Portugal remains the best established and most efficient Golden Visa in Europe and highly favorable within the EU for relocation under the Non Habitual Residency Program.
*Since January 1st 2021 Citizens of the United Kingdom are now eligible to apply for the Golden Visa Program, as per the withdrawal agreement and the change of status.
The Portugal Golden Visa program has proven to be the most popular scheme in Europe with investors attracted to its flexibility and benefits.
Launched in 2012 the investor visa program has been actively promoted internationally by the Portuguese government. An investment of €500,000 (or €350,000 reduced option) in real estate in Portugal will gain a residency permit for a family including dependent children.
The golden visa can be renewed every two years providing the applicant spends two weeks in the country every two years.
The program is changing on January 1st 2022. We can advise on the specific changes and the areas which will alter, as well as where we consider the best investments will be for long term sustainable income.
Characteristics:
- Transfer of a minimum of EUR 1 million into a Portuguese bank account or specifically approved investment options
- EUR 350,000 for research activities of public or private entities that are part of the national scientific and technological system. Change to EUR 500,000 on January 1st 2022
- EUR 250,000 in support of artistic production or in the recovery or maintenance of national cultural heritage. Change to EUR 500,000 on January 1st 2022
- EUR 350,000 for the acquisition of units of investment funds or venture capital funds committed to the capitalization of companies incorporated under the Portuguese law, with a maturity of at least five years and with at least 60% of the investment portfolio in companies that have a head office in the national territory. Change to EUR 500,000 on January 1st 2022
Property route
- A real estate purchase with a minimum value of EUR 500,000*
- A real estate purchase with a minimum value of EUR 350,000 for the refurbishment of properties older than 30 years or in an area of urban regeneration, including the cost of renovations. From January 1st 2022 Lisbon and Porto and the Algarve are to be excluded from this route to visa. Our experts have been working on defining the government legislation and we have plenty of options for our clients.
- A real estate purchase discounted by 20% on both 1 and 2 for rural areas in need of population.
Permanent Residency and Finally Citizenship
One of the most attractive options is the ability to apply for permanent residency and citizenship after 5 years without the need to reside in Portugal.
In fact, the applicant and their family need only visit for two weeks every two years in order to renew the Portuguese Golden Visa. In Portugal citizenship can be granted without the applicant having resided in the country.
The investor having acquired residency through the golden visa program will need to demonstrate ties to the country and pass a basic language test. Citizenship of Portugal and a second passport conveys the right to live, work and study anywhere in the European Union. The Portuguese residency card granted through the golden visa program allows the holder to travel throughout the EU Schengen zone.
Non Habitual Residency
NHR is regarded for those who actively seek to reside in Portugal as one of the best tax programs in the EU.
First, the individual must become a resident of Portugal and then we make an application to the tax authorities for a 10 year dispensation for tax purposes.
Under this regime, the following taxation rules apply:
- Foreign-source self-employment or sole trader income derived from an eligible occupation (see below), royalties, capital gains and investment or rental income will be exempt from Portuguese tax as long as they may be taxed in the source country either under a double taxation agreement or under the OECD model tax convention. In addition, such income must not be deemed Portugal-sourced under applicable Portuguese law, and must not be sourced from a blacklisted tax haven.
- Foreign-source employment income will be exempt from Portuguese tax as long as it is liable to tax (at whatever rate) in the source country either under a double taxation treaty or under the OECD model tax convention, and is not deemed Portugal-sourced under applicable Portuguese law.
- Pension income will be liable to a 10% flat tax as long as it is liable to tax in the source country under a double taxation treaty or it is deemed as not being Portuguese-source income under applicable Portuguese law.
- If your occupation is eligible (see below), Portugal-source employment or self-employment / sole trader income will be taxed at a flat rate of 20%, while other Portugal-sourced types of income will be taxed at the normal rates applicable to resident taxpayers, the calculation of the applicable marginal tax rate taking into account all income, including exempt income.
- In Portugal there is no wealth tax or capital duty, and an inheritance or a gift received by a spouse, descendant or ascendant is tax exempt. Inheritance or gifts received by other individuals will be either not taxable under territoriality rules, or else may be subject to a flat 10% stamp duty.
Our legal partner CRS works closely with us to guide you through all aspects of the Portugal Golden Visa process and the NHR.