Golden Visa
GOLDEN VISA PORTUGAL
It’s no secret that there is a lot of content about the Portuguese Golden Visa on the internet.
Even us! VIV EUROPE. We have already made an article about this subject, you can take a look by clicking here.
But why so much content? Obviously, this topic attracts so many people.
Portugal Golden Visa is undoubtedly one of the best in terms of returns for investors for the following reasons.
They will be able to live in Portugal
They won’t need to carry a visa to travel to other countries from the Schengen area
They have almost no obligation to be in Portugal
They will be able to obtain Portuguese nationality after 5 years
So, as you can see, that is why there is so much talk about the Golden Visa.
Also, the investment required to apply for a Golden Visa is not that much when comparing to other countries Golden Visa programs.
How do we know that? We also have an article comparing some Golden Visa’s programs. You can see it here.
But maybe this article will be just another one, right?
No. In this Q&A-style article, we will address some questions that are not being answered on other blogs. Mainly because those who are selling the service (the Golden Visa assistance) don’t want the reader to know the specifics about this procedure.
At Viv Europe, we believe that providing the information is not dangerous for selling services, but is the best way to help.
By knowing the process, the reader will be more secure about applying for the Golden Visa and, because the procedure requires a lot of workload and the drafting of legal documents, the applicant will undoubtedly need the guidance of lawyers.
Without further ado, let’s jump to the questions.
How much money will I have to spend on the property to be able to apply for the Golden Visa?
That’s one of the most popular questions when it comes to any Golden Visa process. How much will I have to spend?
As previously mentioned, in Portugal there are several ways to apply for the Golden Visa.
As we are focusing on the Golden Visa through property investment, you’ll be able to apply for it by purchasing a property worth, at least:
500,000€, no matter where the property is located in Portugal.
400,000€ if the above-mentioned property is located in a low-density area.
350,000€ for old properties (more than 30 years) or located in an urban regeneration area, considering the need to contract repair works.
280,000€ if the above-mentioned property is located in a low-density area.
What is repair work for Golden Visa?
Considering that the property is older than 30 years or located inside an urban rehabilitation area, this property will probably need some repairs in order to be valued.
Therefore, to apply for this type of Golden Visa the value of the purchase of the property plus the value of the repair must exceed 350,000€.
These property repair works must be proved by a contract, a request for prior information or the licensing document and all of these documents will need to be included at the Golden Visa application.
In this sense, it’s possible to acquire a property for 250,000€ and spend 100,000€ in repair work to apply for this Golden Visa.
What are urban rehabilitation areas?
According to Portal da Habitação, Urban Rehabilitation Areas are:
“delimited areas that, due to the insufficiency, degradation or obsolescence of buildings, of its infrastructure, collective use equipment and urban and green spaces for collective use, namely as regards its conditions of use, solidity, safety, aesthetics or wholesomeness, justifies an integrated intervention, through an urban rehabilitation operation, approved in a detailed urban rehabilitation plan”
These urban rehabilitation areas can be found at the Portal da Habitação website.
What is a low-density area?
Low-density areas are exactly what it looks like: places that need to be populated, as there are not enough people living in the region.
These areas are located mainly in the east of the country and are addressed through the Deliberation of the Interministerial Coordination Commission. You can have access by clicking here.
How does the Golden Visa process work?
Select the Property
Search and select the property according to the Golden Visa requirements
First Step
Acquire the Property
Acquisition of the property and collection of all the documents related to the acquisition
Second Step
Application
Application for the Golden Visa procedure at the ARI platform
Third Step
Schedule an Appointment
After the process is approved, schedule an appointment at SEF.
Fourth Step
Conclusion of the Procedure
When at SEF, the applicant will follow the procedures for completing the application, such as fingerprint scanning, taking photos, paying fees, etc.
Fifth Step
Obtaining the Resident Permit
Wait for the issue and delivery of the Residence Permit in Portugal.
Sixth Step
How long does the Golden Visa process take?
The first stage of the process, that is, the search and acquisition of the property can take days, months or years.
For the completion of the stage the applicant must:
Search and select the property (according to the Golden Visa requirements).
Come to an agreement with the seller in relation to price and acquisition conditions.
Proceed with the paperwork to register the property on behalf of the buyer.
Collect all the documents that are required for the Golden Visa application.
As for the second stage (the Golden Visa procedure itself), from our experience, it usually takes from 6 months to a year (if all documents are delivered correctly) for the process to be completed.
Of course, this is just a simple forecast, as many factors can impact this period, for example, The COVID crisis. COVID19 restrictions may affect these timings.
What are the benefits related to the Golden Visa?
There are many advantages related to the Golden Visa. Here are some of them:
Legally reside in Portugal
Travel to the Schengen Visa countries without the need for a visa
Use the public health system in Portugal
Be able to stay in Portugal for only 7 days of the first year and 14 days in the following 2 years
Request the Permanent Resident permit after 5 years
Request the Portuguese nationality after 5 years
Is Golden Visa the best option for those who want to live in Portugal?
Well, that depends.
It is possible to live in Portugal by applying for another type of visa (regular visas), such as the D1 (Work), D2 (Business), D4 (Study), D7 (Income) Visa, for example.
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The most important differences between applying for a regular visa or a Golden Visa is that:
To apply for a regular visa, the applicant must meet the visa criteria (which is not always easy), for example, being retired to apply for the D7 visa. As for the Golden Visa, anyone who has the required investment capital to invest can enrol in the program.
The holder of a regular visa must maintain the initial condition (that was necessary to apply for the visa) to renew the residence permit (eg, to continue studying at a University or to develop a business). The Golden Visa investor should only maintain the investment. For example: Continue to reside at the acquired property.
The holder of a regular visa must remain in Portugal for at least 6 consecutive months or 8 non-consecutive months during the residence permit, while the investor must only remain in Portugal during 7 days in the first years and 14 days in the subsequent 2 years.
It’s important to emphasize that both regular and Golden Visa can grant you the Permanent Resident Permit and also the Portuguese nationality after 5 years.
Will I pay more tax due to the value of the property?
No. In Portugal, there is no wealth-related tax.
No matter the property value (or the total of your assets), you won’t have to pay more taxes for this reason.
Do I really need a lawyer for this process?
No, you do not need a lawyer for this process, but you should consider hiring one, as this is a complex procedure, with many steps and nuances.
Let’s say you forget to include a document in the process. In this case, your application may take additional months to be concluded (until the missing document is included) or even be denied.
Since the applicant has already invested so much money in this Golden Visa procedure, there is no point in trying to “save money” at this stage.
The ARI system (application website to apply for the Golden Visa) even has a field in which the investor should type his lawyer information.
How much time will I have to stay in Portugal during the permit?
You will need to stay in Portugal for at least 7 days during the first resident permit year.
For the following 2 years, you’ll need to stay in Portugal for just 14 days.
Can I rent my property during my permit?
Yes, it’s possible to rent the property acquired for the Golden Visa application during the resident permit.
Can I buy more than one property to reach the eligible property value?
Yes, you can buy as many properties as you need to achieve the required real estate investment amount.
Is it true that the Portugal Golden Visa procedure will come to an end?
In February 2020, the Portuguese Budget Law was approved and, according to its terms, changes to the Golden Visa requirements were foreseen.
The main reason for this change was the warming of other areas of Portugal that are not the most popular in terms of Golden Visa investments.
According to the Budget Law, the government can change the requirements of the Golden Visa in order to restrict the areas in which it is possible to invest in the acquisition of a property.
The areas that can be excluded from the Golden Visa process are Lisbon, Porto and the Algarve region.
Although there is indeed this provision that authorizes the area restriction, it is important to note that these changes are not mandatory and, perhaps, will never come into force.
Depending on the political decision that Portugal will take, there may be no intention of making a decree for the changes approved in the Budget Law to take effect.
Will I be able to apply for the Non-Habitual Residence regime?
The NHR regime was created to concede a special tax condition for foreign people who decide to live in Portugal and also meet the requirements of the program.
Some of the requirements are being:
Retired people
Highly qualified workers
Among the benefits of this tax regime, we can highlight that income transfer from the country of origin to Portugal will be taxed at a lower rate of 10%.
Also, professionals classified as highly qualified workers (according to the law) who decide to move to Portugal and develop their jobs in this country will be able to pay less income tax, at the rate of 20%.
There is no provision to extend this tax benefit to Golden Visa investors.
If you want more information about the Non-Habitual Residence regime, we invite you to read our article by clicking here.
How much will I have to spend on the process?
Other than the payment of legal assistance for this procedure and also for the acquisition of the property (for information related to the costs of purchasing a property, click here), the applicant must make the following payments:
533.90€ for the Golden Visa application
5,336.40€ for the issuance of the Resident Permit
2,668.20€ for the renew of the Resident Permit (after 2 years)
5,336.40 for the family reunification (for each member)
2,668.20 for the renew of the family Resident Permit (for each member)
This information was updated by SEF on March 1st, 2020 and is in effect.
How much do legal offices charge for the Golden Visa procedure in Portugal?
There are several types of legal offices in Portugal and, therefore, the price range can be very wide.
Also, not all offices can assist the applicant from the acquisition of the property to the grant of the Residence Permit.
Therefore, this assistance fee can vary from, maybe, 2,000€ to almost 15,000€.
There are also some assistance firms that do not even have a lawyer to assist the applicant, as this service can be provided by a solicitor (with no graduation in Law).
Here at Viv Europe, we always consider the knowledge and experience of our lawyers to handle this type of procedure (which is not at all simple) to value our services.
Count on Viv Europe to assist you with your project to Portugal.
We have a plan that will meet your needs!
Be aware, an incorrect document may be enough to cause your application to be denied, with the consequent loss of time and money.
Is the COVID crisis influencing the Golden Visa procedure?
Not only the Golden Visa procedure but all processes that require a person’s analysis.
For example, due to COVID, it is increasingly difficult to schedule an appointment at SEF to complete the Golden Visa procedure.
Even though it is more difficult to complete the procedure, it is not impossible, as there are still public agents working for this purpose.
We hope you enjoyed this article as Viv Europe’s team have tried to include the most popular questions related to this process.
Also, we have a Facebook discussion group where people address questions about every topic related to Portugal. Feel free to join us by clicking here.
We will update this article on our own website at www.viveurope.com with your questions in order to leave no doubt about this whole process.
If you have any questions regarding these procedures, please contact us at contact@viveurope.com
It will be a pleasure to help you with this topic.
Article content by VIV Europe, Legal Partner to the KipperTree Property Portal
Thanks for reading and count on us to assist you on the Golden Visa procedure.
