Portugal Boosts Golden Visa Appeal With New Tax Incentives and Record Interest From U.S. Investors

Portugal is planning to enhance its Golden Visa Program by offering a 20% flat tax on local income and a 10-year exemption on most foreign income to attract more international investors.

Record Surge in 2024 Applications

According to Portugal’s immigration agency (AIMA), the Golden Visa Program saw a 72% surge in approvals in 2024, with 4,987 more applications approved compared to 2023. Americans led the wave of new approvals, underscoring Portugal’s rising popularity amid tightening rules in other EU countries.

Proposed Tax Overhaul: Flat 20% and Global Income Exemption

In an interview with Bloomberg, Minister of the Presidency Antonio Leitao Amaro said that the government is weighing a revamped tax regime: a flat 20% income tax and a ten-year exemption on foreign income for new residents under the Golden Visa scheme.

These proposed incentives are expected to reinforce Portugal’s competitiveness after the removal of the real estate investment route in 2023. Investment through funds and business remains popular.

AIMA Resumes Visa Processing – Slowly

AIMA President Pedro Portugal Gaspar confirmed that the agency resumed golden visa processing this year but admitted that progress is slow. Over 50,000 applications from investors and their families remain pending, with many waiting for more than three years.

Balancing Investment and Social Pressures

In response to a housing crisis, Portugal removed real estate as a qualifying path. But the government reassures it has no intention of ending the program — instead, it seeks to modernize and rebalance it.