Can I get a visa if I buy a house in Portugal?

Beyond Bricks and Mortar: Understanding Portugal’s Golden Visa and Your Path to Residency

Portugal, with its stunning coastline, vibrant cities, and relaxed pace of life, continues to be a popular destination for those seeking European residency. The Golden Visa program, officially known as the Residence Permit for Investment Activity (ARI), has been a key driver in attracting foreign investment and making the dream of living in Portugal a reality for many.

While the allure of owning a piece of Portuguese real estate is undeniable, the Golden Visa program offers more than just a simple path to residency through buying a house. So, can you get a visa if you buy a house in Portugal? The answer is nuanced. Purchasing real estate can indeed be a valid path, but it’s not the only path.

Historically, real estate investments have dominated the Golden Visa applications, accounting for over 90% of approvals. This highlights its popularity and ease of understanding for many investors. The program initially allowed investments in properties across the country, but changes in recent years have concentrated eligibility to specific areas and property types. Specifically, real estate investments are now generally limited to properties in the interior of Portugal, the Autonomous Regions of the Azores and Madeira, and those properties designated for urban regeneration.

This shift in geographical focus aims to revitalize less populated regions and promote sustainable development across the country, rather than concentrated investment in major cities like Lisbon and Porto. Therefore, simply buying any house anywhere in Portugal will not automatically qualify you for the Golden Visa.

However, and this is crucial, the Golden Visa program is not solely dependent on real estate.

While many envision owning a villa overlooking the Algarve coastline, there are alternative investment avenues worth exploring. One particularly appealing and often overlooked option is investing in a qualified Portuguese Investment Fund.

The minimum investment requirement for this route is currently €500,000. These funds must be specifically approved and regulated by the Portuguese Securities Market Commission (CMVM), ensuring a level of oversight and security for investors. These funds typically focus on supporting Portuguese businesses, contributing to economic growth and job creation within the country.

Why consider an Investment Fund over Real Estate?

• Diversification: Investing in a fund inherently offers diversification across multiple assets, reducing risk compared to a single real estate property.
• Passive Investment: You don’t have to actively manage a property, dealing with tenants, maintenance, or potential vacancies. The fund managers handle the investment strategy and daily operations.
• Liquidity: While not immediate, investment funds often offer more liquidity compared to selling a property.
• Lower Maintenance: No property taxes, maintenance fees, or dealing with renovations.
• Potentially Higher Returns: Depending on the fund’s performance, you could potentially see a higher return on investment compared to real estate.

In conclusion, while buying a house in Portugal can be a viable path to obtaining a Golden Visa, it’s important to understand the restrictions regarding location and property type. Moreover, don’t overlook the alternative routes, particularly investing in a qualified Portuguese Investment Fund. This option offers a potentially simpler, more diversified, and potentially more lucrative path to residency in Portugal.

Before making any decisions, it’s crucial to consult with experienced immigration lawyers and financial advisors who specialize in the Portuguese Golden Visa program. They can assess your individual circumstances, advise on the most suitable investment option, and guide you through the application process. With careful planning and expert guidance, the dream of living in Portugal can become a reality, whether you choose bricks and mortar or a strategic investment portfolio.