Major changes to Portugal’s Golden Visa Scheme – Investment Immigration

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The very popular golden visa system in Portugal has now been changed by a new law, But Habitation, which was enacted on October 8 and removes the category for investments with the purchase of residential properties worth €500,000. The categories related to commercial investments remain.

The Golden Visa was originally introduced to revive Portugal’s declining economy and has proven to be extremely successful in this regard, bringing an estimated €530 million worth of investment into the country through the scheme. High-income foreign residents boosted local economies in popular areas, and the revised golden visa system was not welcomed by all in Portugal. Victor Reis, past president Institute of Housing and Urban Rehabilitationthe problem of insufficient supply of housing is not solved by hostile measures against investors.The regional president of Madeira, Miguel Albuquerque, also expressed reservations about the decision.

The residential property investment category, which has now been scrapped, proved so popular with retirees that it unfortunately had an adverse effect on the Portuguese property market, driving property prices up by up to 15% in some areas such as the Algarve. Inflated costs have been raised to such an extent that Portuguese citizens have been pushed out of the market by the enthusiastic adoption of the golden visa program by foreign retirees.

Golden Visa Conditions

The Golden Visa scheme can be accessed through the following types of commercial investment:

  • An investment of €500,000 in an organization that specializes in scientific research

  • Investment of €250,000 in the maintenance or production of Portuguese national heritage

  • Investment in a business that will create at least ten jobs

  • Investment of EUR 500,000 in securities funds

  • Investment of €500,000 in an existing company or creation of a new company that creates or maintains five long-term permanent jobs for a minimum of three years

The minimum stay requirement is seven days per year, which is one of the least demanding requirements compared to other Golden Visa programs across Europe.

Benefits of a Golden Visa

A Golden Visa holder can apply for citizenship after five years. For individuals who wish to reside in Portugal and who can use:

  • Worldwide income tax exemption

  • Income from Portugal, whether from employment or self-employment, is subject to a flat tax rate of 20%

  • No inheritance or gift tax

Giambrone & Partners English speaking immigration lawyers in Portugal will guide you through the entire process.

Golden Visa Application Requirements

Applicants will require a Portuguese bank account and a Taxpayer Identification Number (numero de indentificação) known as NIF. The NIF provides personal identification and allows the holder to conclude contracts, purchase services and goods in Portugal.

Applicants will need to submit a series of documents that, if issued by a non-Portuguese authority, must be legalized and translated into Portuguese. by an accredited translator and verified, usually by a notary, which our lawyers can facilitate. Key documentation required:

  • Proof of your qualified investment

  • Confirmation from a Portuguese financial institution that funds have been transferred

  • Proof of acceptable healthcare in Portugal

  • Proof that you have a clean criminal record, issued three months after the application

  • Completed SEF (Portuguese Immigration and Border Service) application form.

Our expert lawyers will carefully prepare and submit the application for you, guide you and help you until the residence permit is issued.

RuteLourençoRute specializes in several areas such as immigration; including citizenship applications and a wide range of visas such as the Golden Visa program where her considerable real estate experience is also utilized. Her expertise extends in more ways than one, as Rute also provides valuable advice and insight in corporate and commercial non-contentious matters and has extensive experience in drafting complex cross-border contracts and providing safeguards that offer our clients maximum guarantees.

The content of this article is intended to provide a general guide to the issue. Professional advice should be sought regarding your particular situation.

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