As the allure of Portugal's Golden Visa programme persists, recent changes have catalysed a significant shift towards investment in the Algarve region.
While real estate investment avenues have been removed, the appeal of Portugal's Golden Visa remains robust, with experts forecasting a 20% surge in demand in 2024.
The regulation changes have actually brought more security and oversight as well as a more varied investment pool of regulated funds approved for Golden Visa residency by investment to consider.
Amidst Spain's discontinuation of its Golden Visa residency by investment programme, Portugal's strategic adaptations have positioned the Algarve as a beacon for inward investment.
The region now serves as a thriving hub for business ventures, bolstering Portugal's economic resilience through contributions to various sectors, including technology, startups, vineyards, healthcare, and sustainable energy projects.
The allure of dual residency and seamless access to the EU remains a cornerstone of Portugal's Golden Visa programme, attracting affluent individuals and families worldwide.
Notably, the Algarve's scenic beauty and economic boom have captivated wealthy investors from the US, UK, Canada, South Africa, Hong Kong, Singapore, and Israel, seeking stability amidst global uncertainties.
Investment avenues in the Algarve extend beyond financial instruments to include opportunities in job-creating enterprises, fostering economic growth and societal enrichment.
Moreover, the flexibility of residency requirements, coupled with access to the 29 Schengen countries, positions the Algarve as a premier destination for discerning investors seeking both financial prosperity and lifestyle amenities.
The option to retain choice in where they are tax domiciled remains, but some Golden Visa applications are still coming through the grandfathering conditions for joining the NHR tax regime in 2024.
Paul Stannard is founder of Portugal Pathways, an organisation which produces an index listing of more than 40 regulated funds, approved by the Portugal government for the Golden Visa residency-by-investment route.
He explained: “The appeal of Portugal's Golden Visa transcends mere investment; it embodies a gateway to unparalleled lifestyle safety and security as well as access to all that Portugal and the EU has to offer. Plus, it offers world class healthcare, a growing luxury real estate market and 300 days of sunshine.
“In addition, it brings inward investment into Portugal and demonstrates commitment to the country’s future.”
Adds Nunos Santos, a Lisbon-based immigration lawyer specialising in Golden Visa applications: "Portugal's Golden Visa residency-by-investment epitomises a convergence of investment opportunity and societal enrichment.
"The changes to the regulations have now brought greater security and choice and we still see a constant flow of applications coming through
‘’Many are investing €500,000 to secure dual-residency and in our experience, they are looking for security with their money invested and looking for a long-term commitment to citizenship after 5 years.’’
According to Portugal Pathways, there has been a 20% surge in Golden Visa applicants during the first quarter of 2024 and they cannot see any reason why this will not continue.
Portugal was recently named the best place to relocate in the world due to its climate, security and cost-of-living, according to International Living.
To underline that continued interest, a recent webinar held by Portugal Pathways – which featured a showcase of experts in law, tax and investment funds – saw more than 250 attend.
Adds Paul Stannard, of Portugal Pathways: “In relation to the impact on local housing – one of the key reasons property investment was dropped from the qualifying criteria of Portugal’s Golden Visa – the reality is that Portugal only built 20,000 homes last year.
“Some 20 years ago, the number of new homes being built stood at 200,000 per annum.
“Investment by affluent expats in luxury real estate has little impact on the domestic need while, of course, those high-net-worth individuals invest in local economies which buoys employment and commercial opportunities. Not to mention the addition benefit to the Portuguese government of the tax and VAT they pay.”
Background information on Portugal Pathways
Portugal Pathways is an international platform for expert support in tax, investments, property, and more for affluent expats considering Portugal for lifestyle, residency, or investment.
