PROPERTY INVESTMENT IN PORTUGAL
The investment in property must be maintained for at least five years, and funded by money sourced abroad. All investments must be made prior to submitting your golden visa application, otherwise it will not be accepted.
94% of golden visas issued by the Portuguese government in 2016 were granted based upon property investments. This investment route is so popular because the real estate sector is considered a safe haven; the country’s low supply and strong demand keeps prices high. Returns for real estate sold in areas such as Lisbon and the Algarve average at around 15% – making property a solid investment.
You can purchase any type of real estate including family homes, holiday apartments, shops, offices, and farms. However, the amount you must invest in property varies depending on the qualifying category.
These categories are outlined below:
A property which was constructed more than 30 years ago, or a property which is in an ‘urban renewal’ area and needs refurbishing – investment of at least €350,000 required, which includes the cost of any intended renovation works
All other property types – investment of at least €500,000 required.
If the property is located in an area of low population density* the value requirement may be reduced by 20% (to €280,000 and €400,000 respectively).
No – the property is yours to use as you please. If you choose not to live in the property permanently, you may rent it out for residential or commercial purposes and you will pay a flat tax rate of 28% on any rental income. Either way, you must keep your property for a minimum period of five years.
Yes – you don’t have to spend all your investment funds on one property. You can, for instance, buy two properties each valued at €250,000 to fulfil the investment requirement. But if you purchase property from different qualifying categories as outlined above, you must always meet the higher investment requirement value.
For example, if you acquire one new property and one property that is more than 30 years old, the total value of both properties must equal or exceed €500,000.
Yes, but you must still invest the required amount in the property yourself. Even if the value of the property exceeds €500,000, for example, you will not qualify for the golden visa unless you alone have contributed at least €500,000 to purchase the property.
A Golden Visa is normally granted for an initial period of one year. It will be renewed for subsequent periods of two years. After five years, the investor and family members can apply for permanent residency.
Our team of dedicated experts in the Lisbon office can help you through the buying process – from arranging viewings to managing the property on your behalf once acquired.
Portugal’s Golden Residence Permit programme offers a simple, flexible and fast-track route for investors to gain residency. In order to be eligible to apply for a golden visa of Portugal, the investor must meet the following requirements:
The main applicant must be a non-EU or EEA national and must have a clean criminal record.
The required level of property investment is between €280,000 and €500,000, depending on the area, age and condition of the property:
- Properties in urban areas, with construction dating back less than 30 years – a total value equal to or above €500,000
- Properties in low-density areas, with construction dating back less than 30 years – a total value equal to or above €400,000
- Properties in urban areas, with construction dating back more than 30 years, or located in urban regeneration areas – a total value equal to or above €350,000
- Properties in low-density areas, with construction dating back more than 30 years – a total value equal to or above €280,000
The investment must remain in place to maintain residency status for at least five years.
Under the Golden Visa Programme, there are no maximum stay requirements, but you are required to spend at least seven days in Portugal, not necessarily consecutive, for at least seven days in the first year and 14 days each year thereafter.
Residency must be renewed after year 1, year 3 and year 5.
Portugal is an attractive destination for both residence and vacations. With a warm Mediterranean climate, stable government, and quality international schools – it’s no surprise that Portugal’s capital, Lisbon, is ranked among the best cities in the world for quality of living.*
*According to Worldwide Quality of Living Survey 2016.
WHAT DOCUMENTATION IS REQUIRED?
- Proof of your investment (as this needs to be made before submitting your application)
- Passport and a valid Schengen visa
- Portuguese Fiscal number (an ID number issued by the Portuguese Tax Authorities before your investment can be made)
- A copy of your criminal record from your country of residence
- A copy of your Portuguese criminal record
- A declaration from the Tax department confirming you owe no debts to the Tax authorities
- A declaration from Social Security proving the absence of debts to Social Security Authorities
- A declaration from the investor confirming compliance with the investment requirements
- Confirmation of health insurance valid in Portugal, or that you have access to public health services (if living in Portugal)
- Receipt of payment of the initial application fee.
Documents need to be in Portuguese or English language. If not, they should be translated into Portuguese and translation needs to be legalised with an ‘apostille of the Hague’. This is a small certificate which is stamped and affixed to your documents, and is recognised internationally as a mark of authentication.