Portugal Golden Visa application states that you are able to apply for Residence Permit if you make an investment in Real Estate over 500.000 Euro. That investment can be for several properties or just one. All types of properties are able to be considered for the application, such as, lands, plots, residential properties, industrial properties or commercial properties, rural lands, parking lots or agriculture lands.
However and due to the fact that several investors in Portugal are looking at properties which are still in development, many query us if we are able to use a purchase of a property off plan or in development in order to apply for Golden Visa?
The answer for that question is a straight forward yes, however several conditions need to be considered before choosing this option. In order to be able to do this kind of procedure the investor needs to open an escrow account in the bank with the total value of the investment, exceeding the amount of 500.000 Euro and stating that money will be given to developer at the time of final deed. To set up this procedure is quite simple as long as you have an experienced immigration lawyer taking care of the procedure, but you still need to be aware that Visa application after being approved is issued for 1 year and after 1 year all the purchase needs to be complete.
What happens if my investment off-plan is not complete after 1 year?
You will not be able to use that investment to renew your visa and consequently you will not be able to count your 1st year as one of the 6 you need to be able to apply for citizenship.
Even though it is possible to apply for a Golden Visa using an escrow account and with a project off-plan / in development property, it is strongly advised to avoid this solution. You need to be fully confidence that you will be able to make the final deed before the end of your visa expiration date and most of the time this is not only dependent on conclusion of the development but also in the several authorizations the developer has to require in order to get the usage license. Sometimes this developments stay pending for the simple fact that outside developments are the responsibility of city hall which might time long time to finish everything.
