Portugal’s Golden Visa
Portugal has been one of the most desired locations for international living since the Golden Visa changes of 2012. The Golden Visa was created to attract investors to obtain residency in Portugal. With a minimum investment of € 500,000, Portugal will grant you a residency permit for a family, including dependent children. Residency can also be gained by investing €1,000,000 or by creating at least 10 jobs in Portugal.
You are able to renew your Golden Visa every 2 years under one requirement: you MUST reside in the country for AT LEAST 2 weeks every year. After 6 years of obtaining the Golden Visa, you are allowed to apply for Portuguese citizenship.
This not only gives you residency, but also allows you to travel anywhere in the EU. The Portugal Golden Visa scheme was created to improve the Portuguese economy.
Quite a few people are concerned about not investing in diverse enough markets, and with Portugal it allows them to have financial investment diversity. As many famous financial advisors say, “Never put all your eggs in one basket.”
Since the Golden Visa’s inception in 2012, the real estate industry in Portugal has been saved.
The Golden Visa was aimed to target wealthy people from China, Russia, and anywhere else that is willing to pay good money for the right to live and work in Europe
The main attraction of the Golden Visa has been distributed to Chinese investors. Statistics show that more than $1 billion has been invested into the economy. Of the total 1800 Golden Visas that have been granted, about 80% of those are to Chinese investors. The reason that it’s so popular for the Chinese is because they’re looking to reduce their dependence on their own country’s economy.
The Non-Habitual Residency allows for those who have become something known as “tax resident” in Portugal to have the opportunity to receive income tax-free in both Portugal and the country from the source of income. This is a process that you must qualify for, but it includes pension, dividends, royalty, and interest income.
The scenario will also cover professional income from high value activities which benefit from a special flat tax rate of 20%. You cannot receive this without being a Portuguese tax resident. This status is granted to you for 10 years.
The non-habitual resident does have an option for renting under the NHR regime. In this circumstance, you will still be required to provide evidence of your address in Portugal. Note: A rental contract is a valid proof of evidence for this.
Portugal has a safe and social environment, a highly skilled labor force that speaks excellent English, and offers an excellent quality of life. Portugal is known for having an incredible investment climate and a desirable investment location.
Portugal is becoming a top choice for top tier net worth individuals looking to obtain European residency.
Portuguese Tax Regime
Examples of the benefits of the Tax Regime for Portugal.
- 20% flat rate for employment and self-employment income.
- Tax exemption for gifts, inheritances to spouse, descendants or ascendants.
- Inheritance and gifts to other people are subject to being either not taxable or having only a circumstantial 10% stamp tax rate.
- Companies in Portugal are subject to EU non-discrimination rules.
- CIT rate of 5% for companies licensed to operate in the MIBC until December 31, 2020.
- Portugal doesn’t have a wealth tax. The only taxes that apply are local real estate in Portugal.
The many different advantages to living in Portugal are obvious, and that’s why it’s such a hot commodity for international retirement.
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