The Portugal Golden Visa Program is a residence by investment program. The scheme involves several different routes of investment. The most popular of these is the EUR 500,000 real estate investment option. This route is often referred to as the main route. The program generated approximately EUR 5.4 billion into Portugal’s economy. Almost 90% of this contribution was brought via the main route of the program. The latest reports show that this is changing. Recent years have seen increased interest in alternative routes.
Fixer-Upper and Venture Capital Options are on the Rise
Until 2018, nine out of ten applicants chose the main route of the program as their preferred investment option. In 2020, however, only 65% of the total number selected the EUR 500,000 real estate investment route. The data shows that the investors increasingly gravitate towards alternative routes.
One of the alternative methods is the fixer-upper options. In this route, the applicants invest EUR 350,000 in Portuguese property that needs renovation. The method presents great opportunities for high returns. Although this route was not popular a few years back, in 2020, it is preferred by almost a third of the investors. 28% of the total number of investments this year is made via this route.
Another alternative route is the Venture Capital / Investment Fund option. The minimum investment requirement for this option is also EUR 350,000. This method was not considered an option by many investors until this year. For instance, the whole of 2019 saw only seven investors using this route. Yet, thus far, 28 investors chose the Venture Capital / Investment Fund option in 2020.
July 2020 Performance of the Portugal Golden Visa Program
In July 2020, SEF issued 108 residence permits. The biggest share in this number belongs to Chinese investors. In July 2020, 21 Chinese investors obtained residence permits. Alongside the main applicants, 202 dependents received permits.
The program generated EUR 56 million in July 2020. This is considerably lower than the 2019 numbers of the same period. The program brought EUR 98 million in July 2019. However, considering the global pandemic, the stagnation is understandable. Due to travel and bureaucracy restrictions, investors find it hard to go through the application process amid Covid-19.
The first seven months of 2020 brought EUR 439 million into Portugal through the Portugal Golden Visa Program. This amount is 6.7% less than the first seven months of 2019.