Italy vs. Portugal Golden Visa: best Residency by Investment program?

Among the European countries that offer residency by investment programs, Italy and Portugal are the most popular. At High Net Worth Immigration, we regularly receive emails from numerous clients who wish to choose one of these two countries.

Portugal has recently introduced major reforms to its nationality law, whereas Italy's Investor Visa has remained largely unchanged since 2017, standing out as a stable and predictable framework.

But in terms of asset protection, global mobility freedom, and tax optimization, which program is truly more strategic in 2026?

What's the investment and risk situation like?

Portugal is a popular European country offering a residency by investment program.

Portugal's two main options right now are: investing €500,000 in an approved fund, or donating €200,000 to cultural projects.

If you choose the fund option, your money stays locked for 5 to 6 years with market risks and management fees. If you choose the donation option, you do not get the money back.

The biggest risk is that you must send the full amount before your residency gets approved.

Italy offers residency by investment at a lower cost through four simple choices: investing €250,000 in a tech startup, €500,000 in a company, donating €1 million, or buying €2 million in government bonds.

There is a big difference here. Italy is the only country in Europe with a "Nulla Osta" pre-approval process. This means you apply and wait for government approval first, without spending a single euro. You transfer your money only after your visa is officially approved. This removes all risk of losing your money if your application gets rejected.

Which one is faster? Italy or Portugal?

Paperwork delays can ruin an entire strategic plan.

Portugal's residency by investment program is currently suffering from a huge backlog. It usually takes 12 to 18 months just to get the residency card. Under the new 2026 laws, citizenship process does not even start until the card is actually issued, which adds years of wasted time to the whole process for getting your European passport.

For Italy, speed is the main advantage here. Applicants get legal priority at the consulate, and the pre-approval (Nulla Osta) comes in just 30 days. The whole process, from the first application to getting the physical residency permit, often takes less than 4 months. Sometimes, the visa is stamped on the exact day of your consulate appointment.

Physical Presence Requirements and Tax Options

In Portugal, you must stay for at least 7 days a year (or 14 days every two years) to keep your visa active. Although this requirement is low, you still have an obligation to visit the country.

In Italy, there is no minimum physical presence requirement at all. As long as your investment stays active, you can keep your residency permit indefinitely without spending even a single day in the country.

On top of this, Italy offers an optional lump-sum flat tax scheme. If you choose to spend more than 183 days in Italy and become a tax resident, you can pay a flat fee of €300,000 per year to cover all your foreign income, assets, and capital gains for up to 15 years.

For someone with millions of euros in global income, this reduces the effective tax rate to a tiny fraction compared to the US, the UK, or traditional EU countries.

Which country is better for getting citizenship? Portugal or Italy?

In May 2026, Portugal made a major change by increasing the time needed for naturalization from 5 years to 10 years for most non-Portuguese speaking nationalities. However, one big advantage still remains: staying in the country for just 7 days a year still counts toward this timeframe. This means you can get an EU passport within a decade without living in Europe permanently.

Italy also requires 10 years of legal residence for citizenship, but the conditions are strict: physical presence is required. The "zero presence" option will maintain your residence permit, but the citizenship countdown will not start unless you live in Italy for at least 183 days a year and register with the local municipality. In short, Italy offers a true lifestyle and mobility option, not a shortcut to a passive passport.

Italy vs Portugal : Which Residency by Investment Program is more strategic for you?

If your main goal is to get an EU passport passively, choose Portugal. Even though the timeframe has been increased to 10 years, Portugal is still the only EU country where spending just one week of holiday a year counts toward naturalization. This makes it ideal for those who want an EU "backup plan" without disrupting their current life or business in the US, Asia, or the Middle East.

If you want immediate access to 27 European countries while avoiding Portugal's bureaucratic delays, Italy might be the best residency program for you. Combining a €250,000 startup pathway protected by Nulla Osta, zero physical presence requirements, and an attractive €300,000 flat tax option, Italy has become the most compelling "Plan B" for wealthy entrepreneurs, crypto natives, and global citizens.

In 2026, as other doors across Europe are closing one by one, Italy's window remains wide open as the continent's most sophisticated, capital-protected, and tax-efficient residency framework.