Golden visa: why does Portugal appeal to investors?

It has recently been revealed that Portugal has the world’s top residence-by-investment program according to the Global Residence and Citizenship Programs report released regarding 2017-2018.

For its third consecutive year, Portugal’s Golden Residence Permit Program has been announced yet again as the best residence-by-investment program around the world by the Investment Migration Insider. The program achieved a score of 79 out of 100 after being assessed on ten indicators: citizenship requirements, compliance, financial requirements, processing time and quality of processing, quality of life, reputation, taxation, time to citizenship, total costs, and visa-free access.

Released with the 3^rdedition of Henley & Partners’ Global Residence and Citizenship Programs report, the Portuguese Golden Residence Permit Program has acquired the title yet again.  Dr. Christian H. Kälin, an international immigration and citizenship law expert and Group Chairman of Henley & Partners, was also keen to point out: “The Global Residence and Citizenship Programs report is an indispensable tool, not only for all those interested in alternative residence or citizenship but also for professionals such as private client advisors, private bankers, and lawyers, as well as for governments operating investment migration programs.”

Portugal ranks #1 in Henley & Partners’ Annual Residence and Citizenship Program Ranking

The question is, what has enabled Portugal to become a hotspot for investors over the past few years and what are the benefits? This brief guide will shine the spotlight on the country’s Golden Residence Permit Program and also look into other investment opportunities available within the nation.

What is the Golden Residence Permit Program?

Simply put, the Golden Residence Permit Program is only available to those who live outside of Portugal, the European Union and European Economic Area — they can then gain residences through investment. This provides them with the opportunity to obtain residence status and contributes towards their eligibility for a citizenship application following six years as a legal resident.

Those who gain a residential permit will be entitled to:

• Benefit from family reunification. They — may also gain access to a permanent residence permit and Portuguese citizenship in accordance withthe current legal provisions.
• Enter Portugal without the need for a residential visa.
• Live and work in Portugal — bearing in mind that the minimum residencee requirement to qualify for the renewal of a Golden Residence Permit is seven days in the first year of residence for entitlement to the first renewal and then 14 days over the two subsequent two-year periods required for the next renewals.
• Apply for Portuguese nationality, via naturalization, in compliance with Nationality Law requirements.
• Travel visa-free within the Schengen Area.

After the program was initially introduced, the high demand for it only increased. Between the scheme beginning in 2012 and BBC News spotlighting the program on March 19^th 2014, the Portuguese government stated that 734 permits had been issued — generating over EUR 440 million in the process through property sales, investment in capital, and the creation of new jobs across Portugal.

Conditions of obtaining a Golden Visa in Portugal

Anyone who is not a European Union (EU) or European Free Trade Association (EFTA) national can apply for a Golden Visa in Portugal or a Portuguese investor visa either as an individual business person or through a business that has been set up in Portugal or another EU member state. However, you must meet at least one of the following criteria:

• Capital transfer of at least €1 million into Portugal.
• Creation of at least ten job positions in Portugal.
• Purchasing of real-estate property in Portugal worth a minimum of €500,000.
• Purchasing of real-estate property in Portuguese urban regeneration areas at least 30 years old to the value of a minimum of €350,000.
• Investment of a minimum of €350,000 into scientific research in Portugal.
• Investment of a minimum of €250,000 into Portuguese arts, culture and heritage.
• Investment of a minimum of €500,000 into a small or medium sized business in Portugal.

Any investments that have been made must be maintained for a minimum of five years in total from the date when the Portuguese Golden Visa has been established.

The reasons behind investments in Portugal

There are so many advantages to investing in Portugal, and you don’t need a Golden Residence Permit to do so.

Portugal is currently looking over its tax policies and comparing them to other EU nations — but does have some of the lowest living costs which can be beneficial to any investor. Its business-related costs and laborcosts are both considerably lower when compared to many other Western European nations too, while the country also has one of the lowest crime rates throughout all of Europe.

As well as relations with Europe, Portugal also has strategic relationships with Africa and the Americas. Not only is the nation an EU member, but it also still has close ties with Angola, Brazil, Macau, and Mozambique and can be a gateway to other Portuguese-speaking markets.

The delicious Portuguese cakes called “Pasteis de nata”

Not only that, the country has a great IT and physical infrastructure to which is great when conducting business. Meanwhile, property investors will have many appealing locations to choose from; Portugal plays host to many sites of natural beauty, owing to its various rivers, mountains, and clean sandy beaches.

Portugal has been hosting the worldwide tech conference “Web Summit” for 3 consecutive years

Investing in property in Portugal will allow clientele to cover a diverse amount of people from different walks of life. For instance, Portugal proves very appealing to tourists — surely helped by the fact that the nation enjoys over 300 days of sunshine each year — and has a quality of life that is favorableto those looking for a peaceful destination to retire to. This is not forgetting the sports fans, who are likely to find Portugal attractive for being the largest area covered by golf courses in the whole of southern Europe.

The “Oitavo Dunes” golf course near Lisbon, Portugal

However, when it comes to making investments — the variety of locations can be challenge. The capital city, Lisbon, is a cultural melting pot, helped along by the fact that the annual Web Summit conference attracts tens of thousands of business people to the district every year. Meanwhile, the island of Madeira was shown in a recent INE report to have the second highest rate of recent property value growth and the Algarve is an area of Portugal that is regularly in demand.

With the above statements, it’s not a surprise that Portugal is the ideal location for investors. Will you be next to invest in the country?

Sources:

https://www.henleyglobal.com/residence-portugal-golden-residence-program/

https://www.livinginportugal.com/en/moving-to-portugal/golden-residence-permit-programme/

https://www.bbc.co.uk/news/world-europe-26636829

https://en.portal.santandertrade.com/establish-overseas/portugal/foreign-investment

https://www.propertyshowrooms.com/portugal/property/investment/why-invest-in-portugal-property.asp

https://www.propertyguides.com/portugal/news/three-investment-hotspots-portugal/

Need some advice about Living in Portugal? Looking for a property? Feel free to Contact Ginny

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