Expected to decrease the minimum investment required for Portugal Golden Residence Permit Program, slashing the minimum investment amount from €350,000 to €150,000.
The Portuguese government may reduce the minimum investment required under its Golden Visa Program from €350,000 to € 150,000. Investors will have to purchase properties situated in specific districts that have been identified for urban renewal and redevelopment.
The Golden Visa programme launched by the Portuguese Authorities in October 2012 is a fast track for investors to obtain a fully valid residence permit in Portugal.
It allows investors to gain residency and free access to the Schengen area.
The programme is allowing direct access to citizenship after six years.
“The Golden Visa programme has been a key-determining factor for the recent boom in real estate in Portugal, together with the Non-Usual Tax Programme directed to European Union citizens alongside a recent boom in the short-term rental industry.” – David Machado
Portuguese real estate is a safe haven for domestic and foreign investment.
The real estate sector should be considered a safe investment because the Portuguese real estate market did not suffer and there was no excessive construction in Portugal.
The holiday rentals a bringing new life to the more historical neighbourhoods, where more and more property owners are refurbishing their old properties.
A property in a historical area, completely refurbished, can generate an income of around 8 to 12 percent a year, through holiday rentals.
“Especially in major places such as Lisbon and the Algarve, the main centres are generating returns on real estate investments of up to 15 percent.” – David Machado
A small real estate investment in Portugal and the current political stability is a great advantage for overseas investors.
INVESTMENT REQUIREMENTS (MONETARY)
To apply for a Golden Visa through real estate investment, foreign nationals, either personally or through a company, are required to make an investment that conforms to one of the following conditions:
- Acquisition and rehabilitation of real estate whose construction is at least 30 years old or located in an urban regeneration zone with a combined value (real estate + rehabilitation) of at least €350,000.** / ***
- Real Estate investment of at least €500,000.** / ***
** Co-ownership is possible when each partner invests the statutory amount.
*** The investment requirement may be 20% less in low-density areas as defined (Level NUTS III with less than 100 inhabitants per km2 or per capita GDP below 75% of national average).
- Capital transfer of at least €350,000 in support of scientific or technological research activities.***
- Capital transfer of at least €250,000 in support of artistic or cultural activities.***
- Capital transfer of at least €500,000 for the acquisition of shares in an investment or venture capital fund geared towards the capitalization of small and medium businesses.
- Capital investment of at least €1Million.*
* Investment can be a deposit in a Portuguese Financial Institution, the purchase of Portuguese Public Debt or in Securities.
The Golden Visa Programme also allows the investor to extend the application to family members who are dependents, such as children, spouses and parents, with no further investment requirements.
Investors’ families interested in relocating are able to enjoy all benefits of Portugal’s social welfare.
The programme also has an extremely low minimum stay requirement of only seven days in the first year and 14 days following periods of two years.
The chance to invest in Portugal has attractive prospects, particularly when it comes to real estate.