Pela Terra
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As the US election results are now official and Donald Trump is confirmed as the next President of the United States, many Americans who are feeling uneasy will be considering their options. And for those who consider a second passport as an essential part of their Plan B, Portugal’s Golden Visa is likely to be a popular choice.
Let’s dive into why so many disaffected Americans are considering Golden Visa programs worldwide and why Portugal is emerging as the most popular choice for a second home and a second passport.
The Rising Demand for Second Passports
Interest in dual citizenship and second passports has surged amongst wealthy Americans in the past decade, especially during periods of political, economic, or social upheaval. As the below graph shows, political events have often been the driver of peaks in interest.
Golden Visa programs, in particular, have proved popular, allowing people to obtain dual citizenship from within the US without needing to reside abroad. For those who are worried about the future but are unwilling or unable to relocate yet, Golden Visa programs offer the perfect solution.
Nathan Hadlock, Advisory Committee member at Pela Terra, who has firsthand experience as an American investor, says, “Having a second citizenship isn’t just an asset; it’s a proactive step in preserving your freedom and choices. For American investors, this is not just a backup plan but an investment in peace of mind.”
Why Portugal’s Golden Visa Is The Most Popular Choice For US Citizens
More Americans than any other nationality applied for the Portuguese Golden Visa in 2023. So why is Portugal’s program such an attractive option? It comes down to three main reasons.
First, Portugal provides one of the shortest pathways toward citizenship, making you eligible to apply for a passport after just five years of residency.
Compare this to other countries, where the pathway can stretch to ten years or leave you with permanent residency but no citizenship.
Second, and crucially, Portugal only requires you to visit for 7 days each year. This is one of the lowest annual stay requirements, making it particularly appealing to US Citizens who want the security of an EU passport but are not ready to leave the US yet.
And finally, because of Portugal itself. The 4th safest country in the world, the 4th most powerful passport in the world. Beautiful beaches. Stunning cities. A top-quality healthcare system and, of course, EU member status means that Portugal citizenship makes you a citizen of Europe.
Live, work, study, or retire in any of the 27 member states of Europe on your Portuguese passport.
It is no wonder that Portugal’s Golden Visa regularly tops the list of the world’s most attractive citizenship via investment programs.
How Easy Is It For Americans To Get A Portuguese Golden Visa In 2024?
The requirements for US citizens looking to qualify for the Portuguese Golden Visa are simple. Invest €500,000 into a qualifying investment fund. This investment will qualify yourself, your children (age dependent), your partner, and your parents (age dependent).
The application process takes around 10-15 weeks, although this can be shortened significantly by choosing an investment fund that offers an in-house Concierge Service. Investors into Pela Terra, for example, can expect to move through the process in as little as five weeks.
While the Portuguese Golden Visa program has historically been associated with processing delays, that situation is slowly improving with the introduction of AIMA (Agência para a Imigração e Mobilidade), which replaced the SEF in October 2023. This new immigration department is aiming to clear the backlog of Golden Visa applications by June 2026, meaning those investing today are likely to experience significantly reduced delays.
Favorable Tax Treatments in Portugal for Americans
For US citizens, Portugal’s Golden Visa program offers a remarkably straightforward tax situation: Holding a Golden Visa does not make you a tax resident in Portugal.
Since the program requires only seven days of presence per year on average, Golden Visa holders typically don’t meet Portugal’s tax residency threshold of 183 days annually.
This means they have zero tax liability in Portugal on worldwide income, capital gains, inheritance, or gifts and no obligation to file Portuguese tax returns (unless they are earning taxable Portuguese-sourced income).
Capital gains from investment funds do not qualify as taxable local income in Portugal for non-residents, so US citizens won’t have to pay any local taxes, but they might have to pay taxes in the US depending on their specific case.
Unlike some European countries, Portugal has no wealth tax on global assets, and its inheritance tax system is particularly favorable – applying only a 10% stamp duty on Portuguese assets, with exemptions for spouses and direct descendants.
US citizens simply maintain their existing US tax situation – filing US returns, reporting worldwide income to the IRS, and paying US taxes as normal. This clean arrangement makes the Golden Visa particularly attractive for US citizens seeking European residency rights without complex international tax obligations.
Why Pela Terra is the Preferred Choice for US Citizens
When it comes to choosing an investment fund, Pela Terra has been a popular choice for Americans over the past few years. With over half of its investment coming from US citizens, the fund is the top pick for Americans for a number of reasons:
- Understanding American Needs: With an Ohio-born member of it’s Advisory Committee and over 80 existing US investors, the team at Pela Terra understands the needs of US investors.
- US Specific Guidance: From introductions to the best lawyers for US investors to recommending Bison as the preferred bank of choice due to its skill in helping clients navigate the Foreign Account Tax Compliance Act, Pela Tera is able to offer tailored guidance for Americans.
- Full PFIC Compliance: Pela Terra is audited by both KPMG and Deloitte, ensuring compliance with the US Passive Foreign Investment Company (PFIC) regulations.
- Minimized Foreign Exchange Fees: Pela Terra has established relationships with FX brokers in the US, which means that foreign exchange fees are minimized during the transfer of capital.
- Guidance on Self-Directed IRA Usage: While not financial advisors, Pela Terra’s team can point clients to resources and partners that facilitate the use of Self-Directed IRA funds for Golden Visa investments
- Concierge Service: The dedicated Concierge Team helps investors navigate the complexities of Portuguese immigration, from securing the best lawyers and banks to documentation.
Don’t Wait Until It’s Too Late
With the US election result now clear, a surge of applications for second passports is expected. With the UK, Ireland, Spain, and the Netherlands all closing their Golden Visa programs recently, the majority of this volume will fall on Portugal.
While it is impossible to say how the Portuguese government will react, the expectation is that at some point, the end of the Portuguese Golden Visa will be announced.
For those ready to take the next step or simply learn more, action is recommended sooner rather than later. Pela Terra’s team is ready to guide you through this journey. Visit www.pelaterra.com to schedule a consultation or reach out directly to start securing your future.
If you’d like to learn more and speak to one of the experts at Pela Terra, you can learn more & book a call via their website.
Alternatively, you can email them here (nick@pelaterra.com) or drop them a message on WhatsApp using +44 7768 929321.
