1. What is the PORTUGAL Golden Visa Program ?
Portugal’s Golden Visa Program grants successful applicants the right to live, work and study in Portugal, along with visa-free travel in 26 countries in the European Union under the Schengen arrangements, and eventually a legal residence.
Since its launch in 2012, the “Golden Visa” program has attracted about €5 billion in investment from wealthy international investors and big-earning individuals.
Golden Residence Permit Program (ARI), known officially as residence permits for investment, is designed to attract foreign investors who want a fast and easy way to obtain the legal right to reside in Portugal.
By investing €500,000 in property, €350,000 in a redeveloped property (both reduced by 20% if in a low-density area), €350,000 in a qualifying Portuguese regulated investment fund or a similar sum in an employment generating business, it is possible to apply for and obtain residency immediately, with Portuguese citizenship following after five years.
Portuguese passport grants you the remarkable privilege of traveling to 187 countries worldwide
2. What is the NHR regime in Portugal?
The non-habitual tax resident (NHR) is a tax regime created to improve Portuguese international competitiveness. This regime targets non-resident individuals who are likely to establish a permanent or a temporary residence in Portugal.
THERE’S STILL A SMALL WINDOW OF OPPORTUNITY TO APPLY FOR THE NHR STATUS UNDER THE CURRENT RULES NHR current rules valid until 31st March 2020 as 2020 Budget has come into force on 1 April 2020
The 2020 Budget, which was approved by Parliament on 6th February will result in some important changes to the NHR programme, particularly for NHRs in receipt of pension income and self-employment/consulting income. Due to the development of the Covid-19 pandemic and the current State of Emergency, the Budget was only recently approved by the President and will enter into force on 1st April 2020.
By way of a reminder, the changes will be as follows.
- A rate of tax of 10% on foreign pension applying to new NHRs with no minimum tax.
- NHRs acquiring the status before the law comes into force would benefit under the existing rules. This means individuals already benefiting from the status will keep in full their current benefits until the end of the ten-year period.
- Consequently, existing NHRs would be “grandfathered” under the existing legislation; and
- Existing NHRs could choose to have the new rules applied to them.
- In order to benefit from an exemption, self-employment income and some royalties generated in the exercise of a High Added Value Activity must be taxed at source.
The new rules also seem to broaden the definition of pension income, previously treated as salary, which can benefit from the 10% rate.
Finally, individuals who have established their tax residency in Portugal up to the end of 31st March 2020 may apply for the NHR under the current existing rules until 31st March 2021. Given the current challenges, we are working closely with our clients to find solutions enabling them to establish this tax residency or prove this tax residency should it be necessary to backdate it to a date prior to 1st April.
The Portuguese Non-Habitual Residency (NHR) status enables those who become tax resident in Portugal, and are accepted as NHR, the opportunity to receive qualifying income tax free both in Portugal and in the country of source of the income.
The NHR regime represents a major step forward in making Portugal a tax-free jurisdiction for individuals in receipt of qualifying non-resident income.
Qualifying income includes pension, dividend, royalty and interest income. Plus, professional income from high value-added activities, which benefit from a special flat tax rate of 20%.
The sole requirement to benefit from this preferential treatment is to become a Portuguese tax resident, not having been a tax resident in Portugal in the previous five years. This status is granted for 10 years.
3. Who is Golden Visa Investments lda and Why use us ?
Golden Visa Investments, LDA is a legal registered Real Estate Broker in Portugal, however we do not function as a conventional Real Estate Agency, instead of representing the seller we are the Only Real Estate Consultants in Portugal who represent you as the Buyer which means we assist you as the Investor to get the best properties in the best locations at the best possible price !
Conventional Real Estate Agents almost always represent the seller plus they get paid on commission, which means a higher price is better for the seller and the agent.
Unfortunately Portugal is plagued with agents who convince Property Owners to advertise their property at a highly inflated price with the hopes of a Foreign Investor being tricked into paying more than the property is worth.
This is the main factor why Property Prices in Portugal tend to be over valuated, this is detrimental to everyone involved ;
- The property sits on the market for years instead of months, which is bad for the seller.
- If a buyer invests in the property they soon find out they have over paid for the property and hence Real Estate Agencies in Portugal have a very bad reputation.
- The Agent who sold the Pipe dream of an inflated price to the owner never makes any money on his commission as the property will take years to sell.
By working with Golden Visa Investments we avoid all of the above by representing the Investor in the following ways
- We only advertise properties that have a fair market price
- We do the due diligence ahead of time to ensure the property is complaint with the Rules and Regulations of Portugal and all construction is legal.
- We only partner and work with reputable with Real Estate Agencies and Agents in Portugal with a clean track record.
- We secure the investor the best price by using the facts of comparative market analysis and a up to date fair property valuation.
- Our reputation proceeds us and we represent investors from all over the world, hence we introduce more investors to Real Estate agencies than any other Private company in Portugal, hence the Agencies also make money.
By doing all the above we help everyone involved ;
- We Always secure and negotiate the best price for our investors
- We help the property owner sell their property faster.
- We ensure all the documents are valid and legal and in accordance to Portuguese rules and regulations which avoids head aches for everyone.
- The Agencies sell properties much faster meaning they make less commission on lower amounts but they make it up in volume.
How do we then make money ?
Well like we mentioned we represent you as the investor and we take care of all your needs from start to finish, but you technically neve pay us for our services.
In Portugal the owner of the Property has to pay a Commission to the Real Estate Agency for marketing the property, this is typically 5% of the selling price which the owners pays to the Agency. The Agency then pays us 2.5% of their 5%
We at Golden Visa Investments Lda have a stellar reputation the proceeds us and hence we have investors approaching us from all over the Globe, with our in depth knowledge of the Portuguese Property Market combined with our strategic partnerships with some of the biggest and most reputable Real Estate Agencies and agents in Portugal we have access to a data basis of over 35,000 active listing of properties currently on the market.
We offer a bespoke service uniquely catered to the needs, requirements and budget of each individual investor we then personally hand pick the best properties, for the best price, in the best possible location for your consideration.
For the most reliable, fastest and enjoyable property service in Portugal there is no other choice than using Golden Visa Investments as your one stop Property Investment Consultancy.
To apply for the Golden Visa, you must invest in one of the following options:
- at least €500,000 investment in Real estate
- at least €1 million Capital transfer
- at least 10 jobs Create in Portugal
- Investment of at least €350,000 in scientific research
Contact us today we are the Gateway to Portugal Property !
2 Comments
Matilde Santos
This is very informative! This really helps to those who wants to work, live and study in Portugal.
Santiago Silva
Well said. This is helpful to everyone who wishes to visit or stay in Portugal.