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Portugal Golden Visa

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Portugal
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The Portuguese government grants a residence permit for purchasing property to be renovated starting at €280,000, or any property starting at €500,000.

€280,000

minimal real estate investments

8–10 months

to obtain a residence permit

5 years

of residence to acquire citizenship

Portugal Golden Visa is a state residence by investment program. This immigration program started in Portugal in 2012 and is considered one of the best in the world according to various ratings. It is an opportunity for foreign investors to travel without a visa across the Schengen Area and a short path to EU citizenship in just 5 years.

More than 10 thousand foreign investors were granted Portugal Golden Visa over the lifetime of the program. The majority of them are from China, Brazil, Turkey, South Africa and Russia.

Program benefits

Fast obtaining of residence permit. The timeframe to obtain a residence permit is only 2-6 months, depending on the number of participants in the application.

Residence permit for the entire family. All family members can enroll in the program: the investor, his/her spouse, minor children, and dependent parents over the age of 55. Children under the age of 26 can also be included in the application if they are financially dependent on the applicant, not married, and are full-time students.

No exams. You don't have to take the Portuguese language and history exams to get the Golden Visa.

Limitless residence permit for maintaining the investments. A residence permit for investment is given for one year and is extended twice for two years (5 years in total). If you keep the purchased property, the residence permit may be extended further.

Relaxed requirements for staying in the country. To renew a residence permit for the investment you must spend at least 7 days in Portugal in the first year, and 14 days every next two years. In comparison, under the usual residence permit, you need to stay in the country for at least 183 days a year. However, if the investor intends to get a permanent residence permit or citizenship of Portugal, they will have to live in the country permanently.

Relatively understandable process of obtaining the residence permit. The timeframe to obtain a residence permit is 8-10 months, depending on the number of participants in the application.

Residence permit and citizenship in 5 years. In five years, the investor receives permanent residence in Portugal and applies for Portuguese citizenship. This is one of the fastest naturalizations in the European Union. In Spain and Italy, you may apply for citizenship only after 10 years, and in Greece, this period constitutes 7 years.

Dual Citizenship. Portugal recognizes dual citizenship, so you can keep your first passport.

Cheaper than in neighbouring countries. Housing in Portugal is cheaper than the European average, and for the same money, you can buy a larger property of better quality. Property in Portugal can be purchased for an average of 1,600 euros/m², while the average price in Spain is 1,900 euros/m².

Returns in euros. An investor may buy one or more properties on the primary or secondary market. Housing can be rented out and receive an income of 3–5% per annum.

Return on investment. You need to own the property for 5 years before obtaining permanent residence status. After that, you can sell the property and return the investment. If the investor sells the property earlier, he loses his residence permit.

Special tax regime. Investors planning to become tax residents in Portugal can request a special tax status – Non-Habitual Residents. The preferential tax regime is valid for 10 years and reduces the income tax rate to 20%. Investors are also exempt from tax on income received outside Portugal. There is no inheritance or gift tax and no estate tax. In addition, holders of this tax status have a free transfer of funds to Portugal and abroad.

Options for investments

  1. Buy real estate in Portugal worth €280,000 and more that is over 30 years or is located in an area of urban regeneration. An investor can choose between hotel shares or commercial and residential real estate in the low-density parts of the country.
  2. Buy real estate in Portugal for an amount of €350,000 or more that is over 30 years or is located in an area of urban regeneration. In this case, an investor may buy hotel shares, commercial real estate in any part of the country or residential properties in the landlocked areas, in Madeira or on the Azores.
  3. Buy real estate in Portugal for an amount of €500,000 or more. This option suggests that an investor may buy commercial real estate in any part of the country or residential properties in the landlocked areas, in Madeira or on the Azores
  4. Invest €500,000 or more into the real estate investment fund.
  5. Buy shares in a Portuguese company or open a bank deposit of 1 million euros or more.
  6. Buy shares in an investment or venture capital fund worth €500,000 or more. At least 60% of the fund's investment must be in companies registered in Portugal.
  7. Register a business and create at least 10 jobs for Portuguese citizens.
  8. Invest at least €250,000 in preserving Portuguese national heritage or invest a minimum of €500,000 in research and scientific activity.

Residence permit in Portugal for investment in real estate

Buying real estate is the most popular option for obtaining a residence permit in Portugal for investment. Since as long as the programme exists, more than 93% of investors chose this option among all Golden Visa options.

Portuguese real estate enjoys steady demand. According to PwC, the Portuguese property market is among the most promising in Southern Europe.

There are now several investment options regarding the requirements for obtaining a Portugal Golden Visa, the minimum threshold ranging from €280,000 to €500,000 depending on the type of property and on the location. 

Residence by residential real estate investment in Lisbon, Porto and other coastal areas is not available since 1 January 2022. Nowadays the Portuguese government issues golden visas for the purchase of residential real estate only in the landlocked areas, the Azores, or Madeira.

Today Tranio offers its buyers serviced apartments in Lisbon and Porto. They are considered commercial properties, so they are not subject to the new restrictions. Let us know if you want to receive a presentation on the projects and learn the details.

Request the details

The cost of housing outlined in the program is paid without a mortgage. However, it is possible to apply for a loan for an amount exceeding the minimum requirement of the program. For example, if you buy real estate for €700,000 while the minimum required by the program constitutes €500,000, you can take a mortgage for €200,000.

Please note that registration of the bought property in Portugal will constitute about 10–12% of its value. The maintenance of housing in Portugal will cost an average of €2,000 a year.

Investing in renovation properties for €280,000: pros and cons

Renovation property for €280,000 also gives the right to obtain a residence permit in Portugal. The housing must be built more than 30 years ago and be located in an area of cultural and historical heritage. Such properties are usually offered by developers. They buy whole buildings, carry out renovations and sell ready-made apartments as part of the Golden Visa program.

Therefore, real estate for €280,000 is often offered with a guaranteed rental income from the apartment or as an apart-hotel with the revenues from the occupancy rate. Depending on the location the owner may receive an income of 4% per annum.

Pros

  • A much lower entry threshold to the program of €280,000 instead of €500,000;
  • Guaranteed returns (often).

Cons

  • Gainful properties find a quick sale, the supply in this market is very limited;
  • Not all locations are available: there are almost no properties for sale in Algarve or Madeira.

How do I get a Golden Visa? 

  1. Choose a real estate property in Portugal;
  2. Open an account in a Portuguese bank to transfer funds and receive a foreigner’s tax ID number;
  3. Collect the documents and make a real estate deal that meets the requirements of the program;
  4. Submit an application on the website of the Portuguese Immigration and Borders Service (SEF) and schedule an appointment;
  5. Book an appointment for biometrics (appointments are scheduled 2–4 months in advance);
  6. Submit the documents for residence permit personally and/or through your representative;
  7. Come to Portugal to submit biometric data;
  8. Receive a residence permit card (you can do it through your representative).

Documents for a residence permit for purchasing real estate 

  1. Certificate of title and deed of purchase; 
  2. The renovation project, approved by the government (if the property was purchased for more than €280,000);
  3. Passport or copies of passports of all applicants;
  4. Documents proving legal entry and residence in the country;
  5. Medical insurance policy;
  6. Application for criminal background check in Portugal;
  7. Certificate of no criminal record in the applicant's country of residence;
  8. Tax clearance certificate from the tax authorities and social welfare institutions;
  9. Marriage certificates and birth certificates of children;
  10. Certificate of employment;
  11. Confirmation of the student status for children over 18 years old;
  12. Taxpayer Identification Number.

The documents must be translated into Portuguese by a certified translator, notarized and apostilled. 

Costs for obtaining a residence permit

The fee for a residence permit in Portugal constitutes €5,325 for each family member. Renewal of the residence permit will cost 50% of this rate, which is €2,663. 

The processing of the application for registration and renewal of the residence permit costs 533 euros.

Obtaining a tax number and the services of a tax representative will cost 200 euros. Health insurance also costs about 200 euros per person.

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