The RPI – Residence Permit for Investment Activity, also known as Portuguese Golden Visa, is a special residence established on 2012, designed for foreign investors who have made qualified investment in the country.
The investment can be made directly by the individual investor or through a single-person company by quotas, and must be of at least one of the types of investment specified by law listed below. To qualify, investments must be held for a minimum of five years.
Recently, the Portuguese Assembly approved several modifications on the Golden Visa, extinguishing the possibility of obtaining the visa through investment in real estate and capital transfer without specific purpose. With this, those are the current types of eligible investments:
Incorporation of Companies:
- Creation of at least 10 new jobs
- Reduction to 8 new jobs if in a sparsely populated area
- € 500.000 for constitution or increase of share capital of a company registered in Portugal, creating or maintaining a minimum of 5 permanent jobs for a period of 3 years
- € 500.000 for the acquisition of quotas of investment funds or venture capital funds committed to the capitalization of companies incorporated in Portugal, with a minimum maturity period of 5 years and with at least 60% of the investment portfolio in companies with registered office within the country;
- € 500.000, for the constitution of a commercial company in Portugal, combined with the creation of 5 permanent jobs, or for the reinforcement of the capital of a company already established in the country, with the creation of 5 jobs or maintenance of 10 workers, both for a period of 3 years;
- € 500.000 for research activities of public or private entities that are part of the national scientific and technological system
- Reduction to € 400.000 thousand if established in a low-density population area;
- € 250.000 investment or application if intended for artistic production or recovery of the national historical heritage
These investment modalities were established to attract various categories of investors and each modality has specific requirements, such as minimum investment amounts and job creation, which must be met by those interested in obtaining the Golden Visa. The investment can be made directly by an individual or through a legal entity based in Portugal or in another Member State of the European Union.
Golden Visa holders receive a temporary residence permit valid for 2 years, renewed for periods of 2 years. The minimum stay in Portugal is 14 days (consecutive or not) for each period of 2 years. After 5 years with a temporary residence permit it is possible to apply for a Permanent Residence Permit or apply for Portuguese Citizenship, having fulfilled the necessary requirements.
Direct members of the investor’s family, such as spouse, children (if over 18 years old must be single and will need to study in the country) can obtain temporary residence together with the investor. It is also possible to include the investor’s parents in the application for residency as dependents.
Golden Visa holders enjoy benefits such as:
- Entry into Portugal and the Schengen Area without the need for a visa;
- Permission to live and work in the country, which has an HDI of 0.864, very close to scale 1, which is the best level of the Human Development Index. However, unlike other visas, there is no obligation to stay in Portugal for long periods;
- Possibility to study in any country of the European Union (EU), including university level;
- No global taxation. If the investor chooses to live in Portugal there are significant reductions and exemptions in income taxation;
- Apply for a permanent residence permit and acquisition of Portuguese nationality.
Are you interested in applying for the Golden Visa? Contact our Global Mobility team at Drummond Advisors!
Written by Clara Macedo, Eduardo Giugliano and Fabiana Guerra