1 – What is Golden Visa?
The Portuguese officials have propelled the Program of Golden Visa to optimize the plan of investors from foreign countries and non-EU nations in acquiring a completely substantial Portugueseresidency permit also known as Golden Visa.
In the Program of Golden Visa, these non-EU foreigners just need to perform a single investment as laid down by the law and become eligible for a Portuguese resident permit. The investor along with family with the residence permit will be able to reside and freely travel to and from major cities of the European nations. (Schengen space).
Golden Visa happens to be an extremely direct and flexible program, with basic and straightforward legal necessities targeted at luring in investors from foreign countries into Portugal. With low stay prerequisites, Golden Visa can be termed as obviously the most alluring residency programs available in the whole world for investors.
2 – What investment types are permitted under the directives of Golden Visa?
The program of Golden Visa had to be enlarged to incorporate other investment types. Therefore, these investment types qualify for applying for a Golden Visa program:
a) Investments of property
- Procurement of property more than € 500,000
- Procurement of property more than € 350,000 – on properties over 30 years of age or situated in urban residential.
b) Investments of Capital
- Cash transfer above € 1,000,000
- Cash transfer above € 350,000 on research
- Cash Transfer above € 250,000 for creative or social activities
- Cash Transfer above € 500,000 for starting up medium and small size organizations.
c) Creation of Jobs
- Formation of at least 10 employment opportunities;
Note that investments created after the 8th of Oct 2012 qualify for this Golden Visa program.
3 – What is the period of validity for Golden Visa?
After Golden Visa has been issued, it will have one year validity period and renewed afterward for two subsequent years.
4 – What in general are the requirements which must be complied to by the investor?
This Golden Visa Program means that a limited measure of prerequisites be requested from investors. This Golden Visa Program stated that investors are to consent with the general prerequisites that are applied to all investment types and with the particular necessities of each qualifying investment.
Generally, all investors must consent to these prerequisites:
- Investment should be kept for at least five years
- Investment funds should be from the foreign country.
- Portugal Entry with a legitimate Schengen visa
- Without any indication of Immigration from Portugal and Schengen account
- Without any indication of crime
- ortugal Minimum stay: seven days in the 1st year and fourteen days amid the next 2 years.
5 . What particular attributes are needed to qualify for each kind of investment?
Each qualifying investment type has particular attributes, which are:
(a) Acquisition of Property
i. Procurement of property more than € 500.000;
- At least€ 500,000 investments
- Procurement of more than one property
- All types of property
- Possibility of joint ownership;
- Freedom in usage, lease or rent
- Funds for Investment might be decreased by 20% (€ 400,000) when made in reduced density population.
ii. Procurement of property more than € 350,000
On properties over thirty years old or situated in urban regeneration areas. This value incorporates the property as well as the investment.
- Possibility of joint ownership
- Freedom in usage, rent for business or farming purposes
- Funds for Investment might be decreased by 20% (€ 280,000) when made in reduced density population.
(b) Cash Transfer
i. Funds transfer above 1,000,000 Euros
- At least € 1 million investment
- Cash transfer from overseas to a Portuguese bank
- Complete privilege in fund investment
- Possibility in use of funds for investment in company shares.
ii. Funds transfer of a minimum of € 350,000 related to research exercises done by the national technological and scientific system.
- At least € 350.000 investments
- Fund transfer from overseas to a Portuguese bank
- To be utilized as a part of research exercises organized by private or public scientific research establishments associated with the national technological and scientific system.
iii. Cash transfer of about€ 250,000 at least executed in the investment or backing of artistic creation, or the national and cultural heritage maintenance.
- At least more than € 250,000 investment
- Fund transfer from overseas to a Portuguese bank
- Investment pertaining to artistic production or support the arts, in recreation or renovating the national legacy
iv. Cash transfer of about€ 500,000 at least for procurement of units of investment funds, participation or capitalization investment for organizations of medium and small size organizations
- At least above € 500,000 investment
- Fund transfer from overseas to a Portuguese bank
- Investment utilized for obtaining shares in venture capital or investment funds.
(c) Creation of Jobs
- Creation of at least ten jobs
- No minimum value for investment
- No constraint on regions/activities
- Submission to Social Security rules
- Possibility of gifts/benefits /incentives
- Sum of investment might be decreased by about 20% (eight workers) if made in areas of reduced density population.
6 – What primary benefits accompany this GOLDEN VISA Program?
Golden Visa Program gives the following benefits to investors
- No reason of acquiring a visa before entering Portugal
- No reason of acquiring a visa before travelling to Europe (Schengen territory)
- Ability to Live and work in Portugal, though having a different country’s residency
- Extension of residency to relatives
- Relatively reduced stay periods
- Minimal income duties (see question no. 22 to 24)
- Grant of Permanent Residency on completion of five years
- Grant of Citizenship on completion of six years
7 – Explain area of Schengen and what nations are included?
The area of Schengen comprises of twenty-six European nations that have migration controls and passports at their borders. With a Portuguese residence permit, the investor can freely get in and travel around every one of the nations of the area of Schengen.
The area of Schengen includes these nations: Austria,Czech Republic,France, Belgium, Estonia,Greece, Denmark, Italy, Finland, Germany,Luxembourg, Hungary, Iceland, Latvia, Lithuania,Liechtenstein, Malta,Slovakia, Norway, Switzerland, Poland, Portugal,The Netherlands, Sweden, Slovenia, Spain.
Bulgaria, Croatia and Romania are as of now candidates of the area of Schengen.
8 – Is there a possibility of extending Golden Visa for relatives?
Yes. Pertaining to this Golden Visa Program, the relatives of the investor may likewise apply and acquire a Portugueseresidential permit by presenting an application for “reunion of family”. Golden visa would extend to relatives, to be specific, spouse, kids, and dependent relatives.
The relatives will likewise be qualified to obtain Permanent Residency following five years and Portuguese Citizenship following six years.
9 – How will the Permanent Residency be obtained by the investor along with relatives on completion of five years?
In accordance with the Law in Portugal, any individual having a legit temporary Portuguese residency title like Golden Visa up to a time period of no less than five years will be qualified to acquire the Portuguese Permanent Residency.
The investing individual and relatives should meet these requirements to have the capacity to request for Portuguese Permanent Residency:
- Without any conviction of wrongdoing during the previous 5 years.
- Income proof
- Portuguese settlement Proof
- Basic Portuguese knowledge
10. How will the Portuguese citizenship be obtained by the investor & relatives?
The Portuguese law additionally stated that any individual who has legitimately inhabited the Portuguese region for no less than 6 yrs either under permanent or temporary title of residence is qualified for acquiring Portuguese Citizenship.
But to have the capacity to acquire Citizenship of Portugal, the investing person and relatives are required to conform with these necessities:
- Be not less than 18 years of age (or if nothing else 16 yet wedded or lawfully capable)
- Without having been convicted of any significant wrongdoing
- Pass a basic Portuguese dialect examination, which will demonstrate adequate knowledge of Portugese.
11 –What documents are needed to be provided by the investor to acquire Golden Visa?
This Golden Visa application suggests the investor should present these documentations of
- Investment proof
- Passport and Legit Schengen Visa
- Fiscal number in Portugal
- Record of crime from origin country or residency
- Criminal Record in Portugal
- Tax Department Declaration showing the nonappearance of debts owed to the Authorities of the department of taxation.
- The Social Security Declaration showing the appearance in debts to the Authorities of Social Security
- Investor Declaration affirms the complying with the investment prerequisites
- Portuguese valid Health Insurance (if residing in Portugal)
- Payment receipt of the application fee.
12. If the documents presented are not written in Portuguese, what should be done by the investor?
For documents not written in English or Portugese dialects, it should be translated back to Portuguese and should be certified.
13 – What are the particular prerequisites for documents provided by foreign officials?
Documents provided by foreign officials should be authorized prior to being submitted to the Portuguese authorities. This authorization implies acquiring the ‘Appostille of The Hague Convention’ (if applicable) or authorization of the Consular system in Portugal.
14 – Explain Fiscal Number and why is it required by the investor and how can it be obtained?
The fiscal number denotes a number of identification before the Tax Authorities in Portugal (otherwise called tax no.). Fiscal number is needed to perform investments in Portugal.
15 . Where can the Golden Visa be applied by the investor?
For investors that wants to submit an application for the Golden Visa would have to apply, either in person or by means of a legal agent he appoints, in these ways:
a.An Online Registration
An online registration at the website of the Services for Foreigners and Borders’ (“SEF”). When the registration proves successful, the investor may obtain a password. He will have the ability to present vital documentations and forms online.
b. In Person
Also personally, at the Portuguese Services of Foreigners and Borders.
Note that the relatives of the investor should also be available at the Portuguese Service of Foreigners and Boarders for signature, fingerprinting and other necessities.
We emphatically suggest to counsel with an experienced legal adviser prior to making any steps of acquiring a Golden Visa, such as making investments or applying with documentations.
16 – How much does the Golden Visa cost?
Golden Visa includes these charges and are payable only to the Portuguese Services of Foreigners and Borders (“SEF”):
- A Processing charge (renewal and application) is € 517.40 (with € 80.60 for each relative)
- For Original Golden Visa – € 5,173.60 for each candidate
- For Golden Visa Renewal – € 2,586.80 for each candidate
17 – In what time will the application be processed? Will the investor need to get Golden Visa, personally?
As soon as the application is submitted at the Services of Foreigners and Borders (SEF), it may take up to a couple of months for processing the application (please take note this is estimated in light of our current experience).
After the application has been processed, the investing individual or his legal representative available in Portugal will be contacted by the Services of Foreigners and Borders (SEF) to continue with the charges of the approval.
18 – Is there any reason for declining the issuing or renewal of the Golden Visa?
The investing individual (or any relative) may be denied a Golden Visa (or renewal) if:
- They have not reached the investment period of at least 5 (years)
- They are not in compliance with the minimum stay in Portugal
- They have been indicted with a punishable crime with a jail sentence having over one year
- They are in a time span where they have been restricted entry into the Portuguese domain following the country’s removal measure.
- On the reasons of general well being (this can be based on sicknesses characterized by the WHO or different parasitic or infectious ailments which are steps of security arrangements in Portuguese region).
- The Golden Visa might be rejected for the reasons of public request, health or security.
19 – What will happen to investment after five years – could the property be sold by the investor or the cash transferred to another nation/stifle the job status?
Yes, they just have to hold their investment amid Golden Visa’s legitimacy period of five years.
20 – Could the investment be sold by the investor if Golden Visa is no longer needed?
Yes, yet without confirmation of keeping the investment, the investor won’t have the ability of renewing the permit of Golden Visa.
21 – Will investor have to reside/utilize the property they are acquiring or could it be leased?
No. The property should not be occupied by the investor and can be leased to generate income.
22 – What will be the expenses and taxes for acquisition of property and possession?
There are 3 Portuguese taxes in relation to the property:
It’s Payable with the property acquisition:
Property Transfer Tax” or “IMT”, which is exchange of property ownership and tax
Take note that the payable amount of tax is related to the value of property acquired.
It’s Payable on a yearly basis:
Council Tax or “IMI”, is an annual citywide property tax imposed in the vicinity of 0.3% to 0.45% on the value of the property tax.
23 – With Golden Visa,is the investor required to pay Portuguese taxes on his overall income?
No, he doesn’t. If a golden visa holder does not reside in Portugal for about 183 successive days, he won’t need to pay income generated taxes outside Portugal.
24 . Which are the taxes applicable to income gotten in Portugal?
The Rental and capital income (e.g. Dividends, interests and so on) will be charged at 28%.
In case you have additional inquiries, please get in touch with us and we will be glad to give you extra information.