Portugal Introduces Cultural “Golden Visa” to Boost Art Acquisition
Portugal has recently passed a new law aimed at fostering private investment in the cultural sector. The law, announced by the Minister of Culture, Pedro Adão e Silva, includes the establishment of a Fund for the Acquisition of Works of Art for National Museums and Palaces, and the expansion of conditions for residence permits.
A Call for Private Participation in Culture
The law was designed to create a more favorable environment for private financial participation in culture. Pedro Adão e Silva noted a “very significant delay” in the area of cultural patronage in the country and called on private individuals to participate in culture, joining the “effort and responsibility of the State”.
Fund for Art Acquisition
The law proposes the creation of a Fund for the Acquisition of Works of Art for National Museums and Palaces. This fund aims to finance the acquisition of works of art by the State to “strengthen and value” these collections. The fund would be financed by revenues from appropriations allocated to it by the State Budget and by the proceeds of fees, contributions, or taxes allocated to it. It could also receive proceeds from inheritances, legacies, donations, and donations.
New Residence Permit for Cultural Investment
In line with the reinforcement of this fund, the law proposes the creation of a new residence permit for cultural investment ( ‘golden visas’), which is permitted under the option of “transfer of capital worth 250 thousand euros or more” that is applied to investment or support for artistic production or exhibition, recovery, or maintenance of national cultural heritage.
Match Funding
The law also provides for “Match Funding”, a concept that consists of an automated and complementary form of public or private financing. A public entity or a Foundation commits to finance, via non-refundable subsidy or donation, an activity or project registered on a crowdfunding platform, in an amount equivalent to a percentage of the funding that will be raised through the platform.
This new law represents a significant step towards encouraging private investment in culture and enhancing the cultural heritage of Portugal. It is expected to create new opportunities for both investors and the cultural sector.