As widely reported last year, Portugal’s popular and attractive Golden Residence Permit Programme had some changes which came into force as of 1 January 2022. Here’s a quick recap of those.

While there still are many investment routes, there are new limits on qualifying areas for residential real estate investment (but no corresponding restrictions for commercial real estate), and some investment options have become more costly.

In brief, the real estate changes are:

• Residential real estate investment in some popular urban areas such as the Algarve, Lisbon, and Porto, and coastal towns such as Setubal and the Silver Coast no longer qualify for the scheme
• You can only acquire residential real estate in designated areas of Portugal, worth at least €500,000 (€350,000 for rehabilitation projects), with a 20% discount for property in designated low-density areas
• You can purchase commercial, services and industrial real estate anywhere in Portugal, worth at least €500,000 (€350,000 for rehabilitation projects), again with a 20% discount for property in designated low-density areas
• You can purchase residential and commercial, services and industrial real estate anywhere in Portugal’s autonomous islands of Azores and Madeira, worth at least €500,000 (€350,000 for rehabilitation projects).

In terms of capital transfers:

• The minimum capital transfer investment has increased from €1m to €1.5m
• The minimum investment fund amount (venture capital funds), the minimum investment in scientific research, and the minimum investment in an existing Portugal-registered business has increased to €500,000 (from €350,000).

These amends have obviously been designed to funnel the large flows of inward investment which the programme has generated away from the most saturated areas and into those Portuguese regions with the greatest need. By international comparison, the relatively low residence requirement and the eligibility to apply for citizenship of the country that is also a member of the EU, with all the associated benefits, after just five years of legal residence, should continue to keep Portugal as an attractive option for investors.