Portugal is a top destination for foreign investors who want to get a European residency by buying real estate. The Portugal Golden Visa program lets you obtain a residence permit to live, work, study, and travel in Portugal and the Schengen Area.
To qualify for the program, you must invest in Portugal golden visa properties that meet certain criteria. You can choose from different options, such as buying residential property in low-density areas or renovation projects, with minimum values from €280,000 to €500,000.
Here we discuss the requirements, benefits, and challenges of investing in property for this program.
What is Portugal Golden Visa?
Portugal Golden Visa is a residency by investment program launched in 2012 to attract foreign capital and stimulate the economy. The program allows non-EU citizens to obtain a temporary residence permit in Portugal by making one of several types of investments, such as real estate, capital transfer, job creation, research and development, cultural heritage, or environmental projects.
The minimum investment amount for real estate is €280,000, depending on the location and age of the property. The residence permit is valid for one year initially and can be renewed every two years. After five years of residence, investors can apply for permanent residency or citizenship.
What Are the Benefits of Portugal Golden Visa?
Portugal Golden Visa offers many benefits for investors who want to enjoy a high quality of life in Europe. Some of the main benefits are:
Visa-free travel
Investors can travel freely within the Schengen Area, comprising 26 European countries, without a visa. They can also visit countries with visa waiver agreements with Portugal, such as the UK, Canada, Australia, and the US.
Family reunification
Investors can bring their family members to live with them in Portugal and obtain residence permits, giving them access to the same rights and benefits. Family members and the main investor can also apply for permanent residency or citizenship after five years of residence.
Low physical presence
Investors only need to spend seven days per year in Portugal to maintain residence status, allowing them to retain ties with their home country or live in other countries that allow dual residency. This offers more freedom and flexibility to manage personal and professional lives.
Tax incentives
Portugal offers favorable tax regimes, including the non-habitual resident (NHR) status, providing tax exemptions or reductions on certain types of income for ten years. They can also pay a flat rate of 20% on income from certain professions or activities in Portugal.
Citizenship options
Investors can apply for Portuguese citizenship after five years of residence, provided they meet certain criteria such as language proficiency and cultural integration. Portuguese citizenship offers a passport for visa-free access to 180+ countries and EU citizenship rights, allowing living, working, studying, and voting in any EU country. Portugal also recognizes dual citizenship.
High return on investment
Portugal’s strong demand for rental properties in tourist areas makes it an attractive location for real estate investment. With over 27 million tourists in 2019, investors can profit by renting or selling their properties after five years without losing residency rights.
How to Invest in Property for Portugal Golden Visa?
Investing in property for Portugal Golden Visa requires careful planning and research. Here are some steps that you should follow to buy real estate for this program:
Choose an investment type
Different types of real estate investments qualify for the Portugal Golden Visa program, such as:
- Buying a property worth at least €500,000 anywhere in Portugal.
- Buying a property worth at least €350,000 that is over 30 years old or located in an urban regeneration area.
- Buying a property worth at least €280,000 in a low-density area (less than 100 inhabitants per square kilometer) or an island territory.
- Buying multiple properties that add up to at least €500,000.
- Investing at least €350,000 in a real estate fund or company that invests in urban regeneration projects.
You should choose an investment type that suits your budget, goals, and preferences.
Find a suitable property
You can search for properties that meet your criteria and expectations using online platforms or contacting local real estate agents and developers specializing in Portugal Golden Visa properties. Before making a decision, it is important to visit the property in person or arrange a virtual tour.
Hire a lawyer and a legal advisor
You should hire a trustworthy and experienced lawyer and a legal advisor who can help you with the legal aspects of buying real estate for the Portugal Golden Visa program. They can assist you with the following:
- Property Check-up – Checking ownership, title deed, taxes, liens, and encumbrances of the property.
- Purchase Agreement – Negotiating terms and conditions with the seller or developer.
- Bank Account and NIF – Opening a bank account and getting a tax identification number in Portugal.
- Fiscal Representative – Applying for someone to handle your taxes in Portugal.
- Funds Transfer – Transferring the investment funds from your home country to Portugal, using a trusted currency exchange service.
- Property Registration – Registering the property in your name and paying the stamp duty, IMT, and notary fees.
- Golden Visa Application – Applying online, submitting documents, paying fees, and booking an appointment for biometric data collection at a SEF office.
- Residence Permit Renewal – Renewing your permit every two years, paying the renewal fee, and updating your documents.
You must choose someone with a proven track record of helping investors obtain their Portugal Golden Visas. You should also compare their services and fees before hiring them.
Conclusion
Portugal Golden Visa Program is an excellent opportunity for foreign investors wanting residency and citizenship in Europe through real estate investment. The program offers many benefits, such as visa-free travel, the right to live and work in Portugal, family reunification, and tax advantages.
However, the program also requires careful planning and preparation, as well as compliance with certain rules and regulations. Therefore, it is advisable to seek professional help from experts who can assist you with the process.
