International Buyers see Golden Visa Gains

April 15th, 2016   •   Economy, Portugal Golden Visa, Real Estate   •   Comments Off on International Buyers see Golden Visa Gains   
View of Avenida de Liberdade

Avenida de Liberdade, Lisbon.

International investors who moved early for the golden visa in Portugal are now looking at real estate gains of over 10%. Those who bought early in the programme in 2012 will have seen average price rises of 10.2% in the last 3 years according to house price data released by the government.

While this no doubt is great news for our existing investors, those still considering Portugal for the residency visa offered through real estate investment are advised to act quickly.

Prices in Portugal and the capital Lisbon are not just rising but accelerating. The average rise in property prices over the last 3 years has been 3.4%. However prices in the last 12 months have risen 5.1% and are expected to at least continue this trend in the coming year.

That means anyone considering a property purchase is likely to pay at least €25,000 more for their investment in a year’s time if they invest at the minimum requirement of €500,000.

The trend in prices is backed up by our own practical experience as real estate agents. We are seeing rising construction in prime areas such as Chiado and Avenida de Liberdade in central Lisbon. Developers however are starting to hold back on releasing projects, preferring to complete developments before marketing them, safe in the knowledge that prices are likely to be higher.

The demand at €500,000 and above is fueling faster price growth for prime residential property. Over 2,000 international investors each year are entering Portugal for residential real estate on the back of the golden visa programme.

La Vida has seen strong demand for recent projects in Lisbon.  Centrally located close to Avenida de Liberdade we have a brand new renovation of 90 apartments that have just been released off plan offering arguably one of the best real estate investments in Lisbon currently. Contact for brochure. Likewise in the prestigious area of  Chiado where we have a development of 37 apartments with views over the city and Targus river.

Outside the capital we have a new resort development in Cascais, 30 minutes from the city, released April 2016. This is built to the same quality and standards as the luxury development we offer on the Algarve which has proven popular with investors attracted to its 5% rental guarantee.

For advice and further information on our projects please call or email our real estate consultants or complete your details here.

House Prices Rise on Visa Demand

December 6th, 2014   •   Economy, Investment, Real Estate   •   no comments   

Lisbon and Porto the two largest cities in Portugal have seen a surge in sales of residential property since the introduction of the golden visa programme and the favourable tax regime for non-habitual residents. Research by Cushman and Wakefield shows a total of 1,362 homes were sold in Lisbon and 290 in Porto in the first quarter of 2014 a rise of 60% year on year for Lisbon and 30% for Porto. Average prices per sq. metre rose 18% in Lisbon and 8% in Porto.

With 1,775 golden visas issued in the first two years of the programme it is clear that demand of this magnitude from international investors has the ability to move the market. The research is consistent with our observations of rising prices throughout 2014 due to higher demand particularly at the €500,000 and above price level.

The outlook for 2015 is described as “positive” by Cushman and Wakefield. The pyschological factors affecting the market since the credit crisis have diminished and there are signs of improved lending conditions from the banks.

Portugal Non Habitual Resident Tax Law

November 3rd, 2014   •   Economy, Investor Visa, Lifestyle, Residency   •   no comments   

Portugal-Non-Habitual-Tax-SavingInvestors buying real estate in Portugal can benefit from the recent introduction of the Portuguese non-habitual resident tax law.

The law allows tax exemption for foreign-source income (pension, rental, income, capital gains, interest, dividends, as well as other
investment income), provided certain conditions are met.

In general terms, a person is deemed to be tax resident in Portugal if he spends more than 183 days in Portugal during the calendar year.

The legislation provides for exemption on foreign pension income subject to satisfying certain double taxation criteria.

It means many international investors from outside of Europe seeking a golden visa and eventually choosing to become permanently resident in Portugal can avoid further taxation for up to 10 years.

The scheme is also popular with Europeans looking to minimise taxation on pensions and retirement income by spending most of the year outside higher taxation countries.

Investor Visa Rules

October 7th, 2014   •   Bonds, Citizenship, Economy, Investment, Real Estate, Residency   •   no comments   

Investor Visa Programmes in Europe

Investors looking to buy into a visa programme in Europe are encouraged to do so sooner rather than later. After the credit crisis governments are keen to encourage investment from high net worth individuals from overseas. In exchange they grant residency often with complete freedom of movement and no requirement to live and become tax resident. Such residency can ultimately lead to citizenship and a second passport.

However some programs have been subject to change. Cyprus increased its investment for citizenship limit from €2.0 million to €2.5 million recently and Hungary is expected to increase its investment limit in government bonds from €250,000 to €300,000 soon. Latvia doubled its real estate investment limit in April 2014. Changes will not affect those families who have already invested in the programmes.

Portuguese Minister of Tourism Adolfo Mesquita Nunes confirmed recently at a conference in London attended by La Vida that there would be no change to the minimum investment of €500,000 for the golden visa in Portugal.

Below is a brief summary of investor visa limits for each country:

Investor Visa Portugal

Invest €500,000 in real estate plus related costs and taxes to gain residency and eventual citizenship through application. After six years investors and their families can apply for citizenship in Portugal.

Investor Visa Spain

Invest €500,000 in Spain to gain residency and apply for permanent residency after five years. Investors have to live in Spain during that time. and can later apply for citizenship after ten years.

Investor Visa Greece

Investors can gain permanent residency in Greece through investing €250,000 in real estate. Greece offers the lowest investment level in Europe for the golden visa.

Investor Visa Hungary

Investors can place €300,000 in government bonds in Hungary for permanent residency. The bonds pay zero interest and are refunded to the investor after five years. However the investment is guaranteed.

Investor Visa Bulgaria

Investors hae a tiered option in Bulgaria. Invest €512,000 into government bonds in Bulgaria to gain permanent residency as a first stage. Investors can increase this to €1,024,000 to then gain fast track citizenship in Bulgaria.

Investor Visa Malta

Investment in Malta can gain permanent residency through the Maltese investment programme. Residency and citizenship can be achieved in Malta through a series on investments and contributions. This requires a total investment of around €1.2 million.

Investor Visa Cyprus

Cyprus has two levels of investor visa. One for permanent residency and one for citizenship. Permanent residency can be obtained in Cyprus through investing €300,000 in real estate. Applicants can apply for citizenship by increasing this to €3 million.