Portugal Golden Visa program stands tall despite COVID-19
According to the Forbes magazine, Portugal is the best place to invest and retire in. A recent report by the Portuguese Borders and Immigration Service (SEF) shows consistency in the residency by investment program in Portugal: Golden Visa. The pandemic had variable effects. Due to mobility restrictions, investors preferred options that did not require physical presence. Thus, investment in capital funds increased, while real estate investments lost momentum. This period proved that diversifying assets and making overseas investments are necessary for investors all around the world.
Golden Visa Held Up Against the Coronavirus in 2020 H1
Due to the global lockdown caused by Covid-19, most of the international businesses have slowed their activities down. Yet according to the reports by SEF, Portugal Golden Visa Program holds its ground. The first quarter of 2020 has seen an increase in interest and applications. The trend slightly decelerated due to the pandemic declaration by the World Health Organisation.
According to data released by SEF, February 2020 brought 70 new applicants. March, on the other hand, brought 55 new investors with €28 million of investment. Data shows that April brought 53 investors with a total of €28.8 million of investments. Taking into account the global circumstances, the numbers are very impressive. These figures show that Portugal’s Golden Visa Program only suffered a modest decrease during the global crisis. While every sector is struggling, the residency by investment program in Portugal continues strong.
Applicants Chose the Fund Investment Route to Get Golden Visa in Portugal
The latest trends in the Portuguese Golden Visa program show that the interest started to shift into alternative investment methods. Rather than the €500,000 real estate option, investors started to prefer other routes. With over 90% of the applications, this option used to be by far the most popular method until 2020. While it is still the most popular option, data shows that other routes are also gaining popularity.
There are several reasons for this shift. Firstly, global travel restrictions hinder investment methods that mandate in-person meetings and investigations. Secondly, the recent trend in the global economy motivated investors to look for more affordable options. Long-term profits are attractive, but many investors prefer lower capital deployment. The on-going pandemic leads investors to pursue alternative methods offered by the program.
In 2019, the €350,000 real estate investment option of the program was chosen by twice as many investors as it was in 2018. In the first four months of 2020, 22% of the total investment is directed towards this option. The method is popular mainly due to the lower minimum investment requirement.
The €350,000 venture capital investment option is another method on the rise. It has now 17 approved applications. Ten of these applications were submitted in 2020.
Methods other than the main real estate investment option are gaining popularity. Currently, around a third of the investments go to alternative routes. The ratio of these routes was around a quarter of the current ration back in 2019. Three years ago, these methods constituted only 1% of the total investment volume.
Portugal Golden Visa is Safe, Reliable, and Profitable
During this period of financial ambiguity and uncertainty, the Portugal Golden Visa program proved to be resilient and reliable. Between January and April of 2020, 259 main applicants and 515 dependents received their Golden Visa residence cards from the program.
According to the Executive Director of the Get Golden Visa, Charles Taylor Harris, “According to the statistics released from SEF, most applicants of the Portuguese Golden Visa program come from China, Brazil, Turkey, South Africa, and Russia. This is in line with our experience as well. We have investors from all of these countries, continuing to invest in Portugal. The main value proposition of the country is its safety, charm, good weather, and attractive lifestyle. Portugal Golden Visa Program is quite in demand, especially because it can lead to European citizenship.”
Covid-19: Essential Diversity in Investments Despite the Slowing Economy
More and more investors chose to invest in countries other than their own. This allows for diversification and thus a safer portfolio. Covid-19 affected global financial activity radically. However, it also showed that asset allocation should be well thought of. No one knows when and how a financial crisis may emerge; they are unpredictable. So, investors should think ahead and hedge their assets against any potential scenario.
There are many options investors may enjoy in diversifying their investments. Portugal Golden Visa program allows for one of these options in an advantageous manner. It is both an investment in a safe EU country, and a residence opportunity, possibly leading to citizenship for the whole family. That’s why despite the global lockdown, the investor visa program in Portugal continued strong.
As the Get Golden Visa staff, we continue to assist our customers during this period of turmoil. With our reliable and experienced consultants, we are there to help all our investors with their needs regarding the residence and citizenship by investment programs. Visit us at www.getgoldenvisa.com.