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Since its launch in 2012, Portugal’s golden visa has established itself as one of the more popular programs for foreign investors. In 2024, it has shown impressive resilience despite expectations of a slowdown following the removal of the real estate route.
Evidently, this shift has not frightened investors off; rather, it has kindled interest in other golden visa routes, such as open-ended investment in companies headquartered in Portugal.
Figures recently released by the Portuguese Immigration and Borders Service (AIMA) have shown the program’s continued strength. In 2022, the program attracted €654 million, an increase of 42% compared to the same period during the previous year.
Interestingly, most of this investment came from investment funds. Recent data reveals that the Portuguese approach has been much more efficient in gradually moving away from real estate-oriented investments and towards more diversified investment landscapes.
The Caribbean CBI MoA Put Portugal’s Golden Visa Back on Top
The recent Caribbean Memorandum of Agreement (MoA), which has significantly raised the investment thresholds for their Citizenship by Investment (CBI) programs, has inadvertently repositioned Portugal’s golden visa as a more attractive option for many investors.
From a financial perspective, the increased costs of Caribbean CBI programs have greatly narrowed the price gap between these options and Portugal’s golden visa.
Investors who may have previously opted for a Caribbean passport as a cost-effective stepping stone to EU residency may now find that the cost difference is less significant. This shift is leading more investors to consider Portugal’s golden visa as a more viable alternative. Portugal’s other comparative advantages include a relatively short route to citizenship in five years, a strong passport, and freedom to travel to the Schengen area.
As a result, Portugal's golden visa now offers a more comprehensive and impactful investment proposition, which may be more appealing to investors seeking to make a meaningful contribution to their host country.
Additionally, Portugal is now contemplating bringing back the migration-friendly NHR tax regime, with which foreigners and expats could pay a flat tax rate of 20% for a decade. The reintroduced version, however, aims to limit this benefit to salaried or employed individuals.
As such, Portugal’s golden visa regime appears stable and positions itself to be a top destination for applicants worldwide in the future.
US Election drives interest from Americans
Much of the interest in the Portuguese golden visas is driven by the forthcoming presidential elections in the United States – which has the world's highest number of HNWI residents.
According to media reports, wealthy Americans fear that the socio-political climate in the United States is becoming too polarized and uncertain. Many of them are looking to migrate elsewhere so they could be able to secure their future and protect their assets.
Regardless of who ends up in the White House come January 2025, wealthy Americans are wary of Kamala Harris's potential leftist policies just as much as they fear Donald Trump's disruptive rhetoric and approach. Hence, securing residency elsewhere and dual nationality, possible under Portugal’s GV regime, is expected to surge among American HNWIs in either case.
Portugal has captured the attention of American investors for several reasons. First is its political stability, characterized by a moderate democratic government backed by a strong commitment to the rule of law. The stability factor assumes special importance for investors, who fear the prospect of volatility that may occur after the US election.
Also, Portugal's Golden Visa Program allows a way to gain residency and, subsequently, citizenship without spending too much physical time in the country. Again, this flexibility resonates well with American investors, many of whom have business interests or family ties in the U.S. that they wish to maintain while establishing a European base.
The recent abolition of the Spanish golden visa made the Portuguese golden visa program even more popular for international investors.
This outward migration trend is reminiscent of the surge in American applications for Portugal's golden visa following the 2016 US elections, which suggests that political uncertainty is a significant driver of investment migration decisions.
Americans interested in Portugal golden visa are showing a preference for the investment funds route. Optimize Investment Partners’ fund, Portugal Golden Opportunities is an open-ended fund that invests in major publicly traded companies, offering liquidity, transparency, and a strong track record - qualities that are increasingly valued by investors.
Portugal Golden Visa’s Global Appeal
While Americans are showing great interest in Portugal's golden visa, especially in light of potential political changes, the program's appeal is truly global.
Investors from China, Brazil, South Africa, Turkey, the Middle East, and the United Kingdom continue to be drawn to the program. China still represents the largest share of applicants.
According to experts, the UK is witnessing an exodus of HNWI residents, and Portugal is among their top destinations.
As the program continues to evolve and adapt to changing circumstances, it will likely remain an attractive option for investors from a wide range of nationalities seeking a streamlined gateway to Europe. The possibility of an upward revision of the investment needed for the Portuguese Golden Visa should create extra demand over the next months.
To learn more about Optimize's funds, check out our website.
