What is the Golden Visa?
The Portuguese Golden Visa is a residence visa issued to non-EU nationals who have made an investment in Portugal, such as acquiring units of participation in a specific golden visa fund, purchasing real estate in specific areas, making direct capital investments or transfers, and creating employment opportunities in the Country.
It is essentially a VIP fast-track process for obtaining permanent residence and citizenship in an EU country later.
Most golden visa holders when they get their golden visas usually have their existing careers in their countries, they are presently living there, but are preparing to make a move: either retire or to open up their possibilities to establish their residence in different countries.
In addition, GV holders can become non-habitual residents, which is a tax regime, that provides them lots of tax breaks and benefits.
Are there alternatives? Why the Golden Visa?
Yes. There are lots of visas, but it comes down to staying needs.
This is the main difference: the least amount of required time to stay in the country is the most expensive visa. Essentially, the less you stay the more expensive it is.
For instance, if you plan to move to Portugal as a passive income investor or to initiate a start-up company, then the D7 or D2 visas are a good path. Both are significantly less expensive, but both require you to stay at least 183 days per year in the Country.
Whereas with the Golden Visa, typically these investors are people that are currently working and developing their business activities in another country and have plans to later obtain free access to the Schengen Area (aka all countries in Europe essentially, where you can retire, travel, study and conduct business activities).
So, the bottom line is, they are currently career active in their countries, like the US for instance, and are buying their access to Europe without needing to stay in Portugal, as with Golden Visa you are only required to stay in Portugal 7 days per year (consecutive or non-consecutive).
So essentially you can gain access to Europe without the need to become a resident or have the country’s citizenship.
But you can gain access to:
1. the tax advantages. In Portugal, it is a regime called Non-Habitual Resident.
2. the ability to stay, travel, conduct business, and study without the need to actually become that country’s national. as the Golden Visa gives you access to all Schengen Area countries(it’s pretty much all of Europe.)
If you do choose to obtain Portuguese citizenship, it will be granted after 5 years. It’s 1 on 1 year golden visa renewals and on the 5th year, Portuguese citizenship.
The golden visa program also allows for family reunification. So only one applicant is required to obtain the GV. He or She can then bring in their family.
So why Portugal?
You can do this process in any country that offers the golden visa and have the same end result.
Why Portugal?
Out of all the countries that offer the Golden Visa program, Portugal has been the 1st choice since its inception in 2012.
The proof is in the pudding: more than 5.7 billion euros have been invested in Portugal, from the inception of the program.
And the Portuguese Golden Visa program has an astounding 97% success rate of successfully completed applications, in comparison to any other country that offers the program.
This is based on two-fold:
1. Best Experience Overall
With its inception in 2012, Portugal has become the country that has streamlined the process better. It’s the least expensive route to obtaining the visa and the fastest way to obtain it. Portugal’s main source of revenue is tourism and service-related activities. So, all major entities like legal, banking, and more, kept providing feedback to the Portuguese government in order to improve the process as this is a win-win for all. They actually listened and the process since inception keeps improving, with most of the process, besides the biometric appointment, being done online or through a legal representative here.
2. Best bang for the buck
Portugal is one of the safest countries in the world, it has one of the best roads and highway systems and consistently ranks on top of the best places for education(medical, engineering, and business schools).
A good example is the cost of medical school. Medical schools in Portugal are notorious for being difficult to enter with minimum averages of 19.8 out of 20 marks. but the good part is that the fees are around 5.000/year.
So we are clear, Portugal consistently produces top scientists, engineers, and doctors.
Portuguese colleges have protocols with MIT, Harvard, Howard Hughes, and other leading entities.
The minimum wage in Portugal is around 700 eur, and you can make an above than average living on 3.000 income per month.
If you work from home or in a digital format, essentially you can do the same thing anywhere, right? So a good idea is to do it in a country that offers the lowest operating cost possible with the highest standards.
3. Tax-haven
In addition to the Golden Visa, you can also apply to become a non-habitual resident(it is a tax regime) and gain access to preferable rates in comparison to the standard tax system applicable to residents.
For instance, Portugal has a progressive tax regime from 14.5% to 48%. The more you earn the more you get taxed.
But if you are a non-habitual resident you get a flat tax rate of 20%.
Another bonus is that there is no withholding tax for non-residents in comparison to residents that pay 10%. And because Portugal has signed double taxation agreements with a multitude of countries, this means that income derived from dividends, interest, shares from other countries are taxed in Portugal at 0% – so no taxes,
If you want to learn more, schedule a free complimentary call with us, using the provided calendly link, so we can help you with your process.
Stay Strong Friend.
Book a complimentary call here: https://euseguros.pt/en/contactos
