Before we go into specifics, let’s determine: What is a Golden Visa, exactly? Some European countries are offering their residence permits, commonly referred to as Golden Visas, in exchange for a foreign national’s investment in their real estate, economy, and job creation. Naturally, each program has its peculiarities and a set investment threshold.
What are the easily identifiable advantages of such programs, and why is their popularity steadily growing? Firstly, geographic expansion, made possible by a residence permit issued by one of the European countries, allows respectable entrepreneurs to revitalize their business. Another reason is the prospect of investing in immovable property of one of the Southern European countries, and thus, keeping the funds invested and yielding a stable profit from renting it. And, of course, it never hurts to have a private accommodation by the Mediterranean Sea.
In recent years, Latvian, Spanish, Greek, Maltese and Cypriot Golden Visa programs have risen to prominence, but the Portuguese program remains one of the most popular for obtaining a European residence permit.
Portugal’s Golden Visa and buying property: What are the advantages of a residence permit?
How is a Portuguese residence permit superior over other programs? Its holder is free to move across Europe and the Schengen area without additional expenses, having to worry about visa-related paperwork or queuing at EU embassies.
Furthermore, apart from social and political security, the holder of the Portuguese residence permit is eligible to obtaining permanent residence, and, ultimately, citizenship.
Yet another bonus of the Portuguese Golden Visa is mild residency requirement. To retain the status, its holder is expected to only spend 7 days per year in Portugal. At the same time, this residence program is perfect for business persons and investors who opt to stay in Portugal indefinitely. The permit is valid for 1 year and is subsequently renewed for 2-year periods.
The investor’s family members obtain their own residence permits in 6-8 months after the principal applicant. Five years after the issuance of the residence permit those investors who follow the rules of Golden Visa program may apply for permanent residence, and for citizenship 1 year after that.
The way towards your Golden Visa of Portugal
To begin the process, applicants are expected to:
- Submit certified scanned passport copies;
- Confirm compliance with investment requirements (purchase of real estate, business investment, job creation);
- Get a fiscal number (a tax identification number);
- Get a health insurance valid in Portugal (in case of residency);
- Open a bank account at one of the local banks;
- Provide lawyers with original documents for them to be legalized and notarized (after preliminary background checks).
Next, the investor is to travel to Portugal to submit the documents and biometrics, and pay for data analysis. Application processing and due diligence usually takes up to 6 months.
To qualify for the program via real estate purchase, the applicants must meet the following criteria:
- Be of 18 years of age and over (the main applicant);
- Fulfil the investment requirements (the main applicant);
- Submit proof of stable and regular income (financial independence) that is enough to sustain themselves and family;
- Have no criminal record;
- Have no debts to Portuguese or any other tax authorities;
- Have no ties to terrorism/money laundering-related activities, no involvement in or previous convictions for crimes against humanity, war crimes, or human rights violation;
- Not be among persons wanted by Interpol, or on the Schengen Information System (SIS) list;
- Not be subjected to sanctions, restrictions or prohibitions to enter the EU countries, the US, the UK, Canada.
The spouse, children under 18 years of age, as well as older children who are full-time students, unmarried and are fully financially dependent on the main applicant; physically or mentally disabled children over the age of 18; financially dependent parents or in-laws may be included in the application filled in by the investor.
Cost of Portugal’s Golden Visa
Acquisition of residential housing (a beachfront mansion or villa) worth at least €500,000 is the most common way to inject funds in the economy of Portugal and obtain its residence permit. The less expensive option would be to invest €350,000 in a real estate object that was built over 30 years ago and is to be rehabilitated. However, such objects are quite difficult to find and are hardly advisable for investment.
In addition to real estate purchase option, there is also the option of direct investment in Portuguese economy – one may purchase shares or government bonds worth at least €1 million. It also possible to establish a business and create at least 10 jobs for Portuguese nationals.
Costs and expenses for obtaining Portuguese residence permit
Portugal’s house prices continue to grow
Lately, Portuguese real estate brokers have started including significant commission fees – up to 20% – in the cost of real estate objects. Not only that, but also more and more agents are artificially winding up the prices to the half-a-million euros mark to increase the chances of selling the property to foreign investors. That is why it is imperative to find reliable legal consultants who will be able to help you avoid sellers acting in bad faith.
Portugal is going through the stage of booming real estate investment, but commercial property sale is on the rise as well. Analysts say the volume of 2017 transactions will surpass €3 billion – against €1.3 billion in 2016.
The increase in sales volume and economic activity of foreign Golden Visa holders stimulates the growth of the average cost per square meter of housing.
According to the latest figures from the National Statistics Institute of Portugal, the average price for a square metre of property is currently standing at €896, which is a 6.4% increase in prices for same time last year, but in many municipalities, the prices go above that average. Lisbon tops the list of the most expensive regions in the country, with the average price of €2,231 per square metre of floor space, a 15% growth since last year. Almost throughout the entire Algarve region, the prices range between €896 and €2,231 per square metre. In Cascais, prices often go above €1,500 per square metre.
World celebrities are also stirring the public interest, and thus contributing to price growth, for real estate in Portugal. The Queen of Pop herself, Madonna, has purchased there a royal mansion in a UNESCO World Heritage site for a reported $8.9 million. Fashion designer Christian Louboutin, actors Michael Fassbender and Monica Bellucci have all mentioned that they own property in Portugal.
Maneuvering around intricacies of obtaining Portuguese residence permit
Sometimes, Portuguese authorities do deny residence permits to applicants. While the Portuguese Immigration Service reviews each application individually, the most common reasons for rejection are:
- Submission of false information;
- Cases of previous convictions or criminal proceedings;
- Endangering Portugal’s public order or reputation.
The status may be revoked if the applicants fail to fulfil the residence requirement of staying in the country for at least 7 days within the first year after receiving the residence permit.
To avoid complications, it is better to reach out to specialized legal companies that have substantial experience in assisting foreign nationals with European residence permits and citizenship. As a rule, specialists of those companies work with major Portuguese real estate agencies and are ready to advise their clients on real estate options.
Commonly asked questions about Portugal’s residence permit in exchange for investment
- Which Portuguese state body is issuing residence permits? – As a security service under the Ministry of Home, Portuguese Immigration and Border Service (Serviço de Estrangeiros e Fronteiras, SEF) is handling the Residence Permit for Investment Activity program (“Golden Visa”).
- What if some of my documents are not in Portuguese? – All applications must be filled in in Portuguese. Original documents issued by foreign authorities need to be legalized and translated, and translation certified.
- Is there a requirement to relocate to Portugal, or stay there for any specified amount of time to meet the Golden Visa program requirements? – Yes, there is a minimum 7-day stay requirement for the first year, and 14-day stay requirement within each subsequent period of two years after receiving the Visa. If the Golden Visa holder fails to fulfil this condition, the residence permit is revoked.
- When can I sell the Portuguese property I had invested in? – The investor is obliged to hold the investment for the period of the Portugal’s Golden Visa validity, which is 5 years. After this, it is possible to sell the property.
- How can I obtain Portuguese permanent residency, and then Portuguese citizenship? – In order to be able to obtain permanent residency, the investor and their family members need to submit an application 5 years after obtaining residence permit, and one year later (6 years after obtaining residence permit), apply for citizenship. To qualify, applicants must pass a basic Portuguese language test.
Portuguese Golden Visa is closer than you think
It does not take more than 8 months to obtain the desired Portugal’s residence permit. Over 5,000 foreign investors have become residents since the launch of the program.
If you so choose, you can change your country of residence after 5 years and sell your Portuguese real estate, which is considered to be a really reliable investment today.
Don’t fall for the misconception that it is somehow unrealistic to obtain a European residence permit. The time is now to choose the investment type and maybe purchase that villa in Lisbon you’ve set your sights on.
Interested in more detailed information about Portuguese Golden Visa program? Contact us!
- We offer free consultations, understanding how important it is for the client to make the only correct decision.
- We work only in the field of investment immigration, integrating gained experience into the investor’s goal.
- We work only with official programs of the European Union and Caribbean countries.
- Before signing the contract, we inform our clients about all additional fees and expenses.
- We conduct a screening to assess the investor’s chances of obtaining the desired citizenship.
- We oversee the process at each stage and work exclusively towards the result.
- We are in touch 24/7.