Golden Visa Portugal - the practical guide and best real estate options

The Golden Visa has become an absolute success model for investors that seek - next to a good investment - a save and stable future for them and their family. Launched in 2012 the Golden Visa program has been actively promoted internationally by the Portuguese government. With a Golden Visa permit, you will be registered within the Schengen Area central system which will enable you to enter 182 countries without the need for an additional visa.

 

One of the most attractive options is the ability to apply for permanent residency and citizenship after 5 years without the need to reside in Portugal. In Portugal citizenship can be granted without the applicant having resided in the country. The Golden Visa applicant and their family need only stay in Portugal for two weeks every two years in order to renew the Portuguese Golden Visa. 

 

Since the launch of the Golden Visa programme’s in 2012, more than 7,200 Portuguese Golden Visas have been given out, representing more than EUR 4.5 billion investment in the country. 

 

We summarized everthing you need to know about the Golden Visa program in Portugal into a practical guide.  We also dedicated  a hole section to the local real estate market in Portugal and the best way to do the investment.  If you have questions or remarks just let us know!

Overall Information Golden Visa Portugal

Real estate for the Golden Visa


What are the benefits the Golden Visa program in Portugal?

There are many benefits for the Golden Visa program in Portugal. The main benefits are listed below:

  • You will be registered with the Schengen Area central system which will enable you to enter all European countries without the need for an additional visa  (26 European countries) after your application has been approved by the SEF
  • The program is not blacklisted by the Organisation for Economic Co-Operation and Development (OECD). Many European countries have Golden Visa programs and the Portuguese government recently reinforced the program
  • After five years, you can apply for the Portuguese citizenship
  • Family reunion is possible which means that certain depdendent family members can also get Portuguese residency
  • Access Portuguese healthcare and European education system if wanted 
  • You have the security of a second residence in a safe and stable country
  • Having a second passport gives you always the possibility to leave your home country
  • You do not have to actually live in Portugal to get the visa or citizenship
  • You have the option to become a non-habitual resident of Portugal and pay little or no tax for 10 years

The Portuguese Non-Habitual Tax Regime grants qualifying individuals the possibility of becoming tax residents of a white-listed jurisdiction whilst legally minimizing income tax on certain categories of non-Portugal income for a period of 10 years. Golden Visa holders automatically qualify for the Portuguese Non-Habitual Tax Regime (NHR).

 

The Golden Visa in Portugal is extendable to family members like: 

  • Spouse or legal partner;
  • Children under 18 years of age;
  • Dependent children under 26 as long as they are unmarried and enrolled as full-time students; they also have access the the European education system
  • Parents of either spouse if over the age of 66 years old (or 55 and dependent); and/or
  • Siblings under the age of 18 years from either spouse or partner if legally responsible

Who can apply for the Golden Visa?

Any grown up who is not a citizen of the EU, EEA or Switzerland can apply for the Golden Visa. The applicants have to  make an respective investment in Portugal and also have a clean criminal record. Currently the Golden Visa applications from Iran are suspended. The SEF does not accept the application for safety reasons which where not explained in more detail to the public. The Portuguese embassy in Pakistan is currently closed. 


What are the requirements for the Golden Visa in Portugal?

The requirements for the Golden Visa in Portugal are:

  • An investment in Portugal
  • Clean criminal record in Portugal
  • No previous refusal of entry or visa to the EU
  • Sufficient medical insurance if you decide to stay in Portugal
  • Anyone who applies for the Golden Visa must spend a minimum of 7 days in the country in the first year, and 14 days in the subsequent years
  • Golden Visa applicants must maintain their investment over a period of 5 years if they wish to apply for citizenship.

What are the investment options for the Golden Visa?

The following investments options meet the criteria for the Golden Visa Portugal:

  • Capital transfer of at least  1 million EUR  into Portugal
  • The creation of at least 10 job positions in Portugal
  • The purchase of real estate in Portugal worth at least EUR 500.000 EUR  (reduced to 400.000 EUR if it is located in a low-density area). You can chieve this option also with more than one property which is from an investment point of view even better because rental returns do not grow proportionally with the real estate value
  • The purchase of real estate in Portuguese urban regeneration areas or that is at least 30 years old to the value of at least 350.000 EUR (reduced to 280.000 EUR if located in a low-density area). In this option you have to invest some part of the money into renovations. Such projects need to be approved by SEF as qualifying for the reduced investment amount and it is critical to ensure the right project and legal advice is obtained before embarking on such investment
  • Investment of at least 350.000 EUR in scientific research in Portugal
  • Investment of at least 250.000 EUR in Portuguese arts, culture and heritage
  • Investment of at least 500.000 EUR in small and medium businesses in Portugal

A lower density area which gives you a 20% reduced investment complies to the NUT3  level with fewer than 100 inhabitants per kilometre squared or GDP per capita less than 75% of the national average.

 

Note that you can not get a bank loan or mortgage in Portugal to buy a property. You have to prove that you bring the capital 100% to Portugal. Of course you can apply for a mortgage in your own country.

 

 The transfers to purchase the property as well as to deposite money in Portugal have to come from accounts in your name. You can not transfer money or make purchases frorm other peoples or company accounts

Low density areas Portugal


What documents are needed to obtain the Golden Visa?

Along with the Portuguese Golden Visa application, several documents are needed

to obtain the Golden Visa:

  • Passport or valid travel ID
  • Declaration of compliance with investment requirements
  • Proof of legal entry into Portugal (eg. Schengen short-stay visa)
  • Proof of health insurance (issued within the last three months)
  • Criminal record certificate from country of origin/residence (issued within the last three months)
  • Evidence of compliance with tax and Social Security obligations
  • Receipt of payment of the Portuguese Golden Visa fees.
  • A completed permission form which authorizes SEF to your Portuguese criminal records
  • Bank declaration confirming the transfer of funds

The applicants need to show commitment to maintain their investment for a minimum of five years, plus evidence of their investment

 

The Portuguese Golden Visa application can be submitted online via the Portuguese Immigration and Borders Service’s (SEF) website. The application takes up to 6 months for approval.

 

You need the following certified documents from a Portuguese consulate or the embassy of your country translated into Portuguese

  • Criminal certificate from country of origin 
  • marriage certificate
  • Birth certificate of children 

On top of those documents, you have to prove that you are committed to maintaining your investment for at least five years, as well as proof of your investment. Some examples of proof you can provide are:

  • Deeds of purchase for all real estate investments
  • Employment contracts for jobs that you created within the country
  • A bank statement that displays your capital contributions

What are the costs of getting the Golden Visa?

First you have to realized the investment in Portugal. After the investement you can start to apply for the Golden Visa Portugal. The application is made by your lawyer and it takes up to 3-6 months for approval. If you also want to apply for your family members, it will be done at the same time. The first applicant pays 532,70 EUR processing fee, each additional family member pays 83,10 EUR.

 

You can find a cost simulation for the 350k and the 500k real estate solution for a family of four at the real reaste section below. The general costs for a family of four without the investments costs a simulated below:

GOLDEN VISA APPLICATION COSTS (1 investor and 3 family members)
Process Analysis- Biometrics (532,70 for each investor + 83,10 per family member)  782,00 €
Residence Permit Processing Fees (€5.324,4 per person) 21.297,60 €
Optional Health Insurance (4 people per year) 700,00 €
Fiscal Number and Fiscal Representative(per year) 300,00 €
Total Golden Visa  23.079,60 €
   
GOLDEN VISA RENOVATION COSTS 1ST YEAR (1 investor and 3 family members)
Process Analysis- Biometrics (532.70 for each investor + 83,10 per family member)  782,00 €
Residence Permit Processing Fees (€2666.30 per person) 10.665,20 €
Optional Health Insurance (4 people per year) 700,00 €
Fiscal Representative(per year) 300,00 €
TOTAL 12.447,20 €
   
GOLDEN VISA RENOVATION COSTS 3RD YEAR (1 investor and 3 family members)
Process Analysis- Biometrics (532.70 for each investor + 83,10 per family member)  782,00 €
Residence Permit Processing Fees (€2666.3 per person) 10.665,20 €
Health Insurance (4 people per year) 700,00 €
Fiscal Representative(per year) 300,00 €
TOTAL 12.447,20 €
 
   

What is the application process?

The application for the Golden Visa in Portugal follows a stricts process that has to be considered. Your lawyer will guide you through the enire process. 

1. Decide how you want to make the investment - Before you apply for this visa, you need to have already made your investment. Investing in real estate  can take anywhere between one to three months to finalize.Some options also include the renovation of a property. You do not need to wait until the renovations are finished as long as you can prove that you have already deposited the necessary funds in a Portuguese bank. 

 

2. Start preparing and compiling your documentsYou should start gathering documents for your application as it can take a few months to obtain them all. This can be done in parallel to finding the object in your investment category.

 

3. Get the Portuguse tax numbe rand open a bank account in Portugal - You’ll need to get a Portuguese NIF  and open a Portuguese bank account, as well.Both task can be done by you fast when you are in Portugal or remotely if you give somebody like Pearls of Portugal or a lawyer a power of atorney.

 

4. Finalize the investment - You have to decide on a concrete investment and transfer the funds needed to complete your investment to your Portuguese bank account. Please not that the money has to be transfered from an ccount in your name. Then you can do the investment. In the real estate option the final call should be done by the lawyer that is responsible for the application process.

 

5. Translate the neccessary  documents into Portuguese - The translation has to be certified by a Portuguese notary or a Portuguese consulate in the country of origin to meet SEF’s requirements.

 

6. File the initial application to the SEF -  This steps should be done by a lawyer but you can also take this step by youself. The  Estrangeiros e Fronteiras (SEF) has an online portal where you can submit your application. You have to pre-register before you can apply.

 

7. Book your interview - Once you are pre-approved, you can then make your appointment. In bigger Portuguese cities like Lisbon and Faro, it can take up to three months to get an interview. If you schedule your interview in a less populated district, you might be able to reduce your waiting time.

 

8. Attend your appointment and a biometrics collection session - In your appointment, an immigration official will interview you, and they will collect your biometric data. If you are applying with your family, be sure to bring them along so that you can submit all of the applications simultaneously.

 

9.  Wait for the final approval - Once your application has been approved, you will pay an authorization fee of 5324,60 EUR per applicant. After 10 days you will receive your residence card, which is valid for 1 year.  

 

10. Use and renew the application - The residence card is renewable for two-year periods. In the second year you must submit your biometric data (fingerprints, etc.), present a current criminal record and pay a fee of 2662,30 EUR per applicant. In addition, the cost of the renewal process is 532.70 EUR for the main applicant and 83,10 EUR for each additional family member.

 

For the final application for the 4th and 5th year, you must submit your biometric data, present a current criminal record and pay a fee of 266,30 EUR per applicant. In addition, the cost of the renewal process is  532, 70 EUR for the main applicant and 83,10 EUR for each additional family member.

 

11. Become a Portuguese Citizen - After the last renewal process, you can renew your Golden Visa in Portugal or apply for a permanent residence permit, if you’ve maintained your investment and your minimum residency requirements. 


What is a non-habitual resident in Portugal?

1 - What is the NHR regime?

 

 The non-habitual tax resident (NHR) status is a tax regime created to improve Portuguese international competitiveness. This regime targets non-resident individuals who are likely to establish a permanent or a temporary residence in Portugal.

 

2 - What are the benefits of the NHR regime?

 

The NHR regime establishes, under certain conditions, IRS exemptions on foreign source income, as well as a limited 20% taxation of income from employment and independent personal services, in both cases if deriving from listed of high value added activities.

 

3- How do you acquire tax residence in Portugal?

 

Staying for more than 183 days in the Portuguese territory, whether these days are consecutive or not, in any 12-month period beginning or ending in a given tax year;

If staying for a shorter period in the Portuguese territory, on any day of the period referred above, a dwelling under circumstances that lead to the presumption of an intention to hold and occupy it as a place of habitual abode;

 

4- What is the procedure to register as tax resident in Portugal?

 

Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status, which means that those wishing to apply for the regime generally must:

  • register as non-resident taxpayers;
  • obtain residence permits (for non-EU nationals) and residence certificates (for EU nationals);
  • register as tax residents; and
  • only then you can apply for the non-habitual resident status.

 

5 - For how long may you enjoy the NHR status?

 

Non-habitual resident individuals may enjoy the status for a ten-year period. After this period they will be taxed under the normal IRS tax regime.

 

6- Once you have the NHR status, what are the tax requirements?

 

After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal, stating your worldwide income and expenses.

 

7- For how long are the benefits of the regime granted?

 

The NHR status is granted for a ten-year period.

 

8 - What types of income are eligible for exemption under NHR regime?

 

Foreign-sourced passive income (interests, dividends, certain royalties, other income from capital, capital gains and income from immovable real estate) derived by NHR is exempt (without progression except in the case of capital gains on real estate) in Portugal, provided that it is potentially liable to taxation in the source State (i) under the rules of an existing Double Tax Treaty (DTT) or (ii) in the absence thereof, under the rules of the OECD Model Tax Convention if such income is not deemed to arise from a State, region or territory included in the Portuguese tax havens’ blacklist nor from a Portuguese source under the IRS Code territoriality rules.

 

Foreign-sourced income from pensions falls under the IRS exempt (with progression) if not deemed to arise from a Portuguese source under the IRS Code territoriality rules.

Foreign-sourced employment income is IRS exempt (with progression), provided that it is effectively taxed in the source State (i) under the rules of a DTT or in, the absence thereof, (ii) of the OECD Model Tax Convention, as long as such income is not deemed to arise from a Portuguese source under the IRS Code territoriality rules.

 

Foreign-sourced employment income is IRS exempt (without progression) in Portugal, provided that it is income derived from high value added activities of a scientific, artistic or technical nature and it is effectively taxed in the source State (i) under the rules of a DTT or in, the absence thereof, (ii) of the OECD Model Tax Convention, as long as such income is not deemed to arise from a Portuguese source under the IRS Code territoriality rules.

Foreign-sourced income from independent personal services is IRS exempt (without progression) in Portugal, provided that it derives from high value added activities of a scientific, artistic or technical nature, as defined by Ministerial Order, and is potentially liable to taxation in the source State (i) under the rules of an existing DTT or (ii) in the absence thereof, under the rules of the OECD Model Tax Convention, if such income is not deemed to arise from a State, region or territory included in the Portuguese tax havens’ blacklist nor from a Portuguese source under the IRS Code territoriality rules.

  

 9 - What types of income are eligible for reduced rates under NHR regime?

 

Income deriving from employment or independent personal services of a domestic or foreign source but not qualifying for the mentioned exemptions will be liable to autonomous taxation at a special 20% flat rate and not to the general and progressive IRS rates (currently of up to 53% for yearly taxable income above € 250.000), provided that it derives from high value added activities of a scientific, artistic or technical nature.


Golden Visa lawyers

The application for a Golden Visa is not a complicated process. Since the launch of the program many thousands applications were successfully approved. Nevertheless it is strongly recommended to hand the entire process into the hands of an experienced law firm. There are many internal SEF rules that are not public but are only known by experienced lawyers.  They may cost more then other players in the market. But the money is well invested considering the overall amount that is invested the the Golden Visa project. 

We work with highly experienced law firms that have a proven record of successful Golden Visa applications. Our partners work with packages which means they provide you with all the necessary services  for a fixed price. This way there will be no unnecessary extra charges along the process and a guaranteed support in the following years. 

 

The lawyer services for the Golden Visa in Portugal contain the following portfolio:

  • Check, approval and monitoring of the intended investment regardless if it is in the area of real estate, bank deposit or other capital investments in Portugal. The check and approval is done prior to the actual investment so you do not risk your money
  • Contract services for the Golden Visa investment e.g. the promissory contracts, deeds of purchase/sale and its subsequent registration, setting up a Portuguese company, in the transfer of capital and in corporate acquisitions.
  • Assistance for foreign citizens and preparation all the necessary paperwork to obtain the approval for the Golden Visa. This also applies to all the family members
  • Support throughout the whole process of acquisition of the temporary residency in the first year as well as the renewal processes during the relevant period of 5 five years.

.


Finding best real estate for the Golden Visa

Buying real estate in Portugal is the most favorite option for most applicants to get the Golden visa in Portugal. However, local real estate agents are quite aware of the budget requirements and often tend to sell foreign investors overpriced properties. 

 

Pearls of Portugal is  specialized in finding the best real estate for Golden Visa applicants and making the purchase as cheap and safe as possible. We work 100% for you as a buyer agent and do not market an overprized portfolio. The market is our portfolio and we find the best offers in the market for you. We offer all services related to the purchase of real estate und bureaucratic processes for our customers. We quarantee of course absolute confidentiality.

 

 

We take care of all the necessary work like searches, viewings, price negotiations and also lega checks. This way you can easily buy real estate form abroad without the necessity to be in Portugal all the time.


Why is buying real estate the best Golden Visa option?

Buying real estate for the Golden Visa is the most popular option among applicants. Every body has to check the overall options and has to decide which alternatives fits bests their expectations. From our point of view there are strong reasons why real estate is a very good option to obtain the Golden Visa:

  • Profitabilty: Real estate grants you at least an 8% anual return of investment for long term renting. Touristic renting has even higher rates.  
  • Stability: Even during a financial crisis the rents will maintain while other options like funds will loose capital. Real estate also gains value with time and does not depend on risk capital manager
  • Safety: If you have to come to Portugal because you have to leave your home country you have a home that you can use for yourself. If your children want to live in Europe to study they already have a place to stay. 

What are the real estate options the Golden Visa?

The most popular investment option for the Golden Visa in Portugal is a purchase of real estate. There are 4 types of investment options. The invest of 500,000 EUR in any type of real estate and in any part of Portugal is the original and least complicated option.  The amount is reduced to 400,000 EUR (20% discount) if the real estate is located in a low density area. 

 

The third option is to invest 350,000 EUR in renovating a property that is over 30 years of age or located in designated urban renewal areas. The 350k is therefore the sum of the real estate and renovation costs. The fourth option is again a 20% cheaper investment of 280.000 EUR if the real estate is located in a low density area. The pros and cons of the investment options are described below. 

1. The 500k option

 Requirements: You have to invest a total 500 TSD EUR in Portugal regardless where and how many properties you buy.

 

Recommended real estate types: There are four recommended options in the 500k range. If you are intested in an optimal return of investment you should buy 2 apartments in the center of Porto or Lisbon for touristic renting or buy 3-4 apartments in Porto or Lisbon for longterm renting. If you would like to have a good return of investment and maybe would like to move to Portugal in the future you should buy a larger apartment in the center of Porto and Lisbon for touristic renting  or buy a bigger house at the silber coast or the Algrave and rent it to tourists. You can also buy land (only) in the 500k option. 

 

Evaluation: The 500k option is the savest in terms of the Golden Visa approval and also the option with the best return of investment perspective. Reselling in the cities is much easier and the markets grow better than other areas. Because of the high growth rates and the restrictions for touristic renting in Lisbon, Porto is currently the better choice to invest. Touristic properties can always be rented with good returns to the longterm market. 

 

2. The 350k option

 Requirements: You have to buy real estate in Portugal that has more than 30 years and that needs to be renovated. The renovation costs will be considered when applying for the Golden Visa program. So the 350 TSD EUR will be the sum of the real estate costs and the renovation costs. Instead of the 30 years can can buy a property that is located in a regeneration area. Due to the more complicated definition the house age is a far more recommendable option. The renovation have to be at least 20% of the cost of the property. So if the house costs 300 TSD EUR the renovations have to costs at least 60 TSD EUR.

 

Recommended real estate types: There are two recommended types of properties for this option. Either you buy an apartment to renovate in the center of Porto or Lisbon and rent it to tourists or you buy a smaller vacation house to renovate in the Algarve or the silver coast.

 

Evaluation: The returns of renting will be good but not as high as in the 500k option with several properties because you have to invest more in one or max 2 properties to renovate. The option is still reasonable because you can buy a good real estate in the best areas in Portugal and usually the real estate should gain significantly value through the renovations. Such projects need to be approved by SEF as qualifying for the reduced investment amount and it is critical to ensure the right project and legal advice is obtained before embarking on such investment

 

3. The 280k option

Requirements: You have to buy real estate in Portugal that has more than 30 years and that needs to be renovated. The renovation costs will be considdered when applying for the Golden Visa program. So the 280 TSD EUR will be the sum of the property costs and the renovation costs. Instead of the 30 years can can buy a property that is located in a regeneration area. Due to the more complicated definition the house age is a far more recommendable option. The property has also to be located in a low-density are in Portugal.

 

Recommended real estate types: There are two recommended types of properties for this option. There a good vacation properties in the national parks especially in Gerês. So you buy a vacation property, renovate it and rent it to tourists with good to moderate income perspectives. The second option is to buy agricultural real estate with a house to renovate. This options is valid for land that have wine, olives or especial nuts like almonds or cork.

 

Evaluation: The cheapest option is reasonable with moderate return of investments. The low-density areas make reselling more complicated. The application process is  also more complex. Such projects need to be approved by SEF as qualifying for the reduced investment amount and it is critical to ensure the right project and legal advice is obtained before embarking on such investment

 

4. The 400k option

Requirements: You have to invest 400 TSD EUR in one or more properties in a low density-area in Portugal.

 

Recommended real estate types: The best real estate for this option are bigger agricultural land with housings or touristic complexes like camping parks or small hotels.

 

Evaluation: This option is the least recommended option unless you are specifically interested in farming or larger touristic activities in the interior of Portugal. However the application is much easier than in the option 280k or 350k.


The 350k real estate option

The 350k option for the Golden Visa was designed by the government to increase infrastructure renovations in the Portugal. To make this option more attractive the government reduced the total investment to 350k instead of 500k. If the investment is well made, the 350k option is a very good option not only because of the 150k that can be saved.

 

A 350k EUR investment implies the acquisition of a real estate asset with construction completed at least 30 years ago or located in an urban rehabilitation area, with execution of rehabilitation works for a total value of at least 350.000 euros. This amount can be lower by 20% if the property is found in a low density area. 

 

The investments for renovation works are not very high in Portugal. Substantial renovations with new bathrooms, windows, floor, plumbing, electricity paintings are

  •  for an apartment 60-70 TSD EUR with all the work included
  • for a house 90-110 TSD EUR with all the work included

Important are the rehabilitation works. Many applications fail because the investors underestimate the importance of showing the SEF (Immigration and Borders Service) the necessary documents or attempt to just do minor renovations in the real estate. The SEF only accepts fundamental renovations. Here are same important points to consider:

  • the SEF accepts only quotations from an official IMPIC construction company
  • the internal SEF reference is 20% of the property value for the renovations
  • substantial renovations with new bathrooms, windows, floor, plumbing, electricity etc. are required. Furniture does not count as renovation
  • you need an official project, approved by the city hall
  • the real estate can not have experienced similar renovations in the recent past
  • you can only apply for the visa if the real estate is purchased and registered in your name as well as the budget for the renovations are on a Portuguese bank account. The bank will supply your with a certificate for the SEF
  • the transfers to purchase the real estate as well as to deposit money in Portugal have to come from accounts in your name. You can not transfer money or make purchases from other peoples or company accounts

How can I make profit with real estate in Portugal?

Real estate is an optimal choice to make profit during the your Golden Visa application. There are various solid ways to invest into the local real estate market. We summarized the main five of them. Investing into apartments and renting them to tourists is currently the most popular alternative among investors. However, if the Golden Visa investment is broken up into several properties you can also make a very good investment in the local renting market.

 

Touristic Rental / Short term renting (Alojamento Local)

In contrast to other European countries, tourism and the renting of real estate enjoys a positive reputation in Portugal. Accordingly this is also promoted by the municipalities. As a private person you can very easily register a small business for rental purposes and apply for the nedded licences. This usually takes about 2 days.

 

From an Golden Visa investing point of view, apartments in the two major cities of Porto and Lisbon are the best options, but also real estate in the classic holiday regions such as the Algarve or Alentejo are particularly suitable alternatives. For apartments in the cities there are clear requirements for successful letting. Appropriate apartments must be centrally located with access to the subway. In addition, it must be a historic and renovated building in very good condition.

 

Established apartments generate an average of 25-35 TSD EUR per year. The management of theses apartment is taken over by professional administrators which manage of all important tasks of the rental. These are remunerated with 20-30% of your turnover. After taxes the landlord remains with about 65% of their turnover as profit. Corresponding properties are around 250.000 EUR as a minimum  investment.

 

Renting of commercial real estate

Commercial real estate had a rather weak development in the recent years. The purchase costs for good locations are therefore around 1000 EUR per square meter. Nevertheless the market is interesting as the conversion of commercial space to official living space has become much easier due to the lack of housing. This will soon lead to a sharp increase in conversions and thus in a higher demand für comercial places.

 

In addition, commercial real estate such as a shops is interesting because you can already acquire the appropriate real estate  with fairly low budgets. Smaller stores cost around 35.000 EUR in the big cities. The gross return for related properties is around 10%, which is a solid return compared to more expensive Golden Visa investment opportunities. In addition, the commercial space can be rented in the long term and has no high renovation costs.

 

Long term renting

Similar to other European countries there is a very strong lack of housing in urban areas in Portugal. The rate of privatley owned properties used to be 95%. In recent years, the market has developed into a strong rental market. Particularly in demand are smaller apartments in classic residential buildings which are not located in the center but in connection with the inner cities.

 

The entry price for 2-3 bedroom apartments is around 150 TSD EUR and is therefore much more affordable than in other major European cities. The rents are usually at 8-11 euros per square meter. With the Golden Visa investment of 350 TSD EUR you can achieve a gross rent of approx. 2000 EUR per month.

 

Hotel in Portugal

Portugal is a classic holiday destination with a strong increase in demand from foreign tourists. The market for hotels and the supply of hotel real estate is correspondingly well developed. Objects with 10-20 beds can already be purchased with  400.000 EUR. Smaller objects can also be purchased much cheaper. Many investors focus less on a traditional main building but on the construction of mobile units through which the capacity can be successively expanded.

 

In addition to the efficient management of the hotel and the location the underlying concept behind capital investment is most decisive. There are a lot of classic hotels in Portugal. In order to prevail on the market, it is therefore necessary to occupy a niche or a strong feature in the market. This concept should already be considered when searching for the right property. For smaller budgets the construction of a hostel in the big cities or a pilgrim hostel in the north of Portugal is suitable.

 

Agricultural land with houses

Portugal has a long tradition in agriculture and is well known for its wine and olive oil production. There exist also many smaller markets with higher margins like cork trees or nuts like almonds that have stable markets. General fruits like oranges or all kind of vegetables are not recommendable because of the strong competition in Europe especially from Spain.

 

Farm land in Portugal is usually less expensive because the plots are located more in the interior parts of Portugal. This makes also the acquisition of houses much more cheaper as they are required for the Golden Visa approval.


Total costs for the real estate Golden Visa application

Most applicants for the Golden Visa would like to have an overview of the total costs involved. Therefor we simulated the costs for the most popular options for a family of four for the real estate Golden Visa application. The cost overiew covers the acquisition costs and the applications cost. 

500k Golden Visa Portugal cost overview

REAL ESTATE PURCHASE COSTS  
Real Estate Purchase Price (500.000) 500.000,00 €
Notary 1.200,00 €
Land Registry  250,00 €
Property Transfer Tax  28.965,00 €
Stamp Duty (0.8%)                                                                                                        4.000,00 €
Real Estate Closing Cost 534.415,00 €
   
GOLDEN VISA APPLICATION COSTS (1 investor and 3 family members)
Process Analysis- Biometrics (532,70 for each investor + 83,10 per family member)  782,00 €
Residence Permit Processing Fees (€5.324,4 per person) 21.297,60 €
Optional Health Insurance (4 people per year) 700,00 €
Fiscal Number and Fiscal Representative(per year) 300,00 €
Total Golden Visa  23.079,60 €
   
GOLDEN VISA RENOVATION COSTS 1ST YEAR (1 investor and 3 family members)
Process Analysis- Biometrics (532.70 for each investor + 83,10 per family member)  782,00 €
Residence Permit Processing Fees (€2666.30 per person) 10.665,20 €
Optional Health Insurance (4 people per year) 700,00 €
Fiscal Representative(per year) 300,00 €
TOTAL 12.447,20 €
   
GOLDEN VISA RENOVATION COSTS 3RD YEAR (1 investor and 3 family members)
Process Analysis- Biometrics (532.70 for each investor + 83,10 per family member)  782,00 €
Residence Permit Processing Fees (€2666.3 per person) 10.665,20 €
Health Insurance (4 people per year) 700,00 €
Fiscal Representative(per year) 300,00 €
TOTAL 12.447,20 €
 
   

Source: Martinez Echevarria

350k Golden Visa Portugal cost overview

REAL ESTATE PURCHASE COSTS  
Real Estate Purchase Price (350.000) 350.000,00 €
Notary 800,00 €
Land Registry  250,00 €
Property Transfer Tax 16.964,65 €
Stamp Duty (0.8%)                                                                                                        2.800,00 €
Real Estate Closing Cost 370.814,65 €
   
GOLDEN VISA APPLICATION COSTS (1 investor and 3 family members)
Process Analysis- Biometrics (532,70 for each investor + 83,10 per family member)  782,00 €
Residence Permit Processing Fees (€5.324,4 per person) 21.297,60 €
Optional Health Insurance (4 people per year) 700,00 €
Fiscal Number and Fiscal Representative(per year) 300,00 €
Total Golden Visa  23.079,60 €
   
GOLDEN VISA RENOVATION COSTS 1ST YEAR (1 investor and 3 family members)
Process Analysis- Biometrics (532.70 for each investor + 83,10 per family member)  782,00 €
Residence Permit Processing Fees (€2666.30 per person) 10.665,20 €
Optional Health Insurance (4 people per year) 700,00 €
Fiscal Representative(per year) 300,00 €
TOTAL 12.447,20 €
   
GOLDEN VISA RENOVATION COSTS 3RD YEAR (1 investor and 3 family members)
Process Analysis- Biometrics (532.70 for each investor + 83,10 per family member)  782,00 €
Residence Permit Processing Fees (€2666.3 per person) 10.665,20 €
Health Insurance (4 people per year) 700,00 €
Fiscal Representative(per year) 300,00 €
TOTAL 12.447,20 €
 
   

Source: Martinez Echevarria