The Golden Visa: A Fool-Proof Guide for Obtaining It via Fund Investments

Many people want to move to another country. There are many reasons you might want to immigrate. Maybe you have family locally. Maybe you want to move to a better climate. Or maybe you don’t like living in your home country anymore. 

If you’ve ever done any research about immigration, you’ve probably realized that it’s not a simple process. Not by a long shot. In fact, many countries require you to have advanced degrees and highly technical and in demand skills. There are a lot of hoops to jump through, and many people won’t qualify unless they furthered their studies and increased their work experience. 

However, there are some immigration options that have different, some might say easier criteria to qualify. The so called “golden visa” in Portugal is one of those options. 

Like many things in life, the Portuguese golden visa is based on the premise that money opens doors. In this case, it opens the door to legal temporary resident status in Portugal, and, over time, the possibility of extending your stay by becoming a permanent resident, and later, a citizen. 

The golden visa doesn’t eliminate all immigration requirements, but it does smooth the road considerably. You won’t have to prove that you have a job, or in demand skills, or have your professional qualifications verified. Instead, you can choose one of several financial and business-based options, and in the case of golden visa investment funds, the primary qualification is to invest the right amount of money in the right kind of investment. 

In this guide, we’re going to delve into the requirements for golden visas, what the process will be like, what might derail your efforts and more. So, while we’ll never say that immigration to another country is easy, we can say that this is an easier way to get legal status in Portugal. Let’s look at the details. 

Why Do People Want to Move to Portugal?

Before you decide if the golden visa program is right for you, you should consider whether you want to move to Portugal. There are several reasons why this country is attractive to potential immigrants, including:

• Portugal has a warm, pleasant Mediterranean climate
• There are plenty of lively, bustling cities to visit, explore or live in, as well as many miles of beautiful coastline and mountainous terrain
• The people of Portugal are friendly
• There is a lot of art, culture, and history to enjoy
• Healthcare and education are of a high standard
• The cost of living is relatively low
• There’s relatively low crime in most parts of the country
• Because Portugal is part of the EU, legal residents can travel relatively easily to other Schengen countries

Portugal also has fantastic food, wonderful festivals, and some of the best beaches in Europe. You will have to learn to speak Portuguese if you really want to become part of the local culture, but in most parts of the country, you will find people who speak English (and several other European languages!) 

So, while Portugal might not be the first place that springs to mind when you think of Europe, it’s definitely one of the hidden gems on the continent. Which means there are lots of great reasons to consider moving there!

How Does Immigration to Portugal Work?

Immigration to Portugal works the same as most countries. You have to qualify for a particular immigration stream. You need to submit an application for immigration to a government organization. That organization will review your application and verify your submission and supporting documents. You will then need to pass several other standard checks. 

If you get through all the stages of the process, and are accepted as an immigrant, you will receive a residency permit.

A residency permit allows you to live and work in the country you are immigrating to for either a fixed period (in the case of temporary residency) or forever (for permanent residency.) 

If you qualify for temporary residency (which is the kind of residency you get with a golden visa in Portugal), you will need to repeat this process to renew your status and stay in the country. However, when you meet the requirements for permanent residency, you can choose to apply for that instead. 

If you are approved as a permanent resident, you can stay in the country for as long as you like, as long as you continue to meet residency requirements. 

Finally, when you meet the requirements to become a naturalized citizen, you can apply for that too, and if you are approved, you would become a Portuguese citizen.

In Portugal, the organization that handles immigration related applications is called the Servico De Estrangeiros E Fronteiras – or SEF. 

They are a government department that creates and updates all the immigration application forms, receives applications, and verifies information provided. 

General Requirements for Portuguese Residency

Before you begin the process of applying for a golden visa in Portugal, you should understand the basics of the immigration process. 

Like most countries, if you want to immigrate to Portugal, you need to be both eligible (meet the requirements for the stream you are applying for) and admissible (which means you are legally approved to move to that country.)

Countries in the EU are a little different to other countries because you not only need to meet local standards, but you also need to meet EU admissibility standards too. These include:

• Not having been subject to a removal order. Removal orders are basically deportation – which means that if you have been deported for being in an EU country illegally or without status, you might not be able to qualify for a Portuguese golden visa. 
• You must have valid travel insurance and a valid travel document (passport.)
• You must be able to prove that you have sufficient funds to sustain yourself during your stay – so you cannot simply have enough for golden visa investment funds – you must have money to support yourself too. 
• You can’t have a serious criminal record (anything that would carry a one-year sentence or more under Portuguese law) or be a security risk. This includes any military service – in fact, if you have served in any military anywhere, your processing time will probably be longer, as the Portuguese government and possibly the EU will examine your service records very carefully. 

Even if you meet all the criteria to successfully apply for a golden visa, if you’re not admissible because of one of these reasons, you won’t be approved for this immigration program. In some cases, a lawyer might be able to argue an exception to a rule, or if you have a very old, non-serious offence on your criminal record, you might be able to apply successfully regardless. 

Generally speaking, the less “interesting” your history is, the more likely you are to succeed in emigrating to any country, under any program. 

The Benefits of Getting a Golden Visa

Now that you know what might be standing in your way when you start the golden visa process, we should consider the benefits of this type of immigration. These include:

• A residence waiver to live and work in Portugal
• Very lenient residency requirements – you are only legally required to be present in Portugal for 7 days in your first year, and 14 days in subsequent years
• You are able to apply for a visa waiver for all Schengen region countries, which means you can travel through most of western Europe without applying for visas
• Eligibility for family reunification – which means you can bring your family to live with you, provided they also meet admissibility requirements
• Able to apply for permanent residency when you meet the legally prescribed requirements
• Able to apply for Portuguese citizenship when you meet the eligibility requirements

A golden visa isn’t the end of the immigration process. If you want to become a permanent resident of Portugal or a citizen, there will be more steps in the process. But it is a faster, easier way for people who have money to invest in the Portuguese economy to get temporary residence for themselves and their families. 

So, think of this as a foot in the door, or a step on the ladder to staying in Portugal permanently. In fact, from arriving in Portugal to becoming a citizen could take as little as five years – which in immigration terms is a relatively short time! 

What Is the Golden Visa Program?

The golden visa program is an immigration by financial investment program. 

The government of Portugal realized that in order to grow their economy, they needed to attract foreign direct investment. They also realized that citizenship in a European country like Portugal is a sought-after commodity, so they created immigration programs that are based on investing money in the Portuguese economy for a predetermined time. 

This puts “newer” money into the Portuguese economy and helps them to attract affluent new migrants that will contribute to the Portuguese business landscape in the long term. In return, people who might not qualify based on qualifications or work experience have the opportunity to move to the country. 

While we are mostly focused on investment funds for the purposes of golden visas in Portugal, there are several ways to get a golden visa:

• A capital transfer of more than 1 million Euros to a Portuguese bank
• Investment in golden visa investment funds
• Purchasing real estate above the predetermined minimum value in Portugal
• Real estate purchase and renovation above a predetermined value, in an approved urban area
• Investment in Portuguese research, development, art, or culture (approved programs)
• Start a business and create ten new jobs

It’s important to note that these investments and purchases must remain in place for the full five years between when you first get a golden visa, and when you are eligible to apply for permanent residence or citizenship. Government officials will verify this at two years, when you apply for your first renewal, and again at five years, when you will be able to apply for permanent status. 

It’s also important to note that the minimum values for each of these applications will be changing on the first of January 2022. So, if you are considering applying for any kind of golden visa investment stream, you will need to meet the requirements at the time that your application is lodged. 

Immigration rules do change fairly frequently too, so it’s always a good idea to reexamine the regulations at the time that you are applying. Some options may have been changed or removed, and others might have been added. 

Can You Move Anywhere in Portugal with a Golden Visa?

Many people wonder if a golden visa will allow them to settle anywhere in Portugal. The answer is that depends. 

If you are investing in property, for instance, you can’t purchase it in in demand areas like Lisbon or the Algarve anymore, unless it’s commercial property. Other golden visa immigration streams like the job creation stream may require you to start a business in a particular area. 

There are some options that allow you to choose anywhere to move to. Golden visa investment funds and capital transfers, for instance, will let you choose exactly where you want to settle, without any restrictions. So, if you can afford to apply for those streams rather than one of the others, that does give you more flexibility. 

What Is a Golden Visa Investment Fund?

Up to now, we’ve looked at general information about moving to Portugal on a golden visa. However, there is a newer program, called the golden visa investment fund, which might be worth exploring in more detail. 

The Golden Visa Investment and Venture Capital Funds allows eligible people to put their money in an investment fund, which has more than 60% of its available capital invested in Portugal, for the duration of the five-year period. 

One of the biggest benefits of a golden visa investment fund is that it allows the person who is applying to choose a financial investment company that can invest in a diverse range of assets, including hotels and accommodation, property, agriculture, startups, technology, and other sectors. 

Some people who choose a golden visa investment fund focus on one area, while others diversify their portfolio. 

Unlike many of the other golden visa streams where you invest money and don’t receive much direct benefit from the investment (like, for instance, a capital transfer which will earn interest and not much else) a golden visa investment fund allows you to grow your investment over time, just like you would if you were to create a similar fund in your own country. 

In other words, golden visa investment funds not only get you a foot in the door in an EU company, but they are also, in essence, a potentially lucrative business in their own right. 

What Are the Benefits of Golden Visa Investment Funds?

As you can already see, golden visa investment funds are an attractive option for people looking for a financial doorway into Portugal, but there are some other benefits of this type of golden visa too, such as:

• A lower investment threshold. While some golden visa pathways require financial commitments of a million Euros or more, currently, it will only cost you $350,000 to set up a golden visa investment fund. 
• There are tax benefits for people who set up these kinds of funds, depending on the structure of the fund itself. 
• Golden visa investment funds are highly regulated by the government, and managed by very experienced, senior people – so your money is as safe as possible. 

Many people who are looking into golden visa investment funds are also considering the real estate route, because they have similar investment requirements. But there are some major differences between these two kinds of golden visa, including:

• The investment amount for golden visa funds is generally lower than those required for real estate. 
• There are entry taxes on real estate purchases, but none for creating an investment fund. 
• Depending on how your fund is structured, you might not pay any ongoing taxes – while property taxes can be up to 28% if you use your property as a rental. 
• Golden visa investment funds typically earn their owners between 10 and 20% per year, but property only earns an average of 3 to 6%. 
• Funds are more secure, professionally managed, and essentially “run themselves.” You will have to hire someone to manage your property or do it yourself, and you assume all the risk. 
• Both real estate and investment funds require a minimum period of 5 to 7 years, if you plan to apply for permanent status at the end of the golden visa period. 
• Finally, there is less tax on capital gains from your investment fund. 

Some people might still choose to invest in property to get a golden visa for Portugal, but it’s worth knowing that there is another option that is generally better and costs less up front and over time. 

Which Funds Can You Invest In?

Of course, the Portuguese government wants to make sure that people who choose golden visa investment funds are investing in genuine, bona fide, approved, and above-board venture capital and investment funds, so they have created a system to vet and approve them. 

An organization called CVMM regulates the funds, and you must choose a fund that is approved by SEF. 

As you might imagine, these funds do change from time to time, and some are only available to residents of specific countries, so it’s a good idea to contact SEF (or have your lawyer do it on your behalf) to get an up to date and accurate list. 

Among the approved funds on the list, you will find many that invest in agriculture, some that invest in real estate or accommodation, hospitality, technology and innovation and heavy industry. 

Some of these funds also have different exit strategies, so it’s worth taking a closer look at the whole list, and their performance records, before you choose the right one for you. 

What Information Will You Need to Provide?

Getting a golden visa by investing in a fund in Portugal is easier than some kinds of immigration, but there’s still a lot of paperwork and a long process involved. Among the items you will need to complete the application for this type of visa are:

• A valid passport or travel document
• Proof of health insurance, or proof that you are covered by the national health service
• Criminal record checks from your home country and every other country that you have lived in for a year or more, or proof of diplomatic immunity
• Your tax registration documentation, and tax records
• Proof that your taxes are in good standing
• If you are applying from inside Portugal, proof of your legal status in the country
• An affidavit that you agree to the five-year term of the investment
• Information and documentation from the approved investment fund you will be investing in

In most cases, you will require recent, original documents for all of these, although some may be submitted as notarized copies (the paperwork for your application will include details of what kind of document you are required to submit.)

If you plan to travel to Portugal with your family, you will need to submit documentation for them too, and again, the list of documents will be on the immigration paperwork. 

What Is the Immigration Process Like?

If you’ve never immigrated to another country, you may be wondering what the immigration process is like. 

No matter what kind of immigration stream you are applying for, there are some similarities in what you can expect. 

First, you need to gather all the required documents, in the correct format, and make sure that they are either originals or notarized appropriately. You need to make sure that certain documents (like criminal record checks) which are time sensitive, fall within the required validity period. 

Next, you will fill in all the documents, taking care to answer all the relevant questions, and sign and date each page where it is required. 

You need to take care to answer all questions honestly too. Misrepresentation on immigration documents is a serious issue and can cause your application to be denied. You can even have your permit revoked if you are found to have misrepresented yourself after you are granted residency. 

After everything is filled in, checked, signed, and dated, and all your supporting documents are attached, you must submit your application to the SEF. They will then verify all the information provided and ensure that you are eligible to apply. 

If there are any documents or any information missing at this stage, you will be asked to clarify or provide the missing documents. You will be given a time limit to respond in most cases, and if you miss this window, your application may be declined. 

Once all the general information is confirmed, the SEF will make sure that you are not a security risk, and that you meet EU admissibility requirements. Again, if there are any questions, you will be asked to provide more information. 

Finally, once you make it through all the processes required to verify your eligibility and admissibility, you will be asked for your travel document, and your visa and residency permit will be issued. You will usually be given a time frame in which you must arrive in the country to “activate” your residency. 

After you have done all of this, you will need to make sure that you renew your residency when you are required to – and make sure you apply for renewal before your residency expires, or you will be considered “out of status.” 

How Long Does a Golden Visa Application Take?

You might be completely sure that you check all the boxes for a Portuguese golden visa, and that the process is nothing more than a formality. That may be the case, but it still takes time for the process to be completed. 

Generally, Portuguese golden visa applications take between 6 and 7 months from start to finish, provided you have all the required documentation. If questions need to be asked or back up documents submitted, this can take longer. 

The good news is that the rules that apply when your visa application is received by SEF are in force for the whole application, so, for instance, if you apply now, before the minimum investment thresholds increase in January 2022, your application would be processed under the current thresholds and rules. 

While you can do some preparations for your big move while the process is ongoing, you should remember that nothing is ever guaranteed in the world of immigration, and there’s always a chance that you might not be approved. You might be able to appeal a negative outcome, but that can take quite a long time too.

It’s generally not a good idea to make permanent life changes like selling your primary home, quitting your job or shutting down your business until you know you have been approved. Which does make the process more stressful but ensures you won’t be left without those things if something goes wrong. 

How Can You Make the Golden Visa Application Process Easier?

The first thing anyone who is thinking about applying for a golden visa (or any kind of immigration) should do is make sure they are eligible and admissible. Some minor admissibility issues might be overcome, but if you have a serious criminal record, you should seek advice about how and if you can get it expunged for immigration purposes. That’s not always possible though. 

The next thing you should do is speak to an immigration professional. These are registered immigration professionals or lawyers who specialize in the immigration process. 

While it is technically possible to complete the paperwork and immigration process yourself, it is a very difficult and complex process. This applies even more to countries in the EU, where you not only have to meet the country’s requirements, but also EU regulations. 

Gather your documents as soon as you can, and when they get close to expiring, apply for new ones early. With a process that takes up to seven months or more, you may need fresh, up to date copies at some point. 

Finally, never ignore requests for information. If you don’t respond on time, you may invalidate the whole process. So always respond as soon as you can. 

What Does It Cost to Apply for a Golden Visa?

When you apply for immigration, there are always fees to process your application. These are in addition to the investment you have to make, and to any legal or immigration service fees you need to pay. 

Currently, the SEF processing costs are:

• Application and renewal processing fee: €514.80 plus €80.20 per additional family member
• First issue of golden visa: €5,147.80
• First issue of golden visa for family members: €5,147.80
• Renewal fee for reissuing golden visa: €2,573.90

Application fees are payable when you submit your documents to SEF, and then you will be asked for the fees to issue your visas when you are approved for the program. 

In addition to these fees, you will have to pay for photographs that meet SEF requirements, and you might have to pay for other documents like police clearances. There may also be other fees related to your immigration, like verifying foreign credentials if you want to use them in Portugal that are not included here. 

Lawyers and immigration services do also have varying fees, so you will need to find out what those costs are. 

Immigration is never easy, and it’s also not cheap. But when you consider that you are buying a fresh start in a brand-new country, it’s definitely worth all the stress, worry and financial investment. So, if you’re wondering if it’s worth the time and effort, the answer is almost always YES!

Contact us today and get your free consultation.