Most Popular Golden Visa Programme

March 20th, 2018   •   Investor Visa, Portugal, Property, Real Estate   •   Comments Off on Most Popular Golden Visa Programme   

Since its inception in 2012, the Portuguese Golden Visa programme has generally been considered one of the best and most popular residency investment programmes in the world.

In less than six years, more than five thousand investors have invested nearly three and a half billion euros into the Portuguese real estate market. The effects can be felt everywhere, but nowhere more so than in Lisbon – the cosmopolitan metropolis and age-old capital of Portugal. Here, the city’s alive with the sound of construction, the excitement of restoration and regeneration courses through the air. ‘Reabilitação’; a deep respect for history, culture and architectural integrity; and the one defining feature that separates the Portuguese Golden Visa programme from others around the world. Unlike many other residency and citizenship by investment programmes, the Portuguese programme is not prompting the building of imposing skyscrapers or vulgar edifices; it’s driving the rehabilitation of one of the most architecturally exhilarating cities in the world.

Reduced Investment Option at €350,000

The introduction of the Category 65A-d Golden Visa programme at the end of 2015 is testament to the importance that the government places on rehabilitation. Where the traditional Golden Visa programme (Category 65A-c) requires an investment of €500,000, the 65A-d legislation stipulates that a Golden Visa can be issued to those investing just €350,000, as long as the capital is invested in a to-be-renovated property that’s more than 30 years old or located in a designated area of urban rehabilitation. The rules regarding how the property can be renovated are extremely stringent and ensuring that the conditions are met can be a testing and arduous process. However, this is an area that’s gaining more and more interest with each day that passes – and it’s easy to see why. Investors are seeking old and often derelict property in prime locations across Portugal’s first-tier cities, renovated to the highest standards with new plumbing, electrics, flooring, insulation and windows, whilst the exterior façade remains unchanged and the traditional architecture and aesthetics are retained. The potential for significant capital appreciation is obvious and, due to the location and style of the properties, rental return can be exceptionally high. Perhaps most importantly, the €350,000 minimum investment requirement can include not only the value of the real estate, but the cost of renovation as well.

Golden Visa Numbers Expected to Grow

The first Category 65A-d Golden Visa was issued in July 2016. In just eighteen months, that number has grown exponentially with the total number of successful applicants recently surpassing one hundred. With over five thousand five hundred Golden Visas issued to date, it’s obvious that this new legislation is still in its infancy. However, the trend is clear: in February 2017, Category 65A-d visas comprised just 0.39% of the total number of Golden Visas issued by the Portuguese authorities. In just one year, this ratio has more than quintupled, rising to 2.05%. The advantages of the programme from both an investment perspective as well as a legislative perspective indicate that this growth is expected to continue and intensify over the coming months and years.

With increasing pressure on residency and citizenship by investment programmes around the world, the Portuguese programme (and particularly the Category 65A-d legislation) is a shining example of how a Golden Visa programme can benefit not just the investors, but the local population as well. Recent and significant changes to the application process (including moving the process online) make the programme more attractive still, whilst showing that the Portuguese Immigration Service (SEF) has recognised its shortcomings of the past and is willing to modernise and adapt in order to continuously improve.

A multitude of pink, blue, green and yellow buildings set against an expansive deep blue sky above the turquoise hues of the Tagus river. The narrow, cobbled streets of Alfama and Baixa, lined by multi-coloured buildings with their wrought iron balconies and the occasional ceramic façade. This is the architecture that defines Lisbon – the architecture, history and culture that the Category 65A-d programme seeks not only to protect, but to reinvigorate and renew.

Clarification on Portugal Golden Visa Limit

October 30th, 2015   •   Investment, Investor Visa, Portugal, Portugal Golden Visa, Real Estate   •   Comments Off on Clarification on Portugal Golden Visa Limit   

A revision of rules for the golden visa in Portugal has left many potential applicants confused as to the rules and a great deal of misleading literature posted on the web suggesting the Portuguese golden visa limit has been reduced.

The qualifying real estate investment level for the golden visa in Portugal is €500,000. Earlier this summer the Portuguese government introduced a new investment level of €350,000 for certain categories of real estate.

The law states the following: “Acquisition of immovable assets, the construction of which has been completed, at least, 30 years ago or located in an area of urban regeneration and execution of refurbishment works in the acquired immovable assets…equal to or above 350 thousand euros;”

The point here is that even though this new option applies, it only applies to property that is over 30 years old or located in an urban regeneration area. It involves the execution of refurbishment works. This is an important aspect.

To qualify for the golden visa under such an investment requires the necessary permissions for renovation work on the building. Such permissions and payments to contractors all need to be done legally and of course within the tax structure so the necessary paperwork, proofs and payments are fully in order. To undertake such a project would mean employing project managers and the necessary architects. The applicant would have to have all the licences in place prior to any application being submitted which will of course delay any application for the visa. To mitigate any risk it is vital to ensure that any such property would qualify within this category. Clients would need to ensure they build sufficient time into their schedule to take care of all these additional aspects.

Clients visiting to invest €500,000 in a location such as Lisbon can usually complete the necessary tasks within a few days, accompanied by ourselves and our lawyers in a methodical, established and time proven manner. The alternative investment of €350,000 will require far more time and hands on management. Golden Visa applicants should be wary of companies offering such management for a fee and in particular remain conscious of the scope for overpaying for assets requiring reconstruction without the necessary independent professional advice from architects and surveyors. For any international client not residing in Portugal and trying to manage from a distance it can be problematic, time consuming and expensive.

The €350,000 is reduced by a further 20% to €280,000 for renovation in low density, less developed areas of the country. This naturally does not apply to the cities or the more populated coastal regions creating issues for any future rental income potential.

Pine Cliffs

May 16th, 2012   •   Portugal, Property   •   no comments   
Pine Cliffs

Superb option for golden visas clients. These luxury apartments on this five star resort are fully managed and offered with a minimum 5% guaranteed rental for 5 years.