{"id":45942,"date":"2022-08-24T15:53:10","date_gmt":"2022-08-24T20:53:10","guid":{"rendered":"https:\/\/www.escapeartist.com\/?page_id=45942"},"modified":"2022-08-24T15:55:10","modified_gmt":"2022-08-24T20:55:10","slug":"the-portuguese-golden-visa","status":"publish","type":"page","link":"https:\/\/www.escapeartist.com\/the-portuguese-golden-visa\/","title":{"rendered":"The Portuguese Golden Visa"},"content":{"rendered":"

How To Get Paid To Acquire A European Passport<\/span><\/span><\/h1>\n

\"PORTUGUESE<\/p>\n

There<\/span><\/span> are<\/span><\/span> basically<\/span><\/span> three<\/span><\/span> ways<\/span><\/span> that<\/span><\/span> you<\/span><\/span> can<\/span><\/span> become<\/span><\/span> a <\/span><\/span>citizen<\/span><\/span> of<\/span><\/span> a<\/span><\/span> country,<\/span><\/span> namely<\/span><\/span> through<\/span><\/span> birth<\/span><\/span> or<\/span><\/span> ancestry, <\/span><\/span>prolonged<\/span><\/span> residency<\/span><\/span> and<\/span><\/span> by<\/span><\/span> donation<\/span><\/span> or<\/span><\/span> investment.<\/span><\/span><\/h3>\n

To<\/span> be<\/span> born<\/span> in<\/span> a<\/span> country<\/span> or<\/span> to<\/span> have<\/span> parents<\/span> or <\/span>grandparents<\/span> from<\/span> any<\/span> particular<\/span> country<\/span> is<\/span> nothing<\/span> over which<\/span> we<\/span> have<\/span> any<\/span> control.<\/span> If<\/span> you<\/span> are<\/span> fortunate<\/span> enough<\/span> to <\/span>be<\/span> born<\/span> a<\/span> citizen<\/span> of<\/span> the<\/span> US,<\/span> Canada,<\/span> Western<\/span> Europe, Australia,<\/span> New<\/span> Zealand<\/span> or<\/span> Japan,<\/span> you<\/span> have<\/span> already<\/span> won the<\/span> citizenship<\/span> lottery.<\/span> You<\/span> live<\/span> in<\/span> a<\/span> country<\/span> with<\/span> a passport<\/span> that<\/span> historically<\/span> allows<\/span> you<\/span> to<\/span> basically<\/span> travel wherever<\/span> you<\/span> want,<\/span> whenever<\/span> you<\/span> want.<\/span> You<\/span> are<\/span> in<\/span> the fortunate<\/span> ten<\/span> percent<\/span> of<\/span> all<\/span> people<\/span> on<\/span> planet<\/span> Earth.<\/span> For the<\/span> other<\/span> 90<\/span> percent<\/span> of<\/span> the<\/span> world’s<\/span> population,<\/span> the burdens<\/span> and<\/span> barriers<\/span> of<\/span> obtaining<\/span> a<\/span> passport,<\/span> accessing <\/span>visas,<\/span> showing<\/span> sufficient<\/span> funds<\/span> and<\/span> proving<\/span> that<\/span> you<\/span> don\u2019t <\/span>have<\/span> \u201cimmigrant<\/span> intent\u201d<\/span> when<\/span> you<\/span> want<\/span> to<\/span> take<\/span> your<\/span> kids t<\/span>o<\/span> the<\/span> US<\/span> to<\/span> visit<\/span> Disney<\/span> World,<\/span> can<\/span> be<\/span> nothing<\/span> short<\/span> of <\/span>debilitating.<\/span><\/p>\n

For<\/span> those<\/span> whose<\/span> parents,<\/span> grandparents<\/span> and<\/span> even<\/span> great <\/span>grandparents<\/span> migrated<\/span> from<\/span> Europe,<\/span> the<\/span> ability<\/span> to<\/span> claim ancestral<\/span> citizenship<\/span> is<\/span> the<\/span> fastest,<\/span> cheapest<\/span> and<\/span> easiest <\/span>option.<\/span> Effectively,<\/span> with<\/span> an<\/span> ancestral<\/span> claim<\/span> rather<\/span> than <\/span>applying<\/span> for<\/span> citizenship,<\/span> you<\/span> are<\/span> taking<\/span> the<\/span> position<\/span> that <\/span>you<\/span> were<\/span> already<\/span> a<\/span> citizen<\/span> at<\/span> birth<\/span> and<\/span> now<\/span> you<\/span> are <\/span>asking<\/span> the<\/span> State<\/span> to<\/span> recognize<\/span> your<\/span> citizenship.<\/span> This<\/span> is <\/span>actually<\/span> a<\/span> different<\/span> procedure<\/span> than<\/span> \u201capplying\u201d<\/span> to become<\/span> a<\/span> citizen <\/span>through<\/span> any<\/span> type<\/span> of<\/span> naturalization <\/span>process. If you can access citizenship through ancestry, <\/span>then<\/span> thank<\/span> your<\/span> forefathers<\/span> because<\/span> you<\/span> won<\/span> the citizenship<\/span> lottery<\/span> a<\/span> second<\/span> time;<\/span> you<\/span> just<\/span> need<\/span> to<\/span> go pick up your prize.<\/span><\/p>\n

\"\"<\/span><\/h5>\n

Pastel<\/b><\/i><\/span><\/span> <\/b><\/i>de<\/b><\/i><\/span><\/span> <\/b><\/i>natel<\/b><\/i><\/span><\/span> <\/b><\/i>(Portuguese<\/b><\/i><\/span><\/span> <\/b><\/i>egg<\/b><\/i><\/span><\/span> <\/b><\/i>tarts)<\/b><\/i><\/span><\/span> <\/b><\/i>are famous around the world<\/b><\/i><\/span><\/span><\/span><\/span><\/p>\n

For<\/span> everyone<\/span> else,<\/span> obtaining<\/span> a<\/span> second<\/span> residency<\/span> or citizenship<\/span> <\/a>is<\/span> controlled<\/span> by<\/span> the<\/span> laws<\/span> of<\/span> the<\/span> particular <\/span>country<\/span> where<\/span> you\u2019d<\/span> like<\/span> to<\/span> live.<\/span> And<\/span> while<\/span> these<\/span> laws <\/span>vary<\/span> widely<\/span> from<\/span> country<\/span> to<\/span> country,<\/span> they<\/span> can<\/span> basically <\/span>be<\/span> divided<\/span> up<\/span> into<\/span> two<\/span> routes<\/span> to<\/span> citizenship:<\/span> the<\/span> slow, <\/span>cheap<\/span> method<\/span> and<\/span> the<\/span> fast,<\/span> expensive<\/span> method.<\/span><\/p>\n

The<\/span> slow,<\/span> cheap<\/span> method<\/span> entails<\/span> meeting<\/span> the<\/span> basic residency<\/span> requirements<\/span> of<\/span> the<\/span> particular<\/span> country<\/span> in order<\/span> to<\/span> move<\/span> there.<\/span> This<\/span> could<\/span> be<\/span> for<\/span> educational purposes,<\/span> work,<\/span> to<\/span> start<\/span> a<\/span> business,<\/span> or<\/span> for<\/span> retirement. <\/span>The<\/span> slow,<\/span> cheap<\/span> method<\/span> doesn\u2019t<\/span> generally<\/span> require<\/span> any <\/span>type<\/span> of<\/span> investment<\/span> or<\/span> payment<\/span> at<\/span> the<\/span> outset,<\/span> but<\/span> rather <\/span>that<\/span> you<\/span> simply<\/span> live,<\/span> work<\/span> and<\/span> become<\/span> a<\/span> full-time resident<\/span> and<\/span> taxpayer<\/span> in<\/span> that<\/span> country.<\/span> After<\/span> some defined<\/span> period<\/span> of<\/span> time,<\/span> generally<\/span> five<\/span> years,<\/span> you<\/span> can <\/span>apply<\/span> for<\/span> permanent<\/span> residence<\/span> and<\/span> then<\/span> naturalization <\/span>and<\/span> citizenship.<\/span> Again,<\/span> the<\/span> cost<\/span> of<\/span> this<\/span> type<\/span> of<\/span> application <\/span>is<\/span> nominal,<\/span> but<\/span> it<\/span> does<\/span> take<\/span> a<\/span> lot<\/span> of<\/span> time.<\/span><\/p>\n

In<\/span> an<\/span> effort<\/span> to<\/span> attract<\/span> foreign<\/span> investment,<\/span> nearly<\/span> all <\/span>countries<\/span> around<\/span> the<\/span> world<\/span> have<\/span> enacted<\/span> various<\/span> forms <\/span>of<\/span> incentives<\/span> that<\/span> reduce,<\/span> change<\/span> or<\/span> eliminate<\/span> the<\/span> time <\/span>requirements<\/span> necessary<\/span> to<\/span> become<\/span> a<\/span> citizen.<\/span> These programs<\/span> are<\/span> referred<\/span> to<\/span> as<\/span> Citizenship<\/span> by<\/span> Investment Programs (or \u201cCIP\u201d for short).<\/span><\/p>\n

They<\/span> vary<\/span> in<\/span> cost<\/span> depending<\/span> on<\/span> the<\/span> country\u2019s developmental<\/span> stage<\/span> and<\/span> value<\/span> of<\/span> the<\/span> passport.<\/span> This <\/span>value<\/span> is<\/span> determined<\/span> by<\/span> the<\/span> number<\/span> of<\/span> countries<\/span> a<\/span> citizen <\/span>of<\/span> that<\/span> country<\/span> can<\/span> visit<\/span> without<\/span> a<\/span> visa.<\/span> Currently,<\/span> the Japanese<\/span> passport<\/span> is<\/span> ranked<\/span> #1<\/span> with<\/span> visa-free<\/span> travel<\/span> to 190<\/span> countries.<\/span> The<\/span> US<\/span> passport<\/span> is<\/span> currently<\/span> ranked <\/span>number<\/span> 7<\/span> and<\/span> the<\/span> Canadian<\/span> passport<\/span> is<\/span> ranked<\/span> number <\/span>9.<\/span> Afghanistan<\/span> is<\/span> ranked<\/span> last<\/span> with<\/span> visa-free<\/span> travel<\/span> to<\/span> only <\/span>26<\/span> countries.<\/span><\/p>\n

From<\/span> an<\/span> investment<\/span> perspective,<\/span> the<\/span> US,<\/span> EB5<\/span> Investor Visa<\/span> requires<\/span> an<\/span> investment<\/span> of<\/span> $1.8<\/span> million<\/span> for<\/span> a<\/span> fast <\/span>track<\/span> green<\/span> card.<\/span> Cyprus<\/span> requires<\/span> a<\/span> minimum<\/span> real<\/span> estate <\/span>purchase<\/span> of<\/span> $2.2<\/span> million<\/span> dollars<\/span> but<\/span> citizenship<\/span> can<\/span> be granted<\/span> in<\/span> as<\/span> quickly<\/span> as<\/span> 90<\/span> days.<\/span> The<\/span> Caribbean<\/span> islands such<\/span> as<\/span> St.<\/span> Lucia,<\/span> Grenada<\/span> and<\/span> Dominica<\/span> have<\/span> donation programs<\/span> of<\/span> as<\/span> little<\/span> as<\/span> $100,000<\/span> to<\/span> become<\/span> a<\/span> citizen <\/span>there,<\/span> while<\/span> Austria<\/span> (number<\/span> 5<\/span> passport<\/span> in<\/span> the<\/span> world) requires<\/span> an<\/span> investment<\/span> of<\/span> \u20ac7<\/span> million.<\/span><\/p>\n

Of<\/span> all<\/span> the<\/span> Citizenship<\/span> by<\/span> Investment<\/span> programs,<\/span> one<\/span> of<\/span> the<\/span> most user friendly and accessible is the Portuguese Golden Visa program. \"\"<\/a>The program which was passed into law in 2012, provides an instant residency upon fulfillment of any of the investment or donation options. The Portuguese residency card grants you the ability to live, work and retire in Portugal as well as unlimited freedom of movement in the Schengen zone comprising 26 countries throughout Europe.<\/p>\n

For most people, the Portuguese Golden Visa is all they need, to enjoy as little or as much time as they want to spend in Europe because the minimum residency requirement to maintain the Golden Visa status is only one week per year. After five years of Golden Visa status, an individual can then apply for permanent residence (the equivalent of the US green card) and simultaneously apply for Portuguese citizenship, obtaining one of the best passports (#6) in the world.<\/p>\n

The best part of the Portuguese Golden Visa is that it does provide international investors with a real opportunity to make money from the investment process, meaning you can actually get paid to become a European Citizen. And while most newsletters and magazine articles focus only on the<\/p>\n

\u20ac500,000 real estate option (which can be reduced in various scenarios to \u20ac400,000, \u20ac350,000 and even as low as \u20ac280,000 and is by far the method most people choose for the Golden Visa process), the incentive law \u201cArticle 90-A\u201d articulates a number of other investment options, besides real estate, that foreign investors are only now starting to explore.<\/p>\n

For those with sufficient resources and a low appetite for risk, the law allows a foreign investor to simply open a Portuguese bank or brokerage account and deposit \u20ac1 million euros. That\u2019s not very glamorous and with interest rates at historic lows, you won\u2019t earn much, but it is a fast and easy way to obtain residency and citizenship. The highest CD rate currently available as of this writing was 1.4 percent.<\/p>\n

While very low as an investment return, an \u20ac80,000 gain (less applicable tax) over five years certainly beats the zero interest rate bonds issued by countries like St. Lucia and Bulgaria for similar periods. The fact that the Euro is currently trading at the lower end of its trading range vis-\u00e0-vis the dollar means there is also an opportunity for capital appreciation of the \u20ac1 million investment in dollar terms.<\/p>\n

Next, for those looking for better returns or without \u20ac1,000,000 to invest in a bank CD, the option for investment or venture capital funds based in, and focusing on Portuguese investments, exists. The minimum investment amount is \u20ac350,000. It\u2019s important with this option to have your lawyer do extensive due diligence on the fund itself, not only as to the fund\u2019s track record, but also to make sure that the fund\u2019s investment allocation (minimum 60 percent in Portuguese companies) meets the requirements of the law.<\/p>\n

The least applied for option under the Golden Visa Program has been to start a business in Portugal and hire Portuguese employees. There are actually two sub-options for business creation. The first option requires a capital investment of \u20ac350,000 and a minimum of five newly created jobs. I\u2019m seeing a number of folks interested in this option who also want to start some kind of franchise business in Portugal. The combination of a popular US franchise acquisition, for example, together with \u20ac350,000 in capital and five employees (one of which could be yourself) has a high probability of financial success.<\/p>\n

For individuals without \u20ac350,000 in investment capital, a second option exists which does not specify any minimum capital requirement. This option, however, requires the employment of ten Portuguese workers. For those interested, for example, in any type of company from IT startups to cleaning services, this option could be both profitable as well as help you obtain European Citizenship.<\/p>\n

Existing entrepreneurs are looking closely at this option to establish a Portuguese subsidiary of their existing business. For those who aren\u2019t entrepreneurs but are willing to bankroll others, the capital structure can be organized in such a way that everyone gets what they want. A recent entrepreneurial client, for example, offered to handle all the aspects of this type of investment for a US investor who had neither the time nor inclination to run a business in Portugal. The business plan required \u20ac185,000 in capital (far lower than the other Golden Visa options). The investor who put in the funds took 100% of the share capital and the entrepreneur took day to day management of the business. The entrepreneur also had a profit sharing deal on the business and an option to acquire equity in the business in the future based on profitability metrics. This was truly a win\/win for everyone involved, including the Government of Portugal which achieved job creation and future tax revenues in exchange for the investor\u2019s Golden Visa residency card. I personally like this type of win\/win arrangement because everyone involved benefits and it meets both the spirit as well as the letter of the law.<\/p>\n

Finally, there are straight-up \u201cdonation\u201d options for foreign investors willing to give money for artistic or scientific research. The donation amounts are $250,000 (artistic) and $350,000 (scientific). This might be a viable option for people in high tax brackets as these types of donations are generally tax-deductible if structured properly. The net after-tax cost of these types of one time donations might be cheaper for some wealthy investors, for example, than the lost opportunity costs of putting \u20ac1,000,000 into a low-interest rate bank CD for five years.\"\"<\/p>\n

All of these options make Portugal one of the most interesting and viable country options for obtaining a second residency and citizenship. Having a European residency will allow you in the current turbulent and uncertain times to continue traveling, living, working, retiring or just spending time in Europe while traditional US tourists cannot. It\u2019s a wonderful plan B or even plan A for those who want Europe to be part of their lifestyle mix and it is one of the best places to actually make money from their residency and citizenship by investment option.<\/p>\n

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Above:<\/b><\/i><\/span><\/span> <\/b><\/i>Lisbon<\/b><\/i><\/span><\/span> <\/b><\/i>Portugal<\/b><\/i><\/span><\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

How To Get Paid To Acquire A European Passport There are basically three ways that you can become a citizen of a country, namely through birth or ancestry, prolonged residency and by donation or investment. To be born in a country or to have parents or grandparents from any particular country is nothing over which […]<\/p>\n","protected":false},"author":702,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"footnotes":""},"yst_prominent_words":[37125,37126,37121,2661,2660,4261,2529,2751,37127,2544,37128,5435,3744,7206,7205,2836,37120,37118,37122,37119],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/pages\/45942"}],"collection":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/users\/702"}],"replies":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/comments?post=45942"}],"version-history":[{"count":15,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/pages\/45942\/revisions"}],"predecessor-version":[{"id":46363,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/pages\/45942\/revisions\/46363"}],"wp:attachment":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media?parent=45942"}],"wp:term":[{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=45942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}