What if you could secure a second residency along the stunning Mediterranean coastline, with the freedom to travel whenever needed, no restrictions, no stress? Imagine having a golden ticket to Europe, where you and your family can enjoy visa-free travel, tax-friendly benefits, and even the potential for dual citizenship down the line.
In this ultimate showdown, we are comparing the two hottest residency-by-investment programs in Europe: Italy’s Investor Visa vs. Portugal’s Golden Visa. Which one offers the fastest path to residency? Which has lower investment thresholds? How long do you need to stay for renewal? Is one more crypto-friendly than the other? We will break down the key factors, including investment requirements, tax regimes, eligibility, and renewal criteria, so you can make the smartest choice for your future.
This is not about lifestyle. We will leave that to the travel bloggers. This is about the straight facts of European residency, so you can make a well-informed decision. And here is the good news: whether you choose Italy or Portugal, you win.
At INGWE, we have helped thousands from 55+ countries navigate business and investment immigration since 2018. Looking into European residency or citizenship? Our experts are here to guide you. Have questions? Contact us here: click here.
Let’s get down to this head-to-head between Portugal’s Golden Visa and Italy’s Investor Residency Program. Here is what you need to know before making a decision for your ultimate Plan B.
What Type of Residency Programs Do Italy and Portugal Offer for Investors?
Portugal offers the Golden Visa program to investors and their families. This means you invest in an approved investment category and, in return, receive residency for yourself and your family.
Italy offers the Investor Residency Visa. Although it is not labelled a “Golden Visa,” it has a similar structure in terms of offering various asset classes for investors who, in return, receive residency access to the country.
What Eligibility Criteria Are Expected From Investors Applying to Italy or Portugal?
There are no education, work experience, or language requirements for either program when applying as an investor. You need a clean bill of health, police check report, valid passport, proof of funds for the investment, and proof that you can support yourself and your lifestyle in the country.
It is quite basic as long as you have the funds available to make the investment.
Minimum Investment Required for Residency in Portugal and Italy
Portugal’s Golden Visa requires a minimum investment of €500,000 as the lowest category investment to obtain residency.
Italy’s Investor Residency Program has a bare minimum investment of €250,000 as the lowest category investment option to obtain residency for you and your family in the country.
We will cover the various other options below, so you can see the full picture.
At INGWE, we have helped thousands from 55+ countries navigate business and investment immigration since 2018. Looking into European residency or citizenship? Our experts are here to guide you. Have questions? Contact us here: click here.
How Long Does the Application Process Take for Portugal vs. Italy?
This is one of those comparison categories where you will feel a big difference between both countries. Portugal’s Golden Visa has faced delays due to a backlog, but the recent government has announced a new initiative to fast-track the processing of Golden Visa applicants.
Previously taking 18-20 months, the timeline is now expected to be reduced to approximately 1 year after completing the investment and obtaining the required investment certificate. Lawsuits that once sped up approvals are no longer necessary.
This 1-year processing period also counts toward Portugal’s citizenship eligibility.
On the other hand, the Italian Investor Residency Program is fast. It is the fastest in the entire European region as an actual investor program leading to residency. It can be done in less than 3 months, depending on the passport you hold.
Investment Category Options for Portugal and Italy
Portugal Golden Visa Investment Categories
Portugal has 4 investment categories eligible for the Golden Visa program:
- €500,000 in an investment fund, non-real estate-based, government-approved, with at least 60% invested in Portuguese companies.
- €250,000 in cultural projects, such as the arts or preservation of national heritage, subject to government pre-approval.
- €500,000 in a business investment, which must create at least 5 jobs or maintain 10 jobs in an existing company.
- €500,000 in research and development, invested in an accredited public or private scientific research institution.
Any of the above 4 options can make you eligible for the Portugal Golden Visa program. The main applicant invests in an eligible category and obtains residency for themselves and their dependent family members.
Italy Investor Residency Investment Categories
Italy also offers 4 investment categories eligible for the Italian Investor Residency Program:
- €250,000 in an Italian startup, meaning innovative ventures registered in Italy.
- €500,000 in an Italian company, publicly traded, private, or financial entity investing in Italian businesses.
- €1,000,000 donation to a philanthropic project in Italy.
- €2,000,000 in Italian government bonds.
Note: Italy does not allow a combination of investment categories. The full investment must be made in a single category.
At INGWE, we have helped thousands from 55+ countries navigate business and investment immigration since 2018. Looking into European residency or citizenship? Our experts are here to guide you. Have questions? Contact us here: click here.
When Should the Investments Be Completed?
Applicants must complete the investment before applying for the Portugal Golden Visa. This includes opening a Portuguese bank account and transferring funds. American investors can invest directly from U.S. bank accounts without opening a local Portuguese account.
Italy has a unique structure. You can apply for residency before investing. Once you receive security clearance, you get 90 days to enter Italy and finalize your investment. This flexibility allows investors to change their investment choice before committing.
How Long Should the Investments Be Held?
Portugal Golden Visa
The investment must be held for at least 5 years while maintaining residency. Many Portuguese private equity funds have a 5-7 year lock-in period.
Italy Investor Residency Visa
Investments must be held until permanent residency is obtained. Since temporary residency lasts 5 years, the investment must remain active for this period.
You can download our FAQ sheet on the Italian residency program for details on minimum stay requirements and language proficiency criteria here.
Is Real Estate Allowed as an Eligible Investment?
In Portugal, real estate is strictly forbidden, either directly or indirectly, as part of the eligibility for the Golden Visa investment. Of course, investors and their families are allowed to invest in and own real estate in Portugal, but the real estate investment is separate from the Golden Visa investment. You can buy Portuguese real estate even before you apply for any immigration status in Portugal. There are no restrictions on this aspect.
In Italy, the regulations are a little bit more relaxed. You can technically invest in an Italian company holding real estate or an Italian startup venture holding real estate as an asset. The regulations are not as strict as in Portugal, although the general framework and structure of the investment still need to follow the regulations.
Are There Favorable Tax Regimes for Foreign-Derived Income?
Italy has a fixed annual tax regime of €200,000 for higher earning investors, and a favorable flat tax rate for overseas pension income investors who reside in cities or towns of fewer than 20,000 people in Italy. There is a list of approved communities by the Italian Revenue Agency.
Please keep in mind that it is not mandatory to become a tax resident of Italy in the first 5 years as a temporary resident.
At INGWE, we have helped thousands from 55+ countries navigate business and investment immigration since 2018. Looking into European residency or citizenship? Our experts are here to guide you. Have questions? Contact us here: click here.
In Portugal, you have the new revised Non-Habitual Residency 2.0 tax regime. It has specific criteria and tax categories for various income types, occupations, and also based on whether you reside in mainland Portugal or one of the islands.
Visit our previously posted video here about the NHR 2.0:
How Crypto-Friendly Are These Countries for Taxation Purposes?
Portugal is very tax-friendly for crypto investors. Previously, there was no capital gains tax on crypto profits. However, the new NHR 2.0 regulations state that you need to hold the crypto assets for a minimum of 1 year before being eligible for the capital gains exemption. This is still very favorable for many investors.
In Italy, the government taxes profits made from cryptocurrency transactions at either 26% or 18%, depending on the individual’s specific tax situation. However, these taxes only apply when cryptocurrencies are converted into traditional money, such as euros or U.S. dollars, or into NFTs, non-fungible tokens.
What Is the Citizenship Eligibility Timeline?
It takes 5 years to become eligible for Portuguese citizenship and a Portuguese passport, and the processing timeline for the Golden Visa is also counted as part of the 5-year eligibility.
In Italy, the citizenship eligibility timeline takes 10 years, which is much longer if anyone intends to become a citizen of Italy.
Can Family Members Work and Study Inside the Country?
Both Portugal and Italy allow dependents to work and study under their respective residency programs. Family members receive residence permits, granting them the same rights as the primary investor.
Conclusion: Portugal Golden Visa vs. Italy Investor Residency
In conclusion, the Italian program is more lengthy and complicated to convert to PR or citizenship compared to the Portuguese program, but it is faster to apply and obtain your initial residency at the beginning of the process.
For anyone looking for a quick investor residency program to enter Europe, and who is not worried about becoming a PR or citizen, the Italian program would be the right fit.
The Portuguese program is a good hands-off, flexible program without many requirements during the first 5 years of residency before becoming eligible to either renew or apply for citizenship.
Both programs are some of the best and most sought-after investor residency programs offered in Europe, whether as a Plan B or even Plan A for many investors, entrepreneurs, and families.
Do not forget to download our Italian Investor Residency Visa FAQ sheet for free from this article being posted on our website.
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