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Golden Visa 280k and 350k: Low Density Areas

20 de October, 2022

Golden Visa 280k and 350k: Low Density Areas

Saiba onde estão e como aproveitar as vantagens de investir em imóveis em áreas de baixa densidade urbana elegíveis ao Golden Visa.
Reading: 9 min

Did you know that it is possible to obtain the Golden Visa Portugal through real estate investments from 280k euros? To reach this amount, the property in question needs to undergo rehabilitation and be located in areas of low population density.

The Golden Visa Portugal Program is a residency program for qualified investment in the country. With a duration of 5 years, it allows the acquisition of portuguese citizenship. It has different investment routes, with values ranging from €250k to €1.5 million. Of all the existing modalities, the most popular is the property acquisition.

Currently the minimum investment amount required in the real estate mode of the program is €500k, or €350k in rehabilitation projects, for both residential and commercial properties. However, in the case of residential properties certain location restrictions currently apply. It should also be noted that the minimum investment amount can be reduced by 20% when carried out in areas of low population density.

Learn here how to take advantage of these advantages provided by law and where these areas of low population density are located. Also understand how to make an investment of € 280k in residential property eligible for the Golden Visa Portugal Program.

Also get to know: Golden Visa via Investment Funds

Definitive Guide to the Golden Visa Portugal – FAQ

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Changes in the law and location restriction for housing properties

As of January 1, 2022, the location of residential real estate eligible for Golden Visa has been restricted to the interior territories of Portugal and the islands of Madeira and Azores. Previously, there was no geographical impediment for this modality. With this alteration large urban centers such as Lisbon and Porto became ineligible for the Golden Visa, when acquired for residential purposes.

This restriction does not apply to properties acquired for commercial purposes, which can be located anywhere in Portugal.

The change, imposed by the Portuguese government, aimed to stimulate the development of less urbanized regions of the country by containing real estate speculation in the more densely populated regions.

Territories of “Interior” and Areas of “Low Population Density”: Understand the difference

Portugal currently has a classification system for areas in the country that are eligible for the Golden Visa for residential real estate investment. They are called “interior territories” and “low population density areas”. But no attention, they are different terms!

What are “hinterland territories”?

In short, we can say that the “hinterland territories” are areas delimited by the government, benefiting from tax incentives for their economic development.

Currently, residential real estate investment for Golden Visa Portugal purposes is only allowed in areas that are classified by the Portuguese government as “interior territories”, according to the Ordinance 208/2017. This legal text lists the Portuguese counties and parishes covered.

It is worth repeating, once again, that for commercial real estate, there are no location restrictions, and real estate properties located anywhere in mainland Portugal and the Islands are eligible.

Interior areas of Portugal

What are “low population density areas”?

Low density areas are territorial units (classified as NUTS III) with less than 100 inhabitants per km2 or a GDP per capita of less than 75% of the national average. The classification is used by the government for different political and economic purposes, including also Golden Visa issues. The complete list of territories can be found here.

Investment in sparsely populated areas has a big advantage over other areas of the country: a 20% discount on the minimum investment amount eligible for the Golden Visa. This discount covers not only real estate investments. It also applies to job creation, investment in artistic production, and investment in scientific research.

Low density areas in Portugal

Low density municipalities in Portugal:

1. Abrantes
2. Aguiar da Beira
3. Alandroal
4. Alcácer do Sol
5. Alcoutim
6. Alfândega da Fé
7. Alijó
8. Aljezur
9. Aljustrel
10. Almeida
11. Almodôvar
12. Alter de Chão
13. Alvaiázere
14. Alvito
15. Ansião
16. Arcos de Valdevez
17. Arganil
18. Armamar
19. Arouca
20. Arraiolos
21. Arronches
22. Avis
23. Baião
24. Barrancos
25. Bej
26. Belmonte
27. Borba
28. Boticas
29. Bragança
30. Cabeceiras de Basto
31. Campo Major
32. Carrazeda de Ansiães
33. Carregal do Sal
34. Castanheira de Pêra
35. Castelo Branco
36. Castela de Vide
37. Castro Daire
38. Castro Marim
39. Castro Verde
40. Celorico da Beira
41. Celorico de Basto
42. Chamusca
43. Chaves
44. Cinfães
45. Constância
46. Coruche
47. Covil
48. Crato
49. Cuba
50. Elvas
51. Estremoz
52. Évora
53. Fafe
54. Ferreira do Alentejo
55. Ferreira do Zêzere
56. Figueira de Castelo Rodrigo
57. Figueiró dos Vinhos
58. Fornos de Algodres
59. Freixo de Espada à Cinta
60. Fronteira
61. Fundão
62. Gavião
63. Góis
64. Gouveia
65. Grândola
66. Guarda
67. Idanha-a-Nova
68. Lamego
69. Lousã
70. Marção
71. Macedo de Cavaleiros
72. Mangualde
73. Manteigas
74. Marvão
75. Meda
76. Melgaço
77. Mértola
78. Mesão Frio
79. Miranda do Corvo
80. Miranda do Douro
81. Mirandela
82. Mogadouro
83. Moimenta da Beira
84. Monção
85. Monchique
86. Mondim de Basto
87. Monforte
8. Montalegre
89. Montemor-o-Novo
90. Mra
91. Mortágua
92. Moura
93. Mourão
94. Murça
95. Nelas
96. Nisa
97. Odemira
98. Oleiros
99. Oliveira de Frades
100. Oliveira o Hospital
101. Ourique
102. Pampilhosa da Serra
103. Paredes de Coura
104. Pedrógão Grande
105. Penacova
106. Penalva do Castelo
107. Penamacor
108. Penedono
109. Penela
110. Pedo da Régua
111. Pinhel
112. Ponte da Barca
113. Ponte de Sor
114. Portalegre
115. Portel
116. Póvoa de Lanhoso
117. Proença-a-Nova
118. Redondo
119. Reguengos de Monsaraz
120. Resende
121. Ribeira de Pena
122. Sabrosa
123. Sabugal
124. Santa Comba Dão
125. Santa Marta de Penaguião
126. Santiago de Cacem
127. São João da Pesqueira
128. São Pedro do Sul
129. Sardoal
130. Sátão
131. Seia
132. Sernancelha
133. Serpa
134. Sertã
135. Server do Vouga
136. Soure
137. Sousel
138. Tábua
139. Tabuaço
140. Tarouca
141. Terras de Bouro
142. Tondela
143. Torre de Moncorvo
144. Trancoso
145. Valpaços
146. Vendas Novas
147. Viana do Alentejo
148. Vidigueira
149. Vieira do Minho
150. Vila do Rei
151. Vila do Bispo
152. Vila Flor
153. Vila Nova da Barquinha
154. Vila Nova de Cerveira
155. Vila Nova de Foz Côa
156. Vila Nova de Paiva
157. Vila Nova de Poiares
158. Vila Pouca de Aguiar
159. Vila Real
160. Vila Velha de Ródão
161. Vila Verde
162. Vila Viçosa
163. Vimioso
164. Vinhais
165. Vouzela

In addition to low population density councils, it should be noted that there are low population density parishes that are located in non-low density councils . The complete list can be consulted here.

Inland and Low Density Territories: The Advantage of Intersection for the Golden Visa

An area can be “inland”, but high density. In this case, you can buy a residential property, but no discount applies.

But if the area is inland and also of low density, you can have a 20% discount on the minimum investment requirement. In other words, in this case the property will be eligible to the Golden Visa Portugal, for housing or commercial purposes, even if it costs more than € 400k.

Areas eligible for the Golden Visa Portugal

Properties for Urban Rehabilitation: An Investment of €350K

The minimum value of the real estate investment required for the Golden Visa becomes €350k when it is a property for rehabilitation. In such cases, the property to be rehabilitated must:

  • must be over 30 years old,
    OR
  • be located in an Urban Rehabilitation Area (ARU)

The amount spent on retirement is counted in the total investment amount. And this minimum required amount can be lowered to €280k, as we will see below.

How to identify an Urban Rehabilitation Area (ARU)?

Urban Rehabilitation Areas (ARUs), by definition, are territorial areas that, due to the insufficiency and degradation of their buildings and infrastructures, need rehabilitation. These areas were defined in Decree-Law No. 307/2009, of October 23, and a list of these areas can be found here.

Properties worth € 280k eligible for the Golden Visa

It is possible to find Golden Visa eligible properties with values starting at € 280k. This is the cheapest way to qualify for the Portuguese Golden Visa through a real estate investment.

For this, the property must be in an Urban Rehabilitation Area and in an Area of Low Population Density. Once again, it should be repeated, they can only be destined for housing when they are also located in Interior Territories.

So, in summary, we can say that to qualify for the €280k investment option you should invest in:

  • urban rehabilitation project of a commercial property, located in a “low density” area of the country;
  • urban rehabilitation project of a residential property, located in a “low density” area of the country, and also in an “inland territory”.

Are properties in the Algarve eligible for the Golden Visa?

For housing, not all areas of the Algarve are eligible. Although the Algarve is classified as ‘low density’, it is not considered, as a whole, as inland Portugal. Therefore, there are parts of the Algarve which are not eligible for a residential property investment.

Currently, some areas are considered “low population density” and also “inland”. Among them: Aljezur, Odeceixe and Sagres. In these cases, you can buy a residential property or invest in a residential rehabilitation project.

Are residential properties on the islands eligible for the Golden Visa?

Yes, Golden Visa applicants can buy real estate or invest in a rehabilitation project (both residential and commercial) on the islands of Madeira and the Azores. However, both islands are considered high density areas. As such, neither qualifies for a 20% discount.

What is the minimum investment amount for “indoor areas”?

For inland areas the same general rules apply as for Golden Visa real estate acquisition: minimum values of €500k or €350k in rehabilitation projects, with a 20% discount in low population density areas.

Residential or Commercial: Some Clarification

You can invest anywhere in the country, as long as the property in question is classified as ‘commercial’.

When you purchase the property in question, its purpose must be specified in your permit. This information is essential for your investment to be eligible for the Golden Visa.

One, two, three properties

It is important to point out that the minimum value of the real estate investment does not necessarily have to be concentrated in a single property. It is possible to acquire more than one property and account for the total value of the investment. But beware: that it is possible to add up the value of the investment (including those made before 2022), all properties must be eligible with regard to location and minimum amount under the current rules.

A short summary

In summary, we can conclude that:

  • Real estate investment in non-interior territory, in a high density area (only commercial, but without discount)
  • Real estate investment in a non-interior territory in low density area (only commercial, 20% discount applies)
  • Real estate investment in the inland, at area of high density (residential and commercial, but without discount)
  • Real estate investment in the inland, in low density area (residential and commercial, 20% discount applies)
  • Real Estate Investment in a low density area for rehabilitation (residential and commercial, 20% discount applies on the minimum value of €350k, i.e. from €280k).

The Golden Visa Portugal was considered the best in the world and is the perfect alternative for those who seek a path to Portuguese citizenship but don’t necessarily want to move to Portugal right now. Therefore, be sure to also read our Golden Visa FAQwith explanations about the different modalities of investment, rules for regrouping, requirements for citizenship acquisition, among others.

Do you have any questions? Click Here To Talk to an Expert >

*This article is for information purposes only, and is not intended to exhaust the subject or to be used to make decisions of its readers on the subject.

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Author:

Atlantic Bridge

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