Portugal Residence Permit by Investment

Resumption of the Portugal Residence Permit Program by Investment.

In June 2022, Portugal's immigration service (SEF) resumed accepting applications from investors for residence permit status. Officially, the residency program continued to operate, but only for those candidates who submitted their documents in 2021. The six-month pause was due to bureaucratic delays within the government.

Starting in 2022, the relevant department changed the conditions for participating in Portugal’s residency-by-investment program. Now, the option for immigrant investors to obtain residency through the purchase of real estate is available with some restrictions.

Updated Conditions for Immigrant Investors to Obtain Portugal Residency

In January 2022, immigration service providers announced changes to the minimum investment limits. The cost of participating in the program increased by 1.5 times in four areas:

• For investments in investment fund shares – by €150,000;
• For business investments – by €150,000;
• For investment in scientific research – by €150,000;
• For opening deposit accounts in Portuguese banks – by €500,000.

Additionally, the Portuguese authorities have geographically restricted the choice of real estate properties to attract foreign capital to other regions of the country. Now, immigrant investors seeking residency can purchase residential property only in:

• Madeira;
• The Azores;
• Portugal’s inland municipalities are away from major cities and resort areas.

These restrictions do not apply to commercial real estate, which can still be purchased throughout Portugal.

In the future, the country's authorities plan to change the application submission process as they intend to dissolve the current immigration service. As a result of the reform, SEF’s administrative powers will be transferred to the new agency APMA, while law enforcement duties will be handled by the GNR and PSP divisions.

Ways to Obtain a Portugal Residence Permit Through the Investment Program

Wealthy individuals who wish to become residents of a Schengen Agreement country must apply through a licensed agent of the residence permit program. Based on investment capital, candidates may be granted a residence permit for 5 years. The possible investment activities include:

• Purchasing real estate;
• Business immigration;
• Financing the country’s economy;
• Investing in non-profit funds.

Initially, Portugal's "Golden Visa" is issued to the investor for 1 year, with subsequent renewals for 2 years each. After this period, a temporary resident who maintains investor status can apply for permanent residency in Portugal.

The procedure for obtaining residency remains the same:

1. Selecting the investment object.
2. Obtaining tax identification numbers for the immigrant investor and their family.
3. Transferring investment funds to a Portuguese bank account.
4. Purchasing real estate and making investments according to the chosen direction.

Most investors consider purchasing property in Portugal the most profitable option due to the country’s steadily rising housing prices. According to Eurostat data, residential property prices have increased by 50% over the past 10 years. The high liquidity of real estate is the main criterion that allows investors to recoup their investment after 5 years.

Purchasing a Share in the Evora Holiday Inn Express Hotel in Portugal with the Right to Obtain Residency

Portugal's "Golden Visa" is one of the most sought-after programs in Europe. Its success lies in simple conditions, a relatively low entry threshold for investors, and the prospect of obtaining EU citizenship in 5 years.

The program is further enhanced by development projects from world-renowned companies, offering reliability, promising returns, and guaranteed income.

The profitability of capital investment is a significant factor, often decisive in the choice. Also important are the associated costs (transactional expenses, government fees, etc.) and the proper assessment of potential risks.

Evora Holiday Inn Express in Portugal

A real gift for investors is the Holiday Inn Express hotel in the Portuguese city of Évora, which rightfully holds the status of a cultural and historical center of the country.

The project’s facade will blend with the local style, and the tourist complex's content will meet international standards. This is ensured by the globally recognized management company IHG Hotels & Resorts and the developer company responsible for over 11 successful projects.

Conditions for Investors to Purchase a Share in the Evora Holiday Inn Express Hotel

As part of the Portuguese "Golden Visa," an investor can acquire a share in the three-star Evora Holiday Inn Express hotel by purchasing one of the 72 rooms with the right to stay in it with their family for 7 days a year.

The project does not provide for income from equity participation but remains attractive for other reasons:

• Minimum investment amount (€280,000);
• Quick residency processing (6-8 months);
• Guaranteed completion of construction in 2023 with no risks;
• No property tax and operating costs;
• The stamp duty is reduced by separating the property price and renovation costs (VAT on renovation is fully covered by the developer);
• Investment return after 5 years.

This is an ideal offer for those who do not plan to move to Portugal but wish to obtain residency as quickly and inexpensively as possible.

If you are interested in this project, contact the Emigration Center Garant.in for more information. Our specialists will answer all your questions and tell you about other open offers on the Portuguese market.

"Golden" Residence Permit in Portugal for €280,000: Useful Information for Investors Who Choose This Option

The latest changes to Portugal's Golden Visa program, which will take effect on January 1, 2022, and which we reported on the GARANT.in website, will inevitably lead to changes in the structure of demand for Portuguese real estate. Let us remind you that applicants for Portugal's "Golden" residence permit can no longer invest in luxury residential real estate located in Lisbon, Porto, or certain areas of the southern Algarve region. This type of real estate accounted for the lion’s share of all transactions under the Golden Visa program in these locations.

Market analysts and realtors working in Portugal are confident that third-country investors seeking to obtain a Golden Visa will now be forced to:

• Pay more attention to other, less popular regions of the country;
• More frequently use the cheaper options provided by the program.

When You Can Use the Cheapest Option of the Portuguese Program

It is worth noting that, in addition to buying luxury real estate, the Portuguese program also offers the option of purchasing housing with a minimum investment of €350,000. This applies if the investor chooses a property that is over 30 years old and requires renovation, or is located in an "urban rehabilitation zone" (ARU zone).

But even this relatively low level of investment is not the limit! If the specified property is located in areas with low population density or low economic development (relative to the national average), a 20% discount coefficient applies. Thus, the minimum investment will amount to just €280,000.

This is a fairly modest sum, considering that the result will be a Golden Visa for the main investor and their close relatives. Subsequently, in just 5 years, they will have the opportunity to obtain a Portuguese passport (an EU passport).

What You Need to Know When Deciding to Buy Cheap Housing

This prospect is very attractive, but two serious tasks arise for an investor who chooses the €280,000 option:

• Where to find a suitable property;
• How to carry out the repair or renovation of the building.

These are not simple questions, and we will consider them briefly.

Finding a Suitable Property

As mentioned earlier, the discount coefficient only applies to properties located in special zones. The population density in these zones should not exceed 100 people per square kilometer, and the GDP per capita should not be more than 75% of the national average. In various sources, these zones are often referred to as "rural areas with underdeveloped economies."

This might frighten a potential investor from Russia or Ukraine, conjuring up grim images of remote, isolated rural areas. In reality, things are not so bad!

Firstly, Portugal is a small country, with an area only twice the size of the Moscow region. Moreover, its narrow, elongated shape from south to north means that from almost any remote village, you can reach a major city in an hour or an hour and a half. Often within 2-3 hours of driving, you will already be in the capital, Lisbon. Fortunately, Portugal has a dense road network, and the condition of the roads meets European standards.

Secondly, you can find properties for €280,000 not only in remote rural areas. In Portugal, many places meet the program's conditions and are still quite civilized. A great example is the eastern part of the southern Algarve province. This resort province is popular with investors, known for its expensive luxury real estate. But, as mentioned earlier, from 2022, purchasing housing in the Algarve's luxury resorts will be restricted.

At the same time, these restrictions do not apply to the entire province! The territory between the city of Faro and the Spanish border (eastern Algarve) has not yet been affected by the tourist boom. Small fishing villages in local municipalities meet the standards of "low population density and weak economic development." Many of them are just an hour's drive from Portugal's "golden resort triangle."

Very good options can also be found in the Central region or the Alentejo province. And these won't necessarily be tiny villages. For example, the areas around the cities of Beja and Évora are interesting.

These cities are fascinating in their own right and regularly attract many tourists. Furthermore, nearby, an hour’s drive away is Lake Alqueva, popular with tourists from Spain (the border is close). Alqueva attracts both passive vacationers and lovers of hunting and fishing, and housing here can be considered as a small hotel for tourists.

Conclusion

GARANT.in emigration center specialists will help you choose the best way to obtain Portugal's "Golden Visa." We conduct a confidential client check in advance to minimize the risk of residency rejection.

GARANT.in – years of experience in immigration, expertise in obtaining Portuguese residence permits through property purchases, consistent consultations, and making the right decisions.