Tag Archives: Citizenship

Citizenship - Portugal, Investment

How to get citizenship by investment with 1.000.000 Euro

Citizenship by Investment - Investing over 1.000.000 Euro

Citizenship by Investment – Investing over 1.000.000 Euro

The Law in Portugal opens the possibility for foreign investors to apply for residence permit by an investment which allows a regular entry into Schengen territory without restrictions (Portugal and other European Countries). All investors who hold residence permits in Portugal are entitled to family reunification and are eligible to request citizenship after 6 consecutive years of valid residence permit. This form of investment , can be considered if capital transfer is executed to a Portuguese Bank with an amount equal or greater than 1 million Euro. The investment can be in stocks, shares, bond or even just time deposit or current deposit. Is it a problem to renew the investor visa if an Investor buys shares of a company and after with depreciation the value falls under 1.000.000 Euro ? The answer is no. If the investor purchased shares in value of 1.000.000 Euro and at the time of visa renewal did not sell or exchange the original investment, the document of original purchase and the certified statement from the bank to show investment is kept as original purchase, will be able to renew the visa, even if the market value falls under 1.000.000 Euro.

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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%.

 

 

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