Would you like to benefit from the booming tourism and real estate market in Portugal while also acquiring residency rights and freedom to travel across Schengen countries? Are you looking for investments with solid returns and minimal risks? If so, this information is for you.
Despite the fact that residence permits have become unavailable to foreign investors in real estate of any kind since October 2023, the Portuguese government has left a ‘window of opportunity’ open for business-minded immigrant investors. You can make profits from the growing value of real property in the country while also enjoying immigration benefits. How does it work? Let’s talk about the process of obtaining a Portuguese residency permit by investments in the hospitality sector, focusing on conditions and advantages. We’ll also cover some lucrative real estate investment options in Portugal outside the ‘golden visa’ program.
How to obtain a residency permit in Portugal by investments in the hospitality industry?
Foreign entrepreneurs and investors have to financially support Portuguese businesses to qualify for immigration benefits. Investments should lead to the creation of new jobs in the country. Current requirements for Portugal’s ‘golden visa’ through business investment include the following ones:
- Registering a company in Portugal with a share capital of €500,000 and creating five permanent jobs.
- Increasing the share capital of an existing Portuguese company by €500,000, which should also result in the creation of at least five permanent jobs.
These jobs have to be maintained for at least three years. Reduced investment thresholds are not available for businesses operating in economically underdeveloped or sparsely populated areas. The required documents include:
- A certificate from a local bank or another financial institution accredited by Portuguese authorities, confirming a transfer of €500,000+ from abroad to the applicant’s Portuguese bank account.
- Proof of registering a new business in Portugal or increasing the capital of an existing one in the country.
- A statement from Portugal’s social security authorities (not older than 45 days) confirming the registration of five or more employees as well as individual employment contracts.
- If investments are made through an LLC owned by a single person, a certificate from the Commercial Registry (Registo Comercial) not older than 45 days, confirming the applicant’s status as the sole owner of the LLC.
Investments into hospitality sector under the residency program: an example from a partner company
Our partner in Portugal offers an exclusive route to legal residency with minimal expenses by putting money into a company. There’s one drawback though: you’ll have to hold your share in the business for more than the three years required by the program. However, this benefits investors who aim for naturalization (more on that below). The terms include:
- A minimum investment of €500,000.
- A minimum holding period of five years.
- Guaranteed annual income of 2% (with potential for growth).
- Immigration lawyer services priced at €5,000.
The investment would go to a hotel chain in Portugal that comprises 22 properties some of which are under construction. Representatives of the hotel network will offer personal consultations to you. What do you gain? Instead of purchasing a hotel and managing its operations, you lend money to the hotel chain and earn interest.
Want to know how this hospitality business can generate passive income? Contact our team today!
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Why apply for Portugal’s entrepreneur ‘golden visa’ through hospitality investments?
- Tourism profits: Portugal’s tourism sector is thriving, according to the National Institute of Statistics (Instituto Nacional de Estatística; INE). Current data:
- Tourist overnight stays in hotels and other accommodations between January and August 2024 reached 10,531,578, with 3,758,579 guests.
- Net bed occupancy stood at 48% in 2023.
- There were 7,681 hotels and accommodations in 2023.
- Average revenue per available room (RevPAR) was €64.8 in 2023.
- Total accommodation revenue in 2023 was €0.948 billion.
- Access to Europe: The Portuguese ‘golden visa’ grants visa-free entry to all Schengen countries.
- Family benefits: Investors and their dependents can live, work, and study in Portugal.
- New tax incentives for youth: In October 2024, the Portuguese government launched a progressive tax scheme for young people aged 18–35. In the first year, they are exempted from income tax on earnings up to €28,000, with a gradual tax increase in subsequent years. The program aims to curb brain drain. The government is prepared to forgo €645 million in tax revenues in 2025. It is expected that up to 400 thousand people will be able to make use of this opportunity. In view of the total number of people living in Portugal (10.6 million), this is an impressive figure. Even immigrants can take advantage of these benefits too and potentially save tens of thousands of euros annually while boosting the liquidity of purchased properties or hotel shares due to the influx of new fiscal residents.
- Simple path to citizenship: After five years, investors can apply for Portuguese citizenship. The personal presence requirement is minimal—only seven days per year. Please note, however, that you’ll have to pass a language test. Thanks to legislative updates in 2024, the ‘countdown’ now starts when your residency application is submitted, not when the ‘golden visa’ is issued. This is good news, as processing times can exceed a year.
Five real estate investment options in Portugal beyond the ‘golden visa’ program
Since October 2023, direct investments in real estate can no longer make you qualified for a ‘golden visa’ in Portugal. However, indirect routes, such as those in the hospitality industry, are still available. In addition, there are four alternative paths to a Portuguese ‘golden visa:
- Investment in a fund (€500,000+).
- Creation of 10+ jobs.
- Financing a research project (€500,000+).
- Funding an art project or cultural heritage restoration (€250,000+).
If you choose one of these options and decide to live in Portugal—for language studies, tax benefits announced in autumn 2024, or other reasons—you’ll need a place to stay. Below we briefly describe some of the properties offered by our partners.
Please keep in mind that purchased properties can be rented out for short-term stays via management companies in Portugal. Attempts to limit tourist licenses for short-term rentals have been reversed by the Portuguese authorities.
Spacious one-bedroom apartment in Algarve — €260,000
This comfortable one-bedroom apartment is located in Praia da Luz, Algarve, and offers a garage and stunning sea views. It is located just a few minutes’ walk from the beach and close to all essential amenities, including shops, pharmacies, supermarkets, public transportation, and green spaces. Inside, the apartment features a cozy living room, a bright and spacious kitchen, and a bedroom with a closet and a balcony overlooking the Atlantic Ocean.
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The apartment is on the first floor of a building that does not have an elevator, which reduces condominium maintenance costs. It comes fully furnished and equipped with appliances: the new owner can move in immediately. The total area of the apartment is 81 m², with 60 m² of living space. It’s a perfect choice for those looking for a home by the sea, both comfortable and nice-looking.
Cozy apartment with sea view in Lagos — €259,500
This recently renovated one-bedroom apartment is located in a prestigious area of Lagos. It offers panoramic views of the city and the Atlantic Ocean. It’s just a few minutes’ walk from popular beaches such as Batata and Porto de Mós, as well as the historic center of Lagos. The area boasts excellent infrastructure, including FNAC and IKEA stores, an Intermarché supermarket, schools, and a hospital. This makes it ideal for everyday living.
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During the recent renovation, all electrical wiring, plumbing, and drainage systems were upgraded. The flooring and finishes were replaced with high-quality materials and new appliances were installed, including a water heater, refrigerator, dishwasher, washing machine, dryer, oven, ceramic electric stove, and exhaust hood. Aluminum blinds with thermal protection and remote control were added, along with double-glazed windows. Air conditioners are installed in both the bedroom and the living room.
The apartment has a total area of 65 m², with 60 m² of living space. It’s located on the 10th floor of an 11-story building equipped with two elevators and communal areas finished with marble and limestone. The high-quality renovation makes it ready for immediate occupancy while its excellent location and perfect condition provide a strong potential for short-term rentals.
Prestigious condominium apartment near the beach in Porto de Mós — €350,000
This one-bedroom apartment is located in the upscale Vila Mós condominium, just a five-minute drive from the center of Lagos and a five-minute walk from Porto de Mós beach. The condominium offers a private beach exit for residents that is secured by an access control system.
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Built in 2007, the complex has an energy efficiency rating of “C” and it includes an outdoor pool, a gym, a sauna, a jacuzzi, a landscaped garden, and private parking for residents. The grounds are secure and feature a gated playground, access to a golf course, and green areas. Monthly condominium fees are only €90.
Inside, the apartment offers a contemporary design with high-quality finishes. It features one bedroom, an open-plan living room and kitchen, a bathroom, and two balconies. Additional features include an air conditioning system, a water heater, and modern appliances such as an oven, refrigerator, dishwasher, and washing machine. The total area is 84 m², with 71 m² of living space. This property is ideal for anyone looking for a high-quality residence close to the beach.
Spacious duplex with pool and sea views in Lagos — €495,000
Located within walking distance of the beach, marina, and some of the best restaurants in Lagos, this two-bedroom duplex offers 91 m² of living space. The property includes two bathrooms, a living room with an open kitchen, and a large terrace overlooking the coastline and historic center of Lagos. The terrace has ample space for outdoor dining.
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The apartment comes equipped with air conditioning, a refrigerator, and a microwave. The complex features a reception area, shared parking, and facilities such as an outdoor pool and an indoor parking garage. Nearby, you’ll find public transportation, green spaces, banks, schools, pharmacies, and supermarkets. This property is perfect for those planning to obtain Portuguese citizenship and build long-term ties with the country.
Ready-to-rent duplex in Lagos with pool and garden access — €395,000
This two-level apartment offers direct access to the condominium’s pool and garden and it is suitable for either personal use or rental purposes. The property can be divided into two independent units: one on the ground floor and the other one on the upper level, which makes it a highly promising investment for rental income.
The ground floor includes a kitchen, a living room, bedrooms, and a bathroom, with direct access to the pool and green spaces. The upper floor features a separate balcony with pool and garden views and it also has a kitchen, a living room, a bedroom, and a bathroom. The apartment comes fully furnished and equipped with modern appliances, including a range hood, electric stove, oven, refrigerator, dishwasher, and washing machine. The minimalist design and contemporary style create a welcoming atmosphere.
The total area of the apartment is 135 m², with 119 m² of living space. The property is located less than 1 km from the coast and the marina, and it’s just a 15-minute walk from Meia Praia beach. It is located in a premium area and it’s close to restaurants, cafés, and supermarkets. It’s a great choice for either rental investment or personal residence.
Whichever investment option you choose, it’s sure to exceed your expectations. Living in Portugal is pure joy!
