Understanding Portugal's Golden Visa Categories

Portugal’s Golden Visa programme has evolved significantly since it was first introduced in 2012. There are now several different real estate investment categories to choose from in addition to the original legislation which simply required investors to purchase property at a minimum of €500,000. Below is a breakdown of the criteria surrounding each investment category and the reduced options.

Golden Visa Category 65A-C:

1. €500,000 Real Estate investment

Portugal’s original Golden Visa legislation requires investors to purchase Portuguese real estate for a minimum of €500,000 or above. The real estate can be residential or commercial, however if the project is residential, it will only qualify in certain interior areas of the country, following the 2022 legislation changes. Investments can also be of any age, resale, new-build or off-plan. This original option is known as Category 65A-C and is still popular with investors who are looking to purchase property at this price or above, with no limitations on the area or type of property.

2. €400,000 Real Estate Investment

Investors purchasing a property in certain locations of Portugal which are considered to have a ”low population density” can benefit from a 20% discount from the €500k investment threshold and purchase any property at a minimum of €400,000. As above, the property can be resale, new or off-plan, it just needs to be located within a qualifying area.

To qualify as an area with “Low Population Density”, the location or region should have a permanent resident population of less than 100 people per square kilometre or a GDP per Capita that is lower than 75% of the national average. Parts of the Algarve fall into this category.

Golden Visa Category 65A-D:

3. €350,000 Real Estate investment

In 2015 the legislation was amended to include a new category known as 65A-D. The investment threshold can be lowered to €350,000 (a 30% reduction) providing the real estate purchased is more than 30 years old or located in an area of ‘’urban rehabilitation’’ and will undergo refurbishment. Certain parts of Lisbon and Porto are classified as urban rehabilitation zones, making this option extremely popular for those looking to invest in one of the country’s main cities at a lower rate. The cost of the renovation work can be included within the €350,000 investment. The government’s rules regarding how the property can be renovated are extremely stringent and certain conditions need to be met. Undertaking extensive renovation work on an old or derelict property abroad can be a timely and challenging process. The best solution is to invest in a project where the entire process is managed for you. La Vida offers an array of investment options that fall into this category and all renovation works are undertaken by the developer on behalf of the investor, within the cost of the property investment. This investment category has become one of the most popular routes in Portugal.

4. €280,000 Real Estate investment

In addition to the above requirements, if the property is also located within a “low population density” area, the minimum investment amount can be reduced by a further 20%, to €280,000. Projects which tick both of these boxes are much harder to come across and when they do become available, they sell quickly due to the high demand and low supply. La Vida has several projects currently available within this category which also offer guaranteed rental return to Golden Visa investors.

It is important to note that all property purchases must be liquid, and no loan or mortgage can be taken in Portugal to fund the required investment threshold. Should investors decide to purchase a property priced above the investment threshold then they may finance the additional amount. For example, a property priced at €750,000 would need a minimum cash investment of €500,000, but the additional €250,000 above the investment threshold may be mortgaged.

Golden Visa investors should only consider agents and lawyers that fully understand the criteria surrounding each investment category. La Vida has a strong portfolio of options falling into each of the above categories and we only work with established and successful developers who have a proven track record.

To find out more about the various investment projects available, please contact our expert advisors for a personalised consultation.