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Golden Visa Reform in Portugal: Decree-Law 14/2021
Decree-Law 14/2021 fundamentally reformed Portugal's Golden Visa program by redirecting real estate investments away from major cities and raising investment thresholds for more productive capital.
On 12 February 2021, Portugal published Decree-Law no. 14/2021 in the Diário da República, introducing one of the most significant reforms to the Golden Visa (Autorização de Residência para Investimento, or ARI) since the programme was created in 2012.
The diploma did not extinguish the Golden Visa, but it changed the playing field. First, it re-focused real estate investments away from pressure zones. Residential property in Lisbon, Porto and most of the coastal Algarve would no longer qualify for new Golden Visa applications from 1 January 2022. Instead, investors are encouraged towards interior municipalities and the autonomous regions of the Azores and Madeira.
Second, the law raised minimum investment thresholds in several categories. The classic capital transfer route increased from EUR 1,000,000 to EUR 1,500,000. Investment in qualifying funds went from EUR 350,000 to EUR 500,000. Investment in research activities and cultural heritage was also adjusted. The clear policy message was: more productive, less speculative capital.
For foreign investors – particularly from the US, UK, Brazil, Canada, Israel and Russia – Decree-Law 14/2021 had concrete consequences. Those who wanted a relatively straightforward property-based route in Lisbon or Porto had a limited window of opportunity during 2021 to secure their application under the old rules. After 1 January 2022, the traditional model of buying a flat in a major city and obtaining a Golden Visa largely disappeared.
At the same time, the reform did not change the core advantages of the ARI regime: a five-year path to Portuguese citizenship, low minimum stay requirements (an average of seven days per year) and full Schengen mobility. It simply redirected the types and locations of eligible investments.
Investors now need to plan more strategically. Funds, hotels and commercial real estate in interior regions, or research and cultural projects, became more relevant vehicles. For serious, medium- to long-term investors who are willing to engage with the Portuguese economy beyond a single city apartment, Decree-Law 14/2021 left the door open – but clearly signalled that the era of purely passive, big-city property speculation in exchange for residency was coming to an end.
Official source: Diário da República, Decree-Law no. 14/2021, 12 February 2021 (https://dre.pt)