Golden Visas Portugal Real Estate: New Rules in 2022

Golden Visas, as we know them, will expire as early as the beginning of 2022. From January 1, there will be barriers to foreign investment in the country's coastal regions. The new rules are just around the corner and will make foreign investment in our country more difficult. Although these rules have been expected for some time, real estate developers have found some ways to get around these new measures. Find out what will change and the best way to continue investing in property in the Algarve region through the Golden Visas.

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• What exactly are Golden Visas?

They are more commonly known as Golden Visas, but their official term is residence permit for investment activity, thus we may recognise them by the abbreviation ARI. It is a programme launched on October 8, 2012, to stimulate and attract foreign investment in Portugal, hence creating new employment, which was critical to the Portuguese during the 2008 financial crisis. This programme applies to non-EU investors such as those from China, Brazil, Angola, the United States of America, and, most recently, the United Kingdom, following Brexit.

This programme not only allows you to invest in the country, but it also allows you to obtain a residence permit in Portugal and free mobility within the Schengen area. After six years of participation in this programme, the investor is eligible to seek for Portuguese citizenship.

• How do you get the Golden Visa by the end of 2021?

There are a few ways to obtain a Golden Visa in Portugal. The main requirement is that the applicant is from a third country outside the European Union. The application can be submitted digitally on this website. The other requirements are:

1. capital transfers of €1 million or more into the country;

2. invest in a business and create ten or more jobs;

3. acquire a property worth €500,000 or €350,000 if the property is more than 30 years old and needs renovation;

4. a capital transfer of €350,000 or more to be used for scientific or technological research activities in the public or private sector;

5. a capital transfer of €250,000 or more used to support artistic production, restoration or conservation of cultural heritage;

6. €350,000 or more for the acquisition of shares in investment funds or venture capital funds;

7. transfer of the capital of €350,000 or more for the creation of a commercial enterprise established in Portugal in which 5 permanent jobs are created, or as a reinforcement of an existing Portuguese commercial enterprise in the country with the same objective of creating permanent jobs over a period of at least 3 years.

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• What are the benefits of Golden Visas?

Those who already have a residence permit for investment activities have the following advantages:

1. they can enter Portugal without having to present the residence visa;

2. are allowed to stay and carry out their activity in Portugal for at least seven days in the first year and at least 14 days in the following years;

3. may move freely within the Schengen area without having to present a visa;

4. You may be reunited with your family in Portugal;

5. After six years, you may apply for Portuguese citizenship by naturalization.

• What are the new rules for the Golden Visas for 2022?

The government approved modifications to the legislative provisions concerning Golden Visas at the end of 2020. These reforms were supposed to take effect in July 2021, but the government opted to postpone the new golden visa rules until early January 2022.

What are the new rules for the Golden Visa programme in Portugal? In summary, the minimum values for investments, as well as the territorial restrictions for the exercise of these investments, have been revised. These territorial restrictions and modifications to the minimum values will not take effect until January 1, 2022. The modifications are as follows:

1. The capital transfer is €1.5 million (€500,000 more after the amendments);

2. €500,000 or more for capital transfers in support of private or public scientific research in Portugal (for interested parties, the minimum investment for this purpose is increased by €150,000);

3. Capital transfers of €500,000 or more in investment funds share purchase or venture capital funds targeted at capitalizing businesses. (In this measure, the minimum investment is increased by €150,000);

4. The transfer of the capital of €500,000 or more for the establishment of a commercial enterprise based in Portugal, to create five permanent jobs in at least three years (in this measure, there is also a minimum investment increase of €150,000 compared to the previous programme, which ends in 2021);

5. The new diploma also incorporates additional revisions to the minimum real estate investment of €500,000. From January 1, 2022, investment zones will be limited to the interior and the Autonomous Regions of Madeira and the Azores. However, there are potential contours for continuing to invest in any area of the country.

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• How can you continue to invest in the real estate market with golden visas?

There are two options for continuing to invest in the Algarve property market. Despite the new ARI (residency permit for investment activity) programme requirements, these two aspects of the new diploma are based on investment through investment funds and holiday apartments. Do you know what these two types of investments are and how they can get you a Golden Visa?

• Investment Funds:

A real estate investment fund is the pooling of capital from multiple investors that can be managed by real estate investment specialists. These funds are based on the sharing of risks by all investors.

In 2022, private equity investment funds will be created, which, as the name suggests, are based on private investment. In this model, capital is invested directly in properties with medium or long-term growth potential. Profits are made through sales, and in this way, foreign investors can obtain the golden visas after investing €500,000 in investment units. The only difference between buying a property and investing in these funds is that in the second option, the investor never has access to the use of the property, but only to the participation units.

To learn more about real estate investment funds, check out the two modalities:

- Open-end funds, with open-ended units, that is, with a variable number of units. Here, investors can subscribe and redeem the units at any time.

- Closed-end fund, the number of units is limited, and subscription is only on a specific date, as is redemption.

• Holiday Apartments:

Another option for obtaining Golden Visas. In other words, once converted into holiday apartments, properties that were previously part of the local lodging market and considered residential, no longer come under the residential market and thus provide access to the Golden Visa. This option allows you to invest in a temporary holiday rental while also enjoying a few weeks of vacation in it.

When you buy a home in an established resort, you have the advantage of securing a holiday rental from the start, giving you access to the Golden Visa. Once you have found your ideal holiday home, you will need to invest 500 thousand euros to achieve the desired value for the issuance of the ARI. If the apartment is worth less than 500 thousand euros, you can add a second one to the investment until you reach the value indicated above.

Casas do Barlavento's portfolio has viable solutions for obtaining the ARI in this modality. Discover our offers in one of the few resorts in the Western Algarve with the perfect attributes to ensure your golden visa:

Belmar Spa & Beach Resort - is a resort located a few metres from Porto Mós beach and 5 minutes from Lagos city centre. The investor has access to the various outdoor and indoor pools, a spa, gym, restaurant and bars. The apartments of this resort are sold fully furnished and equipped with high-quality appliances. All areas of the apartments are spacious, bright and you will have at least one terrace with sea or pool views. See all available apartments for your investment in Holiday Apartments here.

Studio Apartment - This studio apartment is located on the ground floor, near one of Belmar Spa & Beach Resort's outdoor pools and the indoor pool. It is already furnished, with all of the required kitchen appliances. It has beds in the sleeping area as well as other auxiliary furniture. All of the amenities are provided for you to begin your future vacation rental business here. Discover this Belmar Resort studio apartment for sale.

1-Bedroom Apartment - A modern furnished apartment with a big patio that overlooks the adult pool and the sea. The kitchen is open to the dining room and living room, both of which have access to the terrace. The bedroom offers access to the terrace as well as a built-in closet and is completely furnished. The apartment is tastefully decorated and outfitted with top-of-the-line appliances. Discover this one-bedroom apartment at Belmar Spa & Beach Resort.

2-Bedroom Apartment - Discover this two-bedroom apartment with views of Porto Mós Beach and one of Belmar Resort's outdoor pools. This apartment is fully furnished and equipped, with two bedrooms and two bathrooms. When you buy this property, you will have access to the resort's many amenities, which include a heated indoor pool, outdoor pools, a gym, a spa, a restaurant, and a 24-hour reception. Enjoy the advantages of acquiring this property and discover more about it by clicking this link.

2-Bedroom Villa - A three-story villa with two bedrooms and three bathrooms. On the top floor, you will find a large terrace with panoramic views of Porto de Mós beach and the countryside. It also has a shaded area for lovely meals and garden furniture such as sun loungers, tables and chairs. On the middle floor are the bedrooms with en-suite bathrooms, fitted wardrobes and one of the bedrooms with access to a small terrace. On the ground floor, you will find the open plan kitchen with a dining and living room area. On this floor, you will also find a service bathroom and access to a covered area overlooking the garden of this complex. Get to know this beautiful villa here.

3-Bedroom Apartment - This 129-square-meter apartment features three bedrooms and two bathrooms. This is unquestionably a fantastic investment in holiday short rental. This property is only a few metres from the beach and offers a terrace with views of the outdoor pools and the sea. Come see this one-of-a-kind, special apartment in Belmar Spa & Beach Resort.

Golden visas as we know them may expire as soon as 2022, but there will always be methods to avoid that stumbling block and invest in this region with pleasant weather and beautiful beaches. Casas do Barlavento stays up to speed on the freshest news regarding this subject to inform and advise you on new ventures. Please email us at info@casasdobarlavento.com if you have any questions concerning the new Golden Visa rules in Portugal.