Portugal Golden Visa: a detailed guide for Americans

The Portugal Golden Visa is a residency-by-investment program launched by the Portuguese government in 2012. It offers foreigners a fast-track pathway to obtain residence permits in Portugal for a minimum investment of €250,000.

The program implies five options to invest: 

• purchase investment fund units;
• invest in a business;
• open a company and create 10 jobs;
• support scientific research;
• support cultural heritage projects. 

Investing in real estate is no longer an option after the law was changed in 2023.

Investors are not required to reside in Portugal continuously, allowing them to live elsewhere while still enjoying the benefits of Portuguese residency. However, Golden Visa holders must visit Portugal for seven days each year to maintain their residency status.

After five years of holding residency, investors may be eligible to apply for permanent residency or Portuguese citizenship.

The program is available to individuals from outside the European Union, meaning that US citizens are eligible for it.

1. Investment funds — €500,000+. The most popular option for Portugal Golden Visa applicants is purchasing units in investment funds. The investment can be returned after the applicant obtains permanent residency. To apply for it, a foreigner must live in the country for 5 years.

Not every investment fund qualifies for the Portugal Golden Visa program. The main requirements for the funds are that at least 60% of the capital is invested in Portuguese companies and that the shares have a maturity of at least five years.

Portugal Golden Visa expenses under the investment fund option

2. Business investment — €500,000+. This option requires a capital transfer to an existing company in Portugal or using the same investment to register a new company in the country.

The investment must induce the creation of at least 5 permanent jobs for at least 3 years.

3. Creating 10 job positions. This is a different option that does not specify the investment threshold. The only condition is that these job positions in Portuguese companies must be maintained for at least 5 years.

4. Support for research activities — €500,000. The investment can be directed towards public or private scientific research institutions.

5. Support for arts and cultural heritage — €250,000. This is the Portugal Golden Visa option with the lowest investment threshold.

An investor can include family members in the application. With the exception of a spouse, they all must be dependent on the investor, with age restrictions applied in some cases.

The investor must be over 18 years old and not have citizenship in an EU or EEA country, meaning US citizens are eligible. They are able to prove the legality of their funds for the investment, while the source of the funds must be located outside of Portugal. Other requirements are a clean criminal record, medical insurance, no debts in Portugal, and no Schengen visa denials.

A spouse can be of the opposite or same sex. In the latter case, they must be officially married before applying for the Golden Visa. The marriage can be registered in any US state or in Portugal.

Children of the investor or their spouse can be included in the application if they are aged under 26 years old. They need to be dependent on the main applicant. Children over 18 must be unmarried, registered at the same address as the main applicant, and study at a university.

Parents of the investor or their spouse can apply without an age limit. However, for parents younger than 65, the investor must provide documents proving the parents’ dependency: a certificate of disability, proof of receipt of financial support from the main applicant, etc.

Apart from the application, the investors must submit the following documents for the Portugal Golden Visa:

• passports;
• passport photos;
• birth certificates;
• marriage or divorce certificates where applicable;
• proof of medical insurance issued within the last three months
• proof of clean criminal record issued within the last three months
• proof of compliance with tax and social security obligations;
• proof of the fulfilled investment.

1. Residency in an EU country. The Golden Visa provides a pathway to residency in Portugal, which is a member of the European Union. This allows US citizens and their families to live, work, and study in Portugal and spend an indefinite amount of time in the country. Without a residence permit, US citizens can only stay there visa-free for only 90 days out of 180.

2. Lenient minimum stay requirement. The Golden Visa does not require investors to reside in Portugal continuously. Instead, its holders need to spend at least 7 days per year in the country to maintain their status. This flexibility allows US citizens to maintain their primary residence in the US while still enjoying the benefits of Portuguese residency.

3. Family reunification. The Golden Visa extends benefits to the investor's family members, including spouse, dependent children under the age of 26, and dependent parents.

4. High-quality healthcare for free. Golden Visa holders have access to Portugal's high-quality healthcare systems, which are also significantly cheaper than the ones in the US. Many healthcare services are provided free for all legal residents.

Portuguese residents are also guaranteed public health insurance that covers almost all medical care, including doctors, specialists, and emergency services.

5. Education system. Expats with children have a wide choice of education options, including public free schools and at least six private international schools with the US curriculum in Lisbon alone.

Two higher education institutions, the University of Porto and the University of Lisbon, are ranked among the top 300 universities in the world. Both of them accept applications from international students, with some courses read in English.

6. Cost of living. Apart from healthcare and education, many other aspects of life, such as housing, food, groceries, and public transportation, are cheaper in Portugal. In general, prices in Portugal are around 40% lower than in the US.

7. No double taxation. Portugal has a Double Taxation Agreement with the US, meaning that if US citizens become tax residents in Portugal, they are not taxed on income earned outside of the country. Such income would only be subject to taxation in the United States. In a similar fashion, income earned in Portugal would not be subject to taxation in the US.

8. Potential return on investment. If the applicant chooses to purchase fund units as an investment option for the Portugal Golden Visa, they may earn an annual yield of 3 to 10%. They can also return the investment after at least five years of maintaining it and obtaining permanent residency in Portugal. In practice, returning the money is usually possible after 6—10 years.

9. Path to citizenship. After five years of holding residency, investors may be eligible to apply for Portuguese citizenship. They must pass a test to prove knowledge of the Portuguese language at the A2 level or higher. The passport provides US citizens with a valuable opportunity to obtain EU citizenship and access to its benefits.

The Portugal Golden Visa is not the only way for US citizens to obtain a residence permit in Portugal. However, other options are targeted at specific groups of foreigners.

Portugal Digital Nomad Visa. Freelancers and remote workers can obtain a digital nomad visa if they prove a monthly income of at least €3,280.

A long-term visa, also known as a residency visa, is issued for 4 months. During that period, the digital nomad travels to Portugal and applies for a two-year residence permit. 

Alternatively, they can obtain a one-year visa that allows them to enter the country multiple times for a year but does not make them eligible for a residence permit.

Portugal D7 visa, also known as a Portuguese Retirement Visa or a Portugal Passive Income Visa, allows foreigners with passive income earned in another country to obtain a 2-year residency permit.

To qualify, an individual must earn at least €820 per month in dividends, interest, royalties, pension, rental income or any other kind of passive income. They also buy or rent residential property in Portugal.

The D7 visa is issued for 4 months. During this period, the foreigner travels to Portugal to apply for a residence permit.

Portugal HQA visa is targeted at highly qualified specialists, such as developers, analysts, or scientists, who want to work in the country. 

The applicant must present an employment contract with the Portuguese company with a minimum salary of €1,900 a month.

If the applicant finds a job in Portugal remotely, they apply for a D3 visa first. As in the previous cases, the short-term visa allows the individual to travel to Portugal and apply for a two-year residence permit.

Portugal does not offer programs for foreigners to obtain permanent residency and citizenship by investment. However, obtaining a residence permit by investment opens such a path.

To obtain a permanent residency, an individual must uphold the residence permit for five years. For a Portugal Golden Visa holder, it means maintaining the investment and spending at least seven days per year in the country.

Becoming a Portuguese citizen is also possible after five years of residency. However, applicants must also prove knowledge of the Portuguese language at the A2 level or higher, and the fact that they have integrated into the Portuguese community.

English language competency. While knowing Portuguese would go a long way towards integration into the community, more than 2 million Portuguese citizens can speak English at a decent level. The percentage is higher among the younger generations who have studied English as a second language. Most medical professionals also can communicate in English.

Real estate prices. Lisbon is the most expensive Portuguese city to buy or rent property, but even there, prices are lower than on average in the United States. For example, renting a three-bedroom apartment in the center of Lisbon would cost around €2,500 per month against almost €3,000 in an average US city. In other Portuguese cities, prices are even lower.

Transportation. Getting around mainland Portugal by public transport is quite easy, especially if you’re in or around large cities such as Lisbon and Porto. Trains and buses offer convenient and cost-effective ways to move between cities, while traveling in a city is easy by tram or subway. For a trip to more remote places, it is possible to rent a car for a day or two.

Remote work. As a country that offers visas to digital nomads, Portugal makes efforts to attract remote workers. They include an increasing number of co-working spaces and a widespread Wi-Fi network in big cities. A strong 4G network is a bonus for those who work on the go.

1. Lisbon. The capital of Portugal is a vibrant and cosmopolitan hub that attracts expats from around the world, including over 3,000 residents from the United States. Situated at the mouth of the Tagus River near the western tip of Europe, Lisbon boasts some of the warmest winters and the mildest winter nights out of any major European city.

2. Porto. Portugal's second-largest city is renowned for its charming riverside setting, historic architecture, and thriving arts scene. American expats are drawn to the biggest city in the north of Portugal for its laid-back lifestyle, welcoming atmosphere, and proximity to the Douro Valley wine region. It is also more affordable than Lisbon: on average, prices in Porto are around 20% lower than in the capital.

3. The Algarve region, located in southern Portugal, is famous for its stunning beaches, warm climate, and relaxed way of life. Faro, the capital of the Algarve region, hosts around 1,000 US citizens. The region is one of the major touristic hubs of the country, famed for its agriculture and wine industry.

4. Cascais. Just west of Lisbon, Cascais is a picturesque coastal resort town close to Lisbon known for its sandy beaches, historic charm, and upscale amenities. Expats make up around 16% of the town’s population. It’s worth noting that real estate prices in Cascais are higher than in Lisbon, both for rent and purchase.

5. Sintra is another town close to Lisbon but it offers a very different experience. This is a UNESCO World Heritage site with a rich history that appeals to US expats seeking a retreat from the hustle and bustle of city life.

The Portugal Golden Visa program offers residency to US citizens investing €250,000 or more, with options including investment funds, business ventures, and support for scientific research and cultural projects.

US citizens with a residence permit in Portugal can live and work in the country and travel around the European Union. They also have access to quality healthcare and education and a beneficial tax regime, while also enjoying a lower cost of living. After 5 years of residency, they can also apply for Portuguese citizenship.

The Golden Visa application process takes 12+ months, starting from obtaining the taxpayer’s number and finishing with receiving the residence permit cards that need to be renewed every 2 years.