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How can foreign businesspeople invest in rehabilitation projects in Lisbon following Portugal's Golden Visa deadline extension?

I've heard making investments in government-approved projects in Lisbon is more cost effective than residential real estate type investments. I’m planning to visit Portugal later this year when hopefully the pandemic would be a bit under control; what options would you advise me to achieve this?

  • NEXT/Gali Macedo & Associados
    February 17, 2021

    The concept of “government-approved projects” doesn’t exist since the existing projects are all promoted by private companies and developed under the legal regime in force. Unlike the residential real-estate type investments, where the investment itself is achieved by simply purchasing real estate (minimum investment of 500,000 euros), the investment in real estate for rehabilitation purposes demands that you not only buy the real estate, but also pay for the rehabilitation works that it must undergo (minimum investment of 350,000 euros). Also, another important matter to attend to is the ultimate purpose of your investment on the real estate: investment for self-residence, or investment for accommodation services (local hosting, hotel services, among others). This is due to the fact that, as per the latest changes to the Golden Visa program, from Jan. 1, 2022 onwards, the investment in real estate for self-residence will only be eligible for the Golden Visa application when the real estate is located in the autonomous regions of the Azores and Madeira, or in inland territories, which solely leaves the possibility in Lisbon for an investment in real estate for rehabilitation purposes with the purpose of accommodation services (local hosting, hotel services, among others). Any of the above mentioned investments can be performed individually or in co-ownership with other investors, provided the minimum investment amounts are granted by each of them. Regarding this last option, there are a number of promoters and developers in Portugal whose projects are financed this way, and also take care of all the legal procedures before the Portuguese authorities towards your residence permit issuance. I would advise this last option as being the best and most efficient way to have a Portuguese residence permit granted to you by means of the Golden Visa program.

  • Lamares, Capela & Associados, Sociedade de Advogados
    February 17, 2021

    Investing in rehabilitation projects is indeed cheaper than investing in residential real estate. When making an investment in rehabilitation in a densely populated area like Lisbon, you must invest 350,000 euros. If you want to make this investment in a less densely populated area, you only must pay 280,000 euros. Please note that these rules will change in 2022 and, therefore, if you want to invest in Lisbon, this will be the last year in which this will be possible.