Portugal's golden visa in 2023

Return on investment:Ownership of the real estate must be maintained for 5 years until permanent residence status is obtained. After that, the investor can sell the real estate and recover his investment. However, if the property is sold earlier, the investor will lose the residence permit.

10. Special tax regime:Investors planning to become tax residents of Portugal can apply for a special tax status “Non-Habitual Residents”. This preferential tax regime is valid for 10 years and reduces the income tax rate to 20%. Investors are also exempt from paying taxes on income earned outside Portugal. There is no inheritance and gift tax and no estate tax. In addition, holders of this tax status have access to free transfers of funds both domestically and abroad.

11. low taxes compared to other Western European countries:Tax residents of the Russian Federation have the possibility of exemption from tax on professional income and on income from employment in Portugal. In addition, Portuguese tax residents are subject to progressive income tax rates starting at 14.5%, depending on the amount of income.

Portugal's Golden Visa program offers many attractive opportunities for investors wishing to obtain a residence permit in Europe and even become citizens of the European Union. With lower property values and reduced taxes, it remains one of the most attractive programs in the world for international investors.

Investment Options for Portugal's Golden Visa

Obtaining a Portugal Golden Visa involves various investment options that allow foreign investors to become residence permit holders. Here are the main options:

1. Purchase of real estate from 280 000 €:

   • Property must be over 30 years old or located in an urban rehab area.

   • Interests in hotels, as well as commercial and residential real estate in low-density areas may be acquired.

2. Purchase of real estate from 350 000 €:

   • The property must also be over 30 years old or located in an urban rehab area.

   • This option includes shares in hotels, commercial real estate anywhere in Portugal and residential real estate in the hinterland, Madeira and the Azores.

3. Purchase of real estate from 500 000 €:

   • Includes commercial real estate anywhere in Portugal and residential real estate in the interior, Madeira and the Azores.

4. Purchase of shares in a Portuguese company or a bank deposit of 1 million € or more.

5. Purchase of shares in investment or venture capital funds from 500,000 €:

   • A minimum of 60% of the fund's investments must be in companies registered in Portugal.

6. Business registration and creation of a minimum of 10 jobs for Portuguese citizens.

7. Support for research projects from 500,000 € or investments from 250,000 € in Portuguese culture and arts.

It is important to note that as of January 1, 2022, residence permits are no longer issued for real estate investments in Greater Lisbon, Porto and other coastal areas. Foreigners can only obtain a residence permit for the purchase of housing in the interior of Portugal, the Azores or Madeira.

The cost of housing established by the program must be paid without the use of a mortgage, but it is possible to take a mortgage for an amount exceeding the minimum requirements of the program. The cost of real estate in Portugal is about 10-12% of the value of the property, and the maintenance of the property is estimated at an average of 2,000 euros per year.

Investments inReal estate for renovation for 280 thousand euros: pros and cons

Investments in real estate for renovation costing 280,000 euros provide an opportunity to obtain residency in Portugal. This property must have been built more than 30 years ago and be located in a cultural and historical heritage zone. Typically, such properties are offered by developers who purchase buildings, carry out renovations, and sell the finished apartments as part of the "Golden Visa" program.

Positive:

1. Low entry threshold:The total investment amounts to 280,000 euros, which is below the required 500,000 euros in other categories.

2. Guaranteed return:Such properties often offer guaranteed income, for example, from renting an apartment or as a serviced apartment hotel with revenue-based returns. Depending on the location, owners can earn an annual income of 4%.

Negative:

1. Limited offer:Properties designated for renovation are selling quickly, and the supply in the market is limited.

2. Limited location:Not all locations offer such properties. For example, in the Algarve or Madeira, there are practically no such listings.

The process of obtaining a "Golden Visa" in Portugal:

1. Choosing real estate in Portugal:The process begins with selecting a property that meets the program's requirements.

2. Opening a bank account and obtaining a tax number:Open an account at a Portuguese bank for transferring funds and obtain a foreign tax number.

3. Preparation of documents and real estate transaction:Gather the necessary documents and finalize the real estate deal that meets the program's requirements.

4. Application submission and appointment for biometrics:Submit an application on the SEF (Foreigners and Borders Service) website and schedule an appointment for biometrics.

5. Submitting biometrics:Arrive in Portugal to submit biometric data.

6. Submission of documents for residence permit:Submit the documents for obtaining a residence permit in person.

7. Obtaining a residence permit card:Obtain a residence permit card, which can be obtained through a representative by power of attorney.

Documents for obtaining a residence permit through real estate purchase:

• Certificate of ownership and sale agreement.

• A restoration project approved by the government (in the case of purchasing real estate worth 280 thousand euros).

• Passport or copies of the passports of all applicants.

• Documents confirming legal entry and residence in the country.

• Medical insurance policy.

• Application for a criminal history check in Portugal.

• Certificate of no criminal record in the applicant's country of residence.

• Certificate of no tax debt to the tax service and social security authorities.

• Marriage and birth certificates.

• Certificate from the place of work.

• Certificate of enrollment for children over 18 years old.

• Tax Identification Number (TIN).

The documents are translated into Portuguese by a certified translator, notarized, and apostilled.

Costs for obtaining a residence permit:

• The fee for obtaining a residence permit: €5,325 (for each family member).

• Processing fee for the application: €533.

• Obtaining a tax number: 200 €.

• Health insurance: €200 per person.

Total: €6,258

The processing times can vary from a few days to several weeks depending on various factors.