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Golden Visa Portugal Golden Residence Permit Program Questions and Answers Guide for Foreign Investors


Index 1. Questions about the Golden Visa 1.1. The Golden Visa. What is it? 1.2. What types of investments are allowed under the Golden Visa rules? 1.3. For how long is the Golden Visa valid? 1.4. What are the general requirements that the investor has to comply with? 1.5. What are the specific characteristics for each type of qualifying investment? 1.6. What are the main advantages of the Golden Visa Program? 1.7. What is the Schengen Area and what are the countries included? 1.8. Is it possible to extend the Golden Visa to family members? 1.9. How can the investor and family obtain permanent residence after 5 years? 1.10. How can the investor and family obtain Portuguese citizenship? 1.11. Which documents does the investor need to provide to apply for the Golden Visa? 1.12. The documents are not in the Portuguese language. What does the investor need to do? 1.13. Are there any specific requirements for documents issued by foreign authorities? 1.14. What is a fiscal number? Why does the investor need one and how does he get one? 1.15. Where may the investor apply for a Golden Visa? 1.16. What are the costs involved in obtaining a Golden Visa? 1.17. How long will the application take to be processed and does the investor have to pick up the Golden Visa in person? 1.18. Are there any grounds for refusing the issuing of a Golden Visa or its renewal? 1.19. What happens to the investment after 5 years – can the investor sell the property/transfer the money to another country/extinguish the job positions? 1.20. Can the investor sell the investment at any time if he no longer needs the Golden Visa? 1.21. Does the investor need to live in/use the property he is purchasing or can it be rented out? 1.22. What are the taxes and costs for property acquisitions and ownership? 1.23. With the Golden Visa does the investor need to pay taxes in Portugal on his worldwide income? 1.24. What income taxes apply to income generated in Portugal? 2. Additional questions 2.1. Why choose Portugal? 2.2. Why choose Lisbon? 2.3. Why choose Engel & Völkers? Golden Visa Portugal – Golden Residence Permit Program

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1. Questions about the Golden Visa 1.1. The Golden Visa. What is it? The Golden Visa Program launched by the Portuguese Authorities in October 2012 is a fast track for foreign investors from non-EU countries to obtain a fully valid residence permit in Portugal (Golden Visa). Under the Golden Visa Program, non-EU citizens simply need to carry out one of the investments set out in the law to qualify to obtain a residence permit in Portugal. This residence permit will allow the investor to enter and/or live in Portugal and to travel freely within the vast majority of European countries (Schengen Area). Aimed at attracting foreign investment to Portugal, the Golden Visa is a very straightforward and flexible program, with simple and clear legal requirements. With extremely reduced minimum stay requirements, the Golden Visa is clearly one of the most attractive residence programs for investors in the world.

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Golden Visa Portugal – Golden Residence Permit Program


1.2. What types of investments are allowed under the Golden Visa rules? The following types of investment qualify for the Golden Visa Program: a) Acquisition of property in the amount of or above € 500,000*; b) Transfer of funds above € 1,000,000 or more; c) Creation of at least 10 jobs in Portugal. It should be noted that only investments effectively made after 8th October 2012 are eligible for the Golden Visa Program. * In order to prove compliance with the minimum requirements associated with this type of investment activity, the Golden Visa applicant must present: n

n

 ocument that proves the purchase or promise to purchase the real estate - this document D must also include a declaration from a financial institution operating in Portugal confirming the actual transfer of the capital for the purpose (definitive purchase or payment of deposit, of at least € 500,000;  n up to date land registry certificate including registration of the purchase and, if possible, A of the promissory sale and purchase contract in favor of the IRP applicant.

1.3. For how long is the Golden Visa valid? Once issued, the Golden Visa will be valid for an initial period of 1 year and then will be renewed for subsequent periods of 2 years. 1.4. What are the general requirements that the investor has to comply with? The simplicity of the Golden Visa Program implies an extremely reduced amount of requirements being asked from the investor. The Golden Visa Program sets out that the investor must comply with general requirements applicable to all types of qualifying investments and also with the specific requirements of each type of qualifying investment. In general, all investors have to comply with the following requirements: a) Keep the investment for a minimum period of 5 years; b) Funds for investment should come from abroad; c) Entry in Portugal with a valid Schengen visa; d) Absence of references in the Portuguese Immigration and the Schengen services; e) Absence of conviction of relevant crime; f) M  inimum stay in Portugal: 7 days during the first year and 14 days during each subsequent period of 2 years. Golden Visa Portugal – Golden Residence Permit Program

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1.5. What are the specific characteristics for each type of qualifying investment? Each type of qualifying investment has specific characteristics, as follows: (a) Property Acquisitions n

Minimum investment of € 500,000;

n

Purchase of one or multiple properties;

n

All property types qualify;

n

Possibility of co-ownership;

n

Freedom to use, rent or lease.

(b) Transfer of Funds n

Minimum investment of € 1 million;

n

Funds transferred from abroad to a bank in Portugal;

n

Total freedom to invest the funds;

n

Possibility of using the funds to invest in shares of companies.

(c) Job Creation n

Creation of a minimum of 10 jobs;

n

No minimum investment value;

n

No limitation on areas/activities;

n

Compliance with Social Security obligations;

n

Possibility of grants/incentives/benefits.

1.6.What are the main advantages of the Golden Visa Program? The Golden Visa Program will provide investors with the following advantages:

4

n

No need to obtain a visa to enter Portugal;

n

No need to obtain a visa to travel in Europe (Schengen Area);

n

Living and working in Portugal, even with residence in a different country;

n

Residence extended to family members;

n

Extremely low minimum stay periods;

n

Permanent Residence after 5 years;

n

Citizenship after 6 years. Golden Visa Portugal – Golden Residence Permit Program


1.7. What is the Schengen Area and what are the countries included? The Schengen Area is a group of 26 European countries that have abolished passport and immigration controls at their common borders. With a resident permit from Portugal, the investor is entitled to enter and travel freely throughout all the countries of the Schengen Area. The Schengen Area includes the following countries: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, The Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and Switzerland. 1.8. Is it possible to extend the Golden Visa to family members? Yes. Under the Golden Visa Program, the investor’s family members may also apply and obtain a resident permit from Portugal by applying for “family reunion”. The Golden Visa will be extended to family members, namely children, spouse and dependent family members. The family members will also be eligible for permanent residence after 5 years and for Portuguese citizenship after 6 years. 1.9. How can the investor and family obtain permanent residence after 5 years? Under Portuguese Law, any person that has held a valid Portuguese temporary residence title (e.g. the Golden Visa) for a period of at least 5 years will be entitled to obtain permanent residence in Portugal. The investor and family members will have to meet the following criteria in order to be able to apply for permanent residence in Portugal: n

Absence of conviction of relevant crime during the last 5 years;

n

Proof of income/financial independence;

n

Proof of accommodation in Portugal;

n

Basic knowledge of Portuguese.

1.10. How can the investor and family obtain Portuguese citizenship? The Portuguese legislation also sets out that any person who has been validly resident in Portugal for at least 6 years (either under a temporary or permanent residence title) is eligible for obtaining Portuguese citizenship. In order to be able to obtain Portuguese Citizenship, the investor and family members will also have to comply with the following requirements: Golden Visa Portugal – Golden Residence Permit Program

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n

Be at least 18 years old (or at least 16 but married or legally responsible);

n

Absence of conviction of any relevant crime;

n

 ass a simple Portuguese language test, which will serve to show sufficient knowledge of the P language.

1.11. Which documents does the investor need to provide to apply for the Golden Visa? The application for the Golden Visa implies that the investor will have to submit the following documentation: n

Proof of investment;

n

Passport & Valid Schengen Visa;

n

Portuguese fiscal number;

n

Criminal record from the country of residence;

n

Portuguese criminal record;

n

Declaration from the Tax Department proving the absence of debts to the Tax Authorities;

n

Declaration from Social Security proving the absence of debts to Social Security Authorities;

n

Declaration from the investor confirming compliance with the investment requirements;

n

Health insurance valid in Portugal;

n

2 passport-type pictures.

1.12. The documents are not in the Portuguese language. What does the investor need to do? Any document that is not in the Portuguese or English languages needs to be translated to Portuguese. The translation needs to be certified. 1.13. Are there any specific requirements for documents issued by foreign authorities? Document issued by foreign authorities need to be legalized before being submitted in Portugal. This legalization means obtaining the Apostille of the Hague Convention (when applicable) or legalization by the Portuguese Consular services. 1.14. What is a fiscal number? Why does the investor need one and how does he get one? A fiscal number is an identification number before the Portuguese Tax Authorities (also known as the tax number). This number is required to carry out the investments. 6

Golden Visa Portugal – Golden Residence Permit Program


1.15. Where may the investor apply for a Golden Visa? Any investor interested in applying for a Golden Visa can submit the application, either personally or via a legal representative appointed by him, in one of the following manners: a) Online registration By registering online at the Services of Foreigners and Borders’ (“SEF”) website. After the registration is complete, the investor will receive a password and will be able to access online in order to submit the necessary forms and documents. b) In person In person, at the Services of Foreigners and Borders in Portugal. It should be noted that the investor and family members will always have to be present at the Service of Foreigners and Boarders of Portugal for fingerprinting, signature and other formalities. We strongly recommend obtaining legal advice from an experienced law firm before taking any of the steps of the Golden Visa, namely before making any kind of investment or submitting any applications or documents. Engel & Völkers Lisboa works with specialized law firms, which can provide the best support throughout the legal process. 1.16. What are the costs involved in obtaining a Golden Visa? The Golden Visa involves payment of the following fees [(payable directly to the Services of Foreigners and Borders (“SEF”)]: a) Processing fee (application and renewal) – € 513.75 (plus € 80.04 per family member); b) Initial Golden Visa – € 5,137.50; c) Initial Golden Visa for family members – € 5,137.50; d) Renewal of Golden Visa – € 2,568.75. 1.17. How long will the application take to be processed and does the investor have to pick up the Golden Visa in person? Once the application is submitted at the Services of Foreigners and Borders (“SEF”), it will take around 1-2 weeks for the application to be processed (please note that this is just an estimate based on our recent experience). Once the application is processed, the Services of Foreigners and Borders (“SEF”) will contact the investor or the investor’s legal representatives in Portugal and set up an appointment with the investor (and family members) to collect signature and fingerprints. It should be noted that in some cases it is possible for the investor to go to the immigration services to leave the fingerprints and signature shortly before the investment and/or submission of the required documents. Golden Visa Portugal – Golden Residence Permit Program

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1.18. Are there any grounds for refusing the issuing of a Golden Visa or its renewal? The investor (or any family member) will only be refused the Golden Visa (or its renewal) if: a) He/she has not maintained the investment for the minimum period of 5 years; b) He/she has not complied with the minimum periods of stay in Portugal; c) He/she has been convicted of a crime punishable with a prison sentence of more than one year; d) The investor is in a period where he/she has been banned entry into Portuguese territory following a removal measure of the country; e) On the grounds of public health (this may only be based on diseases that have been defined by the World Health Organization or other infectious or parasitic contagious diseases which are the object of protection measures in Portuguese territory); f) A  Golden Visa may be refused on the grounds of public order, public security or public health. 1.19. What happens to the investment after 5 years – can the investor sell the property/transfer the money to another country/extinguish the job positions? Yes, the investor only needs to hold the investment during the Golden Visa’s validity period – 5 years. 1.20. Can the investor sell the investment at any time if he no longer needs the Golden Visa? Yes, but without proof that the investment has been kept, the investor will not be able to renew the Golden Visa Permit. 1.21. Does the investor need to live in/use the property he is purchasing or can it be rented out? The investor does not need to occupy the property and it can be rented out to obtain income.

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Golden Visa Portugal – Golden Residence Permit Program


1.22. What are the taxes and costs for property acquisitions and ownership? There are three taxes in Portugal related to property: a) Payable with the property’s acquisition: n

“IMT” or Property Transfer Tax, which is the tax on transfer of ownership of property;

n

Stamp Duty.

Note: The exact amount of taxes to be paid varies according to the actual value of the acquisition. b) Payable on an annual basis: n

“ IMI” or Council Tax, which is the annual municipal property tax; it is levied between 0.3% and 0.5% on the property’s tax value.

1.23. With the Golden Visa does the investor need to pay taxes in Portugal on his worldwide income? No. If the holder of the Golden Visa does not stay in Portugal for more than 183 consecutive days, he/she will not be required to pay taxes for income generated outside of Portugal. 1.24. What income taxes apply to income generated in Portugal? Rental income and income arising from capital (e.g. interest, dividends, etc.) will be taxed at a rate of 28%.

Golden Visa Portugal – Golden Residence Permit Program

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2. Additional questions 2.1. Why choose Portugal? Being one of the oldest nations in Europe, Portugal is blessed with unique competitive advantages such as its strategic location and its global language. But most of all, Portugal is a resilient country that has developed and modernized over time while still creating the best conditions for companies that wish to take advantage of these assets. Portugal touches millions of people every day with new and innovative products like molds, sophisticated software, biometric solutions, health products, communication systems but also traditional products such as wine, olive oil, cork and shoes. Member of the European Union since 1986, Portugal is a developed and sophisticated country with modern infrastructures. A country that has experienced extensive and dynamic changes to make its economy more competitive. It’s now much easier to do business in Portugal and the European Union has recognized it as one of the countries that most reduced bureaucracy. It’s possible to set up a company in less than one hour and, according to the 2010 Global Benchmark Report, Portugal is the 7th country in the OECD with the lowest level of costs and taxes. 10

Golden Visa Portugal – Golden Residence Permit Program


It is also a welcoming country, full of sun, with breathtaking landscapes and a unique cuisine. However, our most valuable asset is our people, that mobilize the country for the future, with their talent, resources, and qualifications. Official statistics about Portugal: Area:

92,212.0 sq km (2010)

Population (thousands):

10,514 (2014)

Working population (thousands):

5,182 (2014)

Population density (inhabit./sq km):

115.4 (2010)

Official designation:

Republic of Portugal

Capital:

Lisbon (2.8 million inhabit. – metropolitan area)

Main religion:

Roman Catholic

Language:

Portuguese

Currency:

EUR (in units of 100 cents) EUR = 1.392 USD (average rate in 2011)

GDP at market prices:

165,107 million EUR (2012)

GDP per capita:

19,400 EUR (2011)

Portugal

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2.2. Why choose Lisbon? Lisbon is the Capital of Portugal and it is now considered one of the most interesting places in Europe to live and do business in. In 2012 and 2013, the Financial Times Magazine placed Lisbon on the top-list of “European Cities & Regions of the Future”. Here’s why: LOCATION Lisbon is the closest European capital to the United States and to South America, particularly to booming Brazil. Lisbon also maintains privileged ties to its former African colonies, especially Angola. It’s also less than one hour away from Madrid, with several flights every day, and about two and a half hours from Paris and London (it’s the only capital in mainland Europe sharing the same time zone with the British capital). Being on the edge of Europe also means that the harbors of Lisbon, Sines and Setúbal are gateways to the old continent and to a market of 250 million Portuguese speakers around the world. WEATHER With close to 300 days of sunshine throughout the year, no snow and temperatures that never reach the freezing point, Lisbon is a truly blessed city. It’s great living in a place where you can have beach days in October or March, where you can sit comfortably outside in a café terrace in February and where you don’t have to worry about the dangers of snow on the ground. SAFETY Lisbon officially has the lowest homicide rate of any European capital and the lowest number of residents who have been victims of any crime in the previous five years, making it Europe’s safest capital. QUALITY OF LIFE Safety and agreeable weather are just two factors that contribute to a high quality of life in Lisbon. Freedom, human rights, a stable democracy, recreation facilities and leisure time also make the Portuguese capital one of the best places to live in Europe. Residents can be at the beach just minutes from downtown or enjoy nature in several green spaces such as Monsanto, the largest urban forest in Europe. Golf, surfing (Europe’s first surfing reserve is 30 minutes away) and other outdoor activities are also more accessible here than in other European capitals. INNOVATION AND TECHNOLOGY Lisbon was the first city in Europe to set up a network of electric car recharging stations, was recognized in 2011 as having Europe’s best fiber optic network and Portugal has pioneered services in banking (particularly ATM), telecommunications, and renewable energy (close to 60% of the electricity in the country comes from renewable sources). These are just a few examples that reveal the experience and the opportunities in innovation and technology in Lisbon. 12

Golden Visa Portugal – Golden Residence Permit Program


HUMAN RESOURCES Unlike in the rest of southern Europe, in Lisbon there’s a sizable multilingual population, with 42% speaking two languages (especially English) and 23% speaking at least three. Improvements in education levels also mean that there’s never been a better-prepared young generation in the country entering the job market. TOURISM GROWTH While it’s recently been given several high-profile awards (Europe’s Best Tourist Destination, Cruise Destination and City Break in 2009’s World Travel Awards) and while it’s one of the world’s top 10 cities for corporate events, it’s still overlooked as one of Europe’s must-see capitals. REAL ESTATE OPPORTUNITIES There has been a massive effort to renovate the historic part of the city and new investors renovated homes and buildings, discovering the charm and the privilege of living in the center of Lisbon. Despite the renovation boom, prices haven’t gone up and are still very competitive. The formerly rigid tenancy rules have also finally been loosened up, opening up a new market for long-term rentals. OTHER INFORMATION ABOUT LISBON – REAL ESTATE Real estate market in Lisbon – Map of areas:

LISBON l

-No rt

Su

E ix o

rriche C. C a

e-

Av. P.

5 Av. M a

Cr

uz

3

re c h

al G . Co

Parque das Nações

s ta

Sul Eixo- No rte -

Monsanto

6 Belém Av. Índia

Inf an te D. He nriq ue

2 3

4

2 M.Pombal

1

. Av

4 Julho Av. 2 Ponte 25 Abril (Bridge)

Golden Visa Portugal – Golden Residence Permit Program

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Real estate market in Lisbon: sales (price sqm) Area

Price sqm

1. Chiado, Príncipe Real, Lapa, Santos

€ 4500 - € 6500

2. Avenidas Novas, Amoreiras

€ 3500 - € 5000

3. Laranjeiras, Telheiras, Lumiar

€ 3000 - € 4000

4. Almirante Reis, Historical zone

€ 2500 - € 4000

5. Parque das Nações

€ 3500 - € 5000

6. Restelo

€ 3000 - € 6500

Real estate market in Lisbon: rentals (price sqm) Area

T1 - T2

T3 - T4

House

1. Chiado, Príncipe Real, Lapa, Santos

€ 900 - € 1600

€ 1800 - € 4000

> € 3500

2. Avenidas Novas, Amoreiras

€ 600 - € 1200

€ 1500 - € 3000

-

3. Laranjeiras, Telheiras, Lumiar

€ 500 - € 1000

€ 1000 - € 2500

-

4. Almirante Reis, Historical zone

€ 300 - € 900

€ 1000 - € 2000

€ 1000 - € 2500

5. Parque das Nações

€ 700 - € 1500

€ 1500 - € 3500

> € 3000

6. Restelo

€ 800 - € 1300

€ 1500 - € 3500

€ 1500 - € 5000

OTHER INFORMATION ABOUT LISBON – INTERNATIONAL SCHOOLS Boa Ventura Montessori (www.boaventuramontessori.com) Carlucci American International School of Lisbon (www.caislisbon.org) Escola Alemã de Lisboa (www.dslissabon.com) International Christian School of Cascais (www.icsc.pt) International Preparatory School (www.ipsschool.org) Liceu Francês (www.lfcl-lisbonne.eu) St. Dominic’s International School (www.dominics-int.org) St. James’ Primary School (www.stjamesschool.pt) St. John’s School (www.stjohns-school.com) St. Julian’s School (www.stjulians.com) St. Peter’s School (www.st-peters-school.com) 14

Golden Visa Portugal – Golden Residence Permit Program


OTHER INFORMATION ABOUT LISBON – HOSPITALS British Hospital Lisbon XXI (www.british-hospital.pt) Hospital Cuf Descobertas (www.cufdescobertas.pt) Hospital Cuf Infante Santo (www.cufinfantesanto.pt) Hospital da Luz (www.hospitaldaluz.pt) Hospital de Cascais (www.hospitaldecascais.pt) Hospital de Santa Maria (www.chlc.min-saude.pt) Hospital de São José (www.chlc.min-saude.pt) Hospital dos Lusíadas (www.lusiadas.pt) Hospital Prof. Doutor Fernando Fonseca (Amadora Sintra) (www.hff.min-saude.pt) 2.3. Why choose Engel & Völkers? Since its beginning in 1977 as a specialty boutique providing exclusive, high-end real estate services in Hamburg, Germany, Engel & Völkers has become one of the world’s leading companies specializing in the sale and lease of premium residential and commercial property and yachts. Engel & Völkers currently operates a global network of over 4,900 real estate advisers in 550 residential brokerages and 53 commercial offices spanning 38 countries across six continents, offering both private and institutional clients a professionally tailored range of luxury services. It established its Portugal first shop in 2006. Committed to exceptional service, Engel & Völkers Lisbon supports its clients with a premium quality service, based on our experience, knowledge and transparency. It is also set apart from other companies because of its attention to detail at every level, bringing the highest standards of real estate service to Portugal.

Live in Portugal, Invest in Portugal!

Golden Visa Portugal – Golden Residence Permit Program

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Technical Data

LANE Mediação Imobiliária, Lda. - AMI 8486 Licensed Partner of Engel & Völkers Residential GmbH Pre-press Choice – Comunicação Global, Lda. Printed in March 2015


Cascais Rua Afonso Sanches 25 b 2750-282 Cascais n Portugal Phone: (+351) 210 170 425 www.engelvoelkers.com/pt/cascais/

Lisboa Alameda dos Oceanos, Lote 1.07.1E 1990-203 Lisboa n Portugal Phone: (+351) 210 960 640 www.engelvoelkers.com/pt-pt/lisboa

Restelo Rua Duarte Pacheco Pereira, 30A 1400-140 Lisboa n Portugal Phone: (+351) 213 010 407 www.engelvoelkers.com/pt-pt/lisboa

Profile for Engel Völkers Lisboa

Golden Visa Portugal  

Golden Residence Permit Program Questions ans Answers Guide for Foreign Investors

Golden Visa Portugal  

Golden Residence Permit Program Questions ans Answers Guide for Foreign Investors

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