Understanding Requirements For Portugal Citizenship by Investment

Today, Portugal belongs to the favorite countries of foreign investors that aim to acquire European Union citizenship under investment-based programs. Now in its second decade, the Golden Visa program is of enormous global interest to the wealthy, who are attracted by a unique opportunity to acquire both EU citizenship and residence.

 But while the prizes of Portuguese and European citizenship are many, the go-ahead for the investment route can be acquired only upon the fulfillment of very exacting legal criteria.

Understanding in detail each of the eligibility criteria and qualifying investment parameters is a must for any applicant to lay the foundation stone for successful approval.

The purpose of the present article is to develop a comprehensive approach to the critical requirements of achieving Portuguese citizenship by investment.

1. Program Overview

Portugal’s ‘Golden Visa’ program was established in 2012 to encourage foreign direct investment in the nation during challenging economic times. It grants citizenship to selected investors and their families who make a substantial qualifying investment and meet residency obligations. The program is overseen and regulated by the Portuguese government agency SERVE – Immigration and Borders Service.

There are two investment options available under Portugal citizenship by investment scheme – a minimum investment of €500,000 in real estate or a €350,000 contribution to a venture capital fund, creating at least five jobs for Portuguese citizens. Investments are non-refundable, although real estate can be resold after five years of ownership. Applicants must retain the investment for a minimum period of five years to qualify for citizenship.

2. Eligibility Criteria

The eligibility for Portuguese citizenship by investment is when the applicant attains a certain level of age, residency, criminal background, and requirements of financial solvency.

• Age- Minimum 18 years of age, and there is no upper age limit for the candidate at the time of application.
• Residency- Investors must spend a week in Portugal during any single year of the 5-year investment period; in this way, they are in the country for no more than 35 days across five years.
• Criminal background– The applicant should not have been convicted of any crime or be under any criminal charges in any part of the world. They must be able to provide a police clearance certificate.
• Financial solvency- Proof of being financially solvent and able to maintain themselves, including any dependents, without recourse to public funds. This will be assessed through the scrutinization of bank statements and tax returns.
• Dependents – the candidate can include in the application a spouse, common-law partner, and any children under 18 years old who are single. Full-time students of 18 years old may be included.

3. Language Requirements

Applicants do not need to demonstrate any Portuguese language ability to qualify for citizenship, a significant advantage of the program. However, basic skills are advisable to fully integrate into Portuguese society and interact with official bodies and services. Since Portuguese citizenship grants the right to live and work freely across the EU, English proficiency may be sufficient depending on where an investor chooses to reside long-term.

4. Qualifying Investments

As noted, there are currently two investment options that qualify for Portugal’s citizenship by investment program:

Real Estate Investment

A minimum purchase of €500,000 worth of real estate located anywhere in Portugal, excluding public land or buildings. The property must be retained for at least five years from the date of purchase.

Usually, it can then be rented or resold, allowing repatriation of capital. Real estate purchases are completed through registered conveyancers, and investments are verified.

Venture Capital Fund

A minimum contribution of €350,000 to a licensed and registered Portuguese venture capital fund aimed at investing in agricultural, industrial or service projects across Portugal. This option requires the creation of a minimum of five permanent jobs for Portuguese citizens within three years.

 Both the capital and any returns on investment are locked in for five years.

Additional requirements for real estate include:

• Residing in the property for at least 14 days per year over the five years
• The property must have a minimum built area of at least 500 square feet
• A declaration from the fund that the investment commitment has been made

5. Application Process

To apply for Portuguese citizenship through investment, the following steps are involved:

• Make a qualifying monetary investment of €500,000 in real estate or €350,000 in a venture capital fund.
• Reside in Portugal for seven days in the first year after investment and obtain a suitable D7 residency visa.
• Wait five years while meeting residency obligations and retaining the investment.
• Complete and submit the online citizenship application form available on the SEF website.
• Provide supporting documents verifying identity, funds, investment and residency requirements have been met.
• Pay an application processing fee of €250 per applicant.
• Await approval decision, usually within 6-12 months.
• Attend the citizenship ceremony and receive a Portuguese passport if approved.

The entire application and approval process generally takes 5 to 6 years to complete once the initial qualifying investment has been made. Applicants are issued a ‘Certificate of Portuguese Nationality’, which confirms EU citizenship rights upon successful completion of the program requirements.

Benefits of Portuguese Citizenship

Gaining Portuguese citizenship provides significant benefits as an EU national, including the right to:

• Live, work or study in any EU country without restrictions
• Access public healthcare across the EU under reciprocal agreements
• Apply for specific higher education grants and financial aid
• Travel freely within Europe’s Schengen Area without visas
• Obtain Portuguese and EU passports for visa-free access to over 185 countries
• Participate fully in the political system and vote in EU and local elections
• Apply for Portuguese residency and citizenship for family members
• Pursue business and investment opportunities across Europe
• Gain long-term homeownership rights and eventual retirement in Portugal

Conclusion

Portugal’s Golden Visa program offers foreign investors an exclusive opportunity to gain valuable EU citizenship by simply investing in the country’s economy. However, there are strict requirements that must be fully understood and met to qualify for the program and eventual citizenship approval.

Meeting full criteria, including age, background, residency, solvency, and investment terms over five years, opens up an array of benefits as a Portuguese and European national. Those committed to the process can enjoy a fast track to living and working legally within the EU for years to come.