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Portugal has been a steady favourite for people building a base in Europe. Its mix of lifestyle, safety and accessible residency through property investment has attracted families and entrepreneurs for years.
That model changed in 2023 when the government ended real estate as a qualifying route under the Golden Visa to steer capital into more productive areas. The decision left many asking which options still count, and whether property has any place at all in the updated rules. Interest hasn’t faded. Portugal still offers a clear path to residency in Europe, backed by stable governance and secure long-term rights. The sections below set out how the system now works, which routes are open, and where property fits.
What changed in Portugal’s Golden Visa
Law No. 56/2023 took effect in October 2023 and reset the criteria for residency by investment. It removed routes based on buying property or placing large capital in a local bank, both widely used for over a decade. The aim is to direct investment toward activity that supports jobs, research and cultural projects. For advisers and investors, this closed the easiest entry point and made room for more structured investments through licensed channels. Fund options have grown as investors look for compliant, diversified ways to participate while keeping exposure to steady sectors. The change has also brought in a broader mix of professionals, from managers to legal teams and administrators who know how to run regulated vehicles.
The updated RBI routes
Today the programme relies on a smaller set of paths that put money to work in the real economy. The most common is an investment of at least €500,000 in a regulated venture capital or private equity fund. These funds are licensed by Portugal’s securities regulator and run by professional managers who invest across energy, tourism, healthcare and technology. Other recognised routes include creating jobs through a Portuguese company, backing cultural or scientific projects, or setting up a new business that employs local staff. Each path has its own process, compliance checks and reporting, so early legal and financial guidance helps avoid delays. Taken together, these routes now form the core of the programme and replace passive property purchases with managed, transparent investment.
The fund route: how it works
Under this route, investors buy units in regulated funds run by licensed managers under CMVM supervision. Each fund follows a clear strategy and meets strict audit and reporting standards. Portfolios are often spread across sectors such as energy, technology and tourism, and some keep indirect exposure to property through hotel or development projects rather than individual units. The model is built for oversight and clarity. Investors join a managed structure with independent administration, due diligence and regular reports on performance. Fund terms typically run five to ten years with defined exit points, so timelines and liquidity are known in advance. For many, that mix of reporting, valuations and governance feels easier to live with than the upkeep, tenant issues and legal work that come with owning bricks and mortar abroad.
Can real estate still play a role?
Direct property purchases no longer qualify, though real estate hasn’t vanished from the picture. Some regulated funds invest in hotel, housing or mixed-use schemes. These count because the investor holds units in a managed vehicle under Portuguese regulation, not deeds to a flat. Before committing, investors should confirm the fund’s CMVM registration, understand its focus and look at its record. Audited statements, clear valuations and plain updates from the manager are good signs. This route keeps a link to property through a controlled structure, giving exposure to development risk and income while staying within today’s legal framework.
Why Portugal still appeals
Portugal keeps steady interest for straightforward reasons. It’s safe, well run and easy to settle in. The climate is mild, healthcare is strong and living costs compare well with much of Western Europe. The tax regime still helps new arrivals plan, with the Non-Habitual Resident regime and its successor offering defined reliefs for those who qualify. The five-year path to citizenship is a major draw for families who want EU access. And while the rules have tightened, investor confidence has held up. Most view the updates as evolution, and Portugal’s blend of lifestyle, predictability and clear rules keeps it high on shortlists.
How The Knightsbridge Group can help
The Knightsbridge Group has over a decade of experience advising international families and investors on residency, citizenship and cross-border planning. Our team supports clients through every stage of the Portuguese residency process, from eligibility checks and investment documentation to coordinating applications and renewals with licensed professionals. If you’d like guidance on Portugal’s residency routes or any other citizenship or structuring matter, contact us at [email protected].