Portugal Golden Visa Alternatives: Investment Options After the Real Estate Reform

What the Portugal Golden Visa Reform 2023 Means for Investors

Before we dive into the new opportunities, you need to understand exactly what happened. The Portuguese government completely eliminated the real estate route in October 2023.

Specifically, this means: No more Golden Visas for buying property worth €500,000 or more. That option is a thing of the past.

The Key Changes at a Glance

The reform brought about three major changes:

• End to real estate: Residential and commercial property investments are no longer eligible
• Focus on real investments: Portugal is seeking productive investments, not passive property speculation
• Higher minimum investment amounts: The remaining options often require a higher threshold

But heres where it gets interesting: Portugal hasnt just closed doors. Its opened new ones—for the right kind of investor.

Why Property Investments No Longer Work

The Portuguese government made this decision for a clear reason. Property investments did bring capital into the country but created little true value.

In addition, the property markets in Lisbon and Porto were overheated. Local residents could no longer afford housing.

The new strategy? Portugal wants investors who:

• Support real businesses (venture capital)
• Promote cultural projects (art and culture)
• Commit to long-term activities in the country

My Take on the New Landscape

Honestly, I see this as a positive development.

Why? Because now you can invest in ways that make much more strategic sense. Instead of buying an apartment you might never use, you invest in Portuguese startups or art projects.

That creates real ties to the country. And from a tax perspective, it opens brand-new possibilities for international structures.

On top of that, the new options are more flexible. Real estate bound you to one location; venture capital lets you diversify your portfolio.

Portugal Golden Visa Venture Capital: The New Gold Standard

In my opinion, venture capital is the most interesting of the new Portugal Golden Visa alternatives. Not just because of the residency, but for the strategic potential.

Here you invest in innovative Portuguese companies—and, at the same time, position yourself optimally for your international tax setup.

Minimum Investment and Requirements

The numbers are clear: You must invest at least €500,000 in a qualified venture capital fund.

These funds must meet certain criteria:

So: You cant invest in just any fund. Portuguese authorities have set clear quality criteria.

VC Investments: Pros and Cons

Lets be honest: Venture capital isnt right for everyone. Here are the key points:

The benefits:

• Potential for real ROI: Here, unlike property, you can achieve actual returns
• Diversification: Your investment is spread across multiple startups
• Tax optimization: VC investments offer interesting structuring options
• Networking: You become part of the Portuguese startup ecosystem

The drawbacks:

• Higher risk: Startups can fail, and you could lose your money
• Illiquidity: 5-year lock-in period with no early exit
• More complex due diligence: You need to understand the fund and its holdings
• No guarantees: There is no guaranteed success as with real estate

How to Find the Right Funds

The big question: How do you find a qualified fund that fits your strategy?

Heres my pragmatic approach:

1. Check the CMVM list: Only registered funds are eligible—youll find them on the CMVM website
2. Review the track record: Look at past investments and exits
3. Assess the management team: Do the fund managers have experience in the Portuguese market?
4. Understand the sector focus: What industries are favored? (Tech, healthcare, etc.)
5. Check for co-investors: Who else is investing in the fund?

Pro tip: Talk to other Golden Visa investors. The Portuguese investment community is relatively small—recommendations are invaluable.

And be sure to seek professional advice—not just for the legal aspects but also for investment analysis.

Art and Culture Investments: The Creative Path to Residency

The second major alternative is to invest in art and culture. This option is less well-known but genuinely interesting—especially for investors with a passion for the arts.

Here, you support Portuguese art projects or cultural initiatives and receive your Golden Visa in return.

Portugal Golden Visa Art Investment Options

There are several ways to invest in art:

Option 1: Direct purchase of art (from €350,000)

You can purchase artworks by Portuguese artists or from Portuguese collections. These must be of cultural significance and must remain in Portugal for at least 20 years.

Option 2: Art sponsorship (from €250,000)

You support art projects, exhibitions, or cultural events. The funds go directly to supporting Portuguese art.

Option 3: Restoration projects (from €350,000)

You finance the restoration of historic buildings or artworks of national interest.

Cultural Investments: Theatres, Museums, and More

Beyond art, you can also invest in cultural infrastructure. This includes:

• Theatres and concert halls: Funding for construction or renovation
• Museums: Sponsoring exhibitions or expanding collections
• Cultural centers: Financing local cultural initiatives
• Festivals: Long-term sponsorship of Portuguese cultural festivals

The upside: You become part of Portugal’s cultural scene. This creates real connections and can be deeply rewarding.

The downside: In most cases, your money is gone. Unlike venture capital, there is no ROI here.

Risks and Opportunities in Art Investments

Art investments are a very specialized asset class. You need to consider several factors:

The opportunities:

• Potential for appreciation: Valuable artworks can see substantial increases in value
• Inflation hedge: Art has traditionally been a protection against inflation
• Personal satisfaction: You own something beautiful and culturally significant
• Tax benefits: In some structures, art investments offer attractive tax advantages

The risks:

• Illiquid market: Art is not as easily sold as stocks
• High ancillary costs: Insurance, storage, and restoration can be expensive
• Need for expert knowledge: Without art expertise, you could overpay
• 20-year holding period: The artwork must stay in Portugal for two decades

My honest opinion: Art investments only make sense for true art lovers. If you buy art just to get the Golden Visa, you’ll probably be disappointed.

But if you’re a collector anyway? Then this option can definitely be appealing.

Alternative Investment Strategies Compared

You now have an overview of the main alternatives to the Portugal Golden Visa. But which option is really right for you?

As a tax mentor, let me say: The answer depends on your investor profile, your goals, and your appetite for risk.

Venture Capital vs. Art vs. Other Options

Let’s compare the different routes systematically:

*Other options include: job creation (5–10 jobs), bank deposits, scientific research

But the bare numbers don’t tell the whole story. Your personal circumstances are key.

Which Option Fits Which Investor Type?

After years in international tax consulting, I’ve seen all kinds of investor profiles. Here are my recommendations:

The tech entrepreneur (Thomas, 36):

Venture capital is ideal. You understand startups, can evaluate investments, and benefit from the Portuguese tech ecosystem.

The established businesswoman (Elena, 42):

Venture capital or job creation. With your experience, you can support Portuguese startups not only with funding but also with know-how.

The conservative advisor (Robert, 45):

Bank deposits or scientific research. Lower risk, but limited upside. For the very risk-averse.

The creative founder (Sophie, 33):

Art and culture, if you’re truly passionate about it. Otherwise, venture capital fits your entrepreneurial spirit.

Cost-Benefit Analysis of Each Route

Let’s get down to details. Here’s the total cost of ownership:

Venture Capital (€500,000 investment):

• Legal fees: €15,000 – €25,000
• Due diligence: €5,000 – €10,000
• Government fees: €5,000
• Annual costs: €2,000 – €5,000
• Total (5 years): €540,000 – €570,000
• Potential ROI: 0% to 300%+ (highly variable)

Art investment (€350,000):

• Legal fees: €10,000 – €15,000
• Art advisory: €10,000 – €20,000
• Insurance/storage: €2,000/year
• Government fees: €5,000
• Total (20 years): €405,000 – €425,000
• Potential ROI: –50% to +200% (very uncertain)

From a purely financial point of view, venture capital is more attractive—but only if you understand and can handle the risks.

My Recommendation: A Strategic Approach

With all this in mind, how do you put things into practice? Here’s how to actually realize your chosen Portugal Golden Visa alternative:

My tried-and-trusted step-by-step guide:

Step-by-Step Guide to the Application Process

Phase 1: Strategy Development (4–6 weeks)

1. Define your goals: What’s your primary aim? Just residency or a real return as well?
2. Set your budget: How much can you invest (including incidental costs)?
3. Determine your risk profile: How much risk are you willing and able to take?
4. Plan your tax structure: How does Portugal fit into your international setup?
5. Assemble your team: Portuguese lawyer, tax advisor, and possibly an investment consultant

Phase 2: Choosing Your Investment (6–8 weeks)

1. Conduct due diligence: Carefully scrutinize funds or artworks
2. Legal review: Have your lawyer check all contracts and structures
3. Tax optimization: Create the best structure for your investment
4. Secure financing: Make sure funds are available (often tricky for international structures)
5. Decision time: Final go/no-go based on all factors

Phase 3: Application (8–12 weeks)

1. Make the investment: Transfer the funds and complete your investment
2. Collect documentation: Gather all evidence for the Golden Visa application
3. Submit application: To SEF (Portuguese immigration agency)
4. Biometric data: Appointment in Portugal or at a Portuguese consulate
5. Be patient: Current processing time is 8–12 months

Common Mistakes and How to Avoid Them

I see the same mistakes in practice over and over. Here are the biggest ones:

Mistake #1: Rushing the decision

Many investors want to act immediately. But a €500,000 investment demands careful preparation. Take your time with due diligence.

Mistake #2: Ignoring tax structure

The Golden Visa is just one building block. If you overlook the tax implications, you could face unpleasant surprises.

Mistake #3: Lack of local expertise

German lawyer + Portuguese investment = problems. You need local experts who know the system.

Mistake #4: Forgetting the exit strategy

What happens after 5 years? How will you exit the investment? Make sure you plan this in advance.

Mistake #5: Unrealistic expectations

Venture capital is risky. Art is illiquid. Underestimating this can lead to disappointment.

Timeline and Realistic Expectations

The most common question: How long does the whole process really take?

Here’s my realistic timeline:

So expect it to take around a year and a half from first idea to Golden Visa in hand.

Is that a long time? Yes. Is it worth it? Only you can decide.

But I can promise you this: If you do things right, you’ll end up not just with EU residency but also a strategically sound investment.

And that’s more than most real estate investors in recent years can say.

Frequently Asked Questions

Can I still get a Golden Visa by investing in property?

No, since October 2023, property investments are no longer possible. Applications already in progress are not affected.

Is venture capital really riskier than real estate?

Yes, the risk of loss is higher. But you also have real upside potential, which was limited in real estate.

Do I have to move to Portugal in person?

No, for the Golden Visa you only need to spend 7 days per year in Portugal. Other rules apply for tax benefits.

Can I sell the investment after 5 years?

With venture capital: yes, after 5 years you’re free. With art: only after 20 years. For other options, it varies.

What happens if the startup goes bankrupt?

Your money is lost, but the Golden Visa remains valid. The investment only needs to be held for 5 years, not to be successful.

What taxes will I pay in Portugal?

This depends on your tax status. As a NHR (Non-Habitual Resident), you get tax benefits for 10 years, but that regime is currently being reformed.

Can I combine different investment options?

No, you must choose one option and meet its full minimum investment requirement.

Do I need a Portuguese lawyer?

Yes, absolutely. The Golden Visa regulations are complex and change frequently. Local expertise is essential.

How long is the Golden Visa valid for?

Initially 2 years, then extendable for another 3 years. After 5 years, you may apply for permanent residency.

Does the Golden Visa lead to EU citizenship?

After 6 years of legal residence, you can apply for Portuguese citizenship. You’ll also need to learn Portuguese and meet other requirements.