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Portugal Golden Visa Low-Density Areas

The Portuguese government is looking to boost and promote investments in the following areas:

·       Urban requalification

·       Cultural heritage

·       Activities of high environmental and social value

·       Low-density areas

The Portuguese authorities have amended the real estate investment routes by creating a classification system of what areas investors can invest in. These areas are called “interior” and “low density”. It is important to note that these are very different terms.

We will define these different terms, to provide a clear understanding of each.

Interior areas:

Interior areas are areas where the investor can make a residential real estate investment to qualify for the Golden Visa.

For commercial real estate, the investor can invest anywhere in the country and there are no location restrictions in place (if the property is classified as “commercial”).

Low-density areas:

Low-density regions are defined as territorial units (NUTS II) and have less than 100 inhabitants per square km or a GDP per capita that is 75% or less than the national average.

The regions that are classified as low-density areas will be subject to a 20% discount rate on the investment.

While interior areas and low-density areas share a lot of overlapping ground, it is possible for an area to be both interior and high-density. If this is the case, then the investor can purchase a residential property, but no discount will apply.

As an example, the investor will not be able to invest in residential real estate in some parts of the Algarve for the Portugal Golden Visa. While it is classified as a low-density area, it is not considered to be a completely interior part of the country. Some areas in the Algarve are, however, considered to be low density and interior, such as Aljezur, Odeceixe, and Sagres. In these areas, investors will be able to buy residential properties or invest in residential rehabilitation projects while taking advantage of a 20% discount on the investment.

Some properties that will qualify for the Golden Visa will even be in areas that have a high-growth potential – such as Lisbon, the Douro Valley and Aljezur. These areas have excellent opportunities for tourism and hospitality and are likely to become increasingly popular in the coming years.
 

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