Do Harry & Meghan’s Portugal Estate Qualify for a Golden Visa?
A recent topic gaining significant attention in the international press is the potential relocation of British royal family members Prince Harry and Megan Markle to Europe, potentially through the purchase of a property in Portugal.
Recent news indicates that the luxurious property they purchased is located in Melides, a coastal parish in the Alentejo region belonging to Setúbal District. Melides is acclaimed for its stunning beaches and the exceptional weather typical of Portugal’s southern coast.
Harry and Meghan are not the first members of the British royal family to buy a home in Portugal. Princess Eugenie, and her husband Jack Brooksbank, also bought a house in Portugal. They reside in Melides with their two sons, August and Ernest, embracing the many opportunities and exceptional quality of life that Portugal offers to foreign residents, regardless of their royal status!
With Harry & Meghan’s potential move back to Europe and purchase of real estate in Portugal, speculation has arisen about whether Harry and Meghan might seek the Portuguese Golden Visa. The question arises:
Would They Be Eligible for the Portuguese Golden Visa?
The answer is yes. As a U.S. citizen and a British citizen, respectively, Meghan and Harry do not hold European Union citizenship and therefore lack the same freedom of movement within the EU. They are subject to the same EU immigration requirements as other non-EU nationals.
For those considering an application for the Portuguese Golden Visa, one key question remains:
Does Real Estate Acquisition Qualify as a Golden Visa Investment?
The answer is no. Real estate acquisition is no longer a qualifying investment for the Golden Visa. This option was removed following changes introduced by the "Mais Habitação" bill, which was approved by the Portuguese parliament in October 2023.
While real estate no longer qualifies as a Golden Visa investment, it remains a significant consideration for those relocating to Portugal. For individuals seeking to experience the best of what Portugal offers, selecting the right property is essential.
However, take note that the Portuguese Golden Visa program requires just 14 days of residence every 2 years, so relocating to Portugal is optional.
Since real estate acquisition is no longer a valid investment option for obtaining a Portuguese Golden Visa, this raises another important question:
Currently, there are five qualifying investment routes for the Golden Visa:
- Golden Visa Investment Funds: A capital transfer of 500,000 EUR to acquire participation units in investment funds or venture capital funds focused on the capitalisation of companies.
- Donations to Portuguese Arts and Culture: Capital transfers of 250,000 EUR to support artistic production and national cultural heritage through public and private entities, with a reduced amount of 200,000 EUR if located in low-density areas.
- Scientific Research Activities: A capital transfer of 500,000 EUR to fund research conducted by public or private institutions within the national scientific and technological system.
- Incorporation of a Commercial Company: An investment of 500,000 EUR in a new or existing Portuguese company, creating five new permanent jobs or maintaining ten jobs over three years.
- Creation of Ten New Permanent Jobs: Establishing a Portuguese entity with a minimum of 10 new permanent jobs (reduced to 8 jobs in low-density areas) with no specified minimum capital.
Among the five investment options available for the Golden Visa, one stands out as the most sought-after choice: Golden Visa investment funds. This prompts another important question:
One of the most compelling advantages of these investments is the tax exemption. Investors enjoy tax-free profits, income, and capital gains, allowing them to retain 100% of their income and capital gains, as well as their initial investment of 500,000 EUR, without incurring taxes. In contrast, real estate acquisition does not offer this benefit, as it is subject to annual taxes, including the Imposto Municipal Sobre Imóveis (IMI).
Another significant advantage of Golden Visa investments is their substantial potential for high returns, with possibilities of annual earnings reaching up to 25%, depending on the fund's strategy and historical performance data. It is important to note that while past performance does not guarantee future results, it does provide a valuable indication of potential.
Lastly, the diversification of investments within Golden Visa funds, spanning various companies and sectors, serves to mitigate risks, thereby enhancing the overall security and potential returns of the investment.
These funds must be approved and regulated by the CMVM (Portuguese Securities Market Commission) and must allocate at least 60% of the investment towards commercial companies based in Portugal.
With these options in mind, potential Golden Visa applicants may wonder:
Portugal offers a wealth of advantages, both measurable and immeasurable.
Among the tangible benefits of living in Portugal, the following can be found:
Tangible Benefits:
- Portugal’s Healthcare System: Renowned for its high quality and accessibility, Portugal's national healthcare system ensures that individuals and families receive exceptional medical care. All legal residents benefit from access to this comprehensive system.
- Education System: Portugal's education system is recognized for its excellence, offering numerous private British and American international schools. Golden Visa applicants and their family members have the flexibility to study at a variety of institutions throughout the country.
- Citizenship: After maintaining the Golden Visa for five years, individuals may apply for Portuguese citizenship, contingent upon meeting specific criteria, including passing a basic Portuguese language test. Once citizenship is granted, the individual becomes eligible for a Portuguese passport, one of the most desired in the world.
- Travel Mobility: The Portuguese passport grants visa-free travel to 172 countries and full European Union citizenship, enabling applicants to live, work, and study in any EU member state—a real sense of freedom. This benefit is extended to family members under the family reunification regulations.
Among the lifestyle benefits of living in Portugal, the following can be found:
Lifestyle Benefits:
- Safety: According to the latest data from the Institute for Economics and Peace, Portugal is ranked as the 7th most peaceful country in the world, per the 2024 Global Peace Index (GPI). It stands out as the only southern European nation to achieve this distinction.
- Stunning Landscapes: Portugal's diverse natural beauty enchants every region, from the northern mountains to the southern coastline and the picturesque islands. Each area offers unique marvels, including the majestic Serra da Estrela mountains, the stunning beaches of the Algarve, and the breathtaking Peneda-Gerês National Park—a UNESCO biosphere reserve.
- Pleasant Climate: Renowned for its abundant sunshine, Portugal enjoys between 2,500 and 3,200 hours of sunlight annually. This delightful climate invites residents and visitors alike to explore its vibrant streets, partake in outdoor activities, and experience its natural wonders.
- Exceptional Gastronomy: Portugal's culinary scene is nothing short of extraordinary. It is often said that the country’s gastronomy is as rich and varied as its landscape, with each region offering its own unique dishes, liqueurs, wines, appetisers, and desserts.
With these advantages in mind, Portugal emerges as a premier destination for individuals seeking to embrace a high-quality lifestyle abroad, filled with new opportunities for the whole family.
Relocating internationally is a significant and multifaceted decision that necessitates careful consideration. Recognising this complexity, Belion Partners offers an extensive range of services and a robust network to facilitate a seamless transition to Portugal. We serve as a one-stop solution for all legal, accounting, and relocation needs.
If you are interested in exploring the Golden Visa opportunity, please
reach out to us. We would be pleased to assist you in this exciting journey.
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