The Portuguese Golden Visa Program for residence by investment is considered one of the best in the world. For the third consecutive year, Portugal was announced as the country with the most attractive investment program. The Portugal Golden Visa Program has several investment options, which we explain in detail on our website. The most economic option is the 280k Euros investment that comprises the rehabilitation of real estate in low-density areas. These areas are not the same as the interior regions that are valid with the beginning of 2022.  

Most investors are not only looking for a second home, but also want to invest into the excellent rental and tourism market in Portugal. Portugal is currently one of the real estate markets with the highest international demand. Options for the short-term like Airbnb have been the focus of investment for many investors from all over the world. The industry  made around 400M€ in 2019 only through the Airbnb platform. 

Favorite low-density regions for tourists are Alentejo, Douro Valley, Algarve and Peneda Gerês. All of them offer incredible prices, with good opportunities in tourism.

The 280k EUR option to get the Portuguese Golden Visa is only available in low-density areas. These areas are designated according to the region's population. If the area has less than 100 inhabitants per 1000 square meters, it is considered a less densely populated area. Another criterion is the gross domestic product per capita, which qualifies a region as an area of lower density if it is below 75% of the average GDP.

Buying real estate in low-density is a major trend among local and Euopean investors. The markets are still extremely cheap compared ot the cities or other European countries. At the same the demand for short term touristic renting increased strongly in the last three years. This lead to good and steady value appreciation growth rates of around 5-7% which is forecasted to even pick up in the next years.

The 280k option is very attractive because of the low investment in relation to the excellent rental returns. The required amount is also a much more accessible than the investments for example of 500k.  Investors are also likely to find much bigger and better properties with 2-3 unit to rent out to tourists. One unit can make around 12.000 EUR per year which makes the business case with several units very attractive

Having a property with 2 renting units gives you a net capital growth rate per year of 9.2% based on a conservative simulation (60 Euros per day, 55% occupation rate). You can simulate taxes and business cases for real estate investments on our site.

As the required capital to invest in these areas is low, the investors have more flexibility regarding their business investments. Away from the crowded beaches, these low-density areas of Portugal are great for new beginnings. The cities in the interior of Portugal are becoming increasingly popular with students and as the young population grows in these cities, the need and the opportunity to rent intensify. New investors can easily take advantage of this demand. See the real estate trends 2021 in Portugal.

Tourism in Portugal has grown every year before the corona crisis and it seems that people have really discovered Portugal. With beautiful river beaches, mountain regions, ski resorts, many green areas, tourism has stood out as an important sector in the Portuguese economy.

The tourists who most visit Portugal are Spanish, British, and French. Visitors with high purchasing power, older age, willing to spend money to have an unforgettable vacation.

Local accommodation in Portugal has been growing every year. Options like Airbnb have been the focus of investment for many Portuguese and foreigners who bought a property in Portugal.

With the increase in tourism in Portugal, the sector's numbers have grown considerably, representing 8.7% of Portugal's GDP. The properties registered in the National Register of Local Accommodation (RNAL), which are managed by the Portugal Tourism agency (Turismo de Portugal) are surprising. Currently, in 2020 there are 109,627 local accommodations in Portugal. 

When investing in the interior regions of the 280K Golden Visa program, we believe that some of the most profitable routes to create new businesses may in the inland areas such as Alentejo, Douro Valley, and Gerês. These areas offer a greater opportunity to work in hospitality, outdoor tourism (such as walking cycling, hiking, mountain biking, rafting) or cultural and religious tourism. 

Rural, natural and religious tourism are not the only possible business. Portugal’s countryside is full of opportunities in agriculture, commerce and more. The more people are attracted the more structure is needed in all service businesses. While prices/m2 has increased by 15% in urban areas during the last year, it has increased by 10% in the interior areas. In Lisbon, Porto, and Algarve a square meter can cost 1.606 €/m2 on average, but in low-density areas such as the north and Alentejo the average costs is 603 €/m2.  

In Peneda Gerês, houses are normally big, with good sun exposure, granite-clad walls, rustic architecture. Usually it has swimming pool, fireplace, garden, are detached with good privacy, and with 280K is possible to find over 160m2 properties in good conditions for renovations. Most of the properties can be spilt up in several units. Small units are excellent for renting as most clients are couples that spent most of their time in the nature.

The interior of Portugal is where Portuguese people keep their traditions alive, preserving almost untouched villages, and where the country's great production of food, Portuguese wines, and olive oil take place.

The Alentejo region is an important rural tourism hub in Portugal. The Alentejo wineries are famous all over the world and export their wines abroad. With many award-winning wines, the farms are an attraction for tourists that visit Portugal. Portugal is a country with many farms and with local production of cheeses, salami, sausages and lots of cold cuts. The production of food, such as fruits and vegetables also comes from the interior of the country.

Évora, in the Alentejo, is a historic city with a preserved Roman temple and still with plenty of space and opportunities to grow.

The Alentejo is one of the warmest regions in Portugal and has great opportunities for rural tourism, with beautiful scenery and charming typical architecture.

Another incredible low-density place in Portugal is Ferreira do Zêzere, in the Center region, in the province of Ribatejo, with stunning landscapes and the charming village of Dornes (Vila de Dornes) that enchants visitors looking for remote places to do rural tourism and an important historic place for the Templars.

There are investment opportunities also in cities like Covilhã, in Serra da Estrela, a region with snow, and a ski resort in winter.

As it happens, a decision was recently taken by a higher court (whose decision can be read in full at: http://www.dgsi.pt/jtca.nsf/170589492546a7fb802575c3004c6d7d/45dcdcace81dd46880258656005cc204?OpenDocument

A higher court recently decided in a trial that if the property is located in the NUTS III zone, which is for exemple the entire Algarve, the SEF should accept the Golden Visa application. The court's decision referred specifically to the case of Vilamoura, and the court found that given the statistical data, the Algarve as a whole has 88.4 (April 2021)  inhabitants per km2, thus fulfilling one of the mandatory requirements for the low density golden Visa.

In the latest advice sent by the SEF, it states that it is prudent to request a declaration from the Camara Municipal of the area where the property is located, stating that it is located in a low density zone (NUTSIII) for Golden Visa purposes. This should be done by your lawyer when the due the "due diligence" on the property. 

Despite the great care, we take over no responsibility for the topicality, correctness, completeness of the information on this site.