Introduction to Portugal
Since 2012, the Portuguese government has actively promoted and supported an easy and beneficial process of gaining residency through investment, expanding the Golden Visa program even more since the 2015 political party change.
Over 6,500 foreign investors have poured into Portugal through the program, adding €4,851,321,70, almost 5 billion euros, to the economy. Portugal offers ease of travel, a competitive and diverse real estate market and excellent tax benefits to those who apply.
To live and work in Portugal, investors need the Golden Visa which is technically a residence permit. It can be renewed every two years with the low requirement of residing in Portugal for 7 days in the first year and 14 days for each of the following 2 year periods. It offers visa-free travel throughout Europe and the Schengen area with 26 states. It includes access to Portuguese social services like healthcare and education. Immediate family members such as spouse, dependent children and dependent parents of the main applicant can also receive residence without further investment.
It also gives investors the opportunity to apply for permanent residency and citizenship after only 5 years, all without having to live in Portugal. The process requires the applicant to demonstrate ties to the country and pass a basic language test. A Portuguese citizenship will grant the right to live, work and study anywhere in the European Union.
For non-EU citizens, only one of the following criteria for investment must be fulfilled:
a) A property purchase of €500,000 +
- all property types qualify
- freedom to use, rent or lease
- reduced option of €350,000 for specific types of renovation projects approved by the SEF
b) Investment of funds
- a capital transfer with a value equal to or above €1,000,000
- €350,000 in a venture capital fund from a Portuguese company that is at least five years old and has a head office in the country
- €350,000 in an existing Portuguese company alongside creating five permanent jobs for a minimum of three years
- €350,000in scientific research conducted by a public or private institution that is part of Portugal’s scientific or technological systems
- €250,000 in supporting the arts, culture or recovery or maintenance of Portuguese cultural heritage
c) Job creation
- creation of a minimum of 10 jobs
- compliance with Social Security and other tax obligations
- compliance with the minimum 5 years of investment activity within Portugal
The application process is straightforward and does not require a lot of documents. One visit to Portugal is required and it is recommended to use a lawyer to handle the application process as well as the investment in property.
First, the investment must be made prior to the application for the visa. A property purchase can take 1 to 3 months. It includes viewing properties, opening a bank account and submitting biometrics to immigration.
While the investment deal is going through, investors should collect all the documents and have them translated into Portuguese by a Portuguese notary or consulate. All documents must be valid for at least 180 days before submitting your application.
The government fee per family member per application is €5,173.60. The Renewal fee every two years is 50% of this rate. A processing fee on the application and renewal is € 520.40 for the main applicant plus € 80.20 per family member. This ensures that all the documents are filled out correctly and lawyers can submit the application while the applicants are out of the country.
For investors buying real estate, there is a 8%-9% budget for extra taxes, stamp duties and fees, the largest one being the Property Transfer Tax (IMT).
Other taxes investors may have to pay:
- Non-residents are charged 28% on income made in Portugal
- Capital gains tax is 28% with allowances for costs and depreciation
- There is no inheritance tax in Portugal
- Annual property taxes vary between 0.3%-0.8% of the property valuation
However, investors will only pay taxes on worldwide income if they are a resident in Portugal for over 183 days in any year. There is also an opportunity to become a non-habitual resident which offers no taxes on income for the first 10 years.
The full application and approval process takes up to 6-8 months.
We can professionally help with obtaining Portuguese Golden Visa
Migronis is a licensed representative for the citizenship by investment programs offered by Grenada, Dominica, St. Kitts and Nevis, and St.Lucia.
As a service provider for the Portugal Golden Visa Program, Migronis has two local offices to always stay up to date with the regulatory landscape. Clients can hand-pick the most valuable assets from our database which has over 5000 properties listed on the market.
Migronis is the only company that receives payment after the case has been approved and the client has obtained the residency.
Over 50 countries around the globe offer various investment programs that allow foreign investors to obtain citizenship. At Migronis, we work with the top 20 most beneficial and trustworthy programs. We value our clients and their trust, therefore we remain very goal-oriented to deliver the best service possible.
We also run an expert video blog on citizenship and residency by investment. We openly talk about the pros and cons of the programs, publish interviews with leading experts, and provide analytics. We include a practical format, infographics,and specifics without the empty talk.
Migronis has established six offices located in Moscow (Russia), Kyiv (Ukraine), Almaty, (Kazakhstan), Limassol (Cyprus), Lisbon and Algarve (Portugal).
Such geographical ubiquity allows us to quickly deal with any operational issues. This in turn, noticeably speeds up the process of obtaining one’s second passport.
We speak English, Portuguese, Chinese, Rusian, Spanish.
Professionalism, transparency, and independence are at the heart of what we do.
Accessing the Portuguese real estate market
Migronis and its partners in Portugal provide services to find the best and most liquid types of residential & commercial properties for investors interested in the Golden Visa program.
1. Selection of investment.
2. Preparation of documents for obtaining a tax number and opening a bank account by the client.
3. Arrival of the client to the country.
4. Obtaining a tax number.
5. Opening a bank account.
6. Selecting a type for investment, making a valid contribution, signing a booking form.
7. Upon request, the client can leave a power of attorney to complete the transaction without his presence.
8. Return to the country, transfer of funds to your account in Portugal.
9. Payment for the investment, finalization of the transaction.
Transfer tax: different for each type of property.
On average, about 6% for a residential property, about 6.5% for commercial properties.
10. Obtaining documents of ownership.
We work exclusively for the buyer as we aim to redress the imbalance that exists in many property transactions. Get in touch with our specialists at Migronis.
- Opening an account at a local bank;
- Registration of a company;
- Property management;
- Obtaining a driver’s license in Portugal (a driver’s license can be exchanged within 3 months from the date of obtaining a residence permit WITHOUT exams and additional confirmation);
- Replacement and restoration of a residence permit within 7-14 days in case of its loss / damage / expiration;
- Obtaining a utility bill, local phone number and other documents.
Our Portuguese partner provides real estate management services.
In some facilities, management is already included in the price. But if it is an ordinary apartment, without such privileges, then management costs 1.5 months of monthly rental of the property (long-term rental); about 30% of profit on short-term leases.
Choosing educational institutions
If you are looking to relocate to Portugal with your children, there are a number of excellent international schools in Portugal to choose from. Our partner-firm allows the parents to avoid a number of difficulties in choosing the educational institution, to reduce the time frame for enrollment, and importantly, to find a school which suits their child most.
International tax advice and planning
Migronis is partnered with boutique advisors for private clients. They work directly with entrepreneurs, business owners and their families to provide tax and legal help, manage personal and business risks, resolve complex problems, find unconventional solutions, and consider issues from different angles:
- International tax planning;
- Unique Next Generation tax education for children;
- Succession planning;
- Asset protection;
There are almost no geographical limits to what they can do.
Please note, all information provided here should not be considered legal advice.