Portugal vs. Cyprus Golden Visa: which is better for you?

A Golden Visa is a residence permit granted to foreign investors who contribute to a country’s economy, typically through real estate purchase, contributions to business, or investments in securities.

Portugal Golden Visa. Portugal offers several pathways to residency for investors. The minimum investment starts at €250,000 for contributions to culture. The most popular option is purchasing investment fund units for at least €500,000. Other options include investing in science or opening a company in Portugal.

The process to acquire the Portugal Golden Visa typically takes at least 12 months. Investors receive a temporary residence permit, which can be renewed every two years for an unlimited number of times, as long as the investment is maintained.

Cyprus Golden Visa. Cyprus requires a minimum investment of €300,000. This can be directed toward purchasing new residential properties, new or resale commercial properties, shares in Cyprus-based companies, or investment fund units.

The Cyprus investment program also requires proof of a legal annual income of at least €50,000. For families, an additional €15,000 is required for a spouse and €10,000 for each child.

Foreign investors typically obtain the status within 9 months or longer. Unlike Portugal, Cyprus grants permanent residency from the start: investors do not need to first obtain a temporary residence permit. Permanent residency is valid for life; investors only need to renew their residency cards every several years.

Brief comparison of Portugal and Cyprus Golden Visa programs

1. Right to reside in the country. Both Portugal and Cyprus allow investors to relocate and live in the chosen country. 

Portugal grants temporary residence permits, which must be extended every two years. The renewal process is similar to the initial application. The individual gathers documents and undergoes Due Diligence. Investing again is not required, but keeping the initial investment is mandatory.

In contrast, Cyprus grants a permanent residency status, valid for life. It is still required to maintain investment and renew the residency card, but this is much easier than extending residency status.

2. Easy acquisition process. In both countries, foreigners contributing to the economy do not need to pass language tests or have ties with the chosen country, such as a job or family members. Certified lawyers assist investors throughout the process, helping with tasks like choosing a property or opening a bank account.

3. Return of investment. Both countries offer options allowing investors to return the contributed money. In Portugal, Golden Visa holders can get a refund in 6 to 10 years if they buy investment fund units.

Cyprus Golden Visa holders can sell purchased property if they obtain citizenship or decide to renounce their residency. Selling can be profitable, as real estate prices in the country are rising. For example, in Q1 2024, prices increased by 7.8%, compared to Q1 2023.

Participants of both programs can sell businesses they have established or company shares they have purchased under the program, but the return is not guaranteed.

4. Visa-free travel within Schengen. Portugal is a Schengen member state, so its residents can travel visa-free within the Schengen Area. Foreigners with Cyprus residence permits, however, need visas to enter the Schengen Area countries.

5. Access to public education and healthcare. Investors and their family members in both countries have access to public healthcare and primary, secondary, and higher education inside the country. 

Residents can also obtain a European Health Insurance Card, allowing them to receive treatment in any EU country, Iceland, Liechtenstein, Norway, Switzerland, and the UK, under the same conditions as locals.

6. Status for the whole family. Both Golden Visa programs allow investors to add their family members to the application.

In Portugal, eligible relatives are spouses or partners, children under 26, and parents of any age. In Cyprus, investors can include spouses or partners and children under 25.

7. Prospect of obtaining citizenship. Portugal Golden Visa leads to citizenship in five years. The investor does not need to live in the country; it is enough to visit it for 7 days per year.

Cypriot citizenship can be obtained after living in Cyprus for 8 out of 11 years prior to the application.

A Portuguese passport allows entry to 172 countries, while Cypriot citizenship provides access to 168 countries. Both include all EU states, the UK, Japan, and Canada as visa-free destinations. Portuguese citizens can also travel to the USA without a visa.

Real estate purchase. Only Cyprus allows Golden Visa applicants to invest in real estate. The minimum investment is €300,000, and applicants can buy either residential or commercial property. They can also purchase two properties with a total value of €300,000 or more. However, combining residential and commercial properties is not permitted.

Residential real estate must be new, while commercial properties can be either new or resale. Investors buying commercial real estate must also rent a residential property, though there are no minimum price requirements for the rental.

Portugal Golden Visa by property purchase is not available, as the country abolished this option in October 2023.

Business investment. Both countries allow investment in local companies. 

Portugal Golden Visa applicants have two options:

• opening a company and creating at least 5 new jobs with a minimum investment of €500,000;
• opening a company and creating at least 10 new jobs, with no minimum investment requirement.

In Cyprus, applicants cannot invest in a business directly but can buy shares of a Cyprus-based company for at least €300,000. The company must employ 5 or more people.

Purchase of securities. In Portugal, Golden Visa applicants can buy units of investment funds that invest in commercial real estate, companies, industrial facilities, or the European stock market. Applicants must pay a fund commission of up to 7.5% and an annual commission of 0.5 to 3% on profits. Portuguese tax residents pay an income tax of 14% on these profits.

In Cyprus, applicants invest €300,000 in investment fund units. The fund must be an Alternative Investment Fund (AIF), an Alternative Investment Fund with Limited Number of Persons (AIFLNP), or a Reserved Alternative Investment Fund (RAIF).

Other options. Portugal offers additional options, such as a €250,000 contribution to arts and cultural heritage restoration or a €500,000 contribution to scientific research activities.

Besides investment, the investor pays additional fees, such as application fees and fees for the issuance of residence permit cards. They are also required to purchase health insurance.

Additional expenses depend on the number of people included in the application. For example, under the Portugal Golden Visa program, the application fee is €605 per person. Thus, a single applicant pays €605, while a family of four must pay €2,420.

Adding one family member increases fees by €7,050 in Portugal and by €310 in Cyprus. The investment sum remains the same regardless of the number of applicants.

Minimum expenses for obtaining Golden Visas for a single applicant and a family of four

The basic requirements for investors applying for the Portugal and Cyprus Golden Visa are similar and include:

• being over 18;
• having no criminal record or prosecution;
• proving the legality of their income;
• buying health insurance.

Applicants for the Cyprus Golden Visa must also prove they have no restrictions or bans on the entry to the EU and the UK, have an annual income of at least €50,000, and own or rent accommodation in Cyprus.They are also required to provide a medical report.

Portugal Golden Visa applicants must prove that the money for the investment was earned outside of Portugal.

Both programs allow investors to include their spouses and children in the application. Under the Portugal Golden Visa, investors can also include their parents.

Requirements for family members under the Portugal and Cyprus Golden Visa programs

Portugal allows investors to obtain citizenship five years after securing Golden Visas. Investors in Cyprus can get a Cypriot passport after living in the country for eight years. 

To qualify for a passport, applicants must meet several requirements.

Physical presence. Investors seeking Portuguese citizenship do not need to reside in the country. They only need to spend 7 days per year in Portugal to be eligible for citizenship.

Foreigners planning to obtain a Cypriot passport must continuously live in Cyprus for 8 out of 11 years and for 12 months before applying for citizenship. They must also intend to continue living in Cyprus.

Language proficiency. The requirements for language proficiency are similar in both countries: in Portugal, a person must pass a Portuguese language test, and in Cyprus, they must prove knowledge of Greek.

Knowledge of history and culture. In Portugal, applicants do not need to take any tests on Portuguese history or culture. In Cyprus, they must pass a test to prove their knowledge of the country's socio-political realities.

Portugal, located on the Iberian Peninsula, is known for its rich history, stunning coastlines, and diverse culture. It offers a high quality of life with affordable living costs, particularly in smaller towns and cities.

Portugal is considered one of the safest countries in the world, making it an excellent option for families seeking security. The country is also popular with digital nomads, attracting remote workers who enjoy being around like‑minded individuals.

Portugal is a great choice for people interested in travel. It has strong air connections to other European states, and its residents can travel visa-free within the Schengen Area.

Cyprus is a Mediterranean island that blends European and Middle Eastern influences. The country is a popular destination for retirees due to its sunny climate and relaxed lifestyle. Cyprus also appeals to business people, as it boasts one of Europe's lowest corporate tax rates.

Cyprus is a good option for those seeking an English-speaking environment. Although Greek and Turkish are the official languages, English is spoken by the majority of the population.

Children of Cyprus residents benefit from a strong education system linked to the UK, making it easier for them to pursue higher education at top British universities.

Portugal vs. Cyprus: comparison

1. Portugal grants Golden Visas for a minimum investment of €250,000, while Cyprus Golden Visa requires a minimum of €300,000.
2. The most popular investment option in Portugal is purchasing investment fund units. In Cyprus, most applicants choose to buy real estate.
3. Obtaining the Portuguese Golden Visa typically takes 12 months or more, while the Cyprus process takes at least 9 months.
4. To qualify for either residency program, investors must be over 18, have no criminal record, and prove the legality of their income. Family members can be added to the application.
5. Common benefits of both Golden Visa programs include an easy acquisition process, potential investment returns, access to healthcare and education, and the opportunity to obtain citizenship. Portuguese residents also enjoy visa-free travel within the Schengen Area.