The GOLDEN VISA PROGRAMME is a fast-track investment solution for non EU citizens to gain residency in Portugal. Launched in 2012, the programme successfully promotes investment in Portugal through real estate and business fund investments. The programme offers the following:
A fast-track residence permit for NON EU, EAA and SWITZERLAND citizens
A 5 year journey and plan for you and your family
One visa will cover you and your immediate family dependants
WHAT DOES THIS ENTAIL?
In short, it entails a 5 year investment programme. However, there are a number of different routes. You could just deposit a million euros into a Portuguese bank account but for those of you show eyes water at the thought, there are other options which include 3 ROUTES of property investment:
1. €500 000 investment is the simplest option and is the minimum investment. Once you’ve paid your last installment and the property has changed hands your lawyer can start applying for your Golden Visa. This can take anything from 2 weeks to several months depending on the circumstances.
2. €350 000 Investment in other property options. The property must be older than 30 years and in an urban regeneration area. The value including works must be equal to or above 350 000. This is a reminder that the Portuguese are heavily invested in restoring their historic buildings.
3. €350 000 Commercial Property Fund is a recent addition to the programme. This is a 6 year - closed end - commercial property fund which is an excellent, clean option for those who don’t want physical ownership of bricks and mortar. During this time the application for your Golden Visa, and citizenship goes ahead. At the end of the 6 years you will have a passport to move freely in Europe and a nest egg to spend there.
BREAKING NEWS: For those of you that are looking to invest in major cities such as Porto and Lisboa - listen up! The Portuguese government will be changing the terms of the Golden Visa Program due to a proposal submitted in the 2020 budget. In short, the changes are to stop Golden Visa investment large urban city centres and major towns within Portugal and rather, promoting low-density areas in the interior and autonomous regions such as Evora and the South of Portugal. GOOD NEWS, we still have approx. 4 months before this rule is implemented. Get in touch for more information and next steps.
There are a few simple rules including:
Purchase of one or more properties, commercial or residential
Direct ownership with one or more owners
Applies to anywhere in Portugal
You have the freedom to lease - Historically it has been between 3 and 7 % annual rental returns.
The FINAL requirement in order to apply for the EU passport through Portuguese citizenship is the Portuguese Language Test -This is done by taking a written and oral exam, which will test your understanding of the language and your ability to communicate in basic Portuguese.
The process requires you to spend 35 days in Portugal or her territories in a 5 year period and is broken into:
At least one week (7 days) in the first year
At least two weeks (14 days) a year in the subsequent years
In terms of financing, loans are available from €500 000 with only 2% interest and further tax incentives. Normally 75% of the loan is based on the properties value.
PLEASE NOTE: You can not get a mortgage or a bank loan in Portugal to buy a property. Therefore, you have bring in 100% of the capital to Portugal. You can of course apply for a mortgage in your residing country or elsewhere. The transfers to purchase the property as well as to deposit money in Portugal have to come from accounts held in your name.
The BENEFITS for you and your dependants are considerable and include:
Gateway to European Citizenship + ONE Golden Visa allows the holder AND the family dependents
Unrestricted work and living in Portugal - retaining residency in a different country
Visa-free travel throughout Schengen Area with a European residence permit - 27 European countries
World-class public education and healthcare as a Portuguese National would receive
You have the option to become a non-habitual resident of Portugal and pay little or no tax for 10 years
Ownership of an overseas property = Income earning foreign currency asset (and between 3 and 7 % annual rental returns)