Dear investor, Portugal's Golden Visa programme has been, since its inception in 2012, one of the most successful residence-by-investment programmes globally. Thousands of non-EU citizens have benefited from this route to obtain a residence permit in Portugal, with the subsequent possibility of accessing European citizenship. However, the legislative landscape and investment options have evolved significantly over the years, culminating in substantial changes in 2023 that redefined the programme's focus. This article, prepared by experts in Portuguese accounting and tax law, aims to provide an exhaustive and updated analysis of the Residence Permit for Investment (ARI) programme, with perspectives for 2026 and beyond.

What is the Portugal Golden Visa (ARI)? A Comprehensive Overview

The Portuguese Golden Visa, officially known as Autorização de Residência para Investimento (ARI), is a programme that grants a temporary residence permit to citizens of third countries (non-EU/EEA/Switzerland) who make certain eligible investments in Portugal. The main appeal of this programme lies in the possibility that, after a legally defined period of five years with valid residence permits, the holder and their family unit can apply for Portuguese nationality and, consequently, a European passport.

The legislation framing the ARI is primarily found in Law no. 23/2007, of 4 July (Foreigners' Law), with its successive amendments, and Ministerial Order no. 182/2014, of 10 September, which regulates the application of provisions relating to the residence permit regime for investment activity. Its conception aimed to attract foreign capital to the country, boosting the economy and fostering investment in strategic areas.

One of the distinctive and highly valued features of the Golden Visa is the minimal physical presence requirement in Portuguese territory. Unlike other residence regimes that impose prolonged stay periods, the ARI requires only 7 days in the first year of validity of the residence permit and 14 days for each subsequent biennial renewal period. This flexibility allows investors to maintain their lives and businesses in their home countries, visiting Portugal only to meet the minimum stay requirements, without the need for full-time residency in the country.

Obtaining Portuguese citizenship, after fulfilling five years of legal residency, grants the individual and their family a vast set of rights and opportunities. The Portuguese passport is one of the most powerful in the world, allowing access and free movement in over 180 countries without a visa, including the 27 member states of the Schengen Area and the European Union, as well as the right to live, work, and study in any of these countries.

The Impact of the 2023 Changes: End of Residential Real Estate and New Priorities

The year 2023 marked a significant turning point in the Golden Visa programme. Through Law no. 56/2023, of 6 October, which amended Law no. 23/2007, of 4 July, the Portuguese Government implemented substantial modifications, aiming to redirect investments to areas considered to have higher added value for the national economy. The most impactful change was, undoubtedly, the exclusion of investment in residential real estate as an eligible route for the ARI.

Before October 2023, the acquisition of residential real estate, especially in high-demand areas such as Lisbon and Porto, was the most popular route for investors. This popularity, however, raised concerns about rising housing prices and affordability for local residents. The decision to eliminate this option reflects a governmental policy that seeks to mitigate these effects and channel capital into more productive and less speculative sectors.

It is crucial to note that residential real estate investments made and application processes submitted before 7 October 2023 were protected by so-called "grandfathering clauses". This means that investors who already had an ongoing process or an approved ARI based on the acquisition of residential properties were not affected by this change and will continue to be able to renew their residence permits and, eventually, apply for citizenship, based on the original investment.

The 2023 changes were not limited to the real estate sector. There was also an increased focus on investments that promote job creation, innovation, culture, and scientific research. This strategic reorientation aims to align the Golden Visa programme with Portugal's economic and social development objectives, seeking to attract investors who actively contribute to the country's sustainable growth.

Current Investment Options (2026): A Detailed Guide

With the legislative changes, the eligible investment options for the Golden Visa have been redefined. In 2026, the available routes for new applicants are as follows:

1. Venture Capital Funds / Investment Funds – €500,000

This is currently the most sought-after option and recommended by specialists. It consists of a capital transfer of an amount equal to or greater than €500,000, for the acquisition of units in investment funds or venture capital funds, which are constituted under Portuguese law, with the objective of capitalising small and medium-sized enterprises (SMEs) that are not real estate companies. The regulation of these funds is ensured by the Portuguese Securities Market Commission (CMVM).

• Specific Requirements: Funds must have a capitalisation plan for non-real estate companies. The investment must be maintained for at least five years. At least 60% of the investment value must be applied in commercial companies with headquarters in national territory.
• Advantages: Investment diversification, professional management by regulated entities, potential for profitability (although with inherent risk to financial markets), and generally higher liquidity than direct real estate.
• Practical Example: An investor decides to allocate €500,000 to a venture capital fund managed by a Portuguese collective investment scheme management company (SGFIM). This fund invests in technology startups and renewable energy companies based in Portugal. The investor acquires units in the fund, becoming a unitholder. For eligibility purposes, the SGFIM must prove that the fund meets the requirements for investment in non-real estate SMEs and that at least 60% of the capital is invested in Portuguese companies.

2. Company Formation + Job Creation – €500,000 + 5 Job Positions

This route encourages entrepreneurship and job creation in Portugal. It requires a capital transfer of an amount equal to or greater than €500,000, intended for the formation of a commercial company with headquarters in Portugal, or for the capital increase of an existing one, which creates or maintains at least 5 permanent job positions for a minimum period of 3 years. Alternatively, it is possible to create 10 job positions without a minimum capital value.

• Specific Requirements: The company must be registered in Portugal. Job positions must be full-time and employment contracts must be concluded in accordance with Portuguese labour law (Labour Code). The maintenance of job positions is verified during ARI renewals.
• Relevant Legal Article: Job creation and workers' rights are regulated by the Labour Code (Law no. 7/2009, of 12 February).
• Practical Example: A foreign company decides to expand its operations to Portugal, investing €750,000 in the formation of a new subsidiary. This subsidiary hires 8 full-time employees for software development and digital marketing roles, with indefinite-term employment contracts. The company commits to maintaining these job positions during the validity period of the ARI. Salaries and social security contributions (TSU) will be paid in accordance with Portuguese law.

3. Donation for Arts and Cultural Heritage – €250,000

This option is for investors who wish to support Portuguese culture and heritage. It consists of a capital transfer of an amount equal to or greater than €250,000, for supporting artistic production, recovery, or maintenance of national cultural heritage. Projects must be previously approved by the competent authority in the area of culture.

• Specific Requirements: The investment must be made in public or private non-profit institutions that develop activities of artistic production, recovery, or maintenance of national cultural heritage. Proof of the effective application of funds is required.
• Relevant Legal Article: The Tax Benefits Statute (EBF), namely Article 62, provides tax incentives for cultural patronage, although the Golden Visa refers to direct investment and not necessarily to tax deduction.

4. Scientific Research – €500,000

This route fosters investment in research and development (R&D) activities. It requires a capital transfer of an amount equal to or greater than €500,000, intended for scientific research developed by public or private scientific research institutions that are integrated into the national scientific and technological system.

• Specific Requirements: The recipient institutions of the investment must be recognised by the Ministry of Science, Technology, and Higher Education. The investor must prove the application of funds within the scope of approved scientific research projects.

5. Creation of at least 10 Job Positions

This is an option that does not require a minimum capital investment value but focuses exclusively on job creation. The investor must create at least 10 permanent job positions in Portugal. If the company is established in a low-density territory, the number of job positions can be reduced to 8.

• Specific Requirements: Job positions must be full-time and employment contracts must be concluded in accordance with Portuguese labour law. The maintenance of job positions is verified during ARI renewals.
• Associated Tax Benefits: Companies that create jobs can benefit from tax incentives, such as municipal surcharges, which may be reduced or exempt in certain municipalities, or tax benefits for investment provided for in the Investment Tax Code (CFI).

Benefits of the Portugal Golden Visa: A Detailed Analysis

The Portugal Golden Visa offers a range of benefits that make it one of the most attractive programmes in the world for non-EU investors:

• Path to European Citizenship: The main advantage is the possibility of acquiring Portuguese citizenship after 5 years of legal residency. This access to a European passport opens doors to free movement, residence, work, and study in any of the 27 European Union countries, as well as in European Economic Area (EEA) countries and Switzerland. The right to nationality is provided for in Article 6 of the Nationality Law (Law no. 37/81, of 3 October), which establishes the possibility of acquiring Portuguese nationality by naturalisation after 5 years of legal residency.
• Minimum Physical Presence: As already mentioned, the requirement for staying in Portugal is extremely low: only 7 days in the first year and 14 days in each subsequent two-year period. This flexibility is ideal for investors who do not wish to move to Portugal immediately but are looking for a European "safety net" for themselves and their family.
• Comprehensive Family Reunification: The programme allows the investor to extend the ARI benefits to their family unit. This includes the spouse, minor children, adult children who are economically dependent on the investor and are studying, and the investor's parents (and spouse's parents) who are also economically dependent. This right is enshrined in Article 98 et seq. of Law no. 23/2007, of 4 July.
• Free Movement in the Schengen Area: Golden Visa holders and their family members have the right to travel freely, without the need for a visa, throughout all 26 countries that comprise the Schengen Area. This is a huge advantage for those with business or family interests in Europe.
• Favourable Tax Regime for Non-Habitual Residents (NHR): Although the Golden Visa does not automatically grant Non-Habitual Resident (NHR) status, it is perfectly compatible, and many investors choose to combine both. The NHR offers a flat rate of 20% on employment and self-employment income earned in Portugal, and exemption or taxation at reduced rates on foreign-source income for a period of 10 years. This regime is provided for in Articles 16 and 22 of the Personal Income Tax Code (CIRS) and in the Tax Benefits Statute (EBF).
• Favourable Business Environment: Portugal offers a stable political environment, a growing economy, and a relatively low cost of living compared to other European countries. The country has invested in infrastructure and the qualification of its workforce, making it an attractive destination for business.
• High Quality of Life: Portugal is recognised for its safety, mild climate, rich culture, excellent gastronomy, and quality healthcare system. These factors contribute to a high quality of life, which is an additional attraction for investors and their families.

Application Process: A Detailed 5-Step Roadmap

The Golden Visa application process, although relatively simplified, requires rigour and attention to detail. HVR, as a specialist in the field, guides its clients through each step:

Step 1: Assessment and Choice of Investment Option

The first and most crucial step is to analyse the available investment options and choose the one that best aligns with the investor's objectives and risk profile. At this stage, it is essential to have the support of specialised tax and legal consultants, who can clarify all doubts and present the most viable and secure options. Investment eligibility is verified based on the requirements of Law no. 23/2007, of 4 July, and complementary legislation.

Step 2: Obtaining NIF and Opening a Portuguese Bank Account

For any investment in Portugal, it is essential that the investor has a Portuguese Tax Identification Number (NIF). This number is equivalent to a "CPF" or "SSN" and is required for all financial and legal transactions in the country. Obtaining the NIF can be done through a tax representative. Concomitantly, a bank account must be opened in Portugal, which will be used to make the investment and for all financial transactions related to the Golden Visa. Portuguese banks require the presentation of various documents, such as proof of address, identification, and, sometimes, proof of origin of funds.

Step 3: Making the Eligible Investment

After obtaining the NIF and opening the bank account, the investor proceeds to make the chosen investment. This step must be carried out with the support of lawyers and specialised consultants to ensure that all legal requirements are met. For example, in the case of investment in funds, the acquisition of units must be duly documented. In the case of company formation and job creation, the formation of the company and the conclusion of employment contracts must follow Portuguese law, with registration with Social Security. Proof of investment is a key document for the application.

Step 4: Submitting the ARI Application on the AIMA Portal

With the investment made and all documents compiled, the Golden Visa application is submitted electronically through the portal of the Agency for Integration, Migration, and Asylum (AIMA), which succeeded SEF. The required documentation includes, among others, a valid passport, proof of legal entry into Portugal, criminal record from the country of origin and residence, a declaration of no debt to the Tax and Customs Authority and Social Security, and proof of investment. After online submission, the investor and their family unit will be called for an in-person interview at AIMA for biometric data collection.

Step 5: Renewals and Application for Citizenship

The first ARI residence permit is valid for 2 years. After this period, and every subsequent 2-year period, the investor will have to renew their residence permit, proving the maintenance of the investment and compliance with the minimum presence requirements. After a total of 5 years with valid residence permits, the investor and their family unit can apply for Portuguese nationality. To do so, it is necessary to demonstrate a basic knowledge of the Portuguese language (A2 level, proven by an exam or certificate from a recognised school) and not have relevant criminal convictions. The nationality process is handled by the Institute of Registries and Notaries (IRN).

HVR supports international investors throughout the entire ARI process, from the initial advisory phase to obtaining citizenship. Our multidisciplinary team of lawyers, tax specialists, and consultants is prepared to ensure an efficient and smooth process.

Practical Examples with Numerical Calculations

Example 1: Investment in a Venture Capital Fund

An investor from South Africa, Mr. Van der Merwe, decides to invest in the Golden Visa programme through the venture capital fund option. He allocates €500,000 to a Portuguese fund specialising in technology-based SMEs. The costs associated with this investment, in addition to the fund value, may include:

• Fund subscription costs: Typically 1% to 3% of the invested amount. Assuming 2%, this would be €10,000.
• Legal costs for the ARI process: Estimated at €10,000 to €15,000 for the main applicant. Assuming €12,500.
• Government application fees: Currently about €533 for the main applicant and €83 for each family member.
• Government card issuance fees: About €5,336 for the main applicant and for each family member.

Calculation of Initial Total Investment (excluding issuance fees and future renewal costs):

€500,000 (Fund) + €10,000 (Subscription Costs) + €12,500 (Legal Costs) + €533 (Application Fee) = €523,033.

Over the 5 years, Mr. Van der Merwe will have to renew his ARI twice. Renewal fees are similar to issuance fees, i.e., about €2,668 per renewal for the main applicant. In addition, he will have to consider the fund's annual management fees, which can vary between 1% and 2% of the managed value. Assuming 1.5% per year on €500,000, this would be €7,500 annually, totalling €37,500 over 5 years.

Estimated total cost at the end of 5 years (excluding fund profitability/losses and capital taxes):

€523,033 (Initial Cost) + €5,336 (1st Card Issuance) + €2,668 (Renewal 1) + €2,668 (Renewal 2) + €37,500 (Fund Management Fees) = €571,205.

Example 2: Company Formation and Job Creation

A Brazilian businesswoman, Ms. Silva, decides to open a digital marketing consultancy in Portugal, investing €500,000 in share capital and committing to creating 5 permanent job positions.

• Invested Share Capital: €500,000.
• Company formation costs: €500 to €1,500. Assuming €1,000.
• Legal costs for the ARI process: Estimated at €10,000 to €15,000 for the main applicant. Assuming €12,500.
• Salaries and social charges (TSU) for 5 employees: Assuming an average gross salary of €1,200/month per employee. The cost to the company (gross salary + employer TSU of 23.75%) would be approximately €1,485 per employee/month.
  • Monthly cost per employee: €1,200 + (€1,200 * 0.2375) = €1,485.
  • Monthly cost for 5 employees: 5 * €1,485 = €7,425.
  • Annual cost for 5 employees: €7,425 * 14 months (including holiday and Christmas bonuses) = €103,950.
  • Total cost over 5 years for 5 employees: €103,950 * 5 = €519,750.
• Other company operating costs: Office rent, utilities, accounting, etc. (variable and not included in the minimum investment calculation, but relevant for business sustainability).

Estimated total cost at the end of 5 years (excluding other operating expenses and profit taxes):

€500,000 (Share Capital) + €1,000 (Company Formation) + €12,500 (ARI Legal Costs) + €533 (Application Fee) + €5,336 (1st Card Issuance) + €2,668 (Renewal 1) + €2,668 (Renewal 2) + €519,750 (Salaries and Social Charges) = €1,044,455.

This example demonstrates that the company creation option, although having an initial investment capital of €500,000, entails significant operating costs related to the payroll, which must be carefully planned.

Common Mistakes to Avoid in the Golden Visa Process

The complexity of the ARI programme and its legal and tax nature require a cautious approach. Experience shows that certain mistakes are recurrent, potentially delaying or even preventing the process. HVR highlights the following:

1. Not Adequately Researching Investment Options: Many investors choose the first option presented to them without an in-depth analysis of its tax, financial, and risk implications. It is crucial to evaluate the profitability, liquidity, and costs associated with each investment modality, as well as its suitability for the investor's personal objectives.
2. Underestimating Total Costs: In addition to the main investment amount, there are government fees, lawyers' and consultants' fees, due diligence costs, investment maintenance costs (e.g., fund management fees), and ARI renewal costs. The lack of a complete budget estimate can lead to unpleasant surprises.
3. Not Complying with Minimum Stay Requirements: Although the requirement is minimal, non-compliance with the 7 days in the first year and 14 days in biennial renewals can lead to non-renewal of the residence permit, invalidating the citizenship process. It is essential to keep a strict record of entries and exits from the country.
4. Not Maintaining the Investment for the Required Period: The investment must be maintained for the entire 5-year period until the citizenship application. Premature disposal or disinvestment can result in the revocation of the ARI. Inspections and verifications are carried out during the renewal phases.
5. Incomplete or Incorrect Documentation: The submission of missing, incorrect, or improperly authenticated, translated, or apostilled documents is one of the main causes of delay or refusal. It is essential to follow the advice of lawyers and ensure that all documentation complies with the requirements of AIMA and other entities.
6. Managing the Process Without Specialised Support: Although theoretically possible, attempting to manage the Golden Visa process independently, without the support of lawyers and tax specialists in immigration law and Portuguese tax law, is a high risk. The legal complexity, bureaucracy, and constant legislative updates require in-depth knowledge.
7. Ignoring Tax Implications: Investment and residency in Portugal can have significant tax implications, both in Portugal (Personal Income Tax - IRS, Stamp Duty, etc.) and in the investor's home country. It is crucial to obtain specialised tax advice to optimise the tax structure and avoid double taxation or tax non-compliance. The analysis of the NHR regime is an example of this.

Conclusion: The Golden Visa as a Future Strategy and Call to Action

The Portugal Golden Visa programme, despite its transformations, continues to be one of the most robust and appealing avenues for obtaining residency and, in the future, European citizenship. The 2023 changes, although having closed the popular residential real estate route, reinforced Portugal's commitment to attracting higher value-added investments that contribute to innovation, entrepreneurship, and the country's cultural and scientific development. The flexibility of minimal physical presence, the comprehensiveness of family reunification, and access to the Schengen area and European citizenship remain fundamental pillars of its appeal.

For the international investor seeking security, global mobility, and a contingency plan for their family's future, the Golden Visa represents a long-term strategy with undeniable benefits. However, navigating this process requires in-depth knowledge of Portuguese legislation, rigorous document management, and a clear understanding of the tax and financial implications.

The choice of the most suitable investment option must be preceded by careful analysis, aligned with the investor's individual objectives and risk profile. Venture capital fund options and the creation of companies with job generation stand out as the most prominent alternatives with the greatest potential for positive economic impact for Portugal.

HVR, with its team of specialists in migration law, tax, and accounting, is prepared to be your strategic partner on this journey. We offer comprehensive support, from the planning and investment selection phase, through application submission, to managing renewals and, finally, the process of obtaining Portuguese citizenship.

Do not let bureaucratic complexity hinder the achievement of your goals. Invest in your future and your family's future with security and confidence.

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Sources and Legal References

• Law no. 23/2007, of 4 July: Approves the legal regime for the entry, stay, exit, and expulsion of foreigners from national territory (Foreigners' Law). (Consult Articles 90-A et seq. relating to ARI, and Articles 98 et seq. relating to family reunification).
• Law no. 56/2023, of 6 October: Amends Law no. 23/2007, of 4 July, modifying the eligible investment categories for ARI.
• Ministerial Order no. 182/2014, of 10 September: Regulates Law no. 23/2007, of 4 July, regarding the residence permit regime for investment activity.
• Law no. 37/81, of 3 October: Nationality Law. (Consult Article 6 on the acquisition of nationality by naturalisation).
• Personal Income Tax Code (CIRS): (Consult Articles 16 and 22 on the Non-Habitual Resident regime).
• Tax Benefits Statute (EBF): (Consult Article 62 on cultural patronage and other relevant provisions).
• Labour Code (Law no. 7/2009, of 12 February): Regulates labour relations in Portugal.
• Investment Tax Code (CFI): Regulates tax incentives for investment in Portugal.
• Portuguese Securities Market Commission (CMVM): Regulatory entity for financial markets in Portugal.
• Agency for Integration, Migration, and Asylum (AIMA): Entity responsible for the management and control of borders and foreigners in Portugal.
• Institute of Registries and Notaries (IRN): Entity responsible for nationality processes and civil registries.