Press release to communicate from DRP Advisers
We are pleased to provide you with the latest update on the voting outcome in the Portuguese Parliament regarding the Golden Visa legislation. Yesterday, the final wording was approved following a comprehensive legislative process that began on February 16th.
In summary, we would like to highlight the key points of the proposed amendments:
1. The Golden Visa program will remain active, offering investors five different options to start their investment journey, with a minimum investment threshold of €200,000.
2. It is important to note that the amendments will not have a retroactive effect, ensuring the preservation of rights for renewal, family reunification, and permanent residency applications.
3. For pending concessions and renewals, the current regime will be maintained. Future renewals associated with the revoked investment options will be evaluated under the Entrepreneur Permit regime. Notably, the residency requirement of 183 days per year will no longer apply, and a special regime allowing a minimum stay of 7 days per year will be retained.
4. The new amendments will come into force on the day following their publication in the official journal, without any grace period.
Considering the evolution of this legislative process, we acknowledge the significant achievements resulting from various initiatives. Although it may not be the perfect solution, the final wording demonstrates a receptiveness to market suggestions. Consequently, we believe that this proposal instills the necessary confidence for investors to continue selecting Portugal as their preferred investment destination and second residency.
Here are the new eligible options for investment:
i) Creation of at least 10 job positions.
ii) Transfer of capital equal to or greater than €500,000 for research activities conducted by public or private scientific research institutions integrated into the national scientific and technological system.
iii) Transfer of capital equal to or greater than €250,000 for investment or support in artistic production, recovery, or maintenance of national cultural heritage. This includes various entities engaged in artistic production, cultural preservation, and heritage maintenance.
iv) Transfer of capital equal to or greater than €500,000 for acquiring shares in non-real estate collective investment entities incorporated under Portuguese law. These entities must have a maturity period of at least five years, and at least 60% of the investments must be materialized in commercial companies headquartered in Portugal.
v) Transfer of capital equal to or greater than €500,000 for the incorporation of a commercial company in Portugal, combined with the creation of five permanent job positions. Alternatively, this capital can be used to reinforce the social capital of an existing commercial company in Portugal, ensuring the creation or maintenance of at least ten job positions, with a minimum of five permanent employees, for a minimum period of three years.
– In low-density territories, the minimum investment amount for options mentioned in points i), ii), and iii) may be reduced by 20%.
– Low-density territories are defined as areas with fewer than 100 inhabitants per square kilometer or a gross domestic product (GDP) per capita lower than 75% of the national average.
– Investments will be evaluated every two years, taking into account their impact on scientific activities, cultural promotion, foreign direct investment, and job creation.
– Importantly, investment activities cannot be used directly or indirectly for real estate investments.
Regarding the effective date of the new law, the final and global approval requires the legislation to be sent to the President of the Republic, who has three options:
1. Direct ratification: If the President ratifies the proposal, it will be published in the official journal and become effective the day after publication.
2. Return to Parliament: If the President does not accept the proposal in its current form, it will be returned to Parliament for amendment.
3. Evaluation by the Constitutional Court: The President may accept the document but request an evaluation by the Constitutional Court to ensure that no fundamental rights or principles are compromised by the new legislation.
However, the exact timeline is uncertain due to factors such as the President’s traditionally prompt approval process and the current summer vacation period. Given the extensive scope of the new law, covering rentals, real estate licensing, local accommodation, and golden visas, the decision-making timeline remains unpredictable.
