Golden Visas in Portugal. The Benefits
For investors looking to move into the growing Portuguese property market, it's possible to obtain residency through the government's Golden Visa scheme. The aim is to make Portugal more attractive to foreign investors. The scheme is known to expatriates and investors from Turkey, Russia, The USA, Israel, Australia, South Africa & South America.
We'll now explain:
- What the Golden Visa is
- The Benefits
What is the Portuguese Golden Visa?
It is a programme that has been set up by the government in order to allow investors from abroad to claim permanent residency in Portugal after a 5 year period. Furthermore, the Golden Visa would present UK nationals with the opportunity to retain free-flowing European citizenship despite the outcome of Brexit.
The programme has been extremely prosperous and has contributed over €3 Billion to the Portuguese economy.
- You only need to live in Portugal for 7 days to apply.
- Opens up free-movement across EU countries.
- For residents you'll have access to healthcare & key local amenities in Portugal.
- You'll have dual nationality and the security of a second home in Europe.
- There are a variety of investment options in Portugal from urban renewal projects to villas, studios and serviced apartments.
- Currently in the UK, you can visit Portugal with just your ID. But, Post-Brexit, UK citizens could become eligible for the Golden Visa, even with a no deal!
- You can also apply for your entire family.
- You'll receive tax relief on any income produced outside of Portugal.
- Possible tax relief from real estate income, dividends and capital gains.
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Who is eligible?
- Anybody who is a Non-EU/EEA citizen can apply for a residency visa in Portugal.
- All family members are eligible, including: children under 18, spouses and dependent children under 26 who are unmarried.
- Someone who invests at least €500,000 in real estate.
- €350,000 property investments for older properties.
- Company Directors who've established their business's presence in Portugal (with over 10 employees).
- Visa holders must renew their card within years one and three.
How much does the Golden Visa cost?
- The initial processing fee is around €500 for applicants.
- Upon approval you'll be required to pay €5,200.
Yes, that does seem like a hefty fee, but when you consider the benefits such as tax relief on property income as well as outside income. Despite net yields reducing slightly, the tax benefits should even out over time, making easier to maintain high returns. When calculating your net yield it's important to consult a Tax Adviser who is familiar with the Portuguese market and EU tax law.
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How long does it take?
Firstly, as mentioned before you only have to live in Portugal for 7 days in order to apply and once your application has been submitted it will take up to 6 months to obtain approval and receive your identification and residency card.
Before, you start the application process, you'll need to have a clear investment path. Therefore, research and analyse the market carefully. For instance, in Porto the tourism market is increasingly popular and could possibly produce higher yields above 7% gross.
Our tip revolves around the demand for tourist apartments or villas. Learn about the audience, choose an apartment that's beneficial to that audience. Whether it's young travellers or families. List the property on Airbnb, other apps and rental sites. Moreover, you'll be paid per visit, so you'll know instantly and get an idea of the exact costs & security.
Porto, would be a great family investment, providing a holiday home & a profitable venture that pays for your holiday; leaving spare change.