Think Portugal lost its shine when they scrapped the real estate route? Think again.
In this episode of Global Investment Voice, Mona Shah and Rebecca Singh bring back immigration expert Tiago Gali Macedo to discuss Portugal’s Golden Visa Program. They dig into the route, which is stealing the spotlight, the cultural heritage donation. At a price tag of €200,000- €250,000 for Portuguese residency it’s less than half the cost of the popular €500k fund route and buys you the exact same residence permit. The same Schengen residence, right to live, work and study, but a smaller check.
However, before you book your flights there are some questions worth answering. What safeguards exist to ensure cultural projects are vetted? Where does your money go? And, with no return of capital, is the cultural route simply the most expensive option in disguise? Tiago breaks it all down for you including why an investors position is more protected than expected.
There is also a hint at something new on the horizon, can you keep the secret?
If you are weighing up residency options and exploring routes to Europe or trying to get the most out of your money, we deliver the answers to make your decision easier.
“Investing 500k in a fund or several funds and 200 or 250 as a donation, you have exactly the same permit with all the same benefits, all the same possibility to get to nationality” – Tiago Gali Macedo
Tiago Gali Macedo
Tiago Gali Macedo is the managing Partner of Next – Gali Macedo & Associados, an international award winner of Legal Awards since 2013, namely Immigration Law Firm of the Year, Real Estate Law Firm of the Year, Boutique M&A Law Firm of the Year, Insurance Law Firm of the Year, consistently ranked among the Top 25 Global Immigration Attorneys by Uglobal Magazine and member of IMC.
Before founding this Firm, he gained invaluable experience working at renowned law Firms, such as Simmons & Simmons Rebelo de Sousa and PricewaterhouseCoopers Portugal.
Next – Gali Macedo & Associados is a multidisciplinary Firm with offices in Porto, Lisbon, and Brussels, and its primary areas of expertise encompass Immigration Law, Mergers & Acquisitions, and Foreign Investment. Tiago Gali Macedo also led a career as Professor at various universities, such as Lusíada University (Portugal), Oporto Business School (Portugal), and Baltimore University (USA). Following an academic path focused on fields such as Labor Law and Corporate Law [with a post-graduation in Labor Law (Portugal) and a 2nd Cycle at the Santiago de Compostela University (Spain), he is currently concluding his PhD at Salford University (UK). He started pursuing Immigration Law as a new area of expertise, being now one of his areas of proficiency, frequently as a panelist in some of the main Immigration events held worldwide.
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Transcript
This transcript was produced using AI and subsequently edited for style and clarity. The edits do not alter the substance of the speaker’s remarks
Mona Shah (0:59 – 1:07)
Rebecca, here we are, 2026, and Portugal is still one of the most popular golden visas out there.
Rebecca Singh (1:07 – 1:11)
Yeah, it’s been a hot topic for a while now, Mona.
Mona Shah (1:11 – 1:24)
I know. It’s interestingly, because since it’s been such a hot topic, but for since what, was it October 2023? They no longer have the property section, and yet it’s still so popular. Yes.
Rebecca Singh (1:24 – 1:35)
But, you know, we could talk on where it’s popular, who’s coming in. But I think today, Mona, we’re focussing on if it’s not a real estate programme anymore, what are we looking at?
Mona Shah (1:36 – 1:50)
Well, I know. I mean, I think that everybody still is fixated on the fact that it was 500,000 euro. But what I don’t think people realised was the fact that there was another option for 200,000, 250,000.
Rebecca Singh (1:50 – 2:09)
Yes. And I believe it is a donation route. But, I mean, we don’t want to just discuss it within ourselves, Mona.
We do want to welcome our guest speaker, who can give us a little bit more on this topic. We’d like to welcome back Tiago Gali Macedo. Welcome back, Tiago.
Tiago Gali Macedo (2:09 – 2:13)
Hi, Mona. Hi, Rebecca. Nice to be here again.
Mona Shah (2:13 – 2:45)
Oh, so great to speak to you again, Tiago. You are the knowledge of this area, so we do keep going back to you. But this particular route of 200, 250 is less than half the cost of the 500,000 fund, which is so popular.
And I believe that it is the cultural heritage donation. And what we really wanted to ask you, and this is something we’re just really going to put on the table, is that the blunt question, does cheaper money buy the same residence permit?
Tiago Gali Macedo (2:46 – 3:12)
Well, answering directly to your question, yes, it does. The issue was, even myself, I was quite surprised. And because before when real estate was one of the options, real estate took it all.
The winner takes it all. So you had 98% of investment was made directly on real estate.
Mona Shah (3:12 – 3:15)
Which was very popular. Which was very popular.
Tiago Gali Macedo (3:15 – 4:21)
Which was highly popular. The times of approval were great. Portugal was surfing.
I think the best programme at that time. I think by European pressure, Portugal, as you know, they began forbidding the investment or not accepting the investment in the real estate. And basically, you kept with the investments in funds and the donations for cultural heritage, revival, reconstruction, cultural events, cinema.
Well, everything that is attached to culture as a donation. And that went viral. It went viral.
Today is highly successful.
Mona Shah (4:22 – 4:36)
Wow. But what we really wanted to ask, and I think you and I both say, is it’s the same residence rights as every other qualifying route, right? The right to live, work, study in Portugal, everything the same.
Tiago Gali Macedo (4:36 – 5:04)
Yes, completely the same. Investing 500k in a fund or several funds and 200 or 250 as a donation, you have exactly the same permit with all the same benefits, all the same possibility to get to nationality, put RPR in the future.
Rebecca Singh (5:05 – 5:19)
So it’s all the same, except that the funds are lower for cultural. So you’re just looking at 200 to 250,000 euros donation and the fact that it’s a donation and not a return of capital.
Tiago Gali Macedo (5:20 – 6:07)
Yeah, it’s not a fund. The donation is made through or the state, there are several entities that can be the beneficiaries of those, well, promoters and beneficiaries of those projects. It can be from the state directly or it can be through foundations recognised by the Portuguese government.
So it’s them that receive the money, that issue a document that is the proof of investment and that permits you with, of course, the other all requirements to qualify to have a Schengen residence based in Portugal.
Rebecca Singh (6:07 – 6:29)
So, Tiago, I thought that was interesting of what you just said. Did you say that the funds, the donation goes to the state first before it actually goes to the cultural project? Do they make sure that the funds go to the right, I guess, body or programme?
Or does the programme actually get the funding themselves once they’re approved by the government?
Tiago Gali Macedo (6:30 – 6:51)
Yeah, that’s a very interesting question. And I’ll tell you the process for you to understand why does it have the supervision of the state.
Once the project is all prepared, they submit it to TPAC, that is an organisation from the Ministry of Culture.
Mona Shah (6:52 – 6:55)
Culture, yeah. And they vet and approve everything.
Tiago Gali Macedo (6:56 – 7:12)
Yeah, yes. So they will analyse it in detail. And once they analyse it in detail, they say yes.
So the state analyses first if it complies or not and makes a stamp of quality.
Mona Shah (7:13 – 7:33)
Okay. So, Rebecca, Tiago, what my understanding is, as what you’ve just said, Tiago, is that the state under the Ministry of Culture vets and approves all the cultural projects and the type of projects we’re looking at are artistic production, film projects, museum preservation, archaeological heritage restoration, that type of thing?
Tiago Gali Macedo (7:34 – 7:34)
Yes.
Mona Shah (7:35 – 7:49)
Yeah, okay. So the other question we have is that, well, 250,000 is the standard floor, as we understand. But we know that there are some projects and there are some areas where it’s only 200,000.
What’s the difference?
Tiago Gali Macedo (7:50 – 8:37)
The difference is in areas in Portugal where it is located the real estate or is located the cultural event or is located that quarters of the film that is being made. There are areas, mainly in the interior of Portugal, that they have less than 1,000 persons per hectare, the population density, or they have less than 75% of the average GDP of Portugal. It’s on those areas, it reduces to 200.
Mona Shah (8:39 – 8:43)
It’s a bit like the way we have the rural designation in the US, I would say, Rebecca, right?
Tiago Gali Macedo (8:43 – 8:44)
Exactly the same.
Rebecca Singh (8:44 – 8:47)
I was going to say, it sounds familiar.
Mona Shah (8:47 – 8:54)
But it’s not a capital contribution, right? It’s not a tax-deductible, charitable gift for either the US or in Portugal?
Tiago Gali Macedo (8:55 – 9:15)
It might be that if the tax authorities recognise it as a tax, it could be deductible. But more than that, I can tell you that will come in the near future, products that you can have the return on your donation.
Mona Shah (9:17 – 9:17)
Okay.
Tiago Gali Macedo (9:18 – 9:29)
I can’t say more. The first ones that are to know, but you are launching a product with several entities in the near future.
Mona Shah (9:30 – 9:32)
Oh, wow, we won’t tell anyone.
Tiago Gali Macedo (9:32 – 9:45)
It is not guaranteed that you’re going to get it back, but you might get back all the money that you invested. So we might be creating a programme and that is free.
Rebecca Singh (9:46 – 9:49)
Interesting. A lot to look forward to with the Portuguese programme.
Mona Shah (9:50 – 9:52)
Yeah, I know. And as I said, we promise you won’t tell anyone.
Tiago Gali Macedo (9:58 – 11:17)
And you will be also the first ones to know once it will come to the market, so you can analyse it because it’s a game changer in the industry. And it’s very interesting. Very interesting.
Because for instance, there’s something that’s, let me tell you just one thing that’s quite important, because one of the things that took longer on getting on the Portuguese programme was the opening of bank accounts. Because KYC in Portugal is a bloody mess. The banks were doing that organisation for these levels of KYC and what they made is they don’t have enough people and it takes a long time for the approvals.
And with this project, remember that first you can do directly the investment to the beneficiary, to the foundation. So you don’t need to open a bank account in Portugal. And second one, for instance, countries like India that you can export till 250k, they can make it in one year directly the investment.
Mona Shah (11:18 – 11:55)
No, it’s fantastic. And here’s the thing, though, we are seeing this trend now for cheaper passports and cheaper residencies. For example, we’ve been discussing Sao Tome and Nauru at 95,000.
Now, this being Europe at 200 and 250,000, you can see where the popularity is. But here I’d like to ask you, Tiago, what Rebecca and I have seen from clients who’ve called us and stuff is that the fund still dominates. Right, Rebecca?
Tiago Gali Macedo (11:55 – 12:06)
I don’t have the last month’s numbers, but I can tell you in the beginning the funds were dominating.
Mona Shah (12:07 – 12:12)
That’s what we’re seeing. They’re still dominating, even though it’s 300,000 more.
Tiago Gali Macedo (12:12 – 12:22)
It depends on the markets. If you speak about, for instance, the American market, the American market is still very much on the funds.
Rebecca Singh (12:22 – 12:48)
Yeah. Well, it’s interesting because, like you said, the donation is 200, 250 euros, whereas they don’t mind spending that additional funds, the additional 300 or 250 euros towards the fund. So and I think that’s because like at this point, you have the ability on the return of capital with the fund where you don’t have as yet in the cultural.
Mona Shah (12:49 – 12:55)
Right. And then the return of capital is also, Tiago, I’m going to ask you, have people received a return of their capital?
Tiago Gali Macedo (12:56 – 14:27)
Well, as you know, most of them are not yet ended their investment time period. So it’s not yet, but I think, of course, most of them will receive the invested amount and some of them with very good profits. But it depends on the funds that they invested.
Not all the funds are profitable. And, you know, with this economic crisis that happens, some of them, the volatilities is quite big in the market. So at the same time, there is quite always a risk to invest in a fund.
Well, like in the US or wherever you invest in a fund. Of course, it has the analysis and it’s under control of the security exchange committee, Portuguese ones, but it doesn’t guarantee that it’s profitable. It doesn’t.
Answering you, what I was saying is that we saw an emerging donation. And today, by number of applicants, I think it’s higher. It’s higher than the funds.
Of course, the amount is still lower because the amount of investment is much lower. But by number of investors, it’s higher.
Mona Shah (14:28 – 14:45)
I can still see, though, I mean, I’m torn between both. I don’t know what you both think, but if the fund can return capital and the donation never does, isn’t the cultural route really the more expensive option in disguise? You know, $200,000 versus $500,000?
Tiago Gali Macedo (14:46 – 15:42)
Yes, yes, except, in fact, if you can have the possibility of a return on it because you invest in cultural investments that have a return and the law doesn’t forbid it, then you could be talking about much lower entrance fee and the possibility of return. That, I think, it’s a bit of a hole in the system, especially for some countries that you have difficulty in terms of export of capitals and everything. Then the lower it is, the easier it is for them to be able to apply.
And, of course, the pyramid of investors is much bigger at $200,000 than at $500,000. That’s simple math.
Rebecca Singh (15:42 – 16:17)
I’m curious, Thiago, to see where that goes. I mean, you said that’s something that could come in. But at this point with the donation, the project gets approved by the government.
Let’s say you put your money in. However, what happens thereafter? Is there still oversight to make sure that the cultural project or film production, whatever it’s happening, that is still moving forward?
How do I know that my funds, the investors or the person who’s donating these funds, is being used to do what they said it was going to be used for?
Tiago Gali Macedo (16:17 – 17:13)
Okay, it’s a very good question. The government first analyses a project. Remember?
I told you so. Once they begin implementing the project on the renewal, GPAC controls that the money that was sent is being spent as the project was to guarantee that the investor won’t be armed by some crazy lunatic from the foundation that grabs the money and goes to Antarctica. That’s an issue that won’t happen by principle because on the renewal, GPAC will issue another document based on the foundation.
Mona Shah (17:13 – 17:21)
Tiago, let me ask you, are you saying that GPAC does some sort of oversight in the same way that we have SEC in the US?
Tiago Gali Macedo (17:22 – 18:19)
They need to re-approve upon renewal. The GPAC needs to certify that everything is okay and the money is being well spent. Of course, it doesn’t need to be by the cents because there are some changes on the project and everything.
There are some things that you can’t predict, but apart from it, they guarantee that the amount… They shouldn’t even do that because for the point of view of the investor, it’s a one shot investment. I make this investment, I’m done.
I already did it. If they want to run away with the money, it’s their problem. I did it to comply, you know.
But even so, the GPAC guarantees that that doesn’t happen and so there is still control by the state.
Rebecca Singh (18:20 – 18:29)
So does the investor, do they have to reapply them themselves for the permit and they have to show that the project is continuing or has…
Tiago Gali Macedo (18:29 – 18:53)
Yes, or continuing or completed or if it’s completed, you’ll have also the same if the rehabilitation is made or the cultural project is already done, then you just prove that it was done and the document is still the same upon renewals because the renewals are exactly the same renewals as you’d have for a fund investment.
Mona Shah (18:54 – 19:17)
Okay, so one last question for you, Tiago. So let’s say, you know, people listening are saying, I don’t want to do 500,000 and do the risk, I would rather do 200 or 250, but with the donation, obviously the money is gone the moment it lands, but how does an investor protect themselves on the cultural route and where have you seen or where is it likely that people may get burned?
Tiago Gali Macedo (19:18 – 19:22)
The possibility of being burned, it’s very reduced.
Mona Shah (19:22 – 19:24)
Very what? Why?
Tiago Gali Macedo (19:24 – 20:09)
Yes, it’s reduced, yeah, because it’s a one-shot investment. You did it and you complied with everything. Technically, GPAC, if there is a wrong misuse of the money, GPAC can control it and doesn’t have the meaning to say, no, you won’t be renewed because these gentlemen are not using the money as they told that they would.
No, in that case, GPAC will act against them, but the investor is protected towards it because what he needed to do, he already did.
Mona Shah (20:09 – 20:16)
Yeah, but Tiago, once your fund is given, there’s no refund mechanism once your money is already committed.
Tiago Gali Macedo (20:17 – 20:35)
Yeah, but the question is, it’s one shot and you don’t need to have your money back because I think you, in my opinion, you always can apply for the renewals because all of your requirements are being already completed.
Mona Shah (20:36 – 20:57)
OK, and then one quick question, last question, if what about where the donated funds are allocated to a specific project and then suddenly the GPAC or the government decides that that project really isn’t something they really want and they remove their authorisation or remove their permission to use that project, what happens to the investor’s funds?
Tiago Gali Macedo (20:58 – 21:47)
First, the state once approves, once he approves that, he can’t go back. And if the state does so, needs to indemnify the investor because of all the problems that he created, but then it’s a legal action against the state. But the state, well, so far didn’t never did it and it’s not possible technically to do it.
Once it’s approved, they approve that is good destination of the money and they recognise the entity that is promoting and being the beneficiary of the money as a serious and that will supply the investment.
Rebecca Singh (21:48 – 22:10)
OK, so Tiago, just to quickly wrap up and one sentence, if you can, to any of the investors that are listening right now and who wants a European foothold for their family and is weighing the 200,000 or 250,000 donation against the 500,000 at risk, what do you tell them?
Tiago Gali Macedo (22:11 – 22:40)
I would tell them go for it, especially if you can get a return upon the investment. You’ll get the same destination using less amounts of money and as risky as it could be a fund. So at the end of the day, this permits many people to be on the Portuguese programme that otherwise they wouldn’t be there.
Rebecca Singh (22:41 – 22:43)
So the lower amount, if you can get.
Tiago Gali Macedo (22:43 – 22:54)
The lower amount permits it and to have a Schengen residency for 200k, if you compare it with the Caribbean, I think that it’s quite interesting.
Mona Shah (22:56 – 23:08)
I agree. Let’s see how this works out. And Tiago, come back and discuss other issues with us.
But thank you right now for being a guest on Global Investment Voice.
Tiago Gali Macedo (23:08 – 23:22)
Mona, thank you very much. It’s a privilege to be here and to discuss with you these matters that I think are in the interest of all investors on the Portuguese programme and other programmes.