Portugal Golden Visa: Bitcoin Investment Updates for 2024

The Portugal Golden Visa Program has long attracted international investors looking for a pathway to European residency. However, significant changes effective February 2024 are reshaping the investment landscape. This article outlines the key updates, particularly surrounding Bitcoin and other investment avenues under the program's new regulations.

Investment in Real Estate No Longer Eligible

One of the most notable shifts is the discontinuation of real estate investments as a valid option to obtain a residence permit. This decision, aimed at addressing Portugal's rising housing prices and shortages, closes the door for foreign buyers in the real estate market. As a result, investors are now required to explore alternative avenues for eligibility under the Golden Visa Program.

New Investment Options

In place of real estate, five new investment options are available for prospective residents:

• Investment in Art and Cultural Heritage: Starting at €250,000
• Purchase of Investment Fund Units: Minimum investment of €500,000
• Investment in Research Projects: Also requires €500,000
• Investment in Business with Job Creation: €500,000 required for the creation of 5 jobs
• Opening a Company: A minimum of €500,000 investment with a requirement to create at least 10 jobs

Bitcoin investment, while not officially outlined in the new regulations, may fall under the broader category of investment funds if Bitcoin-related funds are offered. Investors should assess the viability of such options when looking into cryptocurrency as part of their investment strategy.

Administrative Changes

Administrative oversight for the Golden Visa has transitioned from the Portuguese Immigration and Borders Service (SEF) to the newly established Agency for Integration, Migration and Asylum (AIMA). This change, which took effect on October 29, 2023, is designed to enhance efficiency in the issuance of visas and residence permits, promising a more streamlined process for applicants.

Digitalization of Services

AIMA is focused on the prompt digitalization of immigration services, allowing investors to submit applications for residency online. This initiative is poised to simplify the application process, making it more accessible and user-friendly for international investors.

Investment Fund Returns

For those interested in the investment fund route, many qualified funds are targeting attractive annual internal returns, typically ranging between 10-20%. This highlights the potential profitability for investors looking to include Bitcoin or other cryptocurrencies in their portfolio via specialized funds.

Citizenship Application Changes

Another significant update in Portugal's immigration policy allows for citizenship applications to be submitted after just five years of residency, rather than five years post-residence permit issuance. This alteration indicates a responsive approach to facilitate integration and long-term investment, encouraging more individuals to consider Portugal as a permanent residence.

Tax Regime

Interestingly, Portugal has opted to dismiss its special investor tax regime, which differs from structures in places like Italy that encourage long-term residency through tax benefits. This change implies that investors in Portugal will need to consider general tax regulations without the special reductions previously available, impacting the overall investment calculations.

Conclusion

The evolution of the Portugal Golden Visa program in 2024 marks a critical turning point away from real estate investments towards diverse alternative investment options that could include Bitcoin as part of fund participation. While these changes signal a more rigorous framework aimed at safeguarding local housing markets, investors continue to find value in the program's new pathways toward residency and citizenship. Those considering investments should stay informed about potential funds incorporating cryptocurrency to maximize their opportunities in the coming year.