Key Figures and Facts
- Since the program's inception in 2012, Portugal has attracted over 4 billion euros in investments to its economy.
- More than 20 000 foreign investors have taken advantage of the program.
- 80% of all investments were directed towards real estate purchases.
- Over the past 8 years, the "Golden Visa" program has played a significant role in stabilizing the Portuguese economy. The real estate market, which had been in decline in previous years, received a new lease on life thanks to foreign investments.
Program Features
1. Minimum Investment Requirements
The primary condition is to invest in real estate amounting to at least 500 000 euros. If the property is located in areas with low population density or requires restoration, the minimum investment amount can be reduced to 350 000 euros.
2. Quick Application Process
Typically, the review process for obtaining a "Golden Visa" takes no more than 6 months.
3. Path to Permanent Residency and Citizenship
After holding the "Golden Visa" for 5 years, one can apply for permanent residency, and a year later, for Portuguese citizenship.
4. Freedom of Movement
Holders of the "Golden Visa" are entitled to travel across 26 Schengen zone countries without additional visa restrictions.
5. Educational Opportunities
Portugal boasts excellent educational institutions, and "Golden Visa" holders can take advantage of higher education benefits for their children in European universities at reduced rates.
Tax Benefits in Portugal for "Golden Visa" Holders
The Portuguese tax system offers a range of advantages for foreign investors, making it even more appealing for potential participants of the "Golden Visa" program.
1. Non-Habitual Resident Tax Regime (NHR)
Introduced in 2009, this regime offers significant tax benefits for new taxpayers for their first 10 years of residency.
NHR Benefits:
- Tax Exemption. Revenues earned outside of Portugal, such as pensions, interest, dividends, and royalties, are not taxed in Portugal if these incomes can be taxed in the source country under a double taxation treaty.
- Reduced Tax on Professional Income. For certain professions deemed as high value-added, the income tax rate is set at just 20%.
2. No Inheritance or Gift Tax
For immediate family members (spouses, children) in Portugal, there is no inheritance or gift tax. This makes the country attractive for long-term inheritance planning.
3. No Wealth Tax
Portugal does not levy a personal wealth tax, serving as an additional incentive for major investors.
4. Reduced Tax on Rental Income
Rental income from real estate in Portugal is taxed at 28% for individuals. However, there are opportunities to optimize this tax through corporate entities.
Advantages of obtaining a "Golden Visa" in Portugal
When it comes to "Golden Visas", Portugal competes with countries such as Spain, Greece, and Malta. However, the Portuguese program offers distinct advantages:
- Flexibility. Portugal doesn't require applicants to continuously reside in the country throughout the year, while some other nations might impose such stipulations. Applicants need to spend at least 7 days in Portugal during the first year and a minimum of 14 days over the subsequent two years.
- Competitive Investment Requirements. While many countries demand substantial investments in government bonds or charitable contributions, Portugal offers the opportunity to invest in real estate, which can yield returns in the long run.
Portugal's "Golden Visa" is a promising opportunity for foreign investors. It merges economic benefits with the allure of living prospects in Europe. If you're seeking a strategic and culturally rich avenue for investment, Portugal could be your perfect choice. Nonetheless, before making a final decision, conduct a thorough analysis and evaluate all potential options.
