A golden visa is a type of residence permit that allows non-EU citizens to live and work in a European Union (EU) country in exchange for making a significant investment in the country. Each EU country has its own requirements for obtaining a golden visa, but there are some general requirements that are common to most programs. These requirements may include the following:
-
Investment: Most golden visa programs require the applicant to make a significant investment in the country, such as purchasing real estate, starting a business, or investing in government bonds. The amount of the investment required varies by country.
-
Financial stability: Applicants must typically demonstrate that they have sufficient financial resources to support themselves and any dependents while living in the country. This may include proof of income, assets, or financial investments.
-
Good character: Most golden visa programs require applicants to have a clean criminal record and to be in good standing with their home country.
-
Health insurance: Applicants must typically have health insurance coverage while living in the country.
-
Language proficiency: Some golden visa programs require applicants to have a basic knowledge of the local language, while others do not.
-
Processing fees: Most golden visa programs require the payment of processing fees to cover the cost of reviewing and processing the application.
There are several reasons why Portuguese real estate has become popular in recent years:
-
Affordable prices: Portuguese real estate is generally more affordable than in other countries in Western Europe, which has made it attractive to foreign buyers.
-
Golden Visa program: Portugal has a popular Golden Visa program that allows non-EU citizens to obtain a residence permit in exchange for investing in Portuguese real estate. This has made it easier for foreign investors to purchase property in the country.
-
Stable economy: Portugal has a stable economy and a strong property market, which has made it an attractive destination for real estate investment.
-
Beautiful countryside: Portugal has a diverse and beautiful landscape, with a long coastline and many charming towns and villages. This has made it a popular destination for holiday homes and second homes.
-
Good climate: Portugal has a warm and sunny climate, which has made it a popular destination for retirement and for those looking to spend part of the year in a warmer climate.
-
Culture and lifestyle: Portugal is known for its rich culture, delicious food, and laid-back lifestyle, which has made it an attractive destination for those looking to relocate.
Overall, the combination of affordable prices, a popular Golden Visa program, a stable economy, and a desirable lifestyle has made Portuguese real estate a popular choice for foreign buyers.
In Portugal, under the Real Estate routs, the common path is to either:
1. Complete a direct real estate property, subject to geography rules.
2. Open an account with a golden visa investment fund. This is the common route as it is tax-efficient, provides returns with 0% taxes and pays dividends every April. It is the most liquid option. At the end of the period, the invest can withdraw.
Portugal has one of the strictest enforcement regulatory agencies in the world. Funds are audited twice a year and all reports are availabe to investors. In addition, Funds have no debt, as the assets are bought with 100% cash. This makes it a very attractive option for investors.
Summary of an investment through the largest real estate funds in Portugalt:
Management Entities have a total aggregate of €6.0B of AuM. Funds are 100% equity. No debt.
1. Industrial/Commercial RE, 6% p.a from rents. + 90/10 Equity Split on exit from the delta, usually at a 20-25% markup.
2. Funds own the properties and have a large property manager for daily ops.
3. AAA tenants pay the rents, 10-15 year contracts with the fund management company, without break clauses.
4. For the investors(Retail or Institutional): holding Period: 5-7 years, renewable as an option. Distributions are paid in April to the account. Remittance is allowed.
5. Taxes: under the Non-Resident Regime: 0% withholding tax and 0% Capital Gains Tax as Portugal has DTA(Double Taxation Agreement) with the US, UK, and a multitude of countries.
6. Returns: (6 years x 5% = 30%) + (20% delta x 90% = 18%). So it is a total 48% cumulative return to the investors.
7. Institutions or Retail Investors just need a bank account here and a fiscal number.
8. These are the largest and most established funds in Portugal.
9. An additional note: a great deal of US, Swiss, Brazilian and Chinese Banks are here for this.10. Funds are independently audited twice a year. Reports are available to investors and placement partners.
If you are interested in investing, you will be provided with any information like decks, track records, fact sheets, ISINS, Audit and Surveyor reports, direct contacts, and any other information you deem necessary.
