Portugal Golden Visa: Full Details

May 19th, 2023 at 04:18 am

Portugal Golden Visa: Full Details

Portugal launched ARI/Golden Visa in October 2012 allowing third-country non-EU nationals to get a residence visa through property investment or commercial operations.  One of the world’s most famous residence by investment programmes, it grants Portuguese citizenship after five or six years

Portugal has received almost €6.5 billion in investment and 20,000 residency permits through the golden visa scheme. ARI/Golden visa property investments in Portugal average €565,000.

Portugal’s golden visa program is ending. Before the law takes effect in May/June 2023, late applications are considered. Fast-track hotel investment (280k euro refundable) in two weeks. Final shares. Contact us ASAP.

Benefits

• Explore Europe.
• Popular European property investment scheme
• Low residence requirements.
• Successful property investment
• Naturalize for citizenship after 5 years.
• No taxes until 183 days in Portugal.
• No language tests, interviews,
• European family immigration.
• Free travel in Schengen (Switzerland, Germany, etc.).
• After 5 years, get Portuguese PR.

From January 1, 2022, Portugal’s Golden Visa Decree Law No. 14/2021 makes significant adjustments. When the law takes effect, the minimum Golden visa investment for real estate solely in core districts is €500,000.

Valid investments

Portuguese golden visa investments include these.

1. Government bonds, Treasury securities: Capital transfer exceeding €1 million;
2. Portuguese bank deposits
3. Real estate property: Buying property worth €500,000 or more; Portugal grants a 20% discount (€400,000) for rural investments.
4. Real estate refurbishing: The purchase of real estate property with construction older than 30 years or in urban regeneration regions for refurbishment for a total value of €350,000 Euros or more;
5. Rural and Low-Density Areas: The Portuguese government grants a 20% discount (€280,000 euros) on properties in low-density areas (NUTS III level with less than 100 persons per Km2 or PIB per capita less than 75% of the national average).
6. Refundable Hotel Shares: Buy back shares worth at least €280,000 euros in four- or five-star hotel and resort developments (e.g. Hilton, Marriott) with a 3%-4% yield (completely repaid by hotel developer after 5-6 years).
7. Research & Technology: Capital transfer of over €350,000 for investing in research activities by public or private scientific research organizations in the national scientific or technology system;
8. Art, Culture, and Public Interest: Capital transfer of €250,000 or more for investing in artistic output or supporting the arts, for reconstruction or refurbishment of the national heritage, through local and central authorities, public institutions, public corporate sector, public foundations, private foundations of public interest, networked local authorities, local corporate sector organizations, local associations, and public cultural associations.
9. Investment funds: Capital transfer of €350,000 or more to buy shares in investment funds or venture capital that invest in small and medium firms with a viable capitalization strategy.
10. Employment: Create 10 jobs in
11. Investor family reunion: Family members of investors

Note: Portuguese, EU, and EEE nationals cannot apply for ARI/Golden Visas.

Investors will receive Portuguese residency permits after approval. Investments above €500,000 earn permanent residency cards for 5 years, while investments under €500,000 receive residence permits with 2-year extensions. Your Portuguese residency permit depends on your disposable income.

Fast-track application

Portugal Golden Visa applications till mid-June are valid. For last-minute investors, we provide a 2-week golden visa fast track in a boutique hotel investment. Investment:

• 280,000 euros (fractional share) in Boutique Hotel
• Exit Strategy—fully refundable after 5 years (assured by the developer)
• 4-6% yield
• Developer pays 2,500 IMT stamp duty/registration.
• VAT: paid by the developer
• EU citizen: Residence permit after 6 years

Amendment to article 75 of the Aliens Act by article 183 of Act n.o 2/2020, of 31 March – State Budget to 2020 in force since 01/04/2020 and to 2020 – makes the temporary residence permit for investment reasons valid for two years from the date of issue.

Resident permit

Citizens holding a residence permit for investment purposes and their family members who meet the requirements in Article 80 of the Aliens Act and want a permanent residence permit will be issued, exempt from the cancellation of the right due to absences from the national territory (see article 65-k o). Amendments to Ordinance 1334-E/2010 of December 31 may require study and issuing costs for the Permanent Residence Permit for investment.

Refusals

The authorities would deny the Golden visa;

• Absence of conviction for a Portuguese offense punishable by more than one year in prison; The petitioner is not barred from entering the country after being expelled;
• Schengen Information System-unlisted;
• Not listed in SEF’s Integrated Information System for non-admission under article 33 of the Aliens Act;

Golden visa fees

The following fees are payable to the Government and SEP (immigration office).

• Government Processing Feeb – € 513.75
• Initial investor residency permit – € 5173.60
• Renewal of residence permit – € 2,586.80
• Residence permit for family members – € 2,586.80
• Real estate transfer Tax 8% – € 28,964.75
• Financial Management and Fiscal Representation (0.5% per year) – € 2,500.-
• Real estate stamp duty 0.8% – € 4,000
• Property Transfer Service 1.5% – € 7,500
• Permanent residency application – € 350
• Citizenship application – € 250

Property taxes

If you buy a home in Portugal through the golden visa scheme, you have to pay these taxes.

• IMT (Immovable property transfer tax) = 1%-6%
• IMI (municipal tax paid annually) – 0.3-0.5% (urban), 0.8% (rural)
• Stamp duty – 0.8%
• Lawyer fee – 1%

Additional

• Capital gains tax – 25% (if you sell)
• VAT – 23% (included in price of new property developments)
• Rental income – taxed at 28%
• AIMI (Wealth tax) – 0.7% for individuals (only for properties above 600K euro) and 1% above 1M euro

For example if you invest 280,000 euros, following property taxes apply

Investment Funds

Portugal’s Golden visa program involves a financial transfer of 350,000 Euros or more to buy units of investment funds or venture capital firms that capitalize companies. Capital injected under Portuguese law, whose maturity upon investment, is

• At least 60% of investments must be in commercial firms and held for five years.
• National headquarters

Yields: When the fund finishes in 5-10 years, expect 3-5% returns.

Costs of subscribing to a Portugal investment fund:

• Subscription fee—1%-5%
• Annual fund management fee: 0.75% to 2.75% of fund value
• Legal fees
• Dissolving fund managers receive a success fee.

Bitcoin: We accept bitcoin and other cryptocurrencies for Portugal golden visa real estate investments.

Portugal Real Estate

• Chinese investors are driving up real estate prices in 2016. Lisbon, Madeira, Algarve, and Cascais flats and villas have increased 3.5% and 3.9% since January 2016. Lisbon costs €1260 per square metre, Algarve €1287, Madeira €1230. Lisbon rental returns 5%–6.8%. Lisbon rents 50m2 apartments for €500 per month at €8 to €10 per square metre.

Golden visa (GV) under real estate option requires EUR 350,000 investment in new Portuguese property. Portugal requires 7 days in the first year and 14 days in the next 2 years.

Residence Requirements

Portugal’s scheme doesn’t require residency. No minimum residence restrictions, however, you must remain in Portugal for 7 days the first year and 14 days the next 2 years. If you run a business in UAE, you may desire to stay there most of the time yet travel or live in Portugal without a visa. When you’re abroad, we manage property rentals. We deal with numerous Portuguese real estate developers (Lisbon, Porto).

Application process

Initial Golden Visa application steps:

• Getting a Portuguese Tax Number and Bank Account
• Send property investment capital to Portugal.
• Documents needed for Tax Number:

For the Tax Number obtainment, we need the required documents:

• Passport copy;
• Proof of address and job;

Regarding the Bank account opening, we would need the following documentation:

• Passport copy;
• Proof of address;
• Proof of employment;
• Tax Number (ID card) from origin and residency country;
• Portuguese Tax Number.
• Bank statement
• Tax Return
• Tax Number (ID card) from origin and resident nation; Portuguese Tax Number.
• Tax return

Once these steps are completed, you will be in a position to legally purchase a property in Portugal, and as soon as you provide the aforementioned documents, we are able to draft the necessary documents to be signed.

Regarding the procedure for purchasing a property, please note the following short comments:

• Usually, the sellers require a small payment (5-10%) to reserve a property and take it out of the market for a brief period (usually around 30 days).
• Within the next 30 days, it shall be:

Granted a deed of purchase and sale (which transfers property ownership to the buyer); If the public deed is not possible/convenient within 30 days, parties usually enter a promissory contract of purchase (which legally blocks the property to the buyer until the deed is granted).

Once the Golden Visa investment threshold is achieved you will be entitled to apply for the Golden Visa.

The Golden visa application itself is compressed of 3 main steps:

• Application (through the Immigration Office’s website, where scanned copies of the required documentation are uploaded);
• Pre-Approval: The Immigration Office will analyze and rule on the application submitted online. The pre-approval means that the Immigration Offices confirms the documentation is complete and valid, allowing you to move forward to the actual submission of the original documentation and biometrics collections (fingerprint scanning, digital photo and digital signature);
• Schedule of Appointment for Documentation Submission and Biometrics Collection (in person).

The required documentation is the following:

• For the Main Investor:
• Criminal Record;
• Tax Number from the country of origin or residence.

All the above documentation shall be translated into Portuguese (you can send us in English and we will translate it), issued no longer than 90 days when submitted to the Immigration Office, and duly legalized (certified by Local Authorities and either at the Portuguese Consulate or Apostilled).

All the Portuguese documentation (relating to the property and the investment) can be directly obtained by our firm.

The entire process takes between 4-9 months.

Non-Habitual Tax Regime

The Non-Habitual Residence Tax Regime (NHR) is often overlooked by HNW investors while taking up residence in Portugal through the Golden visa scheme.

This taxation scheme was introduced in 2009, with the aim of attracting talent and high-net-worth individuals. Portugal is a top choice for Ultra and High Net Worth Individuals who wish to take up residence in the European Union, according to PWC

In short, by becoming a Portuguese tax resident under the Non-Habitual Residency scheme, your income will be tax-free both in Portugal and in the income’s source country (example income from UK).

• Non-habitual residents will be exempt from Personal income tax (PIT) on salaries of a non-Portuguese source if such salaries were subject to tax in the country of source under an existing Double Tax Treaty or, if no Tax Treaty exists, were subject to tax in another jurisdiction and are not considered as Portuguese source income under domestic rules.
• Business and professional income of a non-Portuguese source relating to high-added value services of a scientific, artistic or technical nature, as well as from the intellectual or industrial property or industrial, commercial or scientific information, earned by non-habitual residents abroad are exempt from PIT provided such fees could have been taxed under an existing Double Tax Treaty or could have been taxed in another non-black listed jurisdiction in accordance with the provisions of the OECD.
• Rental income, investment income and capital gains of a non-Portuguese source obtained by non-habitual residents are also PIT exempt, provided the above-mentioned conditions are met.
• Pensions paid abroad to non-habitual residents are also PIT exempt if such pensions were subject to tax under an existing Double Tax Treaty or if the pension should not be considered as obtained in Portugal and related contributions did not allow a PIT deduction in Portugal.
• Under the non-habitual residents tax regime, MNC’s will have a major advantage in placing their centres of excellence in Portugal, for example, their R&D departments, and Portuguese companies will have a significant stimulus to attract the best talent.
• UHNWI’s are able to accrue their wealth in a white-listed friendly tax environment, to dispose of their assets benefiting from tax exemptions, pass on their wealth or estate without inheritance or gift taxes and/or enjoy their retirement without tax leakage on their pensions.

All nationalities including EU/EEA nationals can qualify for this NHR scheme. Anyone who has not been a tax resident in Portugal during the preceding five years and takes up residence in Portugal is eligible to participate in this scheme. Becoming a Portuguese tax resident requires residing in Portugal for at least 183 days in a 12-month period.

A person who does not fulfill this requirement can still be considered a tax resident in Portugal if he has a home in Portugal that is intended to be his permanent residence.  Ownership of a home and residency status can be easily obtained by purchasing a property for 350K euros through the existing Golden visa scheme in Portugal.

The NHR status is issued for ten year period is not extendable. For ten years, the migrant can profit from advantageous tax rates. The migrants’ Portuguese-sourced income will be taxed at a flat rate of 20% if the income is derived from ‘high-value activities’, while many forms of foreign source income (including foreign source pensions) are exempted from taxation. Moreover, Portugal does not impose wealth taxes.

There are no wealth tax or capital duties in Portugal. An inheritance or gifts received by a spouse, descendant, or ascendant is tax-exempt.  capital gains from the sale of securities will be subject to tax in Portugal, currently at a flat rate of 28%.

Permanent residence: After five years of legally living

Portugal citizenship

Under the requirements set out by the Nationality Act (Act number 37/81 of 3 October) after 5 years, it is possible to naturalize for a Portugal passport and citizenship.

What differentiates Portugal from other golden visa programs is – You don’t need to permanently live in Portugal to file your citizenship application after five years, but you will need your A2 Portuguese language proficiency.  This is the only golden visa program that offers citizenship without living.

Portugal Passport

Portugal has the fifth most powerful passport in the world with visa-free travel to 186 countries in 2018 (UK, Ireland, Canada, United States etc..)

Visa-free travel

The ID card (residence permit) issued by Portugal allows you to travel to all 26 Schengen countries including Switzerland and a maximum stay of 90 days in 180 day period allowed in combined in all EU member states. Non-EU citizens cannot visit the UK using the Portuguese residence card (will need a separate visa). You may also visit other non-Schengen EU countries such as Croatia, Romania, Cyprus, Bulgaria, Montenegro etc. using the EU residence permit issued by Portugal for stays up to 30 days.

Taxes

As long as the investors do not stay more than 180 days per year in Portugal, no taxation applies (except a slight property tax).

Documents required

The basic documents needed are:

• The application
• Passport
• Proof of legal entry into Portugal
• Proof of health insurance
• Criminal record certificate from the relevant authority of the applicants home country or from any other country where he/she resided for over a year
• Signed application enabling consultation of the Portuguese Criminal Records by SEF
• Proof of the fulfillment of the requirements

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