Portuguese Golden Visa

Know key points regarding the program and when you should make a strategic tax planning

Portugal’s Golden Visa: A Flexible Path to Residency and Citizenship

Portugal’s Golden Visa offers a clear path to residency without requiring permanent relocation. Holders need only spend 7 days per year in the country, though they are free to stay longer. This minimal-stay requirement makes it an ideal “Plan B” for those seeking EU residency while maintaining their current lifestyle and gradually preparing for a possible move.

A major benefit is that time spent in Portugal under the Golden Visa does not count toward the 90-day Schengen limit for non-EU nationals — making it a valuable tool for globally mobile individuals and families.

Uniquely, the Golden Visa allows applicants to include adult children who are still studying, even if they are enrolled outside Portugal. This offers families significantly more flexibility than other visas, such as the D7 or Highly Qualified Visa, which require dependents to study within the country.

 

Golden Visa to Citizenship: Long-Term Planning and Legal Updates

Portugal’s Golden Visa offers a pathway to citizenship after five years, provided applicants:

• • Maintain the visa for 5 years

• • Pass a Portuguese language test (A2 level)

• • Have no criminal record with a sentence over 3 years

While still under parliamentary review — and likely to face amendments — the Portuguese Government recently proposed extending the citizenship eligibility period from 5 to 10 years for applicants from non-Portuguese-speaking countries.

Importantly, the Golden Visa program itself remains unchanged:

• • The €500,000 investment minimum is intact

• • Investments must be held only for the initial 5 years

• • Family reunification rights continue, including spouses, minors, and dependent adult children

 

Despite potential changes to nationality law, the Golden Visa remains a stable and attractive option, as it was explicitly reinforced by the Portuguese Government.

 

Choosing the Right Fund

With the elimination of real estate as a qualifying category, the spotlight is now on investment funds regulated by the Portuguese CMVM. These funds must:

• • Invest at least 60% of their capital in Portuguese companies
    

• • Have a maturity of at least 5 years

What makes this route especially appealing is the diversity of eligible funds. Investors can choose sector-specific vehicles (e.g., green energy, industrials, hospitality) and strategies that match personal risk appetite, time horizon, or ethical priorities.

One of the most overlooked advantages for U.S. investors is that certain qualified retirement accounts — like a Self-Directed IRA or Solo 401(k) — can be used to make a qualifying fund investment for the Portuguese Golden Visa. Important Note: Not all funds or custodians support this structure. 

Why Legal Advisory Matters?

Applying for the Golden Visa is a unique opportunity — but it demands precision, strategy, and expert legal guidance. That’s where Martins Castro – Move Your World Consultancy Firm comes in.

Before applying, it’s essential to have a Lawyer analyze your specific situation to confirm your eligibility and guide you through the necessary preliminary steps. Tasks such as obtaining a Portuguese tax identification number (NIF), opening a local bank account, selecting the right investment, and obtaining the documents for the Golden Visa application require careful attention. Missteps at this stage can lead to tax issues, application delays, or even a refusal.

After securing the Golden Visa, maintaining legal support is just as important. To make the most of your residency — and ensure compliance with renewal requirements — it’s advisable to keep working with a dedicated legal team. At Martins Castro – Move Your World, we continue to assist clients beyond the approval stage, helping them navigate the ongoing responsibilities with confidence and clarity.

Does the Golden Visa imply tax residency and tax liability in Portugal?

The Golden Visa may or may not imply that its holder becomes a Portuguese tax resident, depending on whether they permanently move to Portugal or not. If they only stay 7 days per year, they will not become tax residents and, therefore, in principle, they will not have tax obligations in Portugal. 

However, if you plan to, at a certain point, permanently reside in Portugal or another member state of the European Union, one thing is clear: the success of your move begins long before your plane takes off. Strategic tax planning isn’t just a box to check—it’s the foundation for preserving wealth, ensuring compliance, and unlocking the full potential of your international lifestyle.

Why Pre-Arrival Tax Planning Matters

Becoming a tax resident in a European country can expose you to global taxation on income, capital gains, and assets, including those still held in the United States. Without proper planning, this can lead to avoidable tax bills, the loss of treaty benefits, and compliance risks that could impact your wealth and peace of mind.

For upper-middle-class families, investors, and entrepreneurs, the key is to start planning well in advance of arrival. Working with professionals who understand both U.S. and European systems can help you avoid common (and costly) mistakes.

Step 1: Understand When You Become a Tax Resident

In most European countries, spending more than 183 days in a year can trigger tax residency. But that’s not the only factor—buying property, moving your family, or simply establishing a center of life activities can also qualify you as a resident for tax purposes.

For example, if you move to Spain on August 1, 2025, you wouldn’t be considered a tax resident until 2026—giving you a valuable window to optimize your finances in 2025. This timing can be crucial for actions such as selling a home or business.

Each country has its own rules, so personalized advice is essential. Don’t assume the rules are the same as in the U.S.—they aren’t.

Step 2: Restructure Your Business and Investment Holdings

Many countries in Europe enforce Controlled Foreign Corporation (CFC) rules, which allow them to tax the undistributed profits of non-European companies owned by residents. If you own over 50% of a foreign business, this can apply to you—even if you don’t draw income from it.

This includes:

• • U.S.-based companies that generate passive income (like rental properties)

• • Portfolios producing dividends or interest

• • Businesses earning income abroad that are not restructured correctly

For example, rental income in the U.S. benefits from depreciation, but that isn’t consistently recognized in European counties like Spain and Portugal—potentially increasing your taxable income abroad. Before your move, it may be wise to shift investments into tax-deferred or tax-exempt structures, or sell certain assets while still under U.S. jurisdiction.

If you plan to sell a business or significant holdings, it’s often more efficient to do so before relocating. In many cases, the new country may tax those gains if the transaction occurs after arrival.

Step 3: Rethink Estate Planning for a European Context

Countries like Spain and Portugal apply inheritance and wealth taxes in ways that are unfamiliar to most Americans. Structures such as U.S. living trusts may not be recognized or may be inefficient under civil law frameworks.

This is the time to:

• • Reevaluate your estate plan

• • Understand how your new country views U.S.-based structures

• • Consider setting up international trusts, holding companies, or updating wills

A coordinated strategy between your U.S. and European advisors is essential to ensure your legacy is protected and your plan complies with both legal systems.

Step 4: Leverage Local Tax Incentives—but Know the Limits

Many European countries offer generous tax incentives to attract foreign residents. These may include flat tax regimes, exemptions on foreign income, or special programs for retirees and remote workers.

Portugal’s Non-Habitual Resident (NHR) program, Spain’s Beckham Law, and Italy’s flat-tax regime are all popular options—but they come with eligibility requirements, strict deadlines, and complex interactions with U.S. tax obligations.

It’s critical to understand not just what’s advertised, but what applies to your actual situation as a U.S. taxpayer. The earlier you plan, the more likely you are to qualify and benefit.

Step 5: Work with a Cross-Border Tax Advisor

Relocating your life—and your wealth—to Europe requires more than good intentions. A specialized cross-border tax advisor will help you navigate the complex landscape of dual taxation, treaty planning, investment restructuring, and residency optimization.

Make sure your advisor understands the specific nuances that apply to U.S. citizens. A generalist is not enough.

At Cross Border Wealth Advisors, we specialize in helping Americans transition to Europe with clarity and confidence. Whether your destination is Spain, Portugal, Italy, or another part of the continent, we guide you through each step—from pre-move structuring to long-term financial planning.

To begin the conversation, reach out to us at: info@cbwealthadvisors.com

A Golden Visa may be your ticket to a new life—but it’s the planning behind it that will determine your success. The most prepared investors start now—not after they arrive.

 

Written by Victor Gersten (Cross Border Wealth Advisors) & João Maltez (Martins Castro – Move Your World)