The recent transformation of Portugal's Golden Visa program, following the removal of the real estate investment option, has notably shifted the focus towards the cultural production route. Although long-standing, this aspect of the program has only recently gained significant traction among international investors, as reported by SchengenVisaInfo.com.

A Shift from Real Estate to Cultural Investment

Portugal's Golden Visa, formally known as the Residency by Investment Program, offers affluent foreigners a pathway to residency. It is contingent on their financial contribution through one of the available options within the program, coupled with meeting certain other specific requirements.

In a strategic move to address the ongoing housing crisis, Portugal’s President Marcelo Rebelo de Sousa endorsed the “More Housing” bill in October of the previous year. This legislative action led to several amendments in the Golden Visa program, most notably the cessation of real estate investment options.

Before these changes, the scheme allowed international investors to acquire real estate in Portugal. It could be achieved through a direct real estate investment or a real estate purchase, with the minimum investment thresholds set at €500,000 and €350,000, respectively. However, ratifying the “More Housing” bill has rendered these avenues obsolete, alongside the capital transfer option of €1.5 million.

Alternative Investment Avenues in the Golden Visa Program

Despite these restrictions, other avenues remain viable, including investments in fund subscriptions, scientific research, job creation (minimum of ten jobs), share capital and job creation, and contributions to the arts or national cultural heritage restoration with a minimum donation of €250,000.

The cultural production route within the Golden Visa program advocates a more generous approach. It offers a less costly pathway to residency over five years, with the added benefit of including family members in the application. A report from EIN Presswire corroborates this information.

This route primarily revolves around two options: supporting artistic endeavours such as theatre productions, art exhibitions, concerts, or literary events, and donations aimed at preserving cultural heritage, including historical landmarks, cultural archives, or archaeological sites. All investments under this category require approval from the Directorate-General for Arts (DG Artes) or the Instituto de Conservação e Restauro and must significantly contribute to Portugal’s cultural or heritage development.

Steve Philp, the Partnership Director at Portugal Pathways, regards the Golden Visa as a significant success in attracting foreign investment into Portugal. He emphasises that the newly regulated funds continue to make this program an attractive option for international investors, alongside the Cultural Production Golden Visa.

A recent Bloomberg report highlighted that the removal of specific options within the Golden Visa Program, as well as the termination of the Non-habitual Residence (NHR) program (which offered internationals reduced tax rates on income for ten years), has not markedly impacted Portugal's housing market, especially in Lisbon.

The Impact and Success of the Golden Visa Program

Since its inception in October 2012 until July 2023, the Portuguese authorities have issued 12,497 golden visas. The primary beneficiaries of this program have been nationals from China (5,366), Brazil (1,221), the United States (729), Turkey (584), and South Africa (534).

FAQs

What is the minimum investment for the Cultural Production Golden Visa?

The minimum investment for the Cultural Production Golden Visa is €250,000.

Can family members be included in the Golden Visa application?

Family members can be included in the Golden Visa application under the Cultural Production route.

What are the investment options in the Golden Visa program after removing the real estate option?

The investment options include fund subscriptions, scientific research, job creation, share capital, and cultural production or heritage restoration contributions.