21 Aug 2018
Tags: Golden Visa, HNW, Portugal, Overseas Investment, Non-Habitual Resident
According to the Association of Estate Agents in Portugal (APEMIP), foreigners bought one in four homes sold in the country last year. In Lisbon, cranes dot the skyline and the property market is booming: the value of homes sold in the city reached €2.6bn (£2.3bn) in the first quarter of this year.
With property prices increasing by 10.5% in the fourth quarter of last year, the Portuguese National Statistics Institute reports that house prices now stand at their highest level since 2009, rising for 18 successive quarters.
The Golden Visa programme was launched by the Portuguese authorities in October 2012 and is an efficient way for foreign investors from non-EU countries to obtain permanent residence in Portugal, thereby also allowing freedom of travel in most European countries (Schengen area).
There are several routes to obtain a Golden Visa in Portugal. Tamea International focuses on the Real Estate Investment route which is considered the most popular and flexible. The investment requirement for obtaining a Golden Visa via this route is the acquisition of a property of an amount equal to or greater than €500,000. Only investments made after October 8th 2012 are considered.
The second step in the Golden Visa programme allows investors to apply for Portuguese citizenship after six years. The assets used to apply through the scheme can be disposed of once citizenship is granted.
Requirements:
- €500,000 investment*
- Hold the investment for a minimum period of 5 years
- Investment funds must come from outside Portugal
- Initial entry into Portugal with a valid Schengen Visa
- No criminal convictions
- No previous issues with the Portuguese or Schengen Immigration Services
- Minimum stay of 7 days in Portugal each year
Benefits:
- No visa required to visit Portugal or rest of the Schengen Area
- Freedom to live & work in Portugal (even if resident in another country)
- Eligible for permanent residency after 5 years
- Eligible for citizenship after 6 years
- Residency can be extended to family
- Property can be rented to generate income
- Property can be sold after citizenship is acquired
If you would like to know more about the Golden Visa please contact us for more information.
* Other investment levels may apply in some cases
Non-Habitual Resident
The Non-Habitual Resident (NHR) tax regime was designed to encourage entrepreneurs, investors, high net worth individuals and specialised professionals to take up residency in Portugal.
In order to qualify as an NHR, one must be physically present in Portugal for more than 183 days in a calendar year; or prove that he/she has a permanent residence in Portugal on December 31st of that particular year.
Once an individual obtains NHR status then he or she will benefit from the special Personal Income Tax (PIT) regime for a ten-year period. During this period NHRs are eligible for special income tax rates on Portuguese and foreign-sourced income.
The NHR rate of taxation is 20% for both employed and self-employed individuals. The taxation covers income of those working in highly skilled fields such as:
- Directors, managers & investors
- Engineers & architects
- Actors, musicians & fine artists
- Doctors, dentists & psychiatrists
- Auditors
- Teachers
Benefits
- 20% tax rate on Portuguese-sourced income
- Zero tax on most foreign-sourced income, including salaries, real estate income, capital gains, interest and others
- Applicable for up to 10 years
Requirements
- Qualify as a Tax Resident by spending 183 days or more in Portugal within a calendar year; or having a permanent residence in Portugal on December 31st within that particular year
- Not have been resident in Portugal in the previous 5-year period
For information on the Non-Habitual Resident Tax Regime and details on how it could benefit you please contact us.
Example of property For Sale - Lisboa, Estrela (pictured)
Every apartment in Sao Bernardo 36 has exterior space, terraces and gardens. This is a green and environmentally friendly project.
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About Us
Tamea International is an independent real estate consultancy based in Lisbon, Portugal. We assist international and domestic investors in the sourcing and acquisition of property in Portugal. Our portfolio is carefully curated to include the finest individual properties and landmark development projects, following strict quality criteria to ensure that our clients have access to excellent investment opportunities in some of the best locations.
