Portugal Golden Visa pathway 2020 Updates
Portugal is amongst one the safe and stable country in the EU with an affordable quality of life, good healthcare & education options, well-connected airports, and the best climate in continental Europe. The country in 2012 launched its Portugal Golden Residence Permit Programme or also known as Golden Visa for investors who may be any non-EU, EEA or Swiss citizen to obtain fully valid residency permit in Portugal without having to live in Portugal for prolonged duration. The applicant on an average is required to spend only 7 days in first year and 14 days following periods of 2 years which makes it one of the most popular place to be in Europe and the rest of the world.
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The permit allows visa free travel throughout the 26 Schengen countries and allows the applicant to apply for an EU Passport or permanent residency during the 6th year. It also allows the applicant to keep dual citizenship for themselves and their family and also the dependent parents of main applicant and spouse as well to accompany.
Did you know? The Portuguese passport ranks one of the strongest passport allowing visa-free travel to 182 countries!!
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The Key criteria for the Golden visa are as follows:
Under the Portugal Golden Visa programme, non-EU citizens are required to carry out one of following qualifying investments:
I. Investment in real-estate – purchase of min. €500,000 + or €350,000 or €2,80,000
- All property types qualify for €500,000 / for the €3,50,000 property should be 30 years old and is required to be renovated or refurbished and for €2,80,000 investment is to made in low density population areas.
- Freedom to use, rent or lease
II. Investment of Funds
- Minimum investment of € 1 million
- Deposit into a Portuguese bank account / stocks/ company investment
III. Launch a company or invest in existing business for job creation
- Creation of a minimum of 10 jobs
- Compliance with Social Security obligations
Watch the video on PR by investment program – Portugal
Once the applicant has decided the investment route the applicant is require to file for Número de Identificação Fiscal (NIF) which is a tax identification number required to conduct certain transactions in Portugal including opening a bank account, buying property, and signing up for utility services. The processing timelines for the programme are typically 4-6 months and applicant can also apply in priority processing.
Click here and Download Portugal Golden Visa Residence Program, in a handy leaflet
Generally, the investors are concerned with the taxation application in Portugal. Portugal has a very favourable tax regime for anyone considering living in the country. The said golden visa programme in Portugal offers excellent tax benefits for those becoming resident such as:
- The applicants would only be taxed on their worldwide income if they are resident in Portugal for over 183 days in any year
- No taxes are charged on income for the first 10 years.
- Non-resident individuals tax is charged at 28% on income derived in the country which can be reduced with expenses for rental income.
- Capital gains tax is 28% and there are allowances for costs and depreciation.
- No inheritance tax in Portugal.
- Annual property taxes (IMI) can vary between 0.3% and 0.8% of the property valuation, but there are a range of exemptions.
The applicants who are planning on living full time in Portugal would require medical insurance. The families would have access to all public services including state medical care and schooling. State schooling which follows the Portuguese curriculum but there are many English international schools also in case the students wish to study in the same.
With Portugal’s growing economy, country’s property market is also expanding and it provides home owners with profitable rental margins and the real estate market also does not fluctuate as much as other countries in Europe and this provides basis for a more reliable sector in which foreign investors can pursue profitable initiatives and hence applying for Portugal Golden residency visa is presently the best route for a long term perspective.
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