Portugal's Golden Visa Program Gains Strength as EU Halts Malta's Golden Passport Scheme
Golden Visas: A New Approach to Citizenship
Getting a golden ticket to an EU nation? Why not, if you've got the dough - and that's the allure of citizenship-by-investment schemes like Malta's, nicknamed the Golden Passport. But the EU's top court got wind of it and declared it broke EU law by turning nationality into a mere commercial deal.
The scheme offered a speedy path to Maltese - and thus, EU citizenship - for a hefty price, giving no requirement for real connection to the island nation and asking for no lengthy stay. According to the court, it was nothing more than a "commercialisation of the grant of the nationality of a member state."
Malta's government promptly announced their intention to comply with the ruling, promising a review of their citizenship regulations. But fear not, Golden Visa enthusiasts, for Portugal's scheme remains, boasting a slew of more rigorous requirements that should keep the EU judges at bay.
Paul Stannard, head honcho at Portugal Pathways and Portugal Investment Owners Club, weighed in on the matter: "The EU is justifiably protective of individual countries' residency rules, while nixing citizenship schemes without genuine links to the nation. Unlike Malta's free-for-all, Portugal's Golden Visa calls for annual visits to the country and a modest grasp of the Portuguese tongue."
Applicants must cough up the cash for five years - but only after showing proof of the requisite time spent in Portugal and mastering the language. Becoming a Portuguese citizen post-five years ensures compliance with EU regulations and a tangible connection to Portugal, avoiding the pitfalls that led to the Maltese scheme's downfall.
In an effort to boost Portugal's economy, the Golden Visa program underwent changes in 2023, putting real estate purchases and capital transfers on ice and focusing instead on investments in critical sectors through regulated alternative investment funds. Healthcare, technology, tourism, renewable energy, media, and international events are just a few of the areas up for grabs.
Investing in Portugal: What You Need to Know
- Eligibility: Non-EU/EEA/Swiss citizens aged 18 and up with a squeaky-clean criminal record are eligible[5].
- Residency: A minimum of seven days annually for the initial residence permit, increasing to fourteen days every two years for subsequent permits[2][3].
- Investment Options: Invest in research, regulated alternative investment funds, culture, or create job opportunities[1][4].
- Citizenship: After five years, if all requirements are met, applicants can apply for Portuguese citizenship[3].
Portugal's Golden Visa scheme might have its challenges, but it seems to be on the right track as it attracts new investors, talent, and professionals to the country. With the recent introduction of the IFICI tax regime, known as NHR 2.0, Portugal is quickly becoming a beacon for academics, entrepreneurs, and value creators looking to invest in the country's future.
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- The news about Portugal's Golden Visa scheme continues to attract investors, as it provides an opportunity for non-EU citizens aged 18 and up with a clean criminal record to invest in the country.
- Unlike Malta's scheme, Portugal's Golden Visa requires applicants to make an annual visit to the country and demonstrate a modest grasp of the Portuguese language.
- In 2023, Portugal's Golden Visa program underwent changes focusing on investments in critical sectors like healthcare, technology, tourism, renewable energy, media, and international events through regulated alternative investment funds.
- Investing in real estate or making capital transfers are currently on hold in Portugal's Golden Visa program, which aims to attract talent, professionals, and value creators while boosting the country's economy and finance sector.
