Portugal is traditionally friendly, it has a world class road and airport infrastructure network that allows for country wide quick and comfortable access.
The private and state hospital and medical care systems have full country coverage, being duly equipped and assisted by highly qualified and experienced professionals.
With a very mild Mediterranean climate, winters are never too severe nor are summers excessively hot.
What is the Golden Visa and who is it for?
Portugal has approved a special legislation designed to attract foreign investment in the country, by offering a fast way for property investors (non EU citizens) to receive a residence permit, making it a privileged entry into Europe and allowing such permit holders free circulation in Schengen countries (Germany, Austria, Belgium, Denmark, Slovakia, Estonia, Spain, Finland, France, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Norway, Czech Republic, Holland, Poland, Portugal, Sweden and Switzerland).
Furthermore, Portugal not only has attractive tax legislation for high income earners wishing to become non-permanent residents in the country, but there is also no inheritance tax for immediate family members.
Among the qualifying investments for the Golden Visa are those which involve the transfer of funds of 1,000,000 Euros or above, the creation of a minimum of 10 jobs or the acquisition of property in the total amount of 500,000 Euros or above.
Investments in real estate extend to include the following:
- Acquisition of one or more real estate assets in the total amount of 500,000 Euros or above;
- Acquisition of property for commercial or housing purposes;
- Property acquired on a co-ownership regime, provided that each co-owner has made an investment of a minimum of 500,000 Euros;
- Properties acquired free of any charges or mortgages representing a minimum investment of 500,000 Euros;
- Rented properties;
The residency permit is granted for a one-year period, twice renewable for two successive years subject to investment maintenance and permit holder’s stay in Portuguese territory for 7 days in the first year and 14 days in the following two-year periods.
The permit can be extended to the investor’s family, with the possibility of permanent residency at the end of the initial five-year period.
The current Golden Visa regime places Portugal as the most competitive country in the awarding of residency permits for investment purposes when compared with countries offering similar programs.
What types of investments are allowed under the Golden Visa rules?
The following types of investment qualify for the Golden Visa programme:
a) Acquisition of property in the amount of or greater than € 500,000
b) Transfer of funds above € 1,000,000 or more
c) Creation of at least 10 (ten) jobs in Portugal
Specific characteristics for each type of qualifying investment
Each type of qualifying investment has specific characteristics, as follows:
(a) Property Acquisitions
– Minimum investment of € 500,000
– Purchase of one or multiple properties
– All property types qualify
– Possibility of co-ownership;
– Freedom to use, rent or lease
(b) Transfer of Funds
– Minimum investment of € 1 million
– Funds transferred from abroad to a bank in Portugal
– Total freedom to invest the funds
– Possibility of using the funds to invest in shares of companies
(c) Job Creation
– Creation of a minimum of 10 jobs
– No minimum investment value
– No limitation on areas/activities
– Compliance with Social Security obligations
– Possibility of grants/incentives/benefits
Advantages of the GOLDEN VISA Programme?
The Golden Visa Programme will provide investors with the following advantages:
– No need to obtain a visa to enter Portugal
– No need to obtain a visa to travel in Europe (Schengen area)
– Living and working in Portugal, even with residency in a different country
– Residency extended to family members
– Extremely low minimum stay periods
– Permanent Residency after 5 years
– Citizenship after 6 years
Golden Visa to family members
Under the Golden Visa Programme, the investor’s family members may also apply and obtain a resident permit from Portugal by applying for “family reunion”. The Golden visa will be extended to family members, namely children, spouse and dependent family members.
The family members will also be eligible for Permanent Residency after 5 years Portuguese Citizenship after 6 years.
Documents the investor need to provide to apply for the Golden Visa
The application for the Golden Visa implies that the investor will have to submit the following documentation:
– Proof of Investment
– Passport & Valid Schengen Visa
– Portuguese Fiscal number
– Criminal Record from country of residency
– Portuguese Criminal Record
– Declaration from the Tax Department proving the absence of debts to the Tax Authorities
– Declaration from Social Security proving the absence of debts to Social Security Authorities
– Declaration from the investor confirming compliance with the investment requirements
– Health Insurance valid in Portugal
– 2 passport-type pictures
Costs to obtaining a Golden Visa
The Golden Visa involves payment of the following fees (payable directly to the Services of Foreigners and Borders (“SEF”)):
a) Processing fee (application and renewal) – €513,75 (plus € 80.04 per family member)
b) Initial Golden Visa- € 5,137.50
c) Initial Golden Visa for Family members- € 5,137.50
d) Renewal of Golden Visa – € 2,568.75
The application is submitted at the Services of Foreigners and Borders (SEF), it will take around 3-4 weeks for the application to be processed (please note that this is just an estimate based on our recent experience).
Once the application is processed, the Services of Foreigners and Borders (SEF) will contact the investor or the investor’s legal representatives in Portugal and set up an appointment with the investor (and family members) to collect signature and fingerprints.
It should be noted that in some cases, it is possible for the investor to go to the immigration services to leave the fingerprints and signature shortly before the investment and/or submission of the required documents.
Golden Visa can be refuse or not renewal
The investor (or any family member) will only be refused the Golden Visa (or its renewal) if:
a) He/she has not maintained the investment for the minimum period of 5 (years)
b) He/she has not complied with the minimum periods of stay in Portugal
c) He/she has been convicted of a crime punishable with a prison sentence of more than one year
d) The investor is in a period where he/she has been banned entry into Portuguese territory following a removal measure of the country
e)On the grounds of public health (this may only be based on diseases that have been defined by the World Health Organization or other infectious or parasitic contagious diseases which are the object of protection measures in Portuguese territory)
f) A Golden Visa may be refused on the grounds of public order, public security or public health
The investor can sell the property / transfer the money to another country/extinguish the job positions, the investor only needs to hold the investment during the Golden Visa’s validity period – 5 years.
The investor does not need to occupy the property and it can be rented out to obtain income.
Taxes and costs for property acquisitions
There are three taxes in Portugal related to property:
a) Payable with the property’s acquisition:
– “IMT” or Property Transfer Tax”, which is the tax on transfer of ownership of property
– Stamp Duty.
b) Payable on an annual basis:
“IMI” or Council Tax, which is the annual municipal property tax; it is levied between 0.3% and 0.5% on the property’s tax value.
Taxes payable before completion of purchase
Stamp tax of 0.8% on the price of the property. Regarding the IMT (Municipal Property Transfer Tax), is below.
Definition of stamp duty is charged on a variety of contracts, documents and deeds and have variable rates.
Definition of IMT: is a tax payable each time there is a transfer of property holders.
IMT (*) Municipal Property Transfer Tax
Values practiced in Portugal
- Rustic plot 5%
- Other (building lots, offices, ..) 6.5%
- Houses and Apartments as follows:
Second Housing / Non-Residents
|Atheist € 92,407||1||——|
|Two até € 92,407 € 126,403||2||€ 924,07|
|Two arteries € 126,403 € 172,348||5||€ 4.716,16|
|Two até € 172,348 € 287,213||7||€ 8.163,12|
|Two arteries € 287,213 € 550,836||8||€ 11.035,25|
|Above of € 550,836||6||——|
With the Golden Visa the investor doesn´t need to pay taxes in Portugal on his worldwide income, because to hold the golden visa does not stay in Portugal form more than 183 consecutive days, he/she will not be required to pay taxes for income generated outside of Portugal.
Rental income and income arising from capital (e.g. interest, dividends, etc) will be taxed at a rate of 28%.
Income tax in Portugal
- Income for residents and non-residents = 28%
- Of capital gains tax for residents = progressive tax (10.5% and 42%) in 50% of capital gains (sales – purchase price – deductible expenses [IMT, records, …]).
- Capital gains tax for non-residents = 28% capital gain (sale – purchase price – deductible expenses [IMT, …])
Relevant information to investors about the Gold Visa / Golden Visa
There are more details, but they are techniques and law decree become very complex, since the translation of foreign language requires too much attention issues.
Full Service for acquiring Visa Gold
We in collaboration with a team of lawyers specializing in the residence permit has at its disposal a complete service for the acquisition of ARI – Visa Gold – Residence Permit.
We will help the investor to handle the entire process, informing and clarifying any questions.
We have luxury properties in the Algarve in luxury resorts.