The new regulations are designed to attract foreign investment into Portugal by offering a simple and fast way for property investors to receive a Five Year Residence Permit (Golden Visa) for non-EU citizens.
The Portugal Residence Permit allows free travel in Schengen countries as well as being able to work or study in Portugal. Additionally, there is the opportunity for a European Passport or permanent residency in Portugal / EU in the 6th year.
Qualifying investments for Portugal Golden Visa (Investments maintained for a minimum of 5 years)
- Capital Investments – Transfer of Funds above €1,000,000.
- Job Creation – Creation of a minimum of 10 jobs.
- Property Investments – Acquisition of Properties above €500,000 in total.
Portuguese Residency for Property Investments (Portugal Golden Visa) – Legal Information
- Acquisition of Properties above €500,000 purchased after 8th October 2012.
- Acquisition completed before the application for Portugal Residence Permit.
- Properties acquired free from any charges or mortgages.
- Minimum stays in Portugal – 7 days first year & 14 days following periods of 2 years.
- Residence Application made within a maximum of 90 days after entry in Portugal.
- Residence Permit granted for an initial period of 1 year & renewed for periods of 2 years.
- Possibility of permanent residence after year 5 and nationality one year later.
Bearers of Investor Residence Permits may travel freely in the Schengen area.
Portuguese Residency for Property Investments (Portugal Golden Visa) – Additional Information
- Possibility of co-ownership with each co-owner making an investment of a minimum of €500,000.
- Promissory Contracts of Purchase and Sale are now acceptable for the initial investor residency application, provided that a deposit of a minimum of €500,000 is paid. In this event, the purchase of the property needs to be effected until the time of the first renewal of the residence permit.
- Possibility of financing to purchase the property above the €500,000 investment.
- The properties acquired can be freely rented and let for commercial, agricultural and tourism purposes.
Portuguese Residency for Property Investments (Portugal Golden Visa) – Documents & Requirements
- Valid Passport and Schengen Visa.
- Valid travel documents and medical insurance for EU / Portugal.
- Updated property documents showing ownership of property.
- Proof of means of income and proof of address.
- Absence of criminal conviction and of interdiction to enter the country.
- Absence of notice from the Portuguese Immigration Authorities or Schengen Services.
- Declaration from the investor confirming compliance with the investment requirements.
Portuguese Residency for Property Investments (Portugal Golden Visa) – Typical Application cost paid to the Immigration and Borders Services
- Initial application - €513.75
- Issue of Investor Residence Permit - €5,135.50
- Renewal of Investor Residence Permit - €2,568.75
- Issue of Portugal Residence Permit for Family Members - €5,135.50
- Renewal of Portugal Residence Permit for Family Members - €2,568.75
- The Portugal Golden Visa is permit attractive for investors who would like to take advantage of being part of the European Union without being obligated to reside permanently in Portugal. The Golden Residence Permit has been in effect since August 2012. Portugal is a very attractive option for non-EU citizens who also wish to provide families with a wonderful opportunity in education and lifestyle.
- Visa benefits:
It is a fast track for non-EU citizens to receive a 5 year Residence Permit. Free Visa travel in Schengen countries. Family reunification, being able to work or study in Europe. It also provides the opportunity for Portuguese nationality or permanent residency in Portugal.
- Qualifying options:
One of the following: Acquisition of any property above €500,000. Transfer of capital above €1,000,000, any type of business or company or do a bank deposit for income. Creation of a minimum of 10 permanent jobs.
- Renewals and conditions:
Firstly issued for one year and then renewed for successive periods of two years. Keep of one of investment activities as well as the following minimum stay periods in Portugal: 7 days during the first year. 14 days in the following two-year periods.
- Transfer of capital:
In the case of a transfer of capital in an amount equal to or greater than €1,000,000, the applicant must present: (I) a declaration issued by a Portuguese financial institution stating that the applicant is the sole or first holder of the capital or, if it is an investment made by a company, (II) an up to date commercial registration certificate declaring the holding of the stake in the company, valued at the amount of the investment required for this purpose.
- Job Creation:
In the case of investment activity that leads to the creation of at least 10 jobs, the applicant must demonstrate that he or she has registered the employees for social security purposes by presenting an up to date certificate issued by the social security authorities.
Currently social security contributions for most employers are 23.75% to be paid by the employer [the applicant for the residence permit] and 11% to be paid by the employee. These contributions are calculated on the gross value of the monthly salary.
- Real estate investment:
The most accessible investment activity leading to obtaining a Golden Visa is a real estate investment made by acquiring property of a value equal to or greater than €500,000. In this case, the applicant must prove full ownership of the property and that property is free from any burdens of charges. This is done by presenting the respective up to date land registry certificate (or certificates).
When acquiring a property in Portugal, the investor must take into consideration the charges associated with such a transaction. These charges include Imposto Municipal sobre as Transmissões Onerosas (“IMT”), which is the municipal tax on transfer of real property for value, Imposto do Selo (“IS”), which is stamp duty and Imposto Municipal sobre Imóveis (“IMI”), which is the annual municipal property tax.
- Schengen Area:
Like any other holder of a residence permit in Portugal, persons with a Golden Visa may travel around the Schengen Area (Germany, Austria, Belgium, Denmark, Slovakia, Slovenia, Estonia, Spain, Finland, France, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxemburg, Malta, Norway, the Czech Republic, the Netherlands, Poland, Portugal, Sweden and Switzerland).
Frequent questions about Golden Visa
- 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.
- Is it possible to make property investment in co-ownership?
Yes, the property can be acquire in co-ownership, if each co-owner making an investment of a minimum of 500 thousand Euros.
- Do I have to pay taxes and fees for purchasing real estate in Portugal?
Yes. The taxes related with property are IMT, IMI and IS. You also have to cover the Notary fees and Real Estate registration fee. For more specific information about taxation rates, please refer to following see the document or get in touch with us.
- If an investment was made before the publishing of a new law, can the investor still apply for the residence permit?
The Golden Residence Permit Programme is applicable only for the investments made after the law is in force. In this case the law has taken effect from the date of 8 October 2012.
- How long will it take to make a decision regarding the residence permit?
Since this procedure is new, the exact time for the approval is yet unknown. However, the general rule regarding the time for a decision from the Portuguese Administration is less than 45 days.
- What kind of document does applicant get if his/her residence permit is approved?
The applicant will obtain a Residence Permit Authorization Card, which will serve as an ID or traveling document and will correspond for ID purposes in Portugal and other European Union countries.
- 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.
- Which kind of identity do children who were born in Portugal have?
Children born in Portugal can apply to Portuguese nationality.
- Is there a limitation of family members?
- Can you explain who is considered member of the family?
The spouse. Minors or children who are under guardianship of the couple or of one or 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. Progenitors in the first ascending line of the resident or the respective spouse, provided they depend from either of those.