How Golden Visa Portugal works
This video shows how Golden Visa Portugal works, including the cost, benefits and processing time.
The Golden Visa Program in Portugal is the visa-free entry ticket to the Schengen countries.
The best part is that there is no need for relocation. After 5 years, he can become a Citizen of Portugal, an EU Citizen.
Effective residency is not required. That’s a unique gateway to freedom.
It’s a safe haven protecting from political instability.
▶️ Click on the Video: “🇵🇹 Golden Visa Portugal 2019 🔎(most detailed Analysis)”
🎞️ ⬇️Content of the Video⬇️
00:00 👉 How Golden Visa Portugal works – Introduction
01:09 👉 What is Portugal’s Golden Visa Program Definition & History?
01:52 👉 How do I get a Golden Visa for Portugal?
01:55 👉 Who is eligible for Golden Visa?
02:26 👉 Is permanent residence required?
03:07 👉 What are the investment requirements?
04:40 👉 Latest Facts & Figures about the Golden Visa Program
05:27 👉 Portugal Golden Visa 350’000 EUR Investment Fund Option
06:02 👉 How to be a successful real estate investor in Portugal?
07:05 👉 Can foreigners get a mortgage in Portugal?
07:21 👉 Should I hire a lawyer for the Golden Visa Program 2019?
09:08 👉 The application process and renewal
11:26 👉 Important Update
11:45 👉 Collecting a NIF & Opening a Bank Account in Portugal as a non-resident
12:07 👉 What are the documents needed before you start with the Golden Visa Portugal?
13:17 👉 What is the Benefit of Golden Visa Portugal?
15:10 👉 New Law: Golden Visa Portugal – Schengen Countries
15:26 👉 How much does it cost to get the Golden Visa Portugal?
15:52 👉 Are there dishonest firms offering Golden Visa Portugal?
16:34 👉 What are the Golden Visa Portugal Tax Benefits?
17:27 👉 How long is the Golden Visa Portugal processing time?
17:41 👉 How do I become a Citizen of Portugal and how long does it take?
1. What is Portugal’s Golden Visa Program Definition & History?
The Golden Visa Portugal is an investor visa program designed to attract foreign capital and business people in exchange for residency and, after 5 years, citizenship.
Portugal launched the Program 2012 and by today the program attracted more than 4,4 billion EUR and more than 7200 investors. 95% of this amount has been invested in real estate. The applicants must invest in real estate for at least 500’000 EUR for 5 years.
The majority of applicants are coming from China followed by Brazil, South Africa, Turkey, Russia and Lebanon.
Portugal Golden Visa - Cumulative investment since 2012
2. How do I get a Golden Visa for Portugal? Who is eligible for Golden Visa?
Only Non-European Union Nationals can apply for a Golden Visa. EU nationals are not admitted to the Portugal investor visa program. The investment must be maintained for 5 years. Investors must stay in Portugal for at least 7 days in the first years, and at least 14 days in the subsequent 2 years. That’s a super and unique advantage for investors living in insecure and unstable countries.
3. Is permanent residence required?
Many investors from South Africa, Lebanon, Russia, Saudi Arabia, Egypt, Libya etc. have not the intention to move out of their home country immediately right now. But they are looking for a Plan B in case of an unexpected event or emergency. They are searching for an option in case of revolution, social unrest or any other emergency situation. Another investor visa, for example, Malta, Italy and Switzerland are imposing a permanent physical presence for granting the residence permit. Not Portugal. That’s the reason why Portugal is so attractive for all investors looking for a Plan B.
4. What are the investment requirements?
The investor has the option to choose one of the following investments.
- Transfer of at least 1,000,000 EUR to the investment fund.
- He has to create at least 10 new jobs.
- He is free in purchasing a property of at least 500’000 EUR.
- He can invest 350’000 EUR in a 30 years old property located in an urban rehabilitation area, in scientific projects, in projects supporting national cultural heritage, investment fund or environmental projects.
- Since 2018, you can invest 350’000 EUR in a fully regulated investment fund.
Just 15 investors of more than 7’208 (28 February 2019) opted for the 10 jobs creation program. Nearly all investors are investing in profitable real estate properties in the capital Lisbon, Faro and in touristic areas.
Based on Golden Visa Portugal property prices are increasing by 10% to 12% per year. Real estate investments in the main cities are very attractive investment opportunities.
Last 3 years, the tourism industry increased by 50%. Golden Visa Investors can participate in the very attractive short rental market renting properties to tourists generating 5% to 10% rental income. The real estate market in Portugal is booming. Portuguese investors do not bring their money to the banks anymore. Portuguese investors prefer investing in real estate properties.
Let me give you the last official fact and figures on the Golden Visa Program dated 28 of February 2019.
- 7208 Golden Visa approvals
- 12254 family members have the Golden Visa
- A total amount of 4. 4 billion EUR entered into Portugal
- 4 billion EUR was invested in Real Estate
- From the 7208 Golden Visa Investors 6804 opted for Real Estate Investments!
Who likes the Golden Visa Portugal the most?
- No 1 is China with 4159 applicants
- No 2 is Brazil with 695 applicants
- No 3 is Turkey with 317 applicants
- No 4 is South Africa with 281 applicants
- No 5 is Russia with 248 applicants
5. How the Portugal Golden Visa 350’000 EUR Investment Fund Option works
Since 2018, you can invest 350’000 EUR in a fully regulated Portugal Golden Visa Investment Fund creating a fast investment solution with high returns. The Investment Fund will invest in properties easy to sell and easy to rent out. It is expected a return of over 6% per year. There are no grey areas in this program. If you invest you receive the option to relocate at any given time and after 5 years you receive the Portuguese Citizenship with an EU Passport.
6. How to be a successful real estate investor in Portugal?
The real estate market suffered due to the financial crisis of 2008. However, there is a huge demand for properties from 500’000 EUR and more. Investors buying real estate in the capital Lisbon have tremendous growth potential.
Advice is highly recommended for Golden Visa Investors as there are clears distinctions between vacation properties on the coast of Portugal and city properties located in the main cities. Everybody can buy property in Portugal. There are no restrictions on your nationality or residency. Real estate investments in the center of the main cities are the most attractive investments.
7. Can foreigners get a mortgage in Portugal?
For a Golden Visa Portugal Mortgage, you should ask the local banks located nearby the property.
There are no restrictions on foreigners.
However, you still need to get your Portuguese Taxpayer Identification Number (TIN) first.
8. Should I hire a lawyer for the Golden Visa Program 2020?
Engaging a Portuguese lawyer will make your life easier during the Portugal Golden Visa processing time and protect you from entering in overpriced transactions. The Portuguese tax law requires the appointment of a Portuguese tax representative. Local lawyers are included in our pricing.
Keep in mind that real estate brokers in Portugal work for the seller. They are in a conflict of interest situation. Their commission is included in the sales price. Real estate brokers are strongly motivated to sell properties for as much as possible. Dishonest brokers are widespread.
The risk of encountering an overpriced transaction is imminent. Saving money by not engaging a lawyer can cost you a fortune at the end of the program. You need a local matador who is familiar with the real estate market because the demand for real estate is huge. You need somebody on the spot acting in your exclusive interest.
Caputo & Partners is a member of AEA International Lawyers Network. Upon request, I will recommend a reliable Portuguese real estate lawyer I know since many years. If you need help with a fair, competent and independent Portuguese lawyer, I am delighted to refer you to a specialist. The price will likely be more competitive and you can expect a better and more personal support.
Having an independent local representative finding the best real estate investment for you is absolutely crucial for a successful investment. You will pay some euros upfront but you are likely to save much, much more by buying a better property at a better price.
9. How the application process and renewal works
The application request must be filed online. The Serviço de Fronteiras e Estrangeiros (SEF) will approve your request and invite you for an interview.
Usually, the application is filed by a lawyer. It can take up to 5 months for approval.
Theoretically, you can do your application on your one but I don’t recommend that if you are not familiar with the Portuguese language. The legal fees are not insignificant but much cheaper than making some formal errors, wrong investments and having the risk of being rejected. Expect to pay around 30’000 EUR all-in legal expenses to a large international law firm for all the Golden Visa Portugal family members. With us, the legal fees are included in our all-inclusive pricing. We work and cooperate with the leader of the industry.
A good alternative is hiring an independent English speaking lawyer specialized in Portugal immigration law, real estate and Golden Visa. If you need help with a fair, competent and independent Portuguese lawyer, I am delighted to refer you to a specialist. The price will likely be more competitive and you can expect a better and more personal support.
After the approval, you have to pay an approval fee of 5’274.40 EUR (each applicant) and within 20 days you will receive Residency Card valid for 1 year.
The Residency Card gives you visa-free access to the Schengen countries. You have to spend at least 7 days during the first year in Portugal. One month before your Residency Card will expire; you need to pass a Renewal Process. The renewal process is consisting of retaking biometric data and paying a fee of 2637.20 EUR for each applicant, plus minor bureaucratic fees.
Year 2 – 3
The new Residency Card is valid for 2 years. During this period, you need to be in Portugal for 14 days. Before the end of the 3 years period, there is a renewal process.
Year 4 – 5
You will become a new Residency Card valid for 2 years. Again, you have to stay in Portugal for at least 14 days, consecutive or interrupted.
After the end of the fifth year, you can apply for permanent residency followed by Citizenship.
Let me give you an important Update.
According to the recent new law entered into force a few months ago in Portugal, you receive Citizenship after 5 years only (not 6 years at it was before).
After 5 years, you are entitled to the Portuguese Citizenship with European Union Passport.
10. Collecting the tax number and Opening a Bank Account in Portugal as a non-resident
To open a bank account you need a NIF (Portuguese Tax Number).
As you need a Portuguese representative dealing with tax authorities anyway, hiring a lawyer will help a lot.
You can use the address of the lawyer representing you. A local address is imperative for getting the tax number.
11. What are the documents to start with the Golden Visa Portugal?
- You need a valid passport
- You need entry stamps showing your physical presence in Portugal
- You need valid health insurance covering your stay in Portugal
- Start early collecting the extract of the registry with Police Records in your home country and previous countries of residence
- Giving the authorization to the SEF to collect criminal records
- You need a sworn statement declaring that you are able and willing to make the investments
- You need a Good standing with Tax, Customs and Social Security system
- Keep the receipt that you paid the application processing fee
- You need the documents showing your investments are accomplished
All documents created outside Portugal must be translated and legalized by a notary public and super-legalized with Apostille or by the competent embassy.
The collection of the above documents can be very time-consuming. A lawyer with international experience can help with the legalization and translation of international documents.
12. What is the Benefit of Golden Visa Portugal?
I found 17 advantages. You can fly and reside in Portugal at any time and without a visa.
There no need for relocation. Portugal is your gateway to Europe. It’s a safe haven for political instability. You can live and work in Portugal with your family. You will benefit from a high return from your real estate of 10% – 12% every year. You can realize 5% to 10% yearly short term rental income from tourists in Lisbon. You can take advantage of unique tax planning opportunities.
You will enjoy an excellent climate and a very low cost of living. You can benefit from a well-developed healthcare system. You can enjoy the excellent Portuguese education system for your children. Apply for Citizenship and Passport after 5 years. The Non-Habitual Residence Status offers important tax advantages. You can travel visa-free to all 26 Schengen Countries.
There are excellent communication links with 278 daily flights from Portugal. The crime rate is very low. It’s a globalized and peaceful nation. The quality of life is very high. English is very common among the younger generation.
You can enter Portugal at any given time. Physical presence is not a requirement. Other Golden Visa residence programs impose physical presence with ordinary taxation. Not Portugal.
You and your family can live and work in Portugal having access to the healthcare and education system according to European standards.
13. Visa-free travel in the Schengen area.
You will have the Freedom of Settlement without restrictions after 5 years.
A new law issued in Portugal at the end of 2018 allows Golden Visa applicants to ask for the Portuguese Citizenship with EU Passport after 5 years only.
After 5 years only you are authorized to settle in the following 26 Schengen Countries.
14. How much does it cost to get the Golden Visa Portugal?
532.70 EUR is the processing fee when submitting the application followed by 5324.60 EUR per person.
The 2 renewals are charged with 2666.30 EUR each, plus 532.70 EUR processing fee. On top of it, there are the legal fees up to 30’000 EUR and expenses for legalization and translation of supporting documents.
15. Are there dishonest firms offering Golden Visa Portugal?
As real estate brokers are representing the seller, you should hire an independent local agent for finding the best real estate located in the main cities. Often, law firms are offering properties for the convenient sum of 500’000 EUR that in reality are worth 450’000 EUR or less. Therefore, don’t accept special offers or great deals with a low Golden Visa fee. There is no free lunch.
An independent lawyer will protect you from greedy real estate agents selling overpriced properties. At the end of the day you will own the property you really like, at market conditions.
16. What are the Golden Visa Portugal Tax Benefits?
The right to take residence in Portugal with the Golden Visa Portugal Program and the residence for tax purposes are two different things. As the Golden Visa Portugal residence permit does not impose physical presence, except 7 days per year, you will not become an ordinary taxpayer in Portugal.
Golden Visa applicants can benefit from the Non-Habitual Resident Tax Scheme for the first 10 years. Depending on their habitual residence and the Double Taxation Treaties in place international taxation can be optimized on a case by case basis.
Caputo & Partners is cooperating with Prof. Dr. Simoes Bata, an international tax lawyer in Sao Paulo, Brazil. Therefore, we have the most tax-efficient solutions for Brazilian Golden Visa candidates considering the Golden Visa Portugal 2019 Program.
17. How long is the Golden Visa Portugal processing time?
Due to significant improvements with online filing procedures, the duration for the Portugal investment visa is limited to 5 months.
18. How do I become a Citizen of Portugal and how long does it take?
Due to a new law, the duration for granting Citizenship based on the Golden Visa Portugal Program has been decreased from 6 to 5 years only. Then after 5 years of citizenship benefit means a Portugal Citizenship by Investment Program for less money. It’s a Golden Visa Europe Program.
The Golden Visa Portugal is one of the best Golden Visa Programs. However, other countries are coming up with new Golden Visa Programs. Which is the best program for you depends on your specific family situation and business. If you are searching for the best program covering your needs and expectations write me an email and reserve a consultation.
Together, we will explore your best options.
Be rich and stay rich. Have a wonderful day.