Solutions and changes 2022
PORTUGAL – HINDRANCE TO GOLDEN VISA – VENTURE EQUITY INVESTMENT
Solutions and changes 2022
GOLDEN VISA and ARI are doing well, investments more than doubled in September 2022, however the brake on GOLDEN VISA in the metropolitan areas of Lisbon and Porto is fueling other ways of obtaining a residence permit (ARI), namely venture capital investment.
Currently, under the new regime, "203 applications are pending analysis for capital transfers of 350,000 euros or more, for the acquisition of participation units in investment funds or venture capital funds focused on company capitalization, which are constituted under Portuguese law.".
The Securities Market Commission (CMVM) is paying close attention to this new way of obtaining a residence permit, and considers that venture capital investment is being made without respecting all the rules aimed at preventing the entry of money of illicit origin into Portugal, particularly through real estate.
Despite the new legislation, it is still possible to invest in real estate under the ARI scheme. Opportunities still exist in the real estate and capital transfer sectors for foreign investors in Portugal under the Residence Permit for Investment (ARI) scheme.
What changed in 2022
The changes generally represent an increase in minimum capital investment amounts, as well as limitations on the geographical areas for which real estate investment for housing purposes can be applied.
Real estate investment:
A minimum amount of Euros 500,000.00, for housing purposes , will only be allowed in Portugal, the Azores and Madeira.
A minimum amount of 350,000.00 euros, with rehabilitation work , for residential purposes, is only permitted in Portugal, the Azores and Madeira.
Capital transfers :
The transfer of capital equal to or greater than 1 million euros will be subject to a minimum investment of 1.5 million euros ;
The minimum amount of investment in capital transfers intended to be applied to research activities developed by public or private scientific research institutions, integrated into the national scientific and technological system, increases from EUR 350,000.00 to EUR 500,000.00;
The minimum investment amount for capital transfers for investments in private equity funds will be increased by
€350,000.00 to €500,000.00;
The minimum amount of investment in the transfer of capital for the formation of a company in Portugal, associated with the creation of five permanent jobs, or for the strengthening of the share capital of a Portuguese company, with the creation or maintenance of these jobs, increases from €350,000.00 to €500,000.00.
Exceptions
The geographical limitations that will occur in real estate investment for housing purposes, by "pushing" investment inland and towards the islands, will allow that there are still several investment opportunities, with high potential, which will allow the promotion and development of certain areas of the country;
These limitations on real estate investment will apply "only" to properties intended for residential purposes , meaning that foreign investors will be able to continue investing throughout the country, including Lisbon, Porto and the coast, in properties that are not intended for residential purposes (commercial, services, other), even after January 1, 2022;
The planned changes do not affect the possibility of renewing the ARI or the granting/renewal of residence permits for family reunification (provided that the investor's file has been submitted in accordance with the current law).
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