Why Affluent Investors Are Choosing the Portugal Golden Residence Permit Program
Portugal offers one of Europe’s most favoured residence by investment programs, the Portugal Golden Residence Permit Program. Since 2012, Henley & Partners, the global leader in residence and citizenship by investment, has assisted an unprecedented number of private clients and their advisers in securing a Portuguese alternative residence permit. The program has been recently updated with new investment criteria in effect from 1 January 2022.
The Portuguese Golden Residence Permit Program has been garnering the interest of wealthy individuals from across the world who want to safeguard their global mobility and build a portfolio of alternative residence options and citizenships. They also want to mitigate the risks and impact that a future pandemic or some other crisis could have on their assets and their family’s security.
An indispensable asset class: Alternative residence and citizenship
In recent years demand for alternative residence and citizenship programs has been soaring, in part as a consequence of the global pandemic and in part fueled by economic and socio-political volatility around the world.
High-net-worth individuals are ever more aware of the value that an alternative residence or citizenship brings. Not only do investment migration programs enable you to diversify your domicile options but, as witnessed during various lockdowns, when health emergency protocols and travel bans are imposed, they can facilitate essential travel at critical times.
A Portuguese Golden Residence Permit also offers affluent individuals a wider array of strategic options should their assets be put at risk by changing fiscal or economic policies in their home countries. This has been the motivating factor for many American clients who hold a traditionally ‘strong’ passport but want to secure additional residence permits and nationalities to hedge their risks and exposure. Most importantly, as geo-political tensions continue to rise, alternative residence permits and citizenships are increasingly sought after as a safety net for high-net-worth individuals’ families, their wealth, and their legacy. In this present-day, residence by investment programs such as Portugal’s are unquestionably an indispensable asset class.
Portugal – Attracting foreign direct investment
Situated on the western most point of the Iberian Peninsula, Portugal has an enviable offering for foreign investors. A country with a rich cultural heritage, first-class cuisine, unique traditions, picturesque beaches, a Mediterranean lifestyle, and welcoming people, it is no surprise that Portugal persistently ranks as one of the most popular destinations for tourists and investors alike.
The Portuguese have been keen to innovate and participate in the rapidly evolving digital revolution by modernizing and streamlining their business, investment, and government processes and procedures. This approach has bolstered foreign investors’ confidence and established the country’s position as a hub of investment and innovation.
In the past year, Golden Residence Permit applicants’ demand for Portuguese real estate assets has surged, clearly demonstrating investors’ staunch confidence in the Portuguese investment ecosystem. The Portuguese luxury real estate segment in particular has shown its prowess and endurance as property developments across the country have consistently delivered lucrative yields to foreign investors despite the economic disruption generated by the pandemic.
Over 10,000 investors and counting
Portugal’s Golden Residence Permit Program has generated over EUR 6 billion in foreign direct investment since it was launched in 2012. This valuable influx of capital, specifically after the global financial crisis of 2008, has greatly benefited Portugal and strengthened the nation’s economic development and growth.
Following the program’s inception, over 10,000 approved Golden Residence Permit holders and their families have obtained the right to visa-free travel in Europe and the ability to live, work, and study in Portugal. The residence program’s efficient processing time (currently six to nine months) and global mobility attributes have proven to be some of the most attractive drivers for international investors, business leaders, and entrepreneurs who have successfully met the eligibility criteria and passed the due diligence screening for a Portugal Golden Residence Permit.
Highlights of Portugal’s leading Golden Residence Permit Program
Applicants must fulfil all pertinent terms, including periods of physical presence in Portugal. This requires permit holders to spend a total of seven days in the first-year period and a total of 14 days over each subsequent two-year period in Portugal. Clients therefore have flexibility to easily meet the minimum physical presence conditions of their permit while enjoying all the benefits that the Portugal Golden Residence Program awards.
Another significant attribute of the residence program is that eligible permit holders can avail the right to apply for Portuguese citizenship after a five-year period without needing to relocate. Nonetheless, although relocation is optional, numerous Golden Residence Permit holders are opting to make the move and seamlessly integrating into the cosmopolitan tapestry of Portugal’s towns and cities. They are drawn to Portugal’s high quality of life, fiscal incentives for resident high-net-worth individuals, world-class healthcare, and exceptional academic institutions.
If you wish to learn more about the program, the new requirements that came into effect on 1 January 2022, or the due diligence, know-your client requirements, and application steps, please reach out to Henley & Partners. As the pioneering firm in the investment migration industry, Henley & Partners is aptly positioned to successfully serve international clients and partners interested in securing a Portuguese Golden Residence Permit.
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