From January 2022, the changes the Portuguese government has made to the Golden Visa Portugal will become effective.

There are three ways by which an investor can avail of the Portugal Golden Visa:

  • An investor can make an outright purchase of real estate property whether for private or commercial purposes.
  • An investor can invest capital into the Portuguese economy.
  • An investor can start a company that will employ Portuguese nationals for at least three years

How will these changes affect the Golden Visa Portugal program from January 22?

Investment in Real Estate

The Portuguese government would like to transfer the focus of real estate investments from the high-density areas like Lisbon, Porto, the Algrave, and the high density coastal towns like Setubal and the Silver coast to low-density areas like the Azores, Madeira and the cities and towns in the interior of Portugal.

Fortunately, there are no changes in the amount required for property investments.

  • €280,000 for existing properties requiring renovation in low density areas
  • €350,000 for existing properties located in urban re-generation areas
  • €500,00 for all other properties in Portugal

Capital Investment

  • The present capital transfer of at least € 1million has been increased to €1.5 million.
  • The present amount of €350,000 into private equity or venture capital funds providing capital to specified companies has been increased to €500,000.
  • The present €350,000 investment in companies that are scientific or technological in nature has been increased to €500,000
  • The present €350,000 business investment in the form of either the purchase of shares in a Portuguese company or setting up a company has been increased to €500,000 and must generate at least five permanent jobs for at least three years.

What you should do now about investments and the Golden Visa Portugal

As highly experienced professionals in this field, Orience International would like to help you choose the investment that is best for you and recommend the following points to consider before the changes take effect.

Here are four essential things that need to be considered when making a decision on investing in real estate for obtain the Golden Visa Portugal:

  1. Location

Choose a property in a city or area that has an outstanding appreciation rate or that has the potential to increase in value.

  1. Project

Choose a real estate project that is located in an excellent area and that is masterfully designed.

  1. Return on Investment

Aside the Golden Visa Portugal, you would like a respectable return on investment. Porto, for example experienced a 6.77% increase in value higher than the country’s average and 0.75% higher than the increase in Lisbon.

  1. The Right Partner

To achieve a respectable return on investment by choosing the right property, the right partner is necessary to not only help you make the right decisions for your personal situation but also give you peace of mind.

At Orience International, we put our client first and will put ten years of experience in this business to make sure that your investment is managed properly and in the best manner possible by well-educated and trained professionals. We will be with you from the beginning when choosing the property that is right for you, help you with all the necessary forms and documentation, to managing your property for you if you so wish, up to eventually selling the property if you so desire.

We will also help you apply for the Golden Visa Portugal in the fastest and most convenient way possible. Our success rate is one hundred percent as proven by clients who have assured us that they would choose us again or recommend our services to their relatives and friends.

 

The negative effect of the COVID-19 on the economies of European countries has led the European Commission to look for a solution that will benefit the tourism industry. The EU wants to resume travel in Europe through the implementation of vaccine passports, which are certificates granted to travellers that have received full vaccination against COVID-19. This set of certificates will include the vaccination certificates (vaccine used, data and place of inoculation and number of doses administered), negative test certificates, and/or medical certificates for people that have recovered from COVID-19 in the last 180 days. The EU vaccine passport was presented by the president of the European Commision, Ursula von der Leyen, as the Digital Green Certificate, which will enable people to travel to Europe without the need of a 14-day quarantine upon arrival to the country, and have unrestricted access to public places; only possible if you have the golden visa.

Moreover, as the number of vaccine doses are rising while the summer of 2021 is approaching, European countries that were unable to open their gates last year are preparing for a new wave of tourists that will possess a vaccination passport.

What is the Golden Visa?

The Golden Visa Europe is the best option for foreign entrepreneurs that want to acquire a residency permit, and are looking for a location of their new business, or their new home. The release of the Digital Green Certificate will be advantageous for these international investors that will need to travel to a European country.

The golden visa is granted once the applicants have invested in real estate within a EU member country that offers this program, such as Portugal, Spain and Greece. The holders of this visa and their family members will be able to benefit from the many advantages that come with the permit, which include having the opportunity to travel within the Schengen area.

Freedom of movement in Europe with the Golden Visa

International visitors that have the COVID passport will be once again be welcome to enjoy island-hopping in the beautiful islands in Greece, savor the tapas, paellas and claras along with other exquisite dishes in Spain, and experience the magnificent climate of Portugal; all of this will once again be possible with the Digital Green Certificate, and with the Golden Visa, investors and their family can choose to shift from a summer-long stay, to a permanent address.

On the other hand, if the purchase of real estate in these touristic countries is not for residing, but for business, entrepreneurs that apply for the Golden Visa can use the properties that they buy for short-term rental business (Airbnb) and profit from the beautiful and touristic countries of Europe. In line with this, the vaccination certificate will provide assurance and be advantageous to EU countries, as well as to international entrepreneurs that decide to invest through the Golden Visa.

 

New regulations about the Portugal Golden Visa have been implemented recently by the Portuguese government. The changes are about the requirements of real estate and the capital transfers investment. These updates will take effect on 1st January 2022.

Real state updates:

  • Investors will not be able to invest in areas with high-density population such as Lisbon, Porto, and the Algarve, as well as coastal towns like Setubal and the Silver Coast.
  • In inland territories or in the Autonomous Regions of the Azores and Madeira, only real estate investors will be eligible to acquire the Portugal Golden Visa if the housing properties are worth €280K and up (acquisition) than or equal to €350K (rehabilitation).

Capital transfers changes:

  • The requirement of the amount of the capital transfer will increase from 1 million euros to 1.5 million euros.
  • The minimum subscription requirement of the Investment Fund will increase from 350,000€ to 500,000€.
  • Will increase investment in research from 350,000€ to 500,000€.
  • Investment into an existing Portugal-registered business will increase from 350,000€ to 500,000€.

It has to be taken into account that applicants have until the end of 2021 to take advantage of the current Portugal Golden Visa scheme.

The suspended rules of the Golden Visa of Portugal will continue in 2022

Due to the COVID pandemic, the government’s new Portugal Golden Visa rules had been suspended in 2020. They are now scheduled to move forward again. In fact, legislative amendments to Portugal’s Golden Visa program will go into effect in January 2022, preventing investors from buying properties in the areas named above.

These changes of the Portugal Golden Visa are designed to drive investment in low-density locations of the country, relieving pressure from metropolitan areas and encouraging foreign investment in other areas of Portugal.

Portugal Golden Visa new rules: the property sector expected to be affected

Real estate professionals have expressed concern about the changes, as they can hurt the real estate market. Therefore, it was expected that the suspended changes of Portugal Golden Visa would not go ahead.

However, the Golden Visa new rules will help boost low-density areas and balance out the property market.

There are low density areas with high growth potential that offer excellent property locations for Portugal Golden Visa investors and their families. Some examples are Douro Valley, Aljezur and Peneda Gerês. For only €280K, individuals can invest in low-density areas renovation projects and become eligible for the Portugal Golden Visa Program.

Will the Portugal Golden Visa changes impact existing investment in Porto and Lisbon?

You will not be impacted by the Portugal Golden Visa updates if you are in the process of purchasing a property in a high-density town.

However, if you are interested in purchasing a property in Lisbon, Porto or the Algarve, now is the time to do so as changes, because the new rules will come into effect on the 1st of January 2022.

The rest of Golden Visa’s investment routes will not be affected by the updates and will remain available. If you are not particularly interested in investing in real estate, the Portugal investment fund golden visa is a very attractive investment route. You can become a Portuguese resident for a minimum investment of 350,000€.

Portuguese Golden Visa, acquisition process

To apply for the Portuguese Golden Visa, applicants must prepare their documents and submit their residence application. Upon approval and payment of the permit issue fee, the residence certificate will be released with a validity of one year. In order to successfully obtain the permit, applicants must stay in the country for at least 7 days during the first year, and 14 days in the two following years.

Once you have the Portuguese Golden Visa, you will have the option to later apply for Portuguese citizenship, wherein you will be a holder of one of the most valuable passports: the Portuguese passport.

Are you interested in the Golden Visa Portugal? Contact us

Due to the crisis of COVID-19 the spanish government has adopted urgent and extraordinary measures that cover many different areas of business activity. The most significant in each area are summarized below.

Royal Decree-Law 8/2020, of 17 March, on urgent and extraordinary measures to deal with the economic and social impact of COVID-19

Individual protection measures

  • The supply of electrical energy, natural gas and water cannot be suspended for vulnerable, severely vulnerable or socially excluded consumers.
  • Measures are adopted to seek a moratorium on mortgage debt for the purchase of the habitual residence of those who are experiencing extraordinary difficulties in meeting their payments as a result of the COVID-19 crisis.
  • The benefit of exemption is granted to the guarantors or mortgage guarantors who are in a situation of vulnerability.
  • Electronic communications services and broadband connectivity are guaranteed to all current users during the state of alarm.
  • The term to return any purchased product is suspended during the validity of the alarm state and will be resumed at the end of the validity of the royal decree law.

Measures to ensure liquidity and financial

  • The Ministry of Economic Affairs and Digital Transformation will provide up to one hundred billion Euros (100,000,000,000 Euros) in guarantees for financing granted by credit institutions, financial credit establishments and electronic money and payment institutions, to companies and self-employed persons who need it to meet their needs arising from the management of invoices, working capital requirements, financial or tax obligations or other liquidity needs.
  • The ICO’s net debt limit is increased by ten billion (10,000,000,000) euros in order to increase the ICO lines of financing for companies and the self-employed.
  • A line of insurance coverage of up to two billion (2,000,000,000) euros is authorized for the working capital loans required by the export company from the Internationalization Risk Reserve Fund, for certain small and medium-sized companies with liquidity problems due to the impact of the crisis generated by COVID-19.

Extraordinary measures for associations or foundations

  • Companies, associations or foundations may hold the meetings of their governing bodies by videoconference.
  • Likewise, companies, associations or foundations are allowed to adopt resolutions of their governing bodies in writing and without a meeting, with conditions.
  • The period of three months from the end of the financial year for the preparation of the annual accounts is suspended.
  • Until the end of the state of alert, the right of separation of the partners is suspended.

Tax measures

The following measures have been adopted in the area of taxation:

  1. Measures to guarantee liquidity
  • Suspension of tax deadlines

With regard to the tax deadlines, measures have been taken to extend or suspend them.

– Extension of time limits in administrative procedures

The following deadlines that started before the entry into force of the royal decree – law are extended until April 30, 2020:

  •  The deadlines for payment of tax debts provided for in the article resulting from administrative settlements.
  •  The deadlines for attending requirements, seizure proceedings and requests for information with tax implications, as well as the deadlines for making allegations in the opening of such proceedings or in the following hearings:
    • Tax application procedures.
    • Penalty procedures.
    • Nullification procedures.
    • Procedures for refund of undue income.
    • Procedures for rectification of material errors and revocation.
  • Time limits for enforcement of guarantees on property in the context of administrative enforcement procedures.
  • The time limits for attending requests and information requests from the General Directorate of Cadastre.

Also extended until 20 May 2020, among other things, the deadlines for voluntary and enforced payments of settled tax debts and the due dates of instalments and instalment agreements already granted.

 

Labour and social measures

  •  Measures to avoid layoffs due to temporary adjustments in business activity
    • With regard to temporary employment regulations (ERTEs) due to economic, technical, organizational and production reasons related to the COVID:   These are understood to be those that have their direct cause in losses of activity as a consequence of COVID-19, including the declaration of the state of alarm, which imply the suspension or cancellation of activities, temporary closure of premises with public affluence, restrictions on public transport and, in general, on the mobility of people and/or goods, lack of supplies that seriously impede the continuation of the ordinary development of the activity, or in urgent and extraordinary situations due to contagion of the workforce or the adoption of preventive isolation measures decreed by the health authority, which are duly accredited.  Similarly, the requirements for extraordinary benefits due to cessation of activity are made more flexible.
  • Distance working or teleworking is encouraged
  • Adapting the timetable and reducing the working day
    • Workers who can prove that they have a duty of care towards their spouse or partner, as well as towards family members by blood up to the second degree of the working person, shall have the right to have their working day adapted and/or reduced.
    • Likewise, exceptional circumstances will be considered to exist when there are decisions adopted by the governmental authorities related to the COVID-19 that imply the closure of educational centres or those of any other nature that provide care or attention to the person in need of them, and when the exceptional circumstances that require the presence of the working person concur, when the person who up until now had been responsible for the direct care or assistance of the spouse or relative up to the second degree of the working person could not continue to do so for justified reasons related to the COVID-19.
    • The right to adapt the working day may refer to the distribution of working time or to any other aspect of working conditions, and may consist of a change of shift, alteration of timetable, flexible timetable, split or continuous working day, change of workplace, change of functions, change in the form of provision of work, including distance working, or any other reasonable and proportionate measure, taking into account the temporary and exceptional nature.
  •  However, the employment measures that have been adopted will be subject to the company’s commitment to maintain employment for a period of six months from the date of resumption of the activity.

The state of alert has been extended for a further 15 days, until 11 April, with the support of the Congress of Deputies.

New measures have been adopted, which are summarised below:

  1. To provide that all the Autonomous Communities take charge of the private residences for the elderly.
  2. Apply generalised restrictions on travel for one month.
  3. The Armed Forces will extend their actions in the transfer of patients, protecting critical infrastructures, and supporting the transport of medical material and connections with the islands.
  4. Establish a home food delivery service for people from risk groups.
  5. Establish a strategic reserve of health products.