Portugal continues to attract global investors with its booming tourism, expanding economy, and rich cultural appeal. For business-minded individuals, the country offers a unique opportunity to combine solid financial returns with residency benefits. Despite recent changes to the Golden Visa program, Portugal remains an attractive destination for investors. In this article, we’ll explore how investing in the hospitality industry can open doors to Portuguese residency and uncover real estate opportunities beyond the visa program.
Why Consider Portugal’s Hospitality Sector for Investment?
Portugal’s tourism and hospitality industry is thriving, making it a lucrative sector for investors. From its picturesque beaches to historic cities, the country offers a perfect mix of beauty and profitability.
Key Statistics Highlighting Tourism Growth
The Portuguese National Institute of Statistics reports that between January and August 2024, over 3.7 million guests stayed in hotels, resulting in 10.5 million overnight stays. Revenue from accommodations reached €948 million in 2023, reflecting the growing demand for high-quality hospitality options. These figures underscore the strength of Portugal’s tourism sector and its potential for investment.
Combining Profits with Residency
The Portuguese Golden Visa Program previously allowed investments in real estate. However, it has shifted its focus now towards business investments, but you can still invest in real estate as part of business in the hospitality sector. Invest in hotels and hospitality companies to obtain residency!
The Golden Visa: What You Need to Know
The Golden Visa program allows investors to obtain residency in Portugal by meeting specific financial and business criteria. This visa not only grants access to Portugal but also allows visa-free travel across Schengen countries.
Current Requirements for Hospitality Investments
To qualify for the Golden Visa through hospitality investments, you must:
- Register a New Company or Invest in an Existing One:
- Start a company with a share capital of €500,000 and create five permanent jobs.
- Alternatively, increase the share capital of an existing Portuguese company by €500,000, also creating five permanent jobs.
- Job Retention for Three Years: The five jobs must be maintained for at least three years to meet program requirements.
- Document Requirements:
- Proof of a €500,000+ transfer to a Portuguese bank account.
- Registration documents for the new or expanded business.
- A certificate from Portuguese social security authorities confirming the employment of five staff members.
Hospitality Investment Example: Partner Company Opportunity
One attractive route involves partnering with a well-established Portuguese hotel chain. Here’s how it works:
- Minimum Investment: €500,000.
- Investment Duration: A minimum of five years, slightly exceeding the three-year job requirement for the Golden Visa.
- Guaranteed Returns: Annual income of 2%, with opportunities for growth.
Instead of managing hotel operations, your funds act as a loan to the hotel chain, generating passive income. This option offers simplicity and steady returns while meeting residency requirements. If this sounds appealing, the details are listed here, and expert assistance is available to guide you through the process.
Additional Benefits of Portugal’s Golden Visa
The Golden Visa is not just about financial returns as investors can obtain residency and get access to multiple perks:
- Family Inclusion: Your dependents can also live, work, and study in Portugal.
- European Access: Enjoy visa-free travel to all Schengen countries.
- Path to Citizenship: After five years, you can apply for Portuguese citizenship. The time requirement is minimal, with only seven days of physical presence per year.
- Tax Incentives: Tax reforms have been made recently, which will be especially beneficial for young and new tax residents. They will reduce the cost of a Golden Visa and improve real estate liquidity.
Real Estate Options Beyond the Golden Visa
You can no longer obtain a Golden Visa by investing in real estate. However, there are still some options available:
- Investment Funds: Commit €500,000+ to a Portuguese fund.
- Job Creation: Generate 10+ permanent jobs.
- Research Projects: Invest €500,000+ in scientific research.
- Cultural Heritage: Contribute €250,000+ to art restoration or cultural projects.
For those not pursuing the Golden Visa, Portugal still offers lucrative real estate opportunities. Below are examples of high-potential properties available for purchase.
Featured Properties in Portugal’s Top Locations
Algarve: One-Bedroom Apartment with Ocean Views (€260,000)
Located in Praia da Luz, this spacious apartment offers breathtaking sea views and proximity to the beach. Fully furnished and move-in ready, it’s ideal for personal use and short-term rentals. With 60 m² of living space and modern amenities, it’s a comfortable and stylish choice.
Lagos: Renovated One-Bedroom Apartment (€259,500)
If you enjoy panoramic views, here is a property for you! Enjoy the Atlantic Ocean and Lagos panorama in this apartment located close to the beach. It has been recently renovated, so you can choose it for living or rental.
Porto de Mós: Luxury Condominium Apartment (€350,000)
The apartment located in the Vila Mós condominium is a combination of modern design with excellent amenities: you will have access to a pool, gym, and private beach. Convenient location and prime features make it second to none for investors and those who are looking for a second home.
Lagos: Spacious Duplex with Terrace (€495,000)
The duplex with two bedrooms has 91 m² of living space, and there is a large terrace that overlooks the coast. No matter whether you are looking for a personal dwelling or an opportunity to have rental income, this is an ideal property thanks to its location near the coastline and best restaurants.
Lagos: Two-Level Apartment with Pool Access (€395,000)
This is a unique apartment that separates living spaces, which makes it an extremely good option for investors who target rental income. Tenants can access a pool and a garden. The property is an excellent choice if you want to buy a place for yourself, too.
Why Portugal Remains an Investor’s Paradise
The real estate and hospitality sectors in Portugal remain thriving despite changes in the Golden Visa Program. International entrepreneurs can benefit from a welcoming environment, excellent investment options, and high living standards. Enjoy yourself at the Algarve beaches, discover the historic charm of Lisbon, and make good deals – there is anything you can imagine in Portugal!
Taking the Next Step
Investing in Portugal’s hospitality sector or real estate market is more than just a financial decision—it’s an opportunity to become part of a vibrant and growing economy. By choosing the right investment path, you can achieve residency, generate income, and secure a foothold in Europe.
Ready to explore your options? Contact our team today for tailored advice and expert assistance. Together, we can navigate the process and find the perfect investment to match your goals.
