Citizenship - Portugal, Golden Visa, Investment, Real Estate - Portugal

Portuguese Government expects to collect over 500 million euro investment in Portugal for 2014 – Investor Visa

Vice-Prime Minister of Portugal announced yesterday that he expects to collect over 500 million euro investment for Portugal with Investors Visa in 2014. After a total collection of 306 million euro in 2013, Paulo Portas expects to be able to collect over 500 million which represents an increase of over 60% for 2014.

Investors Visa Program is surpassing the expectations and according to Paulo Portas words, it is a credible and sustainable way to get foreign investment in Portugal and overall results are very positive. This Program is today one of the most important instruments to help Portuguese economy to recover from global crisis.

Investment in Portugal to surpass 500 million euro in 2014 with Investors Visa

Real Estate Industry has been seen an unexpected recovery with this program which can account with a volume increase of 40% in 2013 for number of transactions processed through this program. Till the end of December 2013 have been accounted a total of 471 Golden Visas | Investor Visas.

This is a clear message of how important this program is for Portuguese Government and how much efforts are being put into this resource of foreign investment.

Real Estate prices are already overseeing an increase due to all positive factors that are surrounding Portuguese economy. Great expectations are still open for the period after IMF intervention in Portugal.

Golden Visa

Investor Visa Portugal : I have 3 wifes can I join all my wife and children into my application?

Many countries allow marriage between a man and several women. In those cases investors usually ask us how they will manage to insert all their wifes together with their children into their investor visa application. In fact by Portuguese law there is possibility to recognize only one wife, so looking into this perspective there is no possibility to add into their application all the wifes as spouses. As for the children, as long as all of them have the investor name in their birth certificate, you will be able to directly join all kids even if they are from different wifes.

In resume, all children will be able to join the program, for the wife position you will need to select one. To solve the problem of having several wifes out of this application you can always make them an investor themselves and make a separate application for them.

The application for this visa does not discriminate any national from any country or by race or religion. All nationals, all races and all religions are welcome to join the program and become a residence permit investor.

So far there is also no restriction in the amount of applications approved by month or year. It becomes a very straight forward process, if you invest within the requirements and present the correct paperwork, you will be granted with a golden visa and become a Portugal Investor Visa member.

Citizenship - Portugal, Golden Visa

Investor Visa – Can my adult kid already married join the program with Investor ?

Family reunion for Investor Visa in Portugal allows you to join direct dependents in your application. Direct dependents mean all persons which survive depending on your earning and are directly related to you. All daughters, sons, parents or other related family member only when they depend on you can join the application together.

By normal understanding all kids under 18 years old are direct dependents from parents, once they complete 18 years old unless stated or proof of studying can not be considered for this application. In case your kids have already over 18 years old and are married, its a normal understanding that they have created their own family, therefore they are not direct dependents anymore, even if they still depend on investors money.

The solution for an adult kid already married to be able to join this program is to be himself an investor and get all the benefits from early beginning. In case that can not be considered a solution, it is also a good understanding that all investors visa applicants which apply for citizenship after 6 years will grant the possibility for 2 generations to claim citizenship. Meaning is, when an investor becomes Portuguese citizen, sons or grandsons will be able to request Portuguese citizenship also whenever they want.

Golden Visa, Investment, Real Estate - Portugal

Portugal Golden Visa : How to invest in a Vineyard in Portugal with 500.000 Euro ?

If you are a Wine lover and always had a dream of owning your own vineyard and cultivate grapes, investing in a Portuguese vineyard might be the investment you were looking for. In Portugal most of wine production comes out of boutique wine labels and is known for extremely good quality even though market price for wine in Portugal is still very affordable.

With the expertise on wine lasting for several generations, in Portugal is still easy to purchase a vineyard that with a little bit of marketing and export sales, can generate a good return on investment, able to grow at a much faster speed than global economy.

The question is whether you are able to invest 500.000 Euro in a vineyard and still be able to apply for Residence Permit / Citizenship with that investment? The answer is pretty simple, yes you can but most of vineyards business is allocated to a company and not exactly just a piece of property. In order to be able to be granted residence permit with your investment in a Portugal vineyard you need to choose between one of the following options:

Option 1)

Purchase real estate of the vineyard in a value of 500.000 Euro or bigger to your personal name and then purchase the shares / stocks of the vineyard separately. This way you will be able to apply for Residence Permit in Portugal for the fact that you have invested over 500.000 Euro in Real Estate and you still will own the vineyard business in a separate way.

Option 2)

You purchase the shares of the vineyard for the total value over 1 million euro instead of 500.000 Euro, since you are making a capital investment instead of real estate acquisition. Even if the company you are purchasing is itself owner of real estate in total value over 500.000 Euro. Please note that all capital transactions under 1.000.000 Euro will not be able to be considered for Residence Permit application.

It is also common that most of vineyards in good conditions in Portugal will have an asking price over 1.000.000 Euro and this can also make your business easier. Just be aware that when you acquire a company you are also assuming the full debts of the business and therefore is strongly advised that you perform a good due diligence to all company activities.

Vineyards in Portugal is a protected business since its required to have license to explore vineyards, buying a company that holds a license is definitely your best way. For checking opportunities on Portuguese vineyards please email us with your investment budget.

Golden Visa, Investment, Real Estate - Portugal

Golden Visa Real Estate : Short Term Rentals vs Long Term Rentals

When choosing Real Estate as the selected option for Golden Visa application, investors usually tend to choose their real estate options according to the return on investment rate of rentals business. By getting a return of 4% on Long term rentals I would say is a pretty much average investments in terms of Business. Specially if you consider that you can still have your property appreciated on price at a rate higher than 10% a year for Luxury / High Standard Level Quality apartments.

If your property has a planned return on investment over 4% for Portugal economy I would say your rentals business is a very good deal. Luxury properties pay usually 1-3% of Return on Investment in terms of rentals.

When investment option of Real Estate is to optimize the rental income, I often request my customers to define if they prefer to do Short Term Rentals or Long Term Rentals.

Short Terms rentals are usually directed to tourists who come with short stays (average 4 nights) and enjoy the city life. This includes also short stay business trips where people often prefer the privacy, convenience and price of an apartment instead of an hotel room. Specially when they travel with friends on in a group.

Long Term rentals are usually defined as rentals for periods over 6 month and with a fix rental and property fully occupied.

Currently and after evaluating both solutions is clearly understood that Long term rentals business is facing higher risk than Short Term Rentals. Long term tenants usually are Portuguese and due to economy struggling in the past years, several of them are loosing their jobs and not able to keep affording rental price at the end of the month. Short term rentals is 90% tourists from stronger economies who are less affected by world crisis and manage to spend an affordable amount of money for their city experience trip.

How much should you expect in Short term rentals properties? If your property is extremely well located on the right spot for tourists you may expected returns of 7-12% with your rental income. Obviously their is bigger uncertainty since you are not very sure your apartment will have guests.

If you plan to do Short Rentals business in Portugal with your Golden Visa Real Estate Investment, please be aware that your property needs to be fully furnished and equipped, which also allows you to block the calendar dates when you need to come over to Portugal and enjoy your own space.

If Long terms Real Estate is your preferred investment type, properties are most of the time available empty, considering that tenants will be their own furniture. With our current economy stage, short rentals is often the best choice, not only because it has less risk but also because has the best return on investment.

Golden Visa, Real Estate - Portugal

Investor Visa – Which one is the best investment solution ?

To be able to obtain the Investor Visa for Portugal you can choose between 3 options of investment:

a) Invest in Real Estate over 500.000 Euro

b) Capital Investment over 1.000.000 Euro

c) Open a Company with more than 10 permanent employees.

Several investors query which one from this 3 types of investment is their best choice and the answer is quite simple. More than 90% of the 400 Investors that choose to apply for Investors Visa have chosen option a) Invest in Real Estate as their best option. The reason to explain this investment decision are:

1) Capital Investment in a Portuguese Bank like a long term deposit pays very low interest rate. Return on Investment is quite low or often associated to high risk investments. Their is currently no investment in Capital that can be a safe and highly profitable bet in long term analysis.

2) Open a company with more than 10 permanent employees is only a clear option when you really have the intention of having a company with more than 10 employees located in Portugal. If you are thinking about opening a company just to get the residence permit is clearly and most costly solution (time and money) than any other option.

Electing Real Estate as the preferred option between investors becomes quick to explain and analyze, even though real estate can be a quite complex investment depending on what you really plan to apply your money.

Citizenship - Portugal, Golden Visa, Real Estate - Portugal

Golden Visa : Buying Real Estate Off-plan or in Development

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.

Citizenship - Portugal, Golden Visa

Golden Visa Portugal – What kind of taxes will investors will be required to pay?

We would like to distinguish a difference between residence permit and resident. All investors that apply for Golden Visa and get their authorization cards, they have been granted with Residence Permit. However in Portugal to be considered a Resident you need to stay over 183 days per year for tax purposes. That means if you get your investor visa and do not want to reside in Portugal you still able to get your citizenship after 6 years at the same time you are not subject to global earnings taxation.

Investors who do not live in Portugal over 183 days per year will be entitled to pay taxes for the earnings made in Portugal. Earnings made abroad do not need to be subject to any income tax. If you do live in Portugal over 183 days per year you need to pay your taxes as any regular Portuguese citizen. Your income tax will respect the IRS table which has a different tax level according to your earnings. As a resident your global earning need to be declared and subject to income tax in Portugal.

Income Tax Table 2013

Under 7.000 Euro / year : 14.5%

Between 7.000 Euro and 20.000 Euro: 28.5%

Between 40.000 Euro and 80.000 Euro: 37%

Over 80.000 Euro: 48%

Additionally you should consider an extra 3.5% Income Tax for all Levels as an Emergency Tax called by the Government to help reduce the public debt. If your income is over 250.000 Euro there is still an extra tax between 2.5%-5% on top of the 3.5%.

Golden Visa, Uncategorized

Law: Can my adult kids apply for Golden Visa without being students in Portugal?

Many of our investors get quite confused by the fact that we mention that they can add their kids as dependents for the Golden Visa application and then mention that SEF (Government Institution) states that the kids need to be studying in Portugal.

14. As ARI holder, what family members may benefit from this same scheme, where and when may I apply for family reunification, and how much does it cost?

…

– Children of age, who are dependent on both or one parent, provided they are single and studying in a teaching establishment in Portugal

…

(source: http://secomunidades.pt/ari/index.php?option=com_content&view=article&id=127&Itemid=150 )

In fact the reality is that if you are not a resident in Portugal even though you gain Residence Permit, you are entitled to apply for Golden Visa with dependents not studying in Portugal. Our applications are quite successful on this terms and there is absolutely no need to have them studying here. The law is general and was made for foreign individuals which are legal residents in Portugal, not exactly previewing the current situation of Investors Visa which does not require to be a resident.

Golden Visa, Real Estate - Portugal

Top 10 Reasons why to Invest in Real Estate in Portugal

There are plenty of Real Estate Reports which may give you a full picture of the macroeconomics data from Real Estate Industry but few will be able to give you inside information about the best reasons why you should invest now. I will try to put together my personal Top 10 Reasons and would be happy to discuss them in detail with you.

TOP 10 Reasons to Buy Now Real Estate in Portugal

1) Price is at Lowest Possible Level

During the last 5 years Portugal have seen the economy shrinking and loosing speed. Most of Banks are full of toxic assets and will only lend money for the acquisition of those properties. Real Estate Industry being one of the most important national industries, was seriously affected and since then very few developments have been continued. At the current stage, most of the high quality real estate available in the market was built 5 years ago. Current price level is under the construction price, there is no more room for decrease for new properties.

2) Demand exceeds Supply for New Developments

With new investors coming from abroad to invest in Portugal to get the Golden Visa – Residence Permit in Shengen space, most of the developers are seeing a swift of the market usually from Europeans to other Continents Investors. The current number of investors looking to purchase new properties in Portugal exceeds in large scale the amount of new developments ready for transaction. Price is going to rise over 30% in the next 2 years.

3) No Crisis can take the Sun and Climate Out of Portugal

Even if Crisis gets worse which is far from happening, our Real Estate is still located in a place with fantastic weather: great luminosity with clean blue sky and nice sunshine. Country is surrounded by sea and beaches all over and the weather temperature is pleasant most of the year, making it a special place for traveling for Central and Northern Europe Countries. This conditions are not subject to change.

4) No Xenophobe Behavior

Lots of people arrive in Lisbon and ask for China town, Muslim area or other types of ghetto. They get very surprised to understand that Portugal were world travelers since 1500s and never had any issues to mix with other races, civilizations or religions. If you go around Lisbon you will understand that everyone lives in community with same conditions, there is no discrimination or type of concentration. Portuguese love to be integrated and easily accept other cultures.

5) Education Level

With a big change after Revolution in April 25th 1975, country did a big effort in providing easy access to education. Most of younger generation have universities degree, speaks english and are able to perform the most sophisticated jobs.

6) Best Golf Courses in Europe

Algarve (South of Portugal Region) was voted the best Golf Destination for 2014 by IAGTO. Several golf courses in the area already won the best golf course award in Europe and lot more awards will come. With 200 kms of Beach, Algarve is a touristic region well known in most of Central and European Countries. Golf is also helping to extend the travel season by bringing customers during low season period.

7) Best City Break Cities in Europe

Lisbon was elected Best City Break Destination in 2013 by World Travel Awards. What would people prefer better than come on a flight for a few days into a city that never sleeps, is full of historical monuments to discover every corner, tiny roads reminding you about life in last century and pastries all over the streets. Lisbon is full of charm and since is raining very few days per year, makes a great place for recharging energies with a stopover. People love the fact that besides all that is still a very easy affordable city.

8) Low Crime Rate

Most of Golden visa investors when arriving to Portugal query me why most of the premium areas are open to public and not in private condominiums. It is hard to explain that security in Portugal has very little value since crime rate is quite low. Nobody expects you to have any problem just because you have money. Freedom is a common right for everyone including famous and rich persons. Almost all of the developments are open to public and with easy access to everyone just because it is not expected that will happen any sort of crime. You feel the difference when coming to Portugal compared to most of European Countries. In Portugal you are free to walk on the street in the middle of night.

9) High Standard of Construction Materials and Engineering

Conditions to build in Portugal are quite restrictive and very demanding. Most of new developments by standard request need to use high quality materials. Since the regular price of construction increases and become more expensive than countries such as Spain or Greece, Portugal is usually having the highest standard quality.

10) Great Transport Network

If you check the distance between most of the developments and a Highway you will easily understand how easy is today to travel by car within all Portugal and Europe. With 6 international main airports is common to say that it will not take more than 2 hours to get anywhere in the country. Main airports to be Lisbon, Faro, Alentejo, Oporto, Madeira, Azores.

Looking forward to discuss with you my top 10 reasons.

Portugal Investor Visa

Citizenship and Residence Permit by Investment – info@portugalinvestorvisa.com – Phone: +351 914976018 – Portugal

Category Archives: Golden Visa