Portugal’s Golden Visa (PGV) scheme is seeing jump in capital transfer investments, indicating more interest in golden visa investors investing in businesses and creating jobs.
The Capital transfer investments in Portugal increased by 25% compared to the last year, this is also a good sign that golden visa scheme is diversifying into businesses other than real estate, according to latest report released by SEF border authority.
- Oct 2018 – €380m by capital transfer (355 residence permits)
- Oct 2019 – €477.6m by capital transfer (450 residence permits)
It is also interesting to note that 2019, on an average, foreigners invested €1 million through capital transfer, based on the residence permits issued. It is the same for 2018.
It is possible to buy €1 million euro worth of
- Portugal debt instruments such as treasury bonds, savings certificates and ordinary treasury bills: statement issued by the Agency for the Management of the Public Debt – Agência de Gestão de Tesouraria e Dívida Pública – IGCP, E.P.E
- Securities can also be purchased held individually deposited with a safekeeper
The investment is locked for 5 years and fully refunded without interest. Investors in this scheme will be given a long term permanent residence permit under golden visa
Portugal offers five capital transfer options to acquire a golden visa, with the above average, it seems the capital transfer option with €1 million seems more popular
1. Capital transfer with a value equal to or above €1 million Euros;
2. Capital transfer with a value equal to or above €250,000 Euros for investing in artistic output or supporting the arts, for reconstruction or refurbishment of the national heritage, through the local and central authorities, public institutions, public corporate sector, public foundations, private foundations of public interest, networked local authorities, local corporate sector organizations, local associations and public cultural associations, pursuing activities of artistic output, and reconstruction or maintenance of the national heritage;
3. Capital transfer with a value equal to or above €350,000 Euros for investing in research activities conducted by public or private scientific research institutions involved in the national scientific or technologic system;
4. Capital transfer of the amount of €350,000 Euros, or higher, for the acquisition of units of investment funds or venture capital fund of funds dedicated to the capitalisation of companies, capital injected under the Portuguese legislation, whose maturity, at the moment of the investment, is, at least, of five years and, at least, 60% of the investments is realized in commercial companies with head office in national territory;
5. Capital transfer of the amount of €350,000 Euros, or higher, for constitution of a commercial society with head office in the national territory, combined with the creation of five permanent working jobs, or for the reinforcement of the share capital of a commercial society with head office in national territory, already existing, with the creation or keeping of working jobs, with a minimum of five permanent jobs, and for a minimum period of three years.
Real Estate
The real estate investments invested in immovable properties by foreigners for golden visa reached €4.4 billion euros as of Oct 2019. Chinese and Brazilians remain the top investors in PGV scheme.
The average property investment per golden visa investor fell from €627,000 (2018) to €581,000.
The House Price Index (HPI) increased 10.1% in the 2nd quarter of 2019, when compared to the same period of 2018. In the 2nd quarter of 2019, the value of house sales totaled approximately 6.1 billion euros, of which 4.9 billion euros corresponded to existing dwellings and 1.2 billion euros to new dwellings.
Dwellings 3Q2017 – 2Q2019
Portugal has refused over 600 golden visas for investments, SEF announced in a recent interview to CIP journal
Economy and Net wealth
In Portugal, the real GDP registered a year-on-year growth rate of 1.9% in the third quarter of 2019, according to flash estimates.
The net wealth wealth per household increased by 13.2% in 2017 since 2013, according to the statistics office. The mean net wealth per household remained at €162,000 euros
Review
Portugal to review the golden visa scheme and Govt is working on a plan with the scope of expanding investments and job creation in the remote areas of Portugal. Last year the new green visa option was announced, expanding the investments to other areas, but this option seems still in the pipeline.
