Portugal Golden Visa Regulatory Status: Law 56/2023 & Law 61/2025

Enacted: October 2023
Status: Active and Enforced

Law No. 56/2023, known as the "Mais Habitação" (More Housing) law, is the cornerstone of current Golden Visa eligibility. It fundamentally reshaped the program by eliminating direct real estate investment as a qualifying route.

Key Provisions

1. Non-Real Estate Mandate
Qualifying investment funds cannot hold direct or indirect investments in residential real estate. This mandate specifically targets:

• Direct ownership of residential properties
• REITs (Real Estate Investment Trusts)
• Funds with residential property exposure

2. Eligible Investment Routes[^1][^2]
The law directs capital toward productive investment through:

• ARIT (Ativos de Investimento de Risco Titulados): Publicly offered risky investment assets under the Alternative Investment Fund (AIF) category
• Minimum investment: €500,000 in qualifying funds
• Funds must be registered with CMVM – Comissão do Mercado de Valores Mobiliários (Portuguese Securities Market Commission) (official site)

3. Geographic Restrictions ("Restricted Zones")
Investment funds cannot hold direct real estate in:

• Lisbon metropolitan area
• Porto metropolitan area
• Coastal corridor connecting these regions

4. 60% Portugal HQ Rule
At least 60% of the fund's capital must be invested in commercial companies headquartered in Portugal. This ensures capital flows benefit the Portuguese economy.

The Operating Company Exception

A critical distinction under Law 56/2023: Funds may invest in companies that operate real estate-heavy businesses, provided the underlying asset is the business operation rather than passive property holding.

Eligible Operating Company Examples:

• Hospitality funds investing in hotel management companies (e.g., Mercan, Stag/Ando Europe)
• Agricultural funds investing in farming operations (e.g., Pela Terra)
• Logistics and industrial park operators
• Solar energy and infrastructure operators

Ineligible (Passive Real Estate):

• Direct residential property ownership
• Commercial property development for sale
• REITs holding rental portfolios
• Short-term rental platforms (Airbnb-like business models)

This distinction validates popular fund categories like Hospitality PE, Agriculture, and Infrastructure while maintaining the law's intent to redirect capital from housing speculation.

Status: Under Constitutional Review
Proposed Implementation: Pending court decision

Law 61/2025 proposes significant changes to the naturalization timeline for non-CPLP (Community of Portuguese Language Countries) nationals. Track the legislative status on the Portuguese Parliament website.

Proposed Changes

1. Extended Residency Requirement

• Current Law: 5 years of legal residency for citizenship eligibility
• Proposed (Law 61/2025): 10 years of legal residency for non-CPLP nationals

2. CPLP Exception
CPLP nationals (Brazil, Angola, Mozambique, Cape Verde, Guinea-Bissau, São Tomé and Príncipe, East Timor, Equatorial Guinea, Macau) would retain the 7-year pathway (reduced from standard 5 years for Portuguese historical ties).

3. Counting Rule Proposal (Critical)
Law 61/2025 proposes counting the residency period from issuance of the first residence permit, rather than from application submission.

Constitutional Review Status

The law is currently under constitutional review. Key considerations:

• Whether retroactive application violates constitutional protections
• How the change affects pending applications
• Interpretation of "legal residency" start date

What This Means for Applicants:

• Applicants who applied before the law takes effect may be protected under the existing 5-year rule
• The constitutional review could modify or invalidate portions of the law
• Timeline for court decision is uncertain (potentially 12-24 months)

Practical Planning Recommendations

1. Apply Early: Submit your Golden Visa application as soon as feasible to potentially grandfather under current rules
2. Plan for Both Scenarios: Structure your investment and liquidity to accommodate either 5-year or 10-year timelines
3. Monitor Updates: The regulatory landscape is dynamic; work with advisors who track developments

One of the most critical—and often misunderstood—aspects of the Golden Visa pathway is when your residency period begins counting.

Current Favorable Interpretation (2024/2025)

Under current interpretation, the five-year residency period counts from application submission and payment of the processing fee, NOT from first residency card issuance.

Why This Matters:
With AIMA processing times currently at 18-24 months, waiting for card issuance to start the clock would add ~2 years of "dead time" to your citizenship timeline.

Practical Example:

• Application submitted: January 2025
• Processing fee paid: January 2025
• Biometric appointment: September 2025
• Residency card issued: December 2026
• Under Application-Date Rule: Citizenship eligibility begins January 2030 (5 years from application)
• Under Permit-Date Rule: Citizenship eligibility would begin December 2031 (5 years from card issuance)

The Law 61/2025 Proposal

Law 61/2025 proposes changing the counting rule to start from first residence permit issuance. Combined with the proposed 10-year requirement:

• Application submitted: January 2025
• Card issued: December 2026 (after 18-24 month processing)
• Under proposed rules: Citizenship eligibility December 2036

This "Administrative Drag" effectively adds ~2 years to the already-extended timeline.

Strategic Implications

1. Early Application Advantage: Applicants who submit before any rule change may lock in the application-date counting method
2. Timeline Modeling: When evaluating funds, model both scenarios (current favorable vs proposed strict)
3. Liquidity Matching: Ensure fund terms align with your citizenship timeline under either scenario

What Applicants in 2025 Can Reasonably Expect

Under the current, favorable Application-Date Counting Rule:

• An applicant submitting in early 2025 can reasonably expect to satisfy the temporal requirement by 2030 under the 5-year pathway
• Even if Law 61 passes with 10-year requirement, constitutional protections may grandfather existing applicants
• The Application-Date Counting Rule provides significant protection against processing delays

Understanding AIMA (Agency for Integration, Migrations and Asylum) processing realities is essential for realistic timeline planning.

Current Backlog Status

• Total Pending Applications: 300,000+ across all visa categories
• Golden Visa Applications: Tens of thousands in the queue
• Primary Bottleneck: Biometric appointment scheduling
• Typical Processing Time: 18-24 months from submission to initial card

What Causes Delays

1. Biometric Scheduling
The primary delay is scheduling biometric appointments in Portugal. With limited appointment slots and high demand, applicants often wait 6-12 months for an appointment.

2. Document Review
After biometrics, document verification and security checks add additional months. Complex cases (multiple dependents, unusual source of funds documentation) take longer.

3. Card Production
Physical card production and delivery adds weeks to months after approval.

Administrative Drag Impact

"Administrative Drag" refers to the effective time added to your citizenship timeline due to processing delays:

*Under Application-Date Counting Rule (current interpretation)

Under proposed Permit-Date Rule:

Mitigation Strategies

1. Complete Documentation: Submit comprehensive, properly translated and apostilled documents to minimize back-and-forth
2. Experienced Legal Counsel: Work with lawyers who have established AIMA relationships and understand current requirements
3. Early Biometric Scheduling: Request appointments as early as possible in the process
4. Digital Renewals: For renewals (not initial applications), IRN outsourcing now offers faster processing

Recent Improvements

• IRN Outsourcing: Renewal applications can now be processed through IRN (National Registry Institute), reducing AIMA workload
• Digital Processing: Some administrative steps are being digitized
• Additional Staffing: AIMA has increased personnel, though backlog remains substantial

Understanding how fund eligibility is determined protects you from investing in funds that may not qualify for the Golden Visa.

Dual Determination Framework

Fund eligibility requires confirmation from two separate authorities:

1. CMVM (Portuguese Securities Market Commission)

• Verifies fund existence and registration
• Provides ISIN (International Securities Identification Number)
• Confirms fund is properly licensed as an AIF (Alternative Investment Fund)
• Issues "Ficha de Informação" (Information Sheet)

2. AIMA (Agency for Integration, Migrations and Asylum)

• Holds exclusive authority to designate funds as eligible for Golden Visa
• Issues "avisos" (notices) confirming eligible funds
• Maintains FAQ and guidance on eligibility criteria

Verification Hierarchy

We follow a three-tier verification hierarchy when assessing fund eligibility:

Tier 1 (Mandatory Sources)

• AIMA official website: avisos, FAQs, eligibility lists
• CMVM public database: fund registration, ISIN verification
• These are non-negotiable—no fund is considered eligible without confirmation from both

Tier 2 (Curated Sources)

• Portuguese law firms specializing in Golden Visa (Viana Law, CSB Advogados, Prime Legal, etc.)
• Reputable financial news (Jornal de Negócios, Eco Sapo)
• Specialized publications (IMI Daily)
• These provide seed data but must be verified against Tier 1 sources

Tier 3 (Specific Sources)

• Fund manager websites
• Prospectus (prospeto)
• Management reports (relatório de gestão)
• Annual reports and audited financials

Eligibility Status Labels

When reviewing funds, look for clear eligibility indicators:

• "Confirmed Eligible" (AIMA + CMVM): Fund has verified AIMA eligibility designation AND CMVM registration
• "Actively Marketed – AIMA Pending Verification": Fund is marketed for Golden Visa but AIMA confirmation should be independently verified
• "Unknown": Eligibility status unclear—additional due diligence required

Critical Due Diligence

Always obtain and review:

1. Prospectus (Prospeto): Detailed fund structure, investment strategy, fees, and restrictions
2. Management Report (Relatório de Gestão): Current portfolio holdings, performance, and manager commentary
3. CMVM Registration Confirmation: Verify active status in CMVM database
4. AIMA Eligibility Confirmation: Verify fund appears in AIMA's eligible fund guidance

Language Note: Prospectuses and annual reports are typically in Portuguese. Translation tools help but nuances may be lost—a licensed Portuguese legal or financial advisor can provide critical interpretation.

Even funds that appear eligible may have indirect exposure to prohibited asset classes. Scrutinize prospectuses for these red flags:

High-Risk Categories

PropTech and Real Estate Adjacent

• Property management software companies
• Short-term rental platforms (Airbnb competitors)
• Real estate marketplace technology
• Construction technology firms in restricted zones

Commercial Real Estate Exposure

• Commercial property development companies
• Office/retail REITs
• Industrial property holding companies (vs operators)
• Property appraisal-dependent valuations

Tourism Masquerading as Operating Companies

• Funds marketed as "hospitality" but holding property rather than operating businesses
• Beach resort developments without operating company structure
• Short-term rental property portfolios

Due Diligence Questions

When reviewing any fund prospectus, ask:

1. What are the core business activities of portfolio companies?

   • Operating businesses (hotels, farms, factories) = potentially eligible
   • Property holding/development = likely ineligible

2. Where are portfolio company headquarters and operations?

   • Must satisfy 60% Portugal HQ rule

3. What percentage of revenue is real estate-related?

   • High percentage suggests property exposure

4. Is valuation dependent on property appraisals?

   • If fund NAV is driven by property values rather than operating income, this is a red flag

5. What happens at fund maturity?

   • Are underlying properties sold (real estate exit) or businesses sold (operating company exit)?

VC Fund Caution

Venture Capital funds marketed as "technology" deserve healthy skepticism. Many Portuguese VC funds have portfolio companies in:

• PropTech
• Short-term rental technology
• Real estate marketplaces
• Construction technology

A technology label does not automatically mean real estate-free. Always review underlying portfolio companies.

Given regulatory uncertainty, prudent investors should model multiple scenarios:

Scenario 1: Current Rules Maintained

• Residency Requirement: 5 years
• Counting Method: Application date
• Timeline for 2025 Applicant: Citizenship eligibility by 2030

Scenario 2: Law 61/2025 Implemented (Grandfathered Applicants)

• Existing applicants protected under 5-year rule
• New applicants (post-implementation) face 10-year requirement
• Counting method contested/unclear

Scenario 3: Full Law 61/2025 Implementation (No Grandfathering)

• All applicants face 10-year requirement
• Counting from permit issuance (with Administrative Drag)

Fund Term Alignment (Liquidity Mismatch Risk)

Critical Consideration: Your fund's term must align with your citizenship timeline.

Liquidity Mismatch Alert: If your fund term expires before your citizenship timeline, you face reinvestment risk—finding another qualifying fund to maintain residency until citizenship eligibility.

The regulatory landscape evolves continuously. Stay informed through these channels:

Official Sources (Primary)[^1][^2]

• AIMA Website: Official guidance, processing updates, eligibility confirmations
• CMVM Database: Fund registration, regulatory filings and supervision: https://www.cmvm.pt/PortalInstitucional?Input_language=pt-PT
• Diário da República: Official gazette for new legislation
• Constitutional Court: Decisions on pending legal challenges

Secondary Sources (Curated)

• Specialized Immigration Law Firms: Viana Law, CSB Advogados, Prime Legal, GFDL (US-Portugal focus)
• Major Portuguese Law Firms: Morais Leitão, SRS, VdA, Abreu, PLMJ
• Financial News: Jornal de Negócios, Eco Sapo
• Industry Publications: IMI Daily

Update Frequency

We monitor these sources and update this page as developments occur. Major changes will be reflected within:

• Breaking news: 24-48 hours
• Regulatory guidance: 1 week
• Legislative changes: Upon official publication

Working with Advisors

Given the complexity and stakes involved:

1. Engage Portuguese Legal Counsel: Immigration lawyers who track regulatory changes
2. Tax Advisor Coordination: Ensure fund selection aligns with home country tax obligations (especially PFIC for US investors)
3. Financial Due Diligence: Independent review of fund prospectuses and eligibility status

Note: This content is educational. Specific advice requires consultation with licensed professionals who understand your individual circumstances.