The aftermath of Brexit brought a sharp rise in the number of UK nationals targeting Portugal in a quest to regain their lost EU rights. Portugal’s Golden Visa programme – open to UK nationals as of January 1, 2021 – plays an important role in this.

But just one year after Brits became eligible, the Portuguese government introduced major changes to the Golden Visa programme, including the removal of several prime locations.

Here I explore two excellent Golden Visa routes still available, and why they’re ideal for UK nationals (or anyone else) with Portuguese citizenship as their end goal.

The first route is real estate investment on the island of Madeira. Madeira is rapidly shaping up to be one of Portugal’s prime real estate investment destinations. In contrast to artificially-inflated low-density investment locations, such as Évora, Madeira has all the fundamentals of a strong real estate market with staying power – while also being a fantastic place to live.

While prime real estate in Lisbon, Porto and some of the Algarve now unavailable for Golden Visa purposes, Funchal and surrounding towns boast growing numbers of new luxury developments ready for purchase at the €500,000 level.

If you want a lower investment threshold, Madeira also has opportunities suitable for the €350,000 rehabilitation Golden Visa. With our knowledgeable local partners, we have already helped several British investors to secure properties at this affordable level.

For British investors, Madeira has particular appeal. For starters, it’s by far the most southerly location in Portugal, which means summer all year round. Most locals in the major towns speak excellent English, a relic of Madeira’s brief colonial history with the UK.

Combine all that with a strong British expat community and frequent direct flights to the UK, and you’ve got a perfect destination for British Golden Visa investors who wish to relocate. For those who don’t, Madeira also offers potential for healthy ROI from rentals, due to the island's strong year-round tourist economy.

Madeira is also one of Europe’s safest destinations – a critical concern for foreign investors in today's increasingly unstable world.

For those who don't want geographical restrictions, getting a Golden Visa via the venture capital funds route is another promising option. The 2022 programme changes have raised the minimum investment threshold for funds from €350,000 to €500,000, comparable to the standard level of the real estate route.

Funds have several key advantages over real estate for potential Golden Visa investors, particularly those eyeing a Portuguese passport. The first is speed. With any Golden Visa, the citizenship clock starts ticking from the moment you receive your residency permit.

However, that requires approval of your Golden Visa application, which in turn hinges on the investment being in place. Rather than wasting valuable time seeking the perfect property, funds enable you to hit the ground running with a fast investment – and a faster timeline to citizenship.

For those who want maximum flexibility – continuing life in the UK while their investment spends time in Portugal on their behalf – the funds route offers potential for strong returns, with your investment safely in the hands of professionals, without the hassle of tenants, maintenance and associated legal issues.

Finally, investing in certain funds – such as those on the EQTY Capital Platform – can offer a route to eventual ownership of prime real estate at a saving in locations no longer directly eligible for the Golden Visa programme, such as Lisbon and Porto.

To learn more about the Portugal Golden Visa process and getting EU citizenship, please contact us on hello@digitalemigre.com