PORTUGAL
PORTUGAL
Launched in 2012, the Portugal Residency (Golden Visa) is one of Europe’s most popular schemes, given its flexibility and benefits. An investment of €500,000 in Portuguese real estate allows an investor to gain a residency permit (Golden Visa) for his/her family, including dependent children.
Portugal is located in Western Europe, with a warm Mediterranean climate and low living costs. It is a member of the European Union, the Eurozone, OECD, NATO, WTO, UN and the Schengen Area. 90% of Portuguese people are bi-lingual, with many speaking English.
Portugal has extremely affordable living costs, and, according to a recent survey carried out by the World Economic Forum (WEF), is the seventh-friendliest country in the world.
To qualify for the Portuguese residency, the applicant must either
Option 1:
Make an investment of €500,000 in real estate in Portugal:
The real estate, either residential or commercial and can be rented for income, but cannot be sold off. Any number of properties can combine to make up the €500,000 minimum investment. Joint buyers can pool investments into one property. The property can be mortgaged for any investment exceeding the minimum amount. Applicants are not required to live or stay in Portugal permanently. However, they are required stay in Portugal for at least 7 days in the first year, and for at least 14 days over the subsequent 2 years.
Option 2:
Purchase a property constructed over 30 years ago, or located in an area of urban regeneration, with the intent of refurbishing it, for a minimum of EUR 350,000. The EUR 350,000 threshold includes not only the property’s price, but also the investment in the refurbishment works. Applicants can apply for permanent residency after 5 years, and Portuguese citizenship after 6 years. There is no residency requirement during this period. For citizenship, one must pass a basic Portuguese language test. Once the applicants have obtained their permanent residency or citizenship, they are then free to sell their investment.
Basic Steps In The Application Process
The applicant needs to have made the investment prior to applying for the visa.
Completing the property purchase takes 1 – 3 months. Completing the visa application then takes another few months. Once a property has been selected, our lawyers will handle the application process, the negotiation and legal work for the property.
A typical application involves an initial discussion with us, followed by a 3 -7 days’ visit to the country to view properties, meet with lawyers, open a bank account and visit the immigration centre for biometrics. After this, the application can be processed within Portugal by the clients’ lawyers.
Residency permits are couriered to the clients at a later date.
FEES
Government fees per family member for an application for the Portuguese golden visa are €5,147.80. Renewal fees apply every two years at 50% of those rates. In addition, there is a processing fee of € 514.80 for the main applicant, plus € 80.20 per family member, for an application or a renewal. Lawyers’ fees are typically €4,000 – €5,000 per family.
Buying real estate in Portugal attracts certain taxes, stamp duty and fees in the range of 9%-10% in total, the main element out of all of these being Property Transfer Tax (IMT).
Our experienced consultants and immigration lawyers will manage the entire application process with document preparation and validation and all government formalities. We partner with the best real estate developers and agents and will arrange for the client to view the properties and get the best possible investment opportunities. Please contact us and our team will be delighted to assist you.
To qualify for the Portuguese residency, the applicant must either:
1) Make an investment of €500,000 in real estate in Portugal:
Or:
2) Since 2015, there is a new option for Property Acquisition:
The purchase of a property constructed over 30 years ago, or located in an area of urban regeneration, with the intent of refurbishing it, for a minimum of EUR 350,000.
The EUR 350,000 threshold includes not only the property’s price, but also the investment in the refurbishment works.
Applicants can apply for permanent residency after 5 years, and Portuguese citizenship after 6 years. There is no residency requirement during this period. For citizenship, one must pass a basic Portuguese language test.
Once the applicants have obtained their permanent residency or citizenship, they are then free to sell their investment.
Qualifying family members include spouses and all children under the age of 18. Children aged 18 and over qualify if they are financially dependent on the main applicant. Dependent parents may also qualify, depending on the circumstances.
Investors will only be taxed on their worldwide income if they are resident in Portugal for over 183 days during any calendar year. However, Portugal has a very favourable tax regime for anyone who is considering living in the country. No taxes are charged your on overseas income for the first 10 years. For non-resident individuals, tax is charged at 28% on income generated in the country. This can be reduced with expenses for rental income. Capital gains tax is charged at 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 are a range of exemptions.
The standard rate of corporate tax is levied at 25%, and the standard rate of VAT currently being applied is 23%.
Other requirements: 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.
Our experienced consultants and immigration lawyers will manage the entire application process with document preparation and validation and all government formalities. We partner with the best real estate developers and agents and will arrange for the client to view the properties and get the best possible investment opportunities. Please contact us and our team will be delighted to assist you.
