Golden Visa

The Golden Visa programme launched by the Portuguese Authorities is a fast track for investors to obtain a fully valid residency permit in Portugal and consequently free access to the vast majority of European countries (Schengen area).
Aimed at attracting foreign investment to Portugal, the Golden Visa is a very straightforward and flexible programme, with simple and clear legal requirements. With extremely reduced minimum stay requirements, the Golden Visa is clearly one of the most attractive residency programs for investors in the world.

Process

STEP 1 – Things to do before you come to Portugal

• Contact our consultants: provide your basic information, so we can send you an invitation for applying for a business trip Schengen visa.
• Contact the Portuguese diplomatic mission that serves your region and, if applicable, obtain a valid Schengen visa from the Portuguese embassy or consulate in your country.
• Obtain a copy of your criminal record from the authorities of the country in which you have most recently lived during at least one full year and have it certified by the Portuguese consulate or by the apostils of the Hague convention.
• Documentary evidence of the eligibility of family member applicants other than the spouse and under 18-year old children will be required (if in doubt, please contact us about this).
• If your documents are not in Portuguese or English, obtain certified translations by a Portuguese consulate-recognized translator of: (1) your passport; (2) your criminal record; (3) your health insurance policy, which must cover medical and hospital care in Portugal (you haven’t got this you may purchase it through your Portuguese bank); and (4) your driving license or recent utility bill.
• Email us the details of your trip (flights and hotel) as soon as known. We will pick you up at the airport.

STEP 2 – Visit to Portugal: Property selection, lawyers, fiscal representative, bank account and SEF

• Meet with any of our consultants to find out more about the properties available in Portugal. We are currently marketing a range of properties :
  1. Residential properties: apartments and villas to live or lease
  2. Touristic apartments or villas (ideal for short-term rentals), in some cases with guaranteed return
  3. Buildings or palaces for renovation
  4. Commercial properties, including shops, and offices
  5. Hotels and resorts
  6. Wine and olive farms
• Start your one-stop shop of real estate property. We will bring you to visit not only our properties, but also other properties from other real estate agencies.
• Once you select a property, we will recommend you a trustable and full-experienced Law Company as well as a fiscal representative.
• Lawyers will be responsible for golden visa application requirements and procedures, as well as for property due diligence, including confirming: the title of the property, if the person or company selling actually owns the property, whether there are any outstanding charges or costs associated with the property, if the appropriate building licenses or permissions are in order should you buy a plot of land or building for renovation, and that the terms and conditions stipulated by the vendor are fair and legal
• Lawyers will be granted power of attorney to represent you and sign the promissory contract and definitive contract.
• The fiscal representative will get you a Portuguese Tax number, required for the purchase, and manage your tax issues in Portugal on an ongoing basis
• To guarantee the investment a reservation fee is required: 5% of the purchase price, minimum 10.000€.
• On the day of visit to the lawyers’ office, besides making the property reservation, appointing a fiscal representative, they will assist you on opening a bank account at a Portuguese bank and schedule an interview at SEF (Foreign Exchange Services) to give your biometric data and information.

STEP 3 – Promissory Contract, Finish Payment, Deed of Transfer, and Property Registration

• To complete the purchase, your lawyer will need to prepare the Promissory Contract. This contract stipulates the details of the purchaser, vendor and property, payments, timings, etc, which have been agreed between the parties. You can either attend the signing in person or grant your lawyer power of attorney to attend and sign on your behalf the Promissory Contract.
• Most of the time, investors will need some time to transfer all the money into their Portuguese bank account to finish the payment. (Warning: To apply for the golden visa, you must have the record of transferring more than 500k euros to your bank account).
• After you have transferred the funds, the deed of transfer will be signed. The Deed of Transfer is signed in the presence of a notary who will ensure that the title deeds have been exchanged and all conditions have been understood by all parties concerned. Following the signing of the deed, the notary bears witnesses to payment, or an acknowledgment that the full payment has been made, and this fact is incorporated in the title deed.
• Property registration: After signing the Deed of Transfer, your lawyer will take a notarized copy of it to the land registry for registration and payment of fees.
• You are then an official owner of property in Portugal!

Step 4 – Golden Visa Application

After finishing the investment, the lawyer will be able to complete your golden visa application. Reminder: All documentation below needs to be delivered:

Documentation necessary:

• Passport or travel document with a validity of at least three months.
• Valid Schengen visa
• Proof of lawful entry in Portugal
• Proof of health insurance
• Request for consultation of criminal record at SEF (to be declared at the time of the request)
• Certificate evidencing that the applicant has not been found in default by any court of law (preventive)
• Sworn affidavit by the foreign national, attesting that the same will comply with the minimum quantitative and time requirements regarding the investment activity in Portugal.
• Declaration issued by the Portuguese tax authorities and social security attesting the inexistence of any debts of the foreign national to the said entities.
• Criminal record certificate of the country of origin and of the country where the applicant has resided for more than a year, duly recognized by the Portuguese authorities (authentication by the Portuguese consulate or apostille)
• Proof of real estate property investment.
• Documentary evidence of the eligibility of family member applicants other than the spouse and under 18-year old children will be required (if in doubt, please contact us about this).

Step 5 - Things to do once your Golden Visa is approved

• Pay the visa issue fees.
• Collect you resident permit card (the lawyers can be send them you to express mail).
• Renew your Golden Visa on time. For renewal of the golden residence permit, applicants must keep their investment, and demonstrate that they have stayed in Portugal for at least 7 days in the first year, then 14 days in each subsequent period of 2 years. Therefore you should keep as proof: invoices, airplane tickets, and hotel stays. After year 5, you may apply for permanent residence.

Documentation

Provided by client:

• Valid Passport, Schengen Visa and travel document (all family)
• Birth certificate (all family, apostilled and translated)
• Marriage certificate (apostilled and translated).
• Document that states that the children are dependent from fathers, if they’re over 18 years (apostilled and translated).
• Absence of criminal conviction (Criminal Record) (all family, apostilled and translated).
• Proof of address (e.g. utility bill, bank letter)
• 2 passport-type picture (all family)

Law office takes care of:

• Portuguese Fiscal number
• Proof of valid medical insurance valid in Portugal
• Proof of legal entry and permanence in national territory
• Declaration proving the absence of debts issued by the Inland Revenue and Customs Authority and by the Social Security
• Updated property documents showing ownership of property, or
• Signed Promissory Contract with payment of a deposit above € 500,000
• Declaration from a bank in Portugal confirming the transfer of the funds
• Absence of notice from the Portuguese Immigration Authorities or Schengen Services
• Declaration from the investor confirming compliance with the investment requirements for 5 years

Additional documentation necessary for family members:

• For children over 18 years old, documentation proving they need their parents support
• For elder family members, if they are not over 65, documentation proving they need their children’s support

Taxes and Costs

Costs ARI (non-exhaustive)

Legal Services

Our Legal Partners and solicitors are specialists in Portuguese Property Law and Tax. They have many years of experience and have guided many of our clients through any legal issues that may have arisen during property purchase and golden visa application.

They have expertise in Real Estate and Construction, providing legal counsel to private and public entities on investment procedures, construction and real estate developments, as well as in Tax, Commercial and Corporate Law, Civil, Tax and Administrative Litigation, Banking and Finance.

If you would like to have access to further information, please contact us, and a lawyer will be in touch with you at his/her earliest opportunity.

Portugal Guide

Portugal Introduction

With almost nine centuries of well-defined geographical borders, a democratic parliamentary regime prevails in Portugal.
Portugal has been a member of the European Union for 26 years and is part of the European Monetary System, using the European single currency.Portugal is the 17th most peaceful country in the world out of a sample of 153 countries (Global Peace Index 2011).Portugal has been ranked number 12 on the list of the best health systems in the latest survey of World Health Organization. The Portuguese health system is divided between private and public. The public offers good quality care and support, however, requires time that may vary, depending on the severity and case priority. So many people opt for private practices.With an excellent geographical location, the meeting point of three continents - Europe, Africa and America - it has always been central to the most important international routes. Here you can find international airports all over the country - Lisbon, Faro and Oporto have regular connections to major cities in the world.Most foreigners consider the cost of living to be low. According to UBS (Prices and Earnings 2010), the price indices are attractive:
Food: 68.2 (index: New York = 100);
Clothing: 53.3 (index: New York = 100);
Services: 67.9 (index: New York = 100);
Metro ticket: € 1.40 (journey of approximately 10 km);
Bus ticket: € 1.80 (journey of approximately 10km);
Restaurant: € 40 (3 course meal in a quality restaurant).The Portuguese are warm and friendly. In terms of climate, winters are mild and summers are hot and dry. Did you know that the number of hours of sunshine reaches values as high as 3300 in the south of the country and 1600 in the north, some of the highest in Europe? Lisbon has the highest average annual sunshine hours in Europe. In summer - particularly in July and August - temperatures reach 30°C and more. During winter temperatures are not lower (on average) than 7ºC, but there might be long periods of rain.In Portugal you can practice water sports, play golf on the best courses in the world, contemplate nature, experience the latest in wellness treatments or discover the unique heritage, wines and cuisine.

Portugal has won 9 awards in the ceremony of the "World Travel Awards for Europe":
Among the 41 Portuguese nominees of 2013, the following prizes were awarded:
Algarve - Europe's Leading Beach Destination
Lisbon - Europe's Leading City Break Destination
Portugal - Europe's Leading Golf Destination
Portugal - World's Leading Golf Destination in the grand final of the World Travel Awards 2014

Key Information

• Capital: Lisbon
• Main cities: Porto, Cascais, Faro
• Area: 91,985 km²
• Population: 10.46 million (2013)
• Official language: Portuguese
• Currency: €
• Time zone: UTC+0
• Political system: Parliamentary republic
• Religion: Catholic
• GDP: $ 247 billion
• GDP Per capita: $ 23,222
• International dialing code: +351
• Road traffic: right travel

Healthcare in Portugal

In Portugal, the official services for providing health care to the population are organized in the National Health Service. In addition to the public service, there are freely available private health institutions and professional offices.The hospital network consists of modern, well-equipped units, distributed throughout the country, with long-standing relationships with leading international insurance companies.

In order to better accommodate foreign patients, hospitals have been implementing personalized patient care and monitoring services, with English language based communication.

Portugal has also an Integrated Medical Emergency System which guarantees prompt and accurate provision of healthcare to accident victims or victims of sudden illness, and quick response times by the emergency services.
The World Health Report awarded the Portuguese health system number 12 in the World Health Organization ranking.

Education

Education in Portugal is free and compulsory until the age of 18, when students complete the 12th grade. The education is regulated by the State through the Ministry of Education, Higher Education and Science. There is a system of public education and also many private schools at all levels of education, as well as several international schools, especially in Lisbon and Porto.

One-Stop-Shop

10 reasons to prefer Casas do Sotavento:

• Leading experts in Portugal’s investment and residency program - 100% professional. Over 15 years of marketing experience.
• Most competitive service charges in the market - you won’t find more favorable terms
• Totally transparent fee structure - no hidden costs
• Totally independent and client focused - no hidden agenda
• Fast response - you always get a response within a maximum of 1 working day
• Hassle-free service - no pressure, no spam, no service fee.
• Loads of free information - no charges for available information and initial consultations
• Privacy fanatics - we’ll never share your information unless you authorize it
• Customized solutions - you’re in charge and no request of yours is ever over the top, just let us know what you are looking for and we will bring you to visit not only our properties, but also other properties from other real estate agencies.
• One-stop-shop – airport pick-up and return, property and city tours, mortgage advice, rentals, buying process, legal process, aftersales solutions, furniture packages.

Frequently Asked Questions

1 - The Golden Visa. What is it?

The Golden Visa Program launched by the Portuguese Authorities in October 2012 is a fast track for foreign investors from non-EU countries to obtain a fully valid residency permit in Portugal (“Golden Visa”).
Under the Golden Visa program, non-EU citizens simply need to carry out one of the investments set out in the law to qualify to obtain a residency permit in Portugal. This residency permit will allow the investor to enter and/or live in Portugal and to travel freely within the vast majority of European countries (Schengen space).
Aimed at attracting foreign investment to Portugal, the Golden Visa is a very straightforward and flexible program, with simple and clear legal requirements. With extremely reduced minimum stay requirements, the Golden Visa is clearly one of the most attractive residency programs for investors in the world.

2 - What types of investments are allowed under the Golden Visa rules?

The following types of investment qualify for the Golden Visa program:
a) Acquisition of property in the amount of or greater than € 500,000
b) Transfer of funds above € 1,000,000 or more
c) Creation of at least 10 (ten) jobs in Portugal
It should be noted that only investments effectively made after 8th October 2012 are eligible for the Golden Visa program.

3 - For how long is the Golden Visa valid?

Once issued, the Golden Visa will be valid for an initial period of 1 (one) year and then will be renewed for subsequent periods of 2 years.

4 - What are the general requirements that the investor has to comply with?

The simplicity of the Golden Visa Program implies an extremely reduced amount of requirements being asked from the investor. The Golden Visa Program sets out that the investor must comply with general requirements applicable to all types of qualifying investments and also with the specific requirements of each type of qualifying investment.
In general, all investors have to comply with the following requirements:

a) Keep the investment for a minimum period of 5 years
b) Funds for investment should come from abroad
c) Entry in Portugal with a valid Schengen visa
d) Absence of references in the Portuguese Immigration and the Schengen services
e) Absence of conviction of relevant crime
f) Minimum stay in Portugal: 7 (seven) days during the first year and 14 (fourteen) days during each subsequent period of two years

5 - What are the specific characteristics for each type of qualifying investment?

Each type of qualifying investment has specific characteristics, as follows:
(a) Property Acquisitions
- Minimum investment of € 500,000
- Purchase of one or multiple properties
- All property types qualify
- Possibility of co-ownership;
- Freedom to use, rent or lease
(b) Transfer of Funds
- Minimum investment of € 1 million
- Funds transferred from abroad to a bank in Portugal
- Total freedom to invest the funds
- Possibility of using the funds to invest in shares of companies
(c) Job Creation
- Creation of a minimum of 10 jobs
- No minimum investment value
- No limitation on areas/activities
- Compliance with Social Security obligations
- Possibility of grants/incentives/benefits

6 - What are the main advantages of the GOLDEN VISA Program?

The Golden Visa Program will provide investors with the following advantages:
- No need to obtain a visa to enter Portugal
- No need to obtain a visa to travel in Europe (Schengen area)
- Living and working in Portugal, even with residency in a different country
- Residency extended to family members
- Extremely low minimum stay periods
- Permanent Residency after 5 years
- Citizenship after 6 years

7 - What is the Schengen Area and what are the countries included?

The Schengen Area is a group of 26 European countries that have abolished passport and immigration controls at their common borders. With a resident permit from Portugal, the investor is entitled to enter and travel freely throughout all the countries of the Schengen area.

The Schengen Area includes the following countries: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, The Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland.

8 - Is it possible to extend the Golden Visa to family members?

Yes. Under the Golden Visa Program, the investor’s family members may also apply and obtain a resident permit from Portugal by applying for “family reunion”. The Golden visa will be extended to family members, namely children, spouse and dependent family members.

The family members will also be eligible for Permanent Residency after 5 years Portuguese Citizenship after 6 years.

9 - How can the investor and family obtain Permanent Residency after 5 years?

Under Portuguese Law any person that has held a valid Portuguese temporary residency title (e.g. the Golden Visa) for a period of at least 5 years, he will be entitled to obtain Permanent Residency in Portugal.

The investor and family members will have to meet the following criteria in order to be able to apply for Permanent Residency in Portugal:
- Absence of conviction of relevant crime during the last 5 (five years)
- Proof of income / financial independence
- Proof of accommodation in Portugal
- Basic knowledge of Portuguese

10 - How can the investor and family obtain Portuguese Citizenship?

The Portuguese legislation also sets out that any person who has been validly resident in Portugal for at least 6 (years (either under a temporary or permanent residency title), is eligible for obtaining Portuguese Citizenship.

In order to be able to obtain Portuguese Citizenship, the investor and family members will also have to comply with the following requirements:
- Be at least 18 years old (or at least 16 but married or legally responsible)
- Absence of conviction of any relevant crime
- Pass a simple Portuguese language test, which will serve to show sufficient knowledge of the language

11 - Which documents does the investor need to provide to apply for the Golden Visa?

The application for the Golden Visa implies that the investor will have to submit the following documentation:
Provided by client:
Valid Passport, Schengen Visa and travel document (all family)
Birth certificate (all family, apostilled and translated)
Marriage certificate (apostilled and translated).
Document that states that the children are dependent from fathers, if they’re over 18 years (apostilled and translated).
Absence of criminal conviction (Criminal Record) (all family, apostilled and translated).
Proof of address (e.g. utility bill, bank letter)
2 passport-type picture (all family)

Law office takes care of:
Portuguese Fiscal number
Proof of valid medical insurance valid in Portugal
Proof of legal entry and permanence in national territory
Declaration proving the absence of debts issued by the Inland Revenue and Customs Authority and by the Social Security
Updated property documents showing ownership of property, or
Signed Promissory Contract with payment of a deposit above € 500,000
Declaration from a bank in Portugal confirming the transfer of the funds
Absence of notice from the Portuguese Immigration Authorities or Schengen Services
Declaration from the investor confirming compliance with the investment requirements for 5 years

Additional documentation necessary for family members:
For children over 18 years old, documentation proving they need their parents support
For elder family members, if they are not over 65, documentation proving they need their children’s support

12 - The documents are not in the Portuguese Language. What does the investor need to do?

Any document that is not in the Portuguese or English languages needs to be translated to Portuguese. The translation needs to be certified.

13 - Are there any specific requirements for documents issued by foreign authorities?

Document issued by foreign authorities need to be legalized before being submitted in Portugal. This legalization means obtaining the Apostil of the Hague Convention (when applicable) or legalization by the Portuguese Consular services.

14 - What is a Fiscal Number? why does the investor need one and how does he get one?

A fiscal number is an identification number before the Portuguese Tax Authorities also known as the tax number). This number is required to carry out the investments.

15 - Where may the investor apply for a Golden Visa?

Any investor interested in applying for a Golden Visa, can submit the application, either personally or via a legal representative appointed by him, in one of the following manners:

a) Online Registration
By registering online at the Services of Foreigners and Borders’ (“SEF”) website. After the registration is complete the investor will receive a password and will be able to access online in order to submit the necessary forms and documents.

b) In Person
In person, at the Services of Foreigners and Borders in Portugal.

It should be noted that the investor and family members will always have to be present at the Service of Foreigners and Borders of Portugal for fingerprinting, signature and other formalities.

We strongly recommend obtaining legal advice from an experienced law firm before taking any of the steps of the Golden Visa, namely before making any kind of investment or submitting any applications or documents.(However, don’t worry, we will always find you the most trustable lawyer)

16 - What are the costs involved in obtaining a Golden Visa?

The Golden Visa involves payment of the following fees (payable directly to the Services of Foreigners and Borders (“SEF”)):

a) Processing fee (application and renewal) - € 513,75 (plus € 80.04 per family member)
b) Initial Golden Visa - € 5,137.50
c) Initial Golden Visa for Family members - € 5,137.50
d) Renewal of Golden Visa - € 2,568.75

For more detailed information, check taxes and costs.

17 - How long will the application take to be processed and does the investor have to pick up the Golden Visa in person?

Once the application is submitted at the Services of Foreigners and Borders (SEF), it will take around 2-4 weeks for the application to be processed (please note that this is just an estimate based on our recent experience).

It is possible for the investor to go to the immigration services to leave the fingerprints and signature shortly before the investment and/or submission of the required documents.

18 - Are there any grounds for refusing the issuing of a Golden Visa or its renewal?

The investor (or any family member) will only be refused the Golden Visa (or its renewal) if:

a) He/she has not maintained the investment for the minimum period of 5 (years)
b) He/she has not complied with the minimum periods of stay in Portugal
c) He/she has been convicted of a crime punishable with a prison sentence of more than one year
d) The investor is in a period where he/she has been banned entry into Portuguese territory following a removal measure of the country
e) On the grounds of public health (this may only be based on diseases that have been defined by the World Health Organization or other infectious or parasitic contagious diseases which are the object of protection measures in Portuguese territory)
f) A Golden Visa may be refused on the grounds of public order, public security or public health

19 - What happens to the investment after 5 years – can the investor sell the property / transfer the money to another country/extinguish the job positions?

Yes, the investor only needs to hold the investment during the Golden Visa’s validity period – 5 years

20 - Can the investor sell the investment at any time if he no longer needs the Golden Visa?

Yes, but without proof that the investment has been kept, the investor will not be able to renew the Golden Visa Permit.

21 - Does the investor need to live in/use the property he is purchasing or can it be rented out?

No. The investor does not need to occupy the property and it can be rented out to obtain income.

22 - What are the taxes and costs for property acquisitions and ownership?

There are three taxes in Portugal related to property:
a) Payable with the property’s acquisition:
- “IMT” or Property Transfer Tax”, which is the tax on transfer of ownership of property
- Stamp Duty
Note: The exact amount of taxes to be paid varies according to the actual value of the acquisition.

b) Payable on an annual basis: “IMI” or Council Tax, which is the annual municipal property tax; it is levied between 0.3% and 0.5% on the property’s tax value

23 - With the Golden Visa does the investor need to pay taxes in Portugal on his worldwide income?

No. If the holder of the golden visa does not stay in Portugal form more than 183 consecutive days, he/she will not be required to pay taxes for income generated outside of Portugal.

24 - What income taxes apply to income generated in Portugal?

Rental income and income arising from capital (e.g. interest, dividends, etc) will be taxed at a rate of 28%.

Do you have any additional questions? If so, please contact us and we will be happy to provide you with additional information.