Portugal

The Portugal Golden Visa is a golden visa program by the government of Portugal.

It also grants residency in Portugal to people who invest in properties worth at least €500,000, create 10 jobs in Portugal, purchase of property built over 30 years ago or located in areas of urban renovation worth more than €350,000, €250,000 investment in artistic production or national natural inheritance and others too.

This scheme began in 2012, and by September 2018 has been credited with investments of over 4 billion euros from over 6500 persons, which is really huge.

As of January 2016, Portugal’s Real Estate Professionals and Brokers Association reported that 80% of the 2,788 people who had been issued a Golden Visa are Chinese nationals. The next-most-common countries in the program were Brazil, Russia, South Africa, and Lebanon, 

✓ PROGRAM OVERVIEW

The Portugal golden visa program offers you a real estate investment route to gaining residency and potential citizenship in the country and hence European citizenship. It was launched by the Portuguese government in 2012 to encourage investment into Portugal and has since encouraged several billion Euros in real estate investment and over 2,000 family applications each year.

✓ INVESTMENT

An investment of €500,000 is required in real estate in Portugal. The property, either residential or commercial, can be rented for income purposes. Any number of properties can combine to make up the €500,000 minimum investment. Even joint buyers can combine investments into one property. The property can be mortgaged for any investment exceeding the minimum. A lower investment amount of €350,000 is possible for properties to be renovated, however, clients should be aware of the practicalities of such investment.

✓ PROCESS

The applicant has to have made the investment prior to applying for the visa. Completing the property purchase takes minimum 1 to 3 months. Completing the visa application then takes another few months. Once a property has been selected through ourselves at La Vida, the lawyers who we recommend can take care of the application process, conveyancing and legal work for the property. A typical application involves initial discussion with ourselves followed by a 3 or 4-day visit to view properties, meet with lawyers, open a bank account and visit immigration for biometrics. The application after this point can be processed within Portugal by the clients’ lawyers. Provided everything is done correctly at this stage the client will not need to visit again to collect the residence permits.  Read more on our process for Portugal golden visa applicants or contact our consultants.

✓ REQUIREMENTS

In addition, to the real estate investment applicants will need a clear criminal record and medical insurance to cover any stay in Portugal. Applicants will need to maintain their investment spending one week in the first year and two weeks every two years in Portugal in order to renew the residency visa.

✓ FEES

Government fees per family member for application of the Portugal golden visa are €5,147.80. Renewal fees every two years apply at 50% of those rates. And also, there is a processing fee on application and renewal of € 514.80 for the main applicant plus € 80.20 per family member. In addition, applicants need to plan for lawyers’ fees, typically €4,000 – €5,000 per family but, it can change too.

Buying real estate in Portugal also attracts certain taxes, stamp duty, and fees, many more other things too. We recommend investors budget for around 9%-10% in total, the main element being Property Transfer Tax (IMT).

✓ FAMILY

Qualifying family members include spouse and all children under 18. Children who are 18 and over can qualify if in full or part-time education and dependent. Parents aged 66 and over also qualify without the need to prove dependency. Under some family circumstances, it is preferable to reverse the investment to ensure everyone qualifies for the Portuguese golden visa.

✓ TAX BENEFITS

The golden visa programme in Portugal offers excellent tax benefits for those becoming resident. Investors will only be taxed on their worldwide income if they are resident in Portugal for over 183 days in any year. Portugal has a very favorable tax regime for anyone considering living in the country. No taxes are charged on income for the first 10 years.

For those non-resident individuals, the tax is charged at 28% on income derived in the country. This can be reduced with expenses for rental income. Capital gains tax is 28% and there are allowances for costs and depreciation.

 There is no inheritance tax in Portugal. Annual property taxes (IMI) can vary between 0.3% and 0.8% of the property valuation, but there is a range of exemptions.

✓ LIVING AND WORKING

Applicants deciding to live full time in Portugal will require medical insurance. However, families will have access to all public services including state medical care and schooling. State schooling follows the Portuguese curriculum but there are many English international schools also. Applicants also have the right to work in Portugal and set up a business there.

✓ TRAVEL

Gaining visitor visas to travel to Europe and the Schengen zone has become problematic from many countries in the Middle East, Asia, and Africa. Once granted the Portuguese residence permit allows freedom of travel throughout the EU Schengen zone. Applicants need to simply renew the golden visa to maintain this.

✓ CITIZENSHIP AND PASSPORT

Applicants can apply for permanent residency after five years and Portuguese citizenship after six years. For citizenship in Portugal, there is a basic language test to pass and applicants by that stage will need to demonstrate links with the country. We can advise on this. Once applicants have either permanent residency or citizenship then they are free to dispose of their investment as further golden visa renewals are not necessary.

WHAT ARE THE BENEFITS?

Applicants gain the right to live in Portugal although there is no requirement to do this. There is a very favorable tax regime for those who do. With the residency card, all family members will have the freedom to travel to and throughout the EU Schengen visa zone with ease and without further visa applications. Eventual passport holders gain European residency, meaning the ability to live, work, study and travel freely anywhere within the European Union and a good lifestyle too.

Acquisition of a Real Estate property in the minimum amount of € 500.000,00 (five hundred thousand Euros);

Under these possibilities, in order to obtain a GV, one must invest by acquiring real estate for the minimum purchase price of € 500.000,00, being possible to acquire several properties as long as the investment totalizes the aforementioned sum.

Applicants Will Have To Meet The Following General Requirements:

• Keep the investment for a minimum period of 5 (five) years;
• Funds for investment should come from abroad;
• Entry in Portugal with a valid Schengen visa;
• An absence of references in the Portuguese Immigration and the Schengen services;
• An absence of conviction of a relevant crime;
• Minimum stay in Portugal: 7 (seven) days during the first year and 14 (fourteen) days during each subsequent period of two years.

Applicants Will Also Have The Following Specific Rights:

• Possibility to purchase one or more of multiple properties;
• All property types qualify;
• The possibility of co-ownership;
• Freedom to use, rent or lease.

Transfer of capital from abroad in the minimum amount of € 1.000.000 (one million Euros);

Creation of a minimum of 10 (ten) permanent jobs in Portugal.

EXPENSES

Apart from the legal fees charged by our Law Firm (to be requested directly), the GV involves the payment of the following fees, which are payable directly to the Services of Foreigners and Borders (“SEF”):

SCHENGEN SPACE

The Schengen Space is a group of 26 European countries that have abolished passport and immigration controls at their common borders. The Schengen Space includes the following countries: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, The Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland.

Permanent Residency

Foreign Citizens (From Outside The EU) May Apply For Residence In Portugal On On Of The Following Grounds:

• Independent Employment
• Dependent employment
• Corporate activity
• Family regrouping
• Studies

The Following Criteria Have To Be Met In Order To Be Able To Apply For Temporary Or Permanent Residency In Portugal:

• An absence of a conviction of relevant crime during the last 5 (five years);
• Proof of income/financial independence;
• Proof of accommodation in Portugal.

There are also specific criteria according to the grounds on which the application in submitted.

Our services include the gathering of all the forms and documents required for such purpose, establishing all the required communications as well as accompanying the client before the Portuguese Authorities, necessarily including the Services of Foreigners and Borders (“SEF”).

Temporary Residency

Foreign Citizens (From Outside The EU) May Apply For Residence In Portugal On On Of The Following Grounds:

• Independent Employment
• Dependent employment
• Corporate activity
• Family regrouping
• Studies

The Following Criteria Have To Be Met In Order To Be Able To Apply For Temporary Or Permanent Residency In Portugal:

• An absence of a conviction of relevant crime during the last 5 (five years);
• Proof of income/financial independence;
• Proof of accommodation in Portugal.

There are also specific criteria according to the grounds on which the application submitted.

OTHER DETAILS:

Capital: Lisbon

Other Language: English, French

Government: Republic

Monetary Unit: Euro (EUR – EU’s single currency)

Monetary Unit: Euro (EUR – EU’s single currency)

Health & Welfare : 
Comprehensive social insurance including maternity leave, unemployment benefits, old age pensions, disability and survivor benefits, 100% paid medical and pharmaceutical expenses.

Economy & Jobs : 
Agriculture, forestry, fishing, mining, manufacturing, construction, and tourism.