Portugal’s Golden Visa, launched in 2012, is one of Europe’s most enduring and popular residency-by-investment programs. Reforms over the years have removed real estate and capital transfer investment options from Portugal’s Golden Visa, however the program remains a great route for Americans seeking EU residency, and ultimately, should they want it, EU citizenship.
In this article, we’ll provide an overview of what American investors considering moving to Portugal need to know about Portugal’s Golden Visa program in 2025.
What is Portugal’s Golden Visa?
Portugal’s Golden Visa offers non-EU nationals including Americans a path to EU residency. Approved applicants and their families get the right to live, work, and study in Portugal, as well as visa-free travel in the Schengen Area. After five years of residency, holders can apply for Portuguese citizenship by meeting basic residency requirements, including spending just seven days per year in Portugal (which is the minimum time requirement in Portugal under the Golden Visa program rules).
Qualifying Golden Visa investment options for Americans
Since real estate and capital transfer investments are no longer eligible, there are several other pathways for Americans to qualify for the Portuguese Golden Visa:
Job creation
Entrepreneurs can create 10 jobs for Portuguese nationals, qualifying for the visa while contributing to Portugal’s economy. This route offers potential for long-term returns and integration into the local business environment.
Research and innovation
Portugal encourages investments in scientific research, technology, and innovation. By committing €500,000 to these sectors, applicants can qualify for the Golden Visa while participating in Portugal’s expanding tech landscape.
Investment funds
The most common route for Americans looking for a Portugal Golden Visa involves placing €500,000 in a government-approved Portuguese investment fund. These funds focus on growth sectors like renewable energy and infrastructure, which for Americans also offers asset diversification and exposure to Portugal’s economy. After 5 years, you can get your investment back, should you wish to.
Main benefits of Portugal’s Golden Visa for Americans
Schengen area access
Golden Visa holders enjoy visa-free travel across the Schengen Area, facilitating business and leisure opportunities throughout Europe.
EU citizenship after 5 years
After five years of residency, holders can apply for Portuguese citizenship, granting full EU rights, including freedom of movement and the ability to live and work anywhere in the EU.
New tax incentives
Portugal’s Tax Incentive for Scientific Research and Innovation (IFICI) offers reduced tax rates on Portuguese income and exemptions on certain foreign-sourced income, making it attractive for qualifying professionals and entrepreneurs working in sectors like tech, science, and education.
Family residency
The Golden Visa extends to immediate family members, including spouses, children under 18 (or up to 26 if financially dependent), and dependent parents, allowing families to benefit from EU residency.
Low residency requirements
Applicants need to spend just seven days per year in Portugal for the first five years, offering flexibility for those maintaining ties elsewhere.
High quality of life
Portugal boasts a warm climate, affordable cost of living and healthcare, and is consistently ranked among the safest countries in Europe.
The application process
The Golden Visa application process is relatively straightforward. Here’s a summary of the steps:
- Choose your investment – Select from qualifying options (most often fund investment for Americans).
- Prepare your documents – Gather essential documents, including proof of funds, a clean criminal record, and health insurance.
- Bank account and NIF – Obtain your Portuguese tax identification number (NIF)
- Make the investment – Secure your investment and complete the necessary paperwork to ensure a successful investment process.
- Online application – Your application must be submitted through the ARI Portal by a legal representative in Portugal, who will guide you through the required documentation and submission process.
- Pre-approval – Your application will be pre-approved based on the fulfilment of necessary requirements.
- Biometrics visit – After booking your interview, you’ll need to attend a biometrics appointment in Portugal within approximately two months.
- Golden visa issuance – Lastly, your Golden Visa will be approved by AlMA (the new Portuguese Immigration and Border Service). Once approved, you’ll receive your residence card by mail.
Additional Golden Visa considerations for US Investors
US tax obligations
While Portugal’s Golden Visa offers a pathway to residency, US citizens must continue to adhere to US tax laws, including reporting worldwide income to the IRS every year, and reporting Portuguese investments and bank accounts. Portugal does not tax foreign-sourced income for non-residents, but if you move to Portugal, you will be subject to Portuguese taxes.
Additional fees
Besides the initial investment, applicants should anticipate various costs, including legal fees, application processing fees, and potential taxes related to their chosen investment path. Legal fees can range from €5,000 to €8,000, with additional costs for dependents.
Investment horizon
Investments in innovation or business creation may take time to generate returns. It’s essential to have a clear exit strategy and understand the long-term commitment required.
Final thoughts on Portugal’s Golden Visa for Americans
For Americans seeking to broaden their global presence, Portugal’s Golden Visa offers a strategic pathway to EU residency and potentially citizenship. Whether you’re looking for visa-free access to Europe, financial diversification, or an enhanced quality of life, Portugal’s Golden Visa can offer a way to achieve these goals. It’s also important to consider how your investment in the program affects your overall asset allocation and portfolio and its place in meeting your wider financial aspirations. Seek advice from an expat investment advisor to ensure you invest wisely in the context of your situation, plans and life goals.
If you have any questions about financial planning as an American living in the EU, get in touch.
This article is for informational purposes only; it is not intended to offer advice or guidance on legal, tax, or investment matters. Such advice can be given only with full understanding of a person’s specific situation.
