Not real estate, but Rs 2.5 cr donation can get you Portuguese golden visa

Portugal's Golden Visa lures Indians with fast-track EU citizenship but comes with higher costs, stricter rules, and long delays

Not just investment, but even a generous donation of at least ₹2.60 crore (€250,000) can secure a Portuguese golden visa and eventually lead to European Union (EU) citizenship. The programme offers residency rights, visa-free travel across the Schengen area, and a pathway to citizenship in just five years.

 

What is Portugal’s golden visa?

 

The Portugal golden visa, officially known as the residence permit for investment activity (ARI), was launched in October 2012 in the aftermath of the global financial crisis. Since then, it has channelled more than €7.5 billion into the Portuguese economy.

 

“Portugal issued 4,987 residence permits by investment in 2024, the highest number since 2017. As per reports, 15,619 investors and 22,000 family members benefited from the golden visa from October 2012 until September 2024. These applications directed roughly €7.3 billion of global funds into Portugal,” said Andri Boiko, founder and CEO of international advisory firm Garant IN.

 

 

How does the donation route work?

 

According to Boiko, the cultural donation pathway is the most economical way to qualify for residency. This involves contributing to Portugal’s arts and heritage sector rather than making a financial investment for profit.

 

• The minimum contribution is €250,000 (₹2.60 crore).

• In low-density regions, the threshold drops to €200,000 (₹2.08 crore).

• The donation is strictly non-refundable.

 

The Portuguese government only accepts contributions made through approved channels. The General Directorate for the Arts (GEPAC) oversees these cultural projects, ensuring that every euro is directed into heritage, arts, or restoration initiatives.

 

Funds can support:

• Museums and public art institutions

• Historical preservation projects

• Restoration of cultural sites

• Music, film, or performance arts initiatives

 

Applicants choosing this route must commit their entire contribution to the chosen project; partial allocation or diversion is not permitted. The government enforces this rule tightly, with specific cultural organisations authorised to receive golden visa donations.

 

Boiko explained that clients often choose this option because it requires the lowest financial outlay and has a straightforward process. “It is the most accessible path. Families see it as both a cost-effective route and a way to leave a mark on Portugal’s cultural heritage,” he said.

 

However, unlike fund investments, donations do not generate a return. "Applicants must therefore view this contribution as a cultural or philanthropic act rather than an asset-building exercise. The benefit lies not in financial gain but in the residency rights it unlocks—residency cards, visa-free Schengen access, and the five-year track to Portuguese citizenship," he said.

 

"Recent years have seen a surge in cultural donations. Contributions rose from €4.5 million in 2023 to €12 million in 2024, with €2.1 million already logged in the first quarter of 2025. This growth reflects renewed interest in the donation route after the closure of the popular real estate option in October 2023, Boiko added.

 

Does the donation give tax benefits?

 

"Making a cultural donation under the golden visa does not provide direct tax relief for foreign applicants. Deductions are generally available only to those already classed as Portuguese tax residents.

 

In practice, most golden visa applicants do not qualify because they are not obliged to live in Portugal full-time. Only those who spend more than 183 days a year in the country can be considered tax residents. For this reason, donations are treated purely as a qualifying contribution for residency, not as a tax-planning tool," Boiko explained.

 

Other golden visa routes

 

Besides cultural donations and funds, there are further options:

 

• €500,000 donation to scientific research

• Creating a company with at least five permanent jobs

• Direct job creation of ten positions in an existing firm

 

Residential property is no longer eligible since October 2023.

 

Main benefits of the golden visa

 

Portugal’s golden visa remains attractive because of its benefits:

 

• Residency rights for investors and their families

• Visa-free travel across 26 Schengen countries

• Low physical stay requirement—14 days in the first two years, 21 days in the next three

• Fast track to citizenship after five years

• Ability to open bank accounts across the EU

• Access to non-habitual residency tax status shielding foreign income for up to ten years

 

“The most exciting part of getting the golden visa is that after five years, you can apply for permanent residence or citizenship. If your Portuguese citizenship application is approved, you now have the right to apply for a Portuguese passport,” said Boiko.

 

Drawbacks and delays

 

Boiko also pointed out the challenges:

 

• Higher investment thresholds of at least €500,000 for most routes

• Removal of residential real estate as an option

• Long processing times, with approvals often taking 12–24 months

• Political uncertainty, with periodic calls to reform or scrap the programme

• Possible tax obligations if applicants spend more than 183 days in Portugal

 

What challenges do Indian families face?

 

Even after securing residency, Indian applicants face hurdles. Currency transfers are capped under India’s Liberalised Remittance Scheme, forcing staggered payments. Language barriers complicate schooling and everyday services, especially outside Lisbon and Porto. International schools are available but come with high fees.

 

“For instance, a Delhi-based family that relocated to Lisbon in 2024 spent months navigating the remittance process and struggled with school admissions due to language constraints. The family ultimately shifted to an international school—raising annual education costs,” Boiko said.