A non-EU, non-EEA, or non-Swiss national may apply for a Portuguese Golden Visa by investing at least €500,000 in the share capital of a company with its registered office in Portugal. The investment may be structured either by incorporating a new company or by increasing the share capital of an existing Portuguese company.
Incorporation of a new company
Where the investor incorporates a new Portuguese company, the following requirements must be met: (i) at least €500,000 must be invested in the company’s share capital; (ii) the company must have its registered office in Portugal; (iii) the investment must result in the creation of at least five permanent jobs; and (iv) the investment must be maintained for the legally required period.
The mere incorporation of a company is insufficient. Both the effective investment of the required capital and the creation of the required permanent jobs must be demonstrated.
Investment in an existing company
Alternatively, the investor may contribute at least €500,000 to an existing Portuguese company by means of a formal increase in its share capital. The capital increase must be combined with either the creation of at least 5 permanent jobs or the maintenance of at least 10 jobs, of which at least 5 must be permanent, for a minimum period of 3 years.
The acquisition of shares from an existing shareholder may not, in itself, satisfy the statutory requirements, since the law requires the investment to be made through an increase in the company’s share capital.
Additional investment requirements
The applicant must demonstrate that the investment funds belong to the investor and have been effectively transferred and applied to the qualifying investment. The investment must also be properly reflected in the company’s corporate and commercial records, and both the company and its beneficial owners must be duly registered.
Regarding the employment requirement, the relevant employment relationships must be genuine and permanent and must be duly registered with the Portuguese Tax Authority and Social Security.
The company must not have any outstanding tax or Social Security liabilities, and the qualifying investment must be maintained for at least five years.
Furthermore, the investment may not be intended, directly or indirectly, for real estate investment.
The investment may be made personally or through a company, provided the applicant demonstrates compliance with the applicable ownership, investment, and beneficial ownership requirements.
Supporting documentation
The Golden Visa application will normally require (a) corporate documentation, (b) evidence of the investment and shareholding, (c) employment documentation, (d) tax and social security compliance, and (e) maintenance of the investment. Let’s see each item:
(a) Corporate documentation: the company’s permanent commercial registration certificate, the company’s articles of association, the corporate resolution approving the incorporation or the share capital increase, and evidence of the company’s beneficial ownership registration.
(b) Evidence of the investment and shareholding: evidence of the investor’s shareholding, evidence of the effective payment of the share capital; and a declaration from an authorized credit institution confirming the transfer of the investment funds.
(c) Employment documentation: the employment contracts of the qualifying employees and proof that the employees have been registered with Portuguese Social Security.
(d) Tax and Social Security compliance: tax and Social Security clearance certificates.
(e) Maintenance of the investment: a declaration confirming that the investment will be maintained for the legally required period.
The investment structure and supporting documentation should be reviewed before the capital is transferred, as an ordinary acquisition of shares from an existing shareholder or a shareholder loan may not qualify as an eligible Golden Visa investment.
To qualify for a Portuguese Golden Visa under the corporate investment route, the applicant must make an effective capital contribution of at least €500,000 to a Portuguese company and comply with the applicable job-creation or job-maintenance requirements. The capital contribution, employment relationships, and source and transfer of funds must all be properly documented and remain compliant throughout the legally required period. Careful structuring of the investment before implementation is therefore essential to ensure that it qualifies for the Golden Visa regime.