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The Portuguese Golden Visa
Some Key Points
On 9 October 2012 the Portuguese Government launched its Golden Visa Programme in a bid to attract foreign investment and boost the economy. Since then foreign citizens and their families wishing to enter and reside in Portugal have been able to do so under a Golden Visa/Golden Residence Permit programme.
With a Portuguese ‘Golden Visa’ visa / residency permit, the investor and their families will have access to the 25 other European statesin the Schengen area, including France, Germany, Spain, Italy, Switzerland and Sweden.
The Golden Visa programme is a simple, fast track process for foreign investors from non-EU countries to obtain a fully valid residency permit in Portugal (“Golden Visa”), and an easy route to becoming a full Portuguese passport holder with free access to live and work in Europe – for the family: spouse, children and parents. In order to be eligible for the Program, the investor must make an investment in Portugal, in one of 3 ways: Capital transfer with a minimum value of 1 million Euro (e.g. bank deposit, acquisition of financial assets) Acquisition of real estate with a minimum amount of 500,000 Euro Incorporation of a company with at least 10 new job positions The investor must commit to maintain the investment for a minimum period of 5 years and must not have any previous criminal record in the Schengen Area or in the country of origin.
After being a resident for five years, applicants are entitled to Portuguese passports and permanent residency for themselves and their dependents. Only seven days per year are required to be spent by the investor in Portugal. The type of investment may be changed during the investment period (e.g.: initial deposit is then used to acquire property or to set up company that creates jobs). The real estate acquired may be leased, generating revenues to the investor.
Why Portugal? Favorable Tax Conditions With its exceptionally attractive fiscal benefits, some bigger accountancy firms say Portugal is fast becoming the most interesting destination in terms of tax planning. The new tax incentive scheme by the Portuguese Government allows individuals to become tax residents in Portugal and benefit from zero tax on foreign income.
Non-habitual residents tax regime This special tax regime is applicable to individuals who have not been considered and taxed as tax residents in Portugal in any of the previous 5 years. The main features of the regime are: Flat tax rate of 20% on employment and business or professional income arising from a Portuguese source derived from “high added-value� activities of a scientific, artistic or technical nature. Such activities include Board members of certain companies and senior employees Employment income from a foreign company may qualify for an exemption, if taxed abroad. For business and professional income, capital gains, rental income and investment income, the exemption may be granted if the income may be taxable in the country of source (in accordance with tax treaty provisions) Pension income may be fully exempt for foreign pensions (regardless of effective taxation abroad or right to tax in the source country)
Inheritance & gift tax Portugal has a very favorable inheritance & gift tax regime: Certain assets and rights are not taxable based on territoriality rules Full exemption for spouse, ascendants and descendants (except the 0.8% stamp duty levied on gifts of Portuguese real estate) Taxation at a rate of 10% whenever the exclusions and exemption are not applicable
Wealth taxes Portugal does not have a wealth tax, except some minor taxes on real estate (up to 0,8% annual municipal property tax, plus 1% stamp duty in case of residential property with a tax value exceeding 1,000,000 Euro).
Why is this a Good program? The living requirements is only 7 days a year! Government just passed new legislation for fast processing of GV Easiest and cheapest route to a new passport One of the strongest passports in the world
INVESTMENT OVERVIEW
Real Estate Investment Taxes Stamp Duty Notary Fees
500,000 € 289,64 € 400,0 € 200,0 € 150,00 € 549,964 €
Golden Visa Application Fees (for a family of 4) Renewals (for a family of 4)
205,92 € 308,88 €
Total Cost Yeary Yield Property Value Gain Cost To Sell Real Estate After 5 Years Net Gain Your Overall Costs
601,444 € 100,000 € 600,000 € 300,00 € 685,56 € NONE!
GOLDEN RESIDENCE PERMIT PROGRAMME(ARI) l data from the 08th of October 2012 to the 31st of December 2016
4202 Residence permits for pursuing investment activities (ARI) 2012 - 2 2013 - 494 2014 - 1526 2015 - 766 2016 - 1414
6637
Residence permits to family members (family reunification) 2013 - 576 2014 - 2395 2015 - 1322 2016 - 2344
Total investment
2.567.176.944,62€ 251.449.595,62€ by capital transfer 2.315.727.349,00€ by purchasing a real estate property
ABOUT US PortugalProperty.com速 provides both home sellers & buyers with a totally innovative Portugal Property solution. PortugalProperty.com速 contains a wealth of information to help you learn more about buying & selling property in Portugal. We are the Largest Portugal Property agency in the country with offices throughout Portugal. We have many years experience in the property market in Portugal. We are a one-stop Property shop, and will meet all of your requirements when it comes to purchasing property in Portugal. If you are looking to buy a beautiful holiday home, a Portugal property investment or a buy-to-let, Portugal Property has the very best selection of properties available throughout all the regions of Portugal. You need look no further than PortugalProperty.com速
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Developers You will find that some agents are happy to include all developments in Portugal to their property portfolio, without carefully vetting the developer. This is not the case with PortugalProperty.com, as we will only market developments which reach the high standard that all of our clients have come to expect, set within our set of stringent criteria.
Professionals Here at PortugalProperty.com速 we work closely alongside only the most respected expert legal and financial organisations. If you have any questions about financing a property purchase and any legal matters, we can provide through a team of experts, the most professional advice possible.
General FAQ regarding the Golden Residence Permit programme How do I renew the resident permit and how much is it (service fee and applicant fee)? The residency visa is renewed simply by keeping the original investment (there are no further requirements). The renewal fee charged by the Portuguese Authorities is indeed 2500 Euro. What is the process regarding family Reunion and how much will it cost? The family reunion is quite straightforward and simple and it applied directly to spouse and under age children (Under 18 years of age - Minors or children who are under guardianship of the couple or of one of the spouses. Minors adopted by an unmarried applicant, by a married applicant or by the spouse, Children who are of age and of whom the couple or one of the spouses is in charge, that attend a teaching institution.). The cost charged by the Portuguese Authorities for family reunion residency permit is the same of the investor, ie, €5,000 for initial residency permit and €2,500 for each renewal. Is there a limitation of family members? NO Once the applicant obtains the Resident Permit, can they apply for the family reunification at the same time? What documents do family members need to provide, (marriage certificate, birth certificate,..)? Yes, it is possible for the investor and family members to apply at the same time, although it might be more straight forward to get the approval for the investor first and then request family reunification. The documents for the family are the ones proving the family ties, so Marriage Certificate and Birth Certificates. Please note that the family member will also require criminal record certificate. Can the applicant work in Portugal? Yes, there are no restrictions for the investors to work in Portugal. Where to submit the application for the Golden Resident Permit, in Portugal or I can submit in a local consulate? The application is submitted by us on behalf of the client at the Immigration Services here in Portugal. How does the buying process work? When the client decides on the property, he will then go the lawyer, where a Reservation deposit is made, from 6.000 € to 10.000 € (Credit card, bank transfer preferably) into the lawyers Escrow account. The lawyer prepares an official Offer that is than sent to the owner communicating the client’s intent to purchase. If it is accepted, the client that signs over Power of Attorney to the lawyer and flies home. Meanwhile, the lawyers will then prepare the first of the sales contracts: (have attached our only 2 translated Promissory and Sales Contract for your appraisal). Promissory Contract: Client promises to pay a deposit from 30 to 100% of the purchase price, until the final title of ownership takes place. The Promissory contract is for those clients who do not have all the necessary funds and need time (1 month, 2 months) to gather the money. So the client pays as much as he can, and then a date is established for the final change-over of ownership (DEEDS) and any outstanding payment. Bear in mind with the new alteration of the Residency Visa, if the client pays 500.000 € or more on Promissory contract, the process for the Residency Visa can be immediately submitted to the governing body, so that is just a question of the document to emit the Visa as the process will have already been submitted. Payments for the Promissory deposit and final payments for DEEDS have to be transferred from the clients Portuguese bank account which the lawyers will help open when they are here. What are the general requirements that the investor has to comply with? The simplicity of the Golden Visa Programme implies an extremely reduced amount of requirements being asked from the investor. The Golden Visa Programme sets out that the investor must comply with general requirements applicable to all types of qualifying investments and also with the specific requirements of each type of qualifying investment. In general, all investors have to comply with the following requirements: a) Keep the investment for a minimum period of 5 years. b) Funds for investment should come from abroad. c) Entry in Portugal with a valid Schengen visa. d) Absence of references in the Portuguese Immigration and the Schengen services. e) Absence of conviction of relevant crime.
What are the requirements in regards to the stay in Portugal for the Temporary Visa? The requirement to be in Portugal for investors is only 7 days in the first year and 14 days in the following periods of 2 years. Permanent residency has different time requirements. What are the requirements for the staying in Portugal for the Permanent Residency? Holders of Permanent Residency titles should not be away from the country for more than 24 months in a row or 30 alternate months within a period of 3 years. Please note that there is an exception to these time requirements, which can be used if the investor needs to be away for longer periods of time due to business reasons. Is there a mandatory period the applicant needs to spend in Portugal when they have their Permanent Residency? If so, how many days? After they get the permanent residency they cannot be away from Portugal for more than 2 years in a row or 30 non-consecutive months within a period of 3 years. How long will be the process for the renewal of the Resident Permit? Does the applicant need to go to Portugal for it? The renewal process is very quick and at maximum it will take 60 days. The Investor will need to come here after the renewal has been approved to obtain is new residency permit. Is there a language requirement test for Naturalization? Yes, currently, Permanent Residency and Passport always require approval in a language test in Portuguese. What rights does a resident of Portugal have? A person authorized to live in Portugal, has the right to education, maintain professional activity,health care, and justice system. For the applicants first Visit to Portugal, which kind of Visa should be requested? Travel or business? The clients only need a valid Schengen visa to apply for residency after the investment. In this respect, when applying for the Schengen visa, the clients should clearly refer that they are coming to Portugal to invest under this program. Usually, we send invitation letters that explains this. What kind of Visa for second stage, or Permanent Visa? How long is the visa valid? See above. The clients only need a valid Schengen visa to apply for residency after the investment. No other visa is required. After the purchase of the property and obtaining the Residency visa, does the applicant get some kind of official stamp in their passport? Or do they get some kind of Residency card? Once the client makes the investment, the application for the investor residency permit is submitted. The authorities will approve this application within a few days and then the investor has to go to the Immigration Services to provide fingerprints, signature, pictures, etc. On this visit, the client gets an approval letter and then the residency card is issued within a few weeks. What are the benefits after immigration (after purchase and apply for Temporary Residency Visa) is it the same as a Portuguese citizen? Yes, holders of residency permits have almost all the rights of citizens (education, health, employment, business, etc). What is the yearly tax on the properties? In Portugal, properties are subject to an annual charge, which is between 0.3% and 0.5% of the tax value of the property. Besides the yearly Tax (IMI) per year or there is any other cost? Depending on the type of property, there can also be condominium fees. These are fees related to the maintenance costs of properties included in buildings, developments, resorts, etc. Should I have a personal bank account and TAX number in Portugal? Can you open it for me? Yes. It is necessary. We can open it for you through a power of attorney. So you just need to be in Portugal for applying for VISA. Once the applicant decides to acquire the property, how long to Deeds (Final Purchase Contract)? From a legal point of view, the purchase of the property can take place as soon as the parties are ready. In case of the investor, the normal route is for him to leave us a Power of Attorney that will enable us to represent him when he goes back to China to transfer the funds.
For more information please write to us on info@portugalproperty.com or feel free to call us on 0800 014 8201 and a member of the Portugal Propertyteam will be happy to answer any of your questions. We look forward to helping you find your dream Portugal Property!
Rua Das Laranjeiras 21, 1600-40 Lisboa Bani Gala, Islamabad (+1) 408.396.0881 (+1) 408.396.0882 (+1) 408.396.0883 ghazi.farooq (+1) 408.396.0881 info@goldenvisas.co