Real estate investment in Portugal and the Golden Visa

 

The Residence Permit for Investment Activity (ARI), but popularly known as “Golden Visa”, is one of the most attractive ways for investors to benefit from living in Portugal and even acquiring Portuguese nationality. 

Real estate is the most popular type of investment, as anyone who buys a property or invests in urban rehabilitation may be guaranteeing the Golden Visa.

However, other types of investment allow you to obtain a Gold Visa, check out:

• Capital transfer in the amount of 1 million euros or more;

• Creation of at least 10 jobs;

• Acquisition of real estate with a value of 500 thousand euros or more.

• Acquisition of real estate, whose construction has been completed at least 30 years ago or located in an urban rehabilitation area, with rehabilitation works of the real estate acquired, in the total amount equal to or greater than 350 thousand euros (which includes the value of the works);

• Capital transfer in the amount equal to or greater than 350 thousand euros, which is applied to research activities carried out by public or private scientific research institutions, integrated into the national scientific and technological system;

• Capital transfer in the amount equal to or greater than 250 thousand euros, which is applied in investment or support to artistic production, recovery or maintenance of the national cultural heritage, through services of the central and peripheral direct administration, public institutes, entities that integrate the sector business public, public foundations, private foundations with public utility status, intermunicipal entities, entities that integrate the local business sector, municipal associative entities and public cultural associations, which carry out tasks in the area of ​​artistic production, recovery or maintenance of the national cultural heritage; and

• Capital transfer in the amount of 500 thousand euros or more, intended for the acquisition of investment units in investment funds or venture capital aimed at the capitalization of small and medium-sized companies that, for this purpose, present the respective capitalization plan and the same proves to be viable.

In real estate, investment includes:

• Acquisition of one or more properties with a total value equal to or greater than 500,000 euros, or;

• Acquisition of one or more properties completed more than 30 years ago or located in areas that allow the execution of urban rehabilitation works according to the respective law, in the global amount equal to or greater than 350,000 Euros; and

• You can also obtain financing for amounts exceeding the minimum required by law.

Investment in real estate covers the following properties:

• Commercial or residential real estate;

• Properties acquired in co-ownership, provided that the investor's share is at the minimum amount indicated;

• Properties acquired individually or through sole proprietorships for which the investor is a partner;

• Leased properties;

• Real estate encumbered, in the part that exceeds the minimum investment amount.

Encouraging investment in sparsely populated areas

 The legislation establishes the possibility of reducing the amounts by 20%, if the real estate is located in areas of low population density.

 According to the current law, it is considered a low population density territory, if it has less than 100 inhabitants per km2 or if the GDP of that same region is below 75% of the national average.

Requirement for the acquisition of real estate for rehabilitation

 The quantitative requirement of 350 thousand euros includes the purchase price of the property, as well as the value of the rehabilitation works.

 ARI applicants must provide proof of ownership of the real estate, as well as proof of submission of a request for prior information or prior communication or request for licensing.

 The contract for the rehabilitation of the property must be signed with a legal person duly authorized by the Institute of Construction and Real Estate, I.P.

But beware!

 In 2020, the Portuguese Parliament changed the rules for investment in real estate and excluded the cities of Lisbon and Porto to obtain the Golden Visa. Thus, the ARI will only be granted for the acquisition of real estate in the municipalities of the interior or of the autonomous regions of the Azores and Madeira. It is expected that this change will take effect from 2021, so that the businesses that are in progress are not subject to changes.

 Family reunification

 ARI holders may also request the right to family reunification from their older children, in charge of the couple or one of the spouses, who are single and are studying.

 Move freely in the Schengen Area

 Visa free in the following countries: Austria, Belgium, Denmark, Germany, Slovakia, Slovenia, Spain, Estonia, Finland, France, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxembourg, Malta, Norway, Netherlands, Poland, Portugal, Czech Republic, Sweden and Switzerland

 The residence permit is granted for a period of one year, renewable for two successive periods of two years and presupposes the maintenance of the investment for a minimum period of 5 years and the permanence in Portuguese territory, of 7 days (consecutive or interpolated), in the first year, and 14 days (consecutive or interpolated), in the subsequent two-year periods.

 The authorization may be extended to the investor's family members and after the initial period of 5 years, the residence permit may be granted on a permanent basis. Portuguese nationality by naturalization can be applied for after 6 years.

 * SEF Note: "In 2020, the temporary residence permit provided for in paragraph 1 of article 75 of Law no. 23/2007, of July 4, in its current wording, is valid for a period of two years from the date of issue of the respective title and renewable for successive three-year periods. " - Article 183 “Simplification of the granting and renewal of a residence permit”, of Law No. 2/2020, of March 31 - State Budget for 2020. The rule is not applicable to cases where the Law provides for a term different from that stipulated in the general regime of this article 75 or a specific term, for the concession as for the renewal, depending on the grounds of the concession (eg students of higher education), as is the case of the provisions of articles 91. , 91º-B, 92º, 93º, 94º, 107º, 109º and 121º-E, 122º al.p), 124º-B and 124. º-E, in which the periods provided for in article 183 of Law no. 2/2020 do not apply. As an example, in the case of residence permits for investment (article 90-A), the concession gives rise to the issuance of a two-year title (due to the absence of an express term provision, applying the temporary regime of article 183 of the State Budget Law), but the renewal of the residence permit is carried out for a period of 2 years (and not 3), taking into account the provisions of paragraph 2 of article 90- THE.

 For information on how to apply, cost and necessary documentation, access the Foreigners and Borders Service (SEF) website at:

https://www.sef.pt/en/Pages/homepage.aspx

https://ari.sef.pt/account/DefaultEN.aspx

 See also SEF Legispedia at:

https://sites.google.com/site/leximigratoria/artigo-75-o-autorizacao-de-residencia-temporaria

 Legal support: Law no. 63/2015, of 1 July, which made the third amendment to Law no. 23/2007, of 4 July, which approves the legal regime for the entry, stay, departure and removal of foreigners national territory.

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