Portugal Announces Potential New Tax Incentives To Boost Golden Visa Applications
The Portuguese Golden Visa is a residency-by-investment scheme initiated in 2021, aimed at attracting high-net-worth individuals to the country. This program allows investors to live, work, and study in Portugal in exchange for investments, typically in…
The Portuguese Golden Visa is a residency-by-investment scheme initiated in 2021, aimed at attracting high-net-worth individuals to the country. This program allows investors to live, work, and study in Portugal in exchange for investments, typically in cultural programs or venture capital. Non-EU residents can gain residency rights and apply for citizenship after five years, with a requirement to spend seven days annually in Portugal.
The investment options for the Portuguese Golden Visa have evolved since 2023. Real estate investments are no longer a qualifying factor. Current options include:
€500,000 investment in a fund, such as private equity or venture capital. €250,000 or more donation to cultural projects. Establishing a Portuguese business and creating jobs for locals.
In 2025, the Portuguese government announced potential new tax incentives to attract more participants to the Golden Visa program and encourage them to register as Portuguese tax residents. These incentives are yet to be confirmed, but they include:
The Portuguese Golden Visa is a residency-by-investment scheme initiated in 2021, aimed at attracting high-net-worth individuals to the country.
A 20% flat tax on all Portuguese income. A 10-year tax exemption on most foreign income.
Previously, the 20% flat tax rate applied only to specific professions, but under the proposed changes, it would encompass all income. The exact terms and implementation of these incentives are still under consideration.
Holding a Golden Visa in Portugal does not automatically confer tax residency. Individuals are considered tax residents if they spend over 183 days in Portugal annually. While income generated within Portugal is subject to tax, foreign income may be taxed in the individual's main country of residence. With Portugal's double tax treaties, some foreign income for tax residents could be exempt for 10 years, pending finalization of the new laws.
Several countries, including Spain, the UK, Ireland, and Australia, have discontinued their Golden Visa programs. In contrast, Portugal has embraced its program, resulting in a 72% increase in approvals in 2024, according to official statistics. This strategic approach aims to position Portugal as an attractive option for global investors.
Based on reporting by techround.co.uk.
