Portugal Announces Potential New Tax Incentives To Boost Golden Visa Applications

As many countries around the world scrap their golden visas, Portugal is doubling down.

This European country has just announced a whole wave of potential tax incentives, in a bid to make it one of the most attractive golden visa programmes in the world.

So, if you’re thinking about moving to Europe and have your eye on Portugal, you might be wondering what the new changes are and how they can benefit you.

 

What Is The Portugal Golden Visa?

 

The Portugal golden visa is a ‘residency-by-investment’ scheme, launched in 2021 to attract more high net worth individuals into the country.

Through the visa, investors or wealthy people can live, work and study in Portugal in exchange for an investment in the country, usually either cultural programmes or venture capital investment.

Through the scheme, non-EU residents are able to have full residency rights in the country, as well as the ability to apply for citizenship after 5 years.

As part of this, applicants have to commit to spending 7 days a year in Portugal to maintain the visa – making it easy to upkeep.

 

Options For Investment Under Portugal’s Golden Visa

 

Previously, applicants for the Portuguese golden visa could qualify through real estate investments – however, this was scrapped back in 2023.

Now, options for investment include:

• €500,000 in an investment fund (e.g. private equity or venture capital).
• €250,000+ donation to cultural projects.
• Setting up a Portuguese business and providing jobs to locals.

 

 

What Has Changed In 2025?

 

Just this month, the Portuguese government announced that it is considering new tax incentives to attract more people into the programme, and encourage them to register as Portuguese tax residents.

Whilst it is not yet confirmed, the new incentives would be:

A 20% flat tax on all Portuguese income.

A 10 year tax exemption on most foreign income.

Previously, the 20% flat tax rate was only applicable to certain jobs, however under the new law, all income would be considered as part of it.

 

How Tax Works Under The Golden Visa

 

Just because you hold a golden visa in Portugal, doesn’t mean you automatically become a tax resident.

You are only considered a tax resident in Portugal if you spend more than 183 days in the country in any given year – which means many people could have held the visa for residency purposes, without paying tax on foreign income.

Whilst all income generated within Portugal would have been liable to taxation, many would have had to pay foreign income in their main country of residence.

Under the new laws, given Portugal has a double tax treaty with many countries, for tax residents in Portugal, some foreign income would be exempt for 10 years – making it a very appealing offer.

However, the exact terms of the taxes are yet to be finalised, and whether or not the country will implement it is still unclear.

 

Why Portugal Is Drawing People In As Spain Pulls Back

 

Just a few months ago in April, Spain scrapped its golden visa as it thought that the programme was contributing to the rising property prices in the country, which were pricing out locals.

But Spain isn’t the only country that has shut down their golden visa – The UK, Ireland and Australia also stopped theirs.

Interestingly however, Portugal has gone in a different direction, actively leaning in to the programme and trying to draw people in. And it’s working. According to official statistics, there was a 72% increase in golden visa approvals in Portugal in 2024 – and with these new changes, it looks like that number will only go up!

 

Is Portugal’s Golden Visa Worth It For The Tax Advantage?

 

Truthfully, it depends. However, the proposed new laws certainly make it more appealing to investors or high-net-worth individuals with income across multiple countries.

And with other countries across Europe stepping back, now might be time for Portugal to position itself as one of the most appealing options on the continent.