The Golden Visa is a residency program offered by the Portuguese government to non-EU citizens who invest in the country. The program was launched in 2012 as a way to attract foreign investment and boost the country’s economy.
Eligibility for the Golden Visa program requires a minimum investment of €500,000 in real estate funds. Other options are available such as the purchase of property but are more cumbersome and less tax advantageous, than the funds that allow investors to have 0% withholding tax and o% capital gains tax. The investment must be made within the first year of the program and must be maintained for a minimum of five years.
Holders of the Golden Visa are granted a renewable one-year residency permit, which allows them to live, work, and study in Portugal. After five years of continuous residence, Golden Visa holders can apply for permanent residency and, eventually, citizenship.
The Golden Visa program has been successful in attracting foreign investment to Portugal, with over 9,000 visas issued in 2020 alone. The program has particularly been popular with investors from the US, UK, China, Brazil, India, and Russia.
One of the main benefits of the Golden Visa program is the opportunity to live and work in a country with a high quality of life. Portugal is known for its beautiful beaches, stunning landscapes, and rich cultural heritage. It is also a safe and stable country, with a low crime rate and a strong economy.
The Golden Visa program also offers tax benefits to investors. Non-residents are taxed at a flat rate of 20% on their Portuguese income, which is significantly lower than the tax rates in many other countries. Additionally, Portugal has a number of double taxation agreements with other countries, which can further reduce the tax burden on Golden Visa holders.
In addition to the financial and quality of life benefits, the Golden Visa program also offers the opportunity to travel within the Schengen area, which includes most of the European Union as well as several other European countries. This allows Golden Visa holders to travel freely within the region for up to 90 days in any 180-day period.
Overall, the Golden Visa program is an attractive option for non-EU citizens looking to invest in a country with a high quality of life, a strong economy, and attractive tax benefits. While the initial investment required is significant, the long-term benefits of the program, including the opportunity to live, work, and study in Portugal, may make it a worthwhile consideration for many investors.
Foreign investors looking to invest in Portuguese investment funds can benefit from a number of tax advantages. These advantages are intended to encourage foreign investment in the country and help to boost the Portuguese economy.
Another advantage for foreign investors in Portuguese investment funds is the country’s favorable corporate tax rate. Portugal has a corporate tax rate of just 21%, which is significantly lower than the corporate tax rates in many other countries. This can make Portuguese investment funds an attractive option for foreign investors looking to minimize their tax burden.
Overall, the tax advantages of investing in Portuguese investment funds can make them an attractive option for foreign investors. In addition to the reduced tax rates and DTAs, the country’s favorable corporate tax rate can further reduce the tax burden on foreign investors. While it is important to consider the specific tax implications of any investment, the potential tax advantages of investing in Portuguese investment funds may make them worth considering for foreign investors.
There are several types of taxes in Portugal, including:
- Income tax: This tax is levied on individuals and businesses based on their income and wealth.
- Corporate tax: This tax is levied on the profits of companies and is typically a flat rate of 21%.
- Value-added tax (VAT): This is a consumption tax that is levied on the sale of goods and services. The standard VAT rate in Portugal is 23%, although there are reduced rates for certain items.
- Property tax: This tax is levied on the ownership and use of real estate in Portugal.
- Capital gains tax: This tax is levied on the profit made from the sale of assets, such as stocks or real estate.
- Inheritance and gift tax: This tax is levied on the transfer of wealth through inheritance or gifts.
- Social security contributions: Employers and employees are required to make contributions to the social security system in Portugal.
- Excise taxes: These are taxes levied on certain goods and services, such as cigarettes, alcohol, and gasoline.
It is important to note that the specific tax rates and rules can vary depending on an individual’s or company’s situation. It is recommended to seek the advice of a tax professional or financial advisor to ensure compliance with Portuguese tax laws.
That said, Portugal is one of the main kept secrets for the ultra wealthy, given its stable social and political situation, low cost of living and high quality of life.
