The programme has shape-shifted over the years in terms of the qualifying investment paths, with the original EUR 500k real estate investment class diversified into multiple real estate investment categories with more affordable price brackets, and with a later introduction of a Private Equity and Equity Fund option.
In more recent times the programme has been dogged by negative publicity and controversy surrounding the elongated processing times and inefficiencies of the Portuguese immigration services to adjudicate and approve applications. Thankfully, in June of this year, it was announced that a new Mission Structure, consisting of 300 more people, has been employed by the authorities to clear the backlog of pending cases under analysis.
Furthermore, a spontaneous and unprecedented announcement by the Portuguese Prime Minister of the intended closure of the programme in February 2023 sparked chaos and uncertainty in the market. After many months in limbo, the programme closure was scrapped and, in October of 2023, the Portuguese Government shackled their Golden Visa legislation to the “Mais Habitação” bill, removing all real estate and property investment categories, but allowing investors the opportunity to pursue the Golden Visa through a qualifying investment into an approved investment fund.
Interestingly, in 2012 the original programme requirement was an investment of EUR 500k, albeit into property, and today, more than 12-years later, the required investment sum remains the same at EUR 500k.
Separate to the above, the Portuguese Non-Habitual Tax Regime (NHR) was a compelling reason for many when weighing up the benefits of Portugal as a destination. Offering a 10-year tax break on qualifying income, it made huge financial sense for those looking to physically relocate to Portugal. This scheme was formally discontinued by the Portuguese authorities as of 01 January 2024.
Despite these vast changes in the Portugal Golden Visa programme and NHR, the popularity of the programme remains relatively untouched. The changes have done absolutely nothing to deter individuals from pursuing this journey to Portuguese residency and eventual citizenship. When compared to other European residency-by-investment offerings, the fundamentals of this programme still stack up and no other European programme comes close to offering a route to residency and citizenship through absence quite like this, and within this price bracket. Simply put, the Portugal Golden Visa outshines and eclipses all other EU options.
South Africans have traditionally been one of the top nationalities of investors in the Portugal Golden Visa, and they remain strong investors into the programme. At Sable International, we have directly assisted just under 70% of these South African families. In more recent years the programme has garnered attention and become popular with wealthy US and British nationals who are all also keen to secure a foot in the door to Europe.
We have also seen an uptake in South African investors residing in Dubai and the Persian Gulf. This expat market, who has already made their move from South Africa, is now ready to explore and to plan for life after the Gulf. The Portugal Golden Visa is a superb European residency solution to have ticking in the background, ensuring a direct route to citizenship and creating unparallelled optionality for the future.
To learn more about the Portugal Golden Visa and the current qualifying investment fund options, you can contact Sarah Young and the Sable International Offshore Real Estate and Investment Migration team at [email protected] or at +27 21 657 1584.
By Sarah Young, Investment Migration Manager, Sable International
