Due to the huge number of enquiries we’ve received following the long awaited announcement from the Portuguese government last week, many of you have asked me to elaborate on the new rules and provide some assistance on the best route forward from here.

As a reminder, the proposed changes to the scheme will take place from the beginning of 2022, meaning you have until the end of this year to submit an application. Those doing so from Hong Kong where the main embassy is located in Macau, should start much earlier.

The fundamental changes are to the entry cost and to the location:

• Property investments: minimum sum required remains the same – €500,000 and €350,000 (for urban renovation) – but will now be restricted to only certain qualifying areas (will not include Lisbon, Porto, prime coastal regions)
• Capital investment: minimum of €1.5m – previously €1m
• Investment funds: at least €500,000 – previously €350,000
• Job creation: from €500,000 for incorporation/ increase of share capital of a company which then needs to create five new jobs and maintain them permanently for at least three years – previously €350,000;

Those looking specifically at investing into property have until the end of this year to invest into Lisbon, Porto and some coastal regions including the Algarve. Whilst there are some exceptions, the amendments will be made with the primary objective of promoting foreign investment into low density regions – making for a far less-attractive investment prospect for your Golden Visa.

So, for now, you have another 10 months to invest into the more attractive and lucrative regions of Portugal.  My recommendation remains the same: use this opportunity to get your investment into Lisbon whilst it’s still available.  If you’re looking at the EUR 350k option, we feel there are unlikely to be any advantages in waiting, as the current stock will continue to deplete and due to the longer lead-time required by developers to clear their building approvals, the number of new EUR 350k developments coming to market will start to dry up well in advance of the approaching year-end deadline.

As always, if you do require any further information please get in touch. We have offices in Lisbon and Hong Kong and can meet in person or via a video call to discuss all the options available to you.