the European Union isn’t just a great Plan B and insurance plan. It’s a highly effective Plan A. As an EU member state, Portugal can offer new citizens a range of benefits that one may not be accustomed to in their home country like Canada or the United States.

After five years of residency in Portugal, golden visa applicants can apply for citizenship and receive the following benefits:

Streamlined travel across the 27-state European Union
Rights to reside and/or work in each state
Rights to access healthcare and/or education in each state

Apart from all these benefits of being a EU citizen, diversifying your assets outside your home country is a safe plan. Avoid safeguarding all your assets and life in one country under one single government.

Second citizenship is risk minimization on a grander scale.

How to Qualify for Portuguese Citizenship in 5 Years

As I mentioned, Portugal’s golden visa residence permit offers applicants a five-year path to naturalization – one of the fastest routes to EU citizenship.

But first, why would you want citizenship in Portugal? The passport is one of the strongest mobility documents in the world with visa-free travel to nearly 180 countries. Also, citizens of the European Union-member country can also reside and work across the continent’s settlement bloc.

Just these two benefits of a Portuguese passport make it incredibly powerful and attractive to millions.

Want citizenship eligibility without having to live in Portugal full-time? As mentioned above, it’s possible. Here’s how:

Minimum Stay Requirement

One great benefit of the Portugal golden visa program is the minimum stay requirement. You only need to spend an average of seven days a year and 14 days a year in each two-year period following your first year of being a legal resident in Portugal to keep your golden visa active and qualify for permanent residency and citizenship in the country after five years.

Even if you want to naturalize as a Portuguese citizen in five years (one of today’s fastest routes to EU citizenship), you just have to spend those 35 days in the country over the five-year period. This minimum stay requirement is one of the friendliest naturalization policies in all of Europe and the world, especially for busy high-net-worth individuals.

Bank Account and Tax Resident Status

To keep your visa active, you’ll need a Portuguese bank account. Although, this does not mean you necessarily need to become a tax resident and pay tax in Portugal.

But, if you become a tax resident, spend more than six months a year in Portugal, and elect to pay taxes, you can tap into Portugal’s tax breaks. If a new NHR tax regime-like system is introduced, you’ll be first in line to take advantage.

Permanent Residency & Portuguese Citizenship

After five years of an active golden visa and residency, one can apply for a permanent residence permit and immediately qualify for Portuguese citizenship. There are no other citizenship eligibility requirements, save for a Portuguese language exam and a clean criminal record.

Of course, the above rules assume you’ve also made your minimum investment outlined by the rules of the Portugal golden visa program and maintained a clean criminal record before and after obtaining your residence permit.

If you’re eligible, you can obtain your Portuguese citizenship and take advantage of one of the very best passports on the planet.

What Taxes a Golden Visa Holder Could Face

If golden visa investors become tax residents in Portugal (i.e. spend more than 6 months a year in the country), they should keep a few things in mind:

Income Tax

Under Portuguese tax code, tax residents are taxed on worldwide income, not just the income they source in or from Portugal. But, as we covered above, Portugal’s tax rates can be pretty favorable if planned correctly.

Double Taxation Agreement

Portugal has agreements with countless countries across the world, possibly including the United States and Canada, to ensure individuals aren’t taxed twice on the same income. These agreements are called double taxation agreements.

No Wealth or Inheritance Tax

Portugal has no wealth tax. And, inheritance taxes exist but are limited and minimal. The Portugal tax code claims 10% of inheritances that are 1) distributed in Portugal and 2) to illegitimate heirs (i.e. non-family members).

That means you get to hold onto more of what you’ve earned and pass it on without the government taking a big bite out of it.

Capital Gains Tax

While Portugal does tax capital gains income at 28%, residents of the country pay tax only on 50% of that income. And, Portugal does not tax unrealized capital gains.

Again, JH Marlin is not a tax authority. So, before investing in the Portugal golden visa program or any residency or investment program for that matter, consult a global tax professional. Contact us here for recommendations.

What’s Next for Portugal’s Tax Regime?

With the non-habitual tax regime gone, a lot of people wonder what’s coming next. While nothing’s been announced yet, Portugal may introduce a new setup to attract foreign direct investment. But, minority parties in the Portuguese parliament have an obstacle ahead of them.

How to Apply for Portugal’s Golden Visa & Residence Permit

Ready to get started? Here’s a simple step-by-step guide to complete your golden visa application with JH Marlin:

Choose Your Investment — Remember, the Portuguese golden visa now forbids real estate as a qualifying investment of the program. So the golden visa application now requires successful applicants to choose from the following options for their €500,000 investment – venture capital funds, private equity funds, scientific research, arts or cultural heritage promotion (€250,000), or job creation via a business investment.
Open a Local Bank Account — You’ll need a Portuguese bank account and identification number to handle your investment and manage your money in the country.
Submit Your Golden Visa Application — Make sure everything’s in order by working with an immigration lawyer who knows the ropes. JH Marlin has guided numerous successful applicants through the process already. Once you’ve submitted your application, you’ll be notified of approval or rejection soon.
Obtain Residence Permit — After being approved for your investment and Portugal golden visa, you can obtain your physical residence permit and start counting your days toward permanent residency and citizenship eligibility. Note: The process of obtaining the physical residence card is backlogged and may be delayed. But, rest assured – You are a legal resident.
Meet Residency Requirements — Plan to spend at least seven days per year in Portugal to keep your residency active and remain eligible for Portuguese citizenship in five years.
Stay on Top of Your Taxes — Keep track of your tax obligations and take advantage of any benefits that come your way. Again, the return of the NHR tax regime may make being a tax resident in Portugal even more beneficial soon.

Even with its recent changes, Portugal’s Golden Visa program remains the best and most efficient way to secure European Union residency rights and citizenship with strong visa-free travel across the globe.

With real estate off the table and investment fund requirements in venture capital, private equity, or other qualifying avenues, golden visa applicants now have more leverage over their €500,000 investment – or €250,000 if the applicant donates to the Portuguese arts. The tax benefits may improve yet again, and eligible investors can get a Portuguese passport in just five years without onerous physical presence requirements.

If you’re interested in investing in the Portuguese golden visa, residency in the European Union, and potential citizenship in the Iberian Peninsula, reach out to us at JH Marlin. We’d love the opportunity to guide you and your family through the investment process.