The Golden Visa program allows foreign nationals to gain permanent residency in the country in exchange for financial contributions to the government and the economy. Real estate and investment funds are the most common choices among Portugal’s seven investing opportunities.
The minimum required investment is €250,000; the time to get it might be anything from 8 months to a year. Throughout the past decade, 27,000 people have been granted Portugal Golden Visas.
Learn the real story behind the mass exodus to Portugal. By mediating between investors and the Portuguese government, Global Residence Index can streamline the application procedure for the applicants and their families.
Affordability
Regarding visa programs, the Portugal Golden Visa is among the most competitively priced and attractive options. To what extent does the Golden Visa program’s high standing stem from its many strengths?
The Portugal Golden Visa is a good idea because of its low investment threshold, fast citizenship processing time, and relatively few restrictions on where to live throughout your stay.
- As an investor, you have your pick of several attractively priced investment opportunities;
- Your dependents can apply, too;
- You’ll be able to travel visa-free throughout the Schengen area;
- You’ll have the freedom to work in Portugal; you can engage in professional activities there; and
- There’s no minimum stay requirement, so you can bring your family to Portugal for a quick vacation and experience the country’s famously warm climate and laid-back way of life.
The Portugal Golden Visa program is appealing because it creates the appearance that your investment is spending five years in Portugal on your behalf.
The residence requirements are unusual in comparison to those of other European countries. To qualify for a Portugal Golden Visa, you must show proof of annual stays of at least seven days. Before applying for citizenship and a second passport, the time spent in another country might range from four months to ten years.
Obtaining a Golden Visa in Portugal necessitates a minimum investment of €250,000. This is paltry when put next to the contributions of our nearest neighbors. If you want to take advantage of Malta’s citizenship by investment scheme, you’ll need to invest a minimum of €690,000, while in Austria, you’ll need to invest a whopping €2,000,000.
Citizenship of Portugal
Immigrating to Portugal is possible in several different ways. The Golden Visa program is the most well-known and rapidly growing path to a Portuguese resident visa or citizenship.
Citizenship or permanent residency can be applied for after five years. Italian and Spanish law, for example, both stipulate a ten-year minimum.
Following five years of continuous investment in Portugal, you can become a permanent resident or citizen by completing some basic legal requirements.
Advantages for Families
After five years in Portugal, your dependent family members can apply for permanent residency or citizenship, making the Portugal Golden Visa a very attractive option.
A list of eligible relatives is provided below.
- Children (biological or adopted) under the age of 18;
- Dependent children under the age of 26 who are not married and not enrolled in full-time employment;
- Parents of either spouse who are 66 or older;
- Parents of either spouse who are 55 or older and dependent;
- Siblings of either spouse who are 18 or younger and legally responsible.
You must include a separate application for each household member, including the lead applicant. The initial and other applicants must undergo the same approval process and receive the same advantages.
Benefits to Businesses
The Portugal Golden Visa offers several advantages for business people who wish to shop in the country.
The convenience of Portugal’s closeness to several other developed nations is a notable perk of life there. International business travel inside Europe is easier than working with countries on different continents or across oceans.
The country’s economy is booming and welcomes technological advances, making it an ideal setting for new businesses. Portugal is already a popular tourist destination due to its stunning landscapes, but the country’s high safety rating will only increase its appeal. There are criteria for this real estate investment, although the home can be used as a rental.
Real estate developers in Portugal are always looking for new strategies to attract foreign investors. Throughout the first three to five years of ownership, many Portuguese builders offer a guaranteed rental return of 4-5%. Thus while you wait for your Golden Visa approval, you can work and earn an income.
Over half of all homes listed for sale are purchased within six months, and 20% are sold within ninety days.
Profits from Traveling
Traveling freely inside the Schengen area for 90 days every 180 days is a significant perk of the Portugal Golden Visa.
Applying for a Portuguese residency visa also allows you to include your spouse and any other dependant family members, allowing you to travel and work freely across the Schengen area.
As soon as visa holders become citizens or permanent residents of Portugal, they will be issued a Portuguese passport, allowing them visa-free entry to more than 100 countries. A Portuguese passport ranks as the world’s fourth-most-valuable travel document.
Tax breaks
The Green Card visa is advantageous because of the tax incentives available through Portugal’s Non-Habitual Residence Program. With the introduction of the Non-Habitual Residence program in 2009, Portugal has attracted many foreign investors and boosted its competitiveness.
The most important tax benefits of this program are as follows:
- Complete exemption from personal taxes for ten years
- Almost entirely tax-free revenues acquired outside the country
- A flat tax rate of 20% on certain income sourced in Portugal for the first ten years
- The elimination of wealth tax
- The absence of inheritance taxes
- The lack of transfer fees
- This program is available to anyone, regardless of how long they plan to remain.
Real estate income, capital gains (from real estate), dividends, occupational pensions, royalties, and professional revenues from qualifying occupations are all examples of tax-free income (both business and self-employment)
In 2020, there was a minor adjustment made to the pension tax. On the 31st of March 2020, a 10% tax rate will be applied to all pension income earned abroad.
In terms of tax benefits, the Portugal Golden Visa is unrivaled. 28% is the flat rate on capital gains. It has a low tax rate for non-residents (28%, lower than most European countries) on income earned in the country.
In addition, you will be eligible for sizable deductions for depreciation and expenses. Taxes on the value of your home are assessed annually and can be anything from 0.3% to 0.8%.
Conclusion
This country has been able to reinvest in its people, culture, and economy thanks to the money it has received from the Golden Visa program. In and of itself, this has been advantageous for Golden Visa holders.
