PORTUGUESE GOLDEN VISA
The Portuguese Government released an amendment to the Golden Residence Permit Programme regulations. The changes make investment activity and obtaining a golden visa more comfortable, flexible and more attractive.
What are the conditions for a residence permit?
For example: a person holding 50% of the shares of a company, to buy through that company, would need to buy a property of at least 1.000.000 Euros (proportionally his investment is 500.000 Euros). What is the identification criteria for the investment value, according to the contract value, or the taxable value? It is the contract value mentioned in the Purchase Contract (Escritura). Should the real estate buyer have a personal bank account in Portugal? For the residence permit application based on a real estate purchase one of the required evidence document is updated Land Registry certificate, attesting the registration of the acquisition or the registration of the promissory sale and purchase agreement, where the seller simply declares the price was paid, but not necessarily from a local bank account. However, we strongly recommend you to create a local bank account, because it is more practical and makes preformance of transactions easier. Is it possible to buy two or more properties, of which total value of which is over 500.000 Euros? Yes, because the regulations mention “properties” in the plural: “the acquisition of real estate properties in the value equal or superior to 500.000 Euros”. By this rule, one investor can, for example, acquire two properties in the value of 250.000 Euros each. Is it possible to make property investment in co-ownership? Yes, the property can be acquired in co-ownership, if each co-owner makes an investment of a minimum of 500.000 Euros. Can the investor apply for a residence permit before signing the real estate purchase contract? Now, promissory sale and purchase agreement is acceptable for the initial investor application for residency. So, foreign investor should present: The acquisition public deed or the promissory sale and purchase agreement with a declaration, issued by a financial institution in Portugal attesting the effective transfer of purchase price or down payment (minimum of 500.000 Euros) and an Updated Land Registry certificate, attesting the registration of the acquisition or the registration of the promissory sale and purchase agreement. In case of a down payment of 500.000 Euros the actual purchase should be effected before the first renewal of the residence permit. What are the taxes and fees for purchasing real estate in Portugal? Besides the sale price of a property in Portugal, there are extra costs which should be taken in consideration while acquisition the real estate. In addition to several taxes (Municipal Tax on Real Estate Transfer, Municipal Tax on Real Property, Stamp Duty — IMT, IMI and IS) the purchaser of real estate must cover at least Notary fees and Real Estate registration fee. The Tax on Real Estate Transfer (Imposto Municipal sobre Transmisões, IMT) is usually calculated through a percentage applicable to the property value. Its exact value depends on the value and use of the property. Estimates are the next:
Detailed info on taxation rates please refer to: http://www.portugalglobal.pt/EN/Biblioteca/Documents/PortugueseTaxSystem.pdf. What are the taxes for selling real estate? When selling, the sellers pay capital gains tax, if there are capital gains. In general, the tax rate of capital gains is about 25%, but detailed analysis and simulations can be made on a case by case basis. If an investment was made before the publishing of a new law, can the investor still apply for the residence permit? The Golden Residence Permit Programme is applicable only for investments made after the law. The law has taken effect from the date of 8 October 2012. What are the required documents for a residence permit application?
How is the proof of requirements for a residence permit made? Each requirement has its specific way of proof. In the case of the purchase of real estate in the minimum value of 500 thousand euros is proven by a up-to-date certificate issued by the Real Estate Registry (Registo Predial). In case of investing the capital, applicant shall deliver a statement issued by a financial institution accredited in National Territory certifying that the applicant is the sole or first holder of capital or an updated certificate issued by the Commercial Register, certifying that the applicant is the holder of share capital in a company. In case of having created 10 job posts, all workers shall be registered in the Social Security System. So, applicant shall deliver an up-to-date certificate issued by the Social Security. What is the minimum investment time requirement? A five year minimum investment time is required and it starts to run from the date of the granting of the residence permit. How can I get the Golden Residence Permit acquiring the real estate? Click here send us your ideas and we tell you the steps to obtain a residence permit through acquistion of real estate property with a value of, at least, 500 thousand euros. How long will it take to make a decision regarding the residence permit? Since this procedure is new, the exact time for the approval is yet unknown. However, the general rule regarding the time for a decision from the Portuguese Administration is less than 60 days. What kind of document does applicant get if the residence permit is approved? The applicant will obtain a residence permit authorization card, which will serve as an ID or traveling document and will correspond for ID purposes in Portugal and other European Union countries. For how long is valid the initial residence permit? The initial permit is valid for 1 year. Residence permit shall be renewed subsequently for a period of 2 years. Is there a minimum period of time for permanency in the Portuguese territory? Applicants shall deliver evidence that have complied the following minimum periods of permanence in National territory: 7 days in the first year and 14 days in the subsequent 2 years. The reduced amount of days to stay is created for investors from distant countries, which makes this programme even more appealling to international investors. What are the renewal conditions for the residence permit? The renewal conditions are the Maintenance of the investment in Portugal and to stay the minimum period of permanency - 7 days in the first year and 14 days in the subsequent 2 years What rights does a Portuguese resident have? Basically, a person authorized to live in Portugal, has the rights to access education, professional activity, training, improvement, rehabilitation, health care, and justice system. Of course the main rights are to enter and live in Portugal. Also, to travel in the Schengen zone, since Portugal is a Schengen country, travel to other Schengen countries should require no other requirements. In any case, one should check the local regulations of the other European countries planned to visit, especially if planning to relocate for a long stay there. What are tax liabilities for a resident? This will depend from case to case. In general, resident and non-resident individuals who earn income in Portugal are liable to tax (Personal Income Tax or IRS). Companies are liable to the Corporate Income Tax or IRC. In relation to the acquisition of real estate, the Tax on Real Estate Transfer (IMT) and the Municipal Tax on Property (IMI) should be paid. If applicable, condo payments are also due. Other may apply. Under what condition is it possible to apply for permanent residence? The permanent residence can be made by foreign citizens:
Which kind of identity do children who were born in Portugal have by the people with the temporary residency / permanent residency, or Portuguese nationality? Children born in Portugal can apply to Portuguese nationality. Are there any provisions for the number of family members? No. Who is considered a member of the resident’s family? The spouse; Minors or children who are under guardianship of the couple or of one of the spouses; Minors adopted by an unmarried applicant, by a married applicant or by the spouse, following decision taken by the relevant authority of the Country of origin, provided that legal framework incorporates the same rights and duties of natural affiliation and provided that decision is acknowledged by Portugal; Children who are of age and of whom the couple or one of the spouses is in charge, that attend a Portuguese teaching institution; Progenitors in the first ascending line of one of the resident or the respective spouse, provided they depend from either of those; Underage brothers or sisters provided they are under the tutelage of the resident, in accordance to decision made by a relevant authority of the Country of origin and provided that decision is acknowledged by Portugal. Is Portuguese Permanent Residency equal to EU Long-Term Residency? The concept of EU Long-Term Residency was set with several Directives which were adapted by Portuguese Law nº 29/2012 of 9 August, meaning that Portuguese Permanent Residency according to this law must be considered as a EU Long-Term Residency. Based on the information of Portuguese Immigration and Borders Service, Ministry of Foreign Affairs, Portuguese Tax Department of the Ministry of Finance and aicep Portugal Global |
AUTORIZAÇÃO DE RESIDÊNCIA PARA INVESTIMENTO ARI
The Portuguese Government released an amendment to the Golden Residence Permit Programme regulations. The changes make investment activity and obtaining a golden visa more comfortable, flexible and more attractive.
What are the conditions for a residence permit?
For example: a person holding 50% of the shares of a company, to buy through that company, would need to buy a property of at least 1.000.000 Euros (proportionally his investment is 500.000 Euros). What is the identification criteria for the investment value, according to the contract value, or the taxable value? It is the contract value mentioned in the Purchase Contract (Escritura). Should the real estate buyer have a personal bank account in Portugal? For the residence permit application based on a real estate purchase one of the required evidence document is updated Land Registry certificate, attesting the registration of the acquisition or the registration of the promissory sale and purchase agreement, where the seller simply declares the price was paid, but not necessarily from a local bank account. However, we strongly recommend you to create a local bank account, because it is more practical and makes preformance of transactions easier. Is it possible to buy two or more properties, of which total value of which is over 500.000 Euros? Yes, because the regulations mention “properties” in the plural: “the acquisition of real estate properties in the value equal or superior to 500.000 Euros”. By this rule, one investor can, for example, acquire two properties in the value of 250.000 Euros each. Is it possible to make property investment in co-ownership? Yes, the property can be acquired in co-ownership, if each co-owner makes an investment of a minimum of 500.000 Euros. Can the investor apply for a residence permit before signing the real estate purchase contract? Now, promissory sale and purchase agreement is acceptable for the initial investor application for residency. So, foreign investor should present: The acquisition public deed or the promissory sale and purchase agreement with a declaration, issued by a financial institution in Portugal attesting the effective transfer of purchase price or down payment (minimum of 500.000 Euros) and an Updated Land Registry certificate, attesting the registration of the acquisition or the registration of the promissory sale and purchase agreement. In case of a down payment of 500.000 Euros the actual purchase should be effected before the first renewal of the residence permit. What are the taxes and fees for purchasing real estate in Portugal? Besides the sale price of a property in Portugal, there are extra costs which should be taken in consideration while acquisition the real estate. In addition to several taxes (Municipal Tax on Real Estate Transfer, Municipal Tax on Real Property, Stamp Duty — IMT, IMI and IS) the purchaser of real estate must cover at least Notary fees and Real Estate registration fee. The Tax on Real Estate Transfer (Imposto Municipal sobre Transmisões, IMT) is usually calculated through a percentage applicable to the property value. Its exact value depends on the value and use of the property. Estimates are the next:
Detailed info on taxation rates please refer to: What are the taxes for selling real estate? When selling, the sellers pay capital gains tax, if there are capital gains. In general, the tax rate of capital gains is about 25%, but detailed analysis and simulations can be made on a case by case basis. If an investment was made before the publishing of a new law, can the investor still apply for the residence permit? The Golden Residence Permit Programme is applicable only for investments made after the law. The law has taken effect from the date of 8 October 2012. What are the required documents for a residence permit application?
How is the proof of requirements for a residence permit made? Each requirement has its specific way of proof. In the case of the purchase of real estate in the minimum value of 500 thousand euros is proven by a up-to-date certificate issued by the Real Estate Registry (Registo Predial). In case of investing the capital, applicant shall deliver a statement issued by a financial institution accredited in National Territory certifying that the applicant is the sole or first holder of capital or an updated certificate issued by the Commercial Register, certifying that the applicant is the holder of share capital in a company. In case of having created 10 job posts, all workers shall be registered in the Social Security System. So, applicant shall deliver an up-to-date certificate issued by the Social Security. What is the minimum investment time requirement? A five year minimum investment time is required and it starts to run from the date of the granting of the residence permit. How can I get the Golden Residence Permit acquiring the real estate? Click here send us your ideas and we tell you the steps to obtain a residence permit through acquistion of real estate property with a value of, at least, 500 thousand euros. How long will it take to make a decision regarding the residence permit? Since this procedure is new, the exact time for the approval is yet unknown. However, the general rule regarding the time for a decision from the Portuguese Administration is less than 60 days. What kind of document does applicant get if the residence permit is approved? The applicant will obtain a residence permit authorization card, which will serve as an ID or traveling document and will correspond for ID purposes in Portugal and other European Union countries. For how long is valid the initial residence permit? The initial permit is valid for 1 year. Residence permit shall be renewed subsequently for a period of 2 years. Is there a minimum period of time for permanency in the Portuguese territory? Applicants shall deliver evidence that have complied the following minimum periods of permanence in National territory: 7 days in the first year and 14 days in the subsequent 2 years. The reduced amount of days to stay is created for investors from distant countries, which makes this programme even more appealling to international investors. What are the renewal conditions for the residence permit? The renewal conditions are the Maintenance of the investment in Portugal and to stay the minimum period of permanency - 7 days in the first year and 14 days in the subsequent 2 years What rights does a Portuguese resident have? Basically, a person authorized to live in Portugal, has the rights to access education, professional activity, training, improvement, rehabilitation, health care, and justice system. Of course the main rights are to enter and live in Portugal. Also, to travel in the Schengen zone, since Portugal is a Schengen country, travel to other Schengen countries should require no other requirements. In any case, one should check the local regulations of the other European countries planned to visit, especially if planning to relocate for a long stay there. What are tax liabilities for a resident? This will depend from case to case. In general, resident and non-resident individuals who earn income in Portugal are liable to tax (Personal Income Tax or IRS). Companies are liable to the Corporate Income Tax or IRC. In relation to the acquisition of real estate, the Tax on Real Estate Transfer (IMT) and the Municipal Tax on Property (IMI) should be paid. If applicable, condo payments are also due. Other may apply. Under what condition is it possible to apply for permanent residence? The permanent residence can be made by foreign citizens:
Which kind of identity do children who were born in Portugal have by the people with the temporary residency / permanent residency, or Portuguese nationality? Children born in Portugal can apply to Portuguese nationality. Are there any provisions for the number of family members? No. Who is considered a member of the resident’s family? The spouse; Minors or children who are under guardianship of the couple or of one of the spouses; Minors adopted by an unmarried applicant, by a married applicant or by the spouse, following decision taken by the relevant authority of the Country of origin, provided that legal framework incorporates the same rights and duties of natural affiliation and provided that decision is acknowledged by Portugal; Children who are of age and of whom the couple or one of the spouses is in charge, that attend a Portuguese teaching institution; Progenitors in the first ascending line of one of the resident or the respective spouse, provided they depend from either of those; Underage brothers or sisters provided they are under the tutelage of the resident, in accordance to decision made by a relevant authority of the Country of origin and provided that decision is acknowledged by Portugal. Is Portuguese Permanent Residency equal to EU Long-Term Residency? The concept of EU Long-Term Residency was set with several Directives which were adapted by Portuguese Law nº 29/2012 of 9 August, meaning that Portuguese Permanent Residency according to this law must be considered as a EU Long-Term Residency. Based on the information of Portuguese Immigration and Borders Service, Ministry of Foreign Affairs, Portuguese Tax Department of the Ministry of Finance and aicep Portugal Global |
INVESTING IN PORTUGAL
We will assist you in every step of the way and through all the specialties required from real estate, legal, accounting, banking and other.
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INVESTIR EM PORTUGAL
We will assist you in every step of the way through all the specialties required from real estate, legal, accounting, banking and other.
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