Portugal Golden Visa Changes to Offer 10-Year Tax Exemption for Foreign Investors

In a bold move to re-energise foreign investment, Portugal’s government is preparing to unveil a series of significant reforms to its popular Golden Visa Program. These new Portugal Golden Visa changes aim to boost international interest by offering a lucrative package of tax incentives and simplified residency procedures.

At the centre of these enhancements is the introduction of a 20 per cent flat tax on local income, along with a ten-year exemption on most foreign income for new residents under the Golden Visa scheme. These proposed fiscal advantages are part of a broader strategy to revamp the nation’s Residency-by-Investment initiative, according to Antonio Leitao Amaro, Portugal’s Minister of the Presidency.

“Portugal has no intention of scrapping the Golden Visa Program,” Amaro stated in an interview with Bloomberg. “On the contrary, we’re making it more attractive to internationals who wish to live, invest, and contribute to our growing economy.”

Portugal: Why the Golden Visa Still Matters

The Portugal Golden Visa changes come at a time when most EU countries are scaling back similar residency programs. Yet, Portugal remains committed to maintaining—and now enhancing—its version. This resolve is already producing results. In 2024 alone, Portugal approved 4,987 more Golden Visa applications compared to 2023, reflecting a record 72 per cent increase in approvals, according to the latest data from AIMA (Agency for Integration, Migration and Asylum).

Interestingly, Americans represent the largest applicant group, drawn not only by Portugal’s sunny lifestyle and safety, but also by its business-friendly environment and now, potentially, even greater tax benefits.

Resuming Processing Amid Backlogs

Despite enthusiasm from prospective investors, AIMA is grappling with a substantial processing backlog. As of this writing, over 50,000 applications, including those of investors’ family members, remain pending. Some applicants have been waiting for up to three years, prompting calls for faster decision-making.

Pedro Portugal Gaspar, President of AIMA, confirmed that application reviews have resumed but are still moving at a cautious pace.

“Some of these processes are being conducted. They are not at a standstill. Now, naturally, there is a capacity to respond, given the various process flows,” Gaspar explained in a statement to the Portuguese press.

To alleviate the burden, AIMA is working on streamlining its internal operations while remaining committed to clearing the existing backlog.

Real Estate Out, Innovation In

In response to the housing crisis, authorities recently removed the real estate investment route from the Golden Visa Program. However, the government continues to encourage investments in other sectors, including scientific research, cultural heritage, job creation, and private equity funds, which still qualify for residency.

The shift away from real estate hasn’t diminished the program’s appeal. Instead, it has pushed investors toward more diverse and sustainable contributions to the Portuguese economy. With the added lure of tax-friendly measures, Portugal aims to position itself as one of the most attractive European countries for global talent and capital.

Portugal: The Road Ahead

While no firm date has been announced for the rollout of the new Portugal Golden Visa changes, the government’s intent is clear: make Portugal a magnet for high-quality international investors. With the promise of favourable taxation and renewed administrative focus, Portugal could be setting a new gold standard in Residency-by-Investment programs.

In the words of Minister Amaro:

“This is a Portugal that welcomes those who invest in its future. And we’re working to ensure that future is bright—for both residents and the nation.”

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