After imposing stricter requirements, the Prime Minister of Portugal, António Costa, has hinted at the end of the popular Golden Visa programme. The recently launched Digital Nomad Visa will now be the best route for moving to Portugal.
Following the footsteps of Malta, Cyprus and Bulgaria, Portugal might abolish its much-sought after Golden Visa programme. Though no formal official announcement has been made but Costa recently said, the government is re-evaluating programmes, including the Golden Visa, a fast-track residence visa issued to non-European Union (EU) nationals who have made a significant investment in Portugal, such as purchasing real-estate, making a capital investment, or creating employment opportunities.
“There are programmes that we are currently re-evaluating and one of them is the gold visa which, probably, has already fulfilled the function it had to fulfil and which, at this moment, it is no longer justified to maintain,” the Prime Minister has said.
It may be recalled that recently the Portuguese government had enforced stricter requirements for the Golden Visa by raising the Investment Fund option from €350,000 to €500,000; Capital Transfer from €1 million to €1.5 million and narrowing real-estate purchase options. For real-estate properties to qualify for Golden Visa, schemes to buy in Lisbon, Porto, the Algarve and surrounding areas on the coast are no longer permissible. Those interested in the real-estate route to residency will have to buy property located in the Autonomous Regions of the Azores and Madeira or in the interior territories.
Launched in 2012, Portugal’s Golden Visa programme has attracted more than €6.5 billion in investment by foreigners, mainly from China, Brazil, South Africa and the US, and large percentage of the investment by wealthy individuals has been used to buy real-estate. In July this year, investments through Portugal’s Golden Visa programme had increased to more than €78 million, more than double the €36 million recorded in July of 2021, according to Portuguese Immigration and Border Service (SEF).
The hint of abolition of Golden Visa is also being seen as a response to a drive by the European Parliament to shrink and regulate the multi-billion-euro citizenship and visa industries, which the EU has long considered a security risk. In March this year, European Parliament’s Central Liberties Commission had called the schemes “objectionable from an ethical, legal and economic point of view.”
What seems like the end of the road for the Golden Visa programme is the beginning of the Digital Nomad Visa programme that came into effect on October 30, 2022.
From the said date, Portugal has started accepting applications from individuals for the Digital Nomad Visa (DNV) that allows individuals to live and work in the country. Officially called the “residence visa for the exercise of professional activity provided remotely outside the national territory”, the new visa is an alternative to the existing "D7" visa, a popular residency permit mostly aimed at retirees and ‘passive income’ earners.
Portugal’s DNV is divided into two categories:
- Short stay: Aimed at remote workers looking to stay temporarily in Portugal for up to one year
- Residency permit: For digital nomads who are looking to secure a residency visa in Portugal that can be renewed up to five years
Where to Apply: Individuals can apply at the Portuguese Consulate in their home country. If the applicant is already in Portgual, apply at SEF (Serviço de Estrangeiros e Fronteiras), the country’s Immigration and Border Service. Application should include proof of income for the past three months, tax residency documents, and either a contract of employment or proof that you are self-employed.
D7 visa versus DNV: Through the D7 Visa, Portugal has been attracting a lot of foreigners. However, DNV and D7 are not the same, The D7 Visa allows anyone to live and work in the county as long as they can earn the Portuguese minimum wage (€822.50 per month) per month. However, these earnings must come from ‘passive’ income streams like rent or investments. On the other hand, the DNV is aimed at people that are looking to relocate on a temporary basis and offers the opportunity of living and working in Portugal, but without a long-term commitment.
Best places for Digital Nomads:
Lisbon: Has more coworking spaces than any other city in the country; the best option is Liberdade22
Porto: Porto i/o is excellent for coworking and has four locations.
Peniche: Largo is the best option
Braga: Pick from Braga I/O, Factory Braga, and Regus Branch
Sagres: Coworksurf, a global network of workspaces, was cofounded in Sagres
Coimbra: Opt for Nest Collective located in the heart of the city
Madeira: The island of Madeira has a Digital Nomads Madeira project, which is an entire digital nomad village. Located in Ponta do Sol, a small town with a population of 8,200, the project is a joint initiative of Startup Madeira and the government of Madeira. Ponto do Sol offers free working space that is located at the John do Passos Cultural Centre that was founded as a tribute to the renowned Portuguese writer John dos Passos. The Working Space (9 am to 6 pm) includes free Internet, desk and chair, desktop, and a local host.
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