The Golden Visa: a guide to gaining residency in the Algarve


Back in October 2012, the Portuguese Government introduced the Golden Visa scheme – a residency program which has since attracted more than €5.7 billion of direct foreign investment into Portugal.

With the aim of attracting High Net Worth Individuals (HNWIs) to the country, the Golden Visa offers a residency visa for up to five years in exchange for a qualifying investment made in Portugal, and is valid only for non-EU-EEA or Swiss citizens. As of the beginning of 2021, UK passports lost their freedom of movement in the Schengen Area. But don’t let that get you down.

There are so many reasons why UK citizens should look at Portugal for residency. It would give you more travel rights across Europe, a highly desirable lifestyle, and a chance at getting the highly-coveted European citizenship through investment.

news londonThe Golden Visa requires applicants to invest and apply using one of the following routes:

  • Real Estate Acquisition: Purchase worth at least €500,000.
  • Fund Subscription: Capital transfer of at least €350,000 in a qualifying investment fund.
  • Capital Transfer: Capital transfer of at least €1million to a Portuguese bank account.
  • Company Setup: Invest €1million in a Portuguese company together with creation of jobs.

Watch out for 1 January 2022

Following amendments to the Portuguese 2021 State Budget, the Golden Visa scheme will see some big changes as of 1 January 2022, particularly for citizens looking to invest via a real estate acquisition. This system has been successful for many years, but mostly for large cities like Lisbon Faro and Port. Many other regions have not experienced such real estate success.

That’s why, as of beginning of 2022, foreign citizens looking to invest in real estate (in order to obtain legal residency) will be restricted to invest only in “low density” rural areas. This amendment to the visa scheme has been introduced to “boost” investment in cities within the interior of Portugal.

Unfortunately, in the Algarve, this does not include the most sought after touristic parishes and will perhaps hinder real estate investment, via the scheme, in the area.

What about the Fund Investment Route?

This could be the alternative for investors who do not see a profitable return in real estate in “low density” rural areas – but still wish to apply for the residency scheme.

The investment fund route was introduced through an amendment in Portuguese Law in August 2017. This route might not be the answer for all citizens. However for HNWIs, especially if experienced and knowledgeable investors, this application process could prove to be an interesting business venture.

Alongside applicants needing to have experience in fund investments, there is also the need to supply proof and sufficient funds. Which until the end of 2021 requires a minimum investment of only €350,000, which will jump up to €500,000 as of January 1, 2022.

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The fund investment route sees great advantages. It presents a low investment, security, tax-efficiency, portfolio diversification and, most importantly, low fees and taxes seeing as these do not require payment of Transfer Tax, Stamp Duty or Notary Costs which are applicable to real estate purchases.

Nonetheless the exit period is at a minimum of 5/6 years, depending on the fund you choose to work with, as well as perhaps some lack of control as to funds allocation, performance and management fees.

Choosing the right route for the Golden Visa

In the current real estate market, for clients who are made aware and interested in the Golden Visa, we have noticed a surge in buyers looking to invest for this particular reason, before the amendment of January 1, 2022. Needless to say, if Portugal is your destination of choice and you are a non-EU-EEA or Swiss citizen, this could be the perfect time to buy.

If the fund investment route also represents a profitable and stable market, bear in mind the deadline for a €350,000 capital transfer will only be available until the end of 2021. In conclusion, besides alterations to come, the options still available are very attractive given the freedom to travel throughout Europe, alongside a residency in a sunshine filled, safe and stable haven such as Portugal.

For more info call +351 289 143 940 or go online to

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