Since October 2012, Indian citizens who want to enter and reside in Portugal have been able to do so under the Golden Visa Portugal. This residence permit, officially called “ARI” (Autorizaçao de Residência para Actividade de Investimento), it is Europe’s most successful residency by investment program and allows a fast track valid residency.
The program requires a minimum investment of 500.000€ (or 350.000€ reduced option) in real estate in Portugal and the residency permit can be extended to the family’s investor, including dependent children. The golden visa can be renewed every two years, providing the applicant spends two weeks in the country every two years.
According to the Portuguese Border Service (SEF), 2019 has seen almost 500 million euros invested in seven months. Investment by Brazilian nationals under the same scheme was up by almost 42% in the same year. The countries with most investors for the programme include China, Brazil, South Africa, Russia and Turkey.
TYPES OF INVESTMENT
These are the various investment methods that international investors can make in order to obtain the Golden Visa Portugal:
- Investment operation with an operating period of at least five years and a minimum acquisition amount of 500.000€.
- Acquisition of property above 350.000€ or properties more than 30 years old located in areas of urban renovation or regeneration zones.
- Transfer of at least 1 million euros to a Portuguese Bank account
- Transfer of Funds above 000€ for research activities
- Transfer of Funds above 000€ for cultural activities
- Transfer of Funds above 000€ for capitalization of small and medium size companies.
- Incorporation or creation of a company that generates at least 10 new job positions.
WHY GET A GOLDEN VISA IN PORTUGAL?
First of all, Indian investors have permanent free entry and movement through the Schengen Area. This means that international investors will be registered with the Schengen Area central system which allows them to enter to all European countries without the need of an additional visa.
Secondly, the investor only needs to spend seven days in the first year in Portugal in order to get the visa or citizenship, so it is possible to obtain it without actually living in the country. Furthermore, there is the option to become a non-habitual resident of Portugal and pay a little tax for 10 years.
Besides this, the program is not blacklisted by the Organisation for Economic Co-operation and Development, unlike many other Golden Visa programs and, after five years, there is the option to apply for the Portuguese citizenship.
Other benefits are: access to Portuguese healthcare and European education system, have the security of a second residence in safe and stable country or transfer the investor’s benefits to his or her relatives.
INVEST IN REAL ESTATE IN PORTUGAL
Although the prices in Lisbon have increased during the past years, Portugal is still one of the cheapest real estate markets in Europe with a strong growth rate of about 13% per year. Even in more rural areas, real estate has also grown more than 5% per year.
Actually, Portugal is attracting currently many Indian investors because of the high profitability in the real estate market. Real estate can grant an annual capital growth rate of around 7% and touristic renting can even have a higher rates. Funds do not guaranty a return rate or if they do the maximum is low like 1,5%.
What’s more, Portugal has developed in the recent years into a prime holiday destination in Europe with approximately 25 million of tourist in 2019. The cities in Lisbon and Porto attract a huge amount of tourist due to their good connection with low price airlines and cruise ships.
In Portugal, there is also a high-income stability. Even during a financial crisis, the rents will maintain while other options like funds will likely loose capital. There is also an extremely high potential for long term renting because many smaller cities have opened their Universities to international students and that helped to create a huge demand for student housings.
REQUIREMENTS TO GET THE GOLDEN VISA PORTUGAL
In order to obtain the Golden Visa Portugal there is some conditions that the investor has to accomplish. The most important ones are: make and maintain the qualifying investment for a minimum of five years and spend a minimum of seven days in Portugal for the first year and no less than 14 days each subsequent two-year period (this is called the stay requirement).
The Stay Requirement is one of the main benefits of getting a Portuguese residency visa. With the Golden Visa Portugal, the investor needs to renew the card in years one and three, as well as spend a few days in Portugal each year following the next order:
- In year one: spend least seven days in Portugal
- In years 1-5: spend at least 14 days in Portugal (whether or not they are consecutive) during each two-year period.
If you are from India and you need to acquire the Golden Visa Portugal, in Orience International we can help you during the whole process. In terms of making an investment, it is essential to rely on professionals who are experts in the sector but also have values to understand the client and take into account the human factor.