Although the Covid-19 pandemic has affected the global economy as a whole, Portugal was one of the few success stories in Europe in containing the Covid-19 and see a much lower number of infected cases in comparison to other European countries such as Spain, Italy, and the United Kingdom.
Portugal has also ranked the third safest country in the world for two consecutive years (2019 and 2020) by Global Peace Index, mainly due to its low crime, low domestic and internal conflicts, and has since continued to attract more visitors and investors from all over the world.
Portugal offers a strategic location, access to key markets within the Schengen area, skilled human resources, competitive costs and top infrastructures. It is, therefore, no surprise that many are now looking to Portugal as an investment destination, based on the country’s positive approach towards international business.
Investment is a fast-track to the Schengen Area.
One route to access the Schengen area is to acquire the Portuguese Golden Visa (ARI / Golden Visa) resident permit for investment activity. This program also enables Third Country Nationals to obtain a residence permit to conduct business activities and a visa waiver to enter EU territory.
The Portuguese Golden Visa (ARI) program is one of the most popular for investors worldwide as it offers all the benefits of being an EU resident while the investor only has to spend a minimum of seven days in Portugal to maintain the residency on the first year of application, fourteen days for the following twenty-four months and again fourteen days for the final twenty-four months, following which a permanent residency will be granted and citizenship may be applied for.
Planeur is your one-stop-shop to acquire your Portuguese Golden Visa (ARI / Golden Visa). contact Planeur today.
There are many options to obtain the Portuguese Golden Visa through investment.
Let’s look at the main options:
Acquisition of Real Estate – with a value of at least €500,000
The traditional option
Real Estate investment of at least €500,000 of any type of real estate and anywhere in Portugal, or at least €350,000 If the property is over 30 years of age and is located in designated areas of urban rehabilitation.
Capital Transfer – with a value of at least €1.000.000
Transfers can be made by one of the following below:
By means of Bank Deposits; Acquisition of Public Debt Securities of the Portuguese State; Acquisition of Securities and Shares in Commercial Companies.
Venture Capital Fund Investment – with a value of at least €350,000
Destined to acquire units in investment or venture capital funds aimed at providing capital to companies that meet certain requirements. This option is on the rise with an increase of 56% this year alone compared to previous years and mostly due to the lockdown travel restrictions as there isn’t a need for the investor to be present in person.
Investment phase overview for Acquisition of Real Estate and Venture Capital Fund Investment.
| Real Estate Acquisition | Venture Capital Fund Investment | |
| Initial Investment |
€500,000 |
€350,000 |
|
Investment Phase |
Property transfer tax (IMT) Stamp duty of 0.8% Additional emoluments and registration tax (can go up to 7% of the property value) |
There are no taxes applied on the act of transfer |
|
Ongoing Taxation |
Annual Imposto Municipal Imobiliário (IMI) Condominium/Service charge Utility bills and insurance |
Fund management fee, usually deductible over the profitability of the asset |
|
Divestment Phase |
Estate Agency commission fee of between 5% to 6%, depending on the area Capital gain tax up to 50%* |
There are no commission fees on asset units sold Any capital gains realized by the fund with the disposal of the SPV’s shares will be exempt |
*Your exposure to Portuguese capital gains tax will depend on whether you are resident, how you own the asset and, with property, whether it is your main home.
For more information on how to apply for a Golden Visa or to invest in Portugal, contact Planeur today. We are your one-stop-shop for the Portuguese Golden Visa (Ari).