Frequently Asked Questions

The President Marcelo Rebelo de Sousa vetoed the More Housing package, which also encompasses proposed changes of the Golden Visa program. This means that law was returned to the Parliament for another vote on 22nd of September.

As the ruling Socialist Party (PS), holds an absolute majority, it has approved again the law in the subsequent vote. As such, the President will be obligated to promulgate the law within 8 days.

The exact time before the Golden Visa changes is unknown. The bill needs to be updated potentially and sent to the President for signing. These steps could be taken somewhat fast.

If you want to proceed please do the following immediately. a) As it takes some weeks, you must request now the criminal record certificate (issued in the last 3 months and by the FBI if you are in USA) and apostille the same. b) Contact us so that we can initiate the legal procedure and select the ideal investment option.

• Commercial real estate investment of at least €500,000 located ANYWHERE in Portugal. Minimum Investment is reduced to €400,000 if located in a classified low-density area*.

• Real estate purchase of a minimum of EUR 350,000 for the refurbishment of residential properties older than 30 years or in an area of urban regeneration, including the cost of renovations (residential property is limited to designated interior areas). The amount would be reduced to EUR 280,000 if the property is located in a low population density area*.

• Investment of €350,000 in touristic or commercial rehabilitation works located ANYWHERE in Portugal. Properties must be at least 30 years old. Investment reduced to €280,000 if located in a low-density area*.

• Investment of €350,000 in rehabilitation works in designated interior areas of Portugal. Properties must be at least 30 years old. Investment reduced to €280,000 if located in a low-density area*.

*The threshold will be reduced by 20% should the funds be committed to a low population density area, defined as less than 100 inhabitants per km² or with a GDP per capita below 75% of the national average.

• EUR 500,000 for the acquisition of units of investment funds or venture capital funds committed to the capitalization of companies incorporated under the Portuguese law, with a maturity of at least five years and with at least 60% of the investment portfolio in companies that have a head office in the national territory.

• Capital transfer of a minimum of EUR 1.5 million into a Portuguese bank account or specifically approved investment option

• Investment in research conducted by accredited institutions that are part of the national scientific and technological system of at least €500,000.

• EUR 250,000 in support of artistic production or in the recovery or maintenance of national cultural heritage.

• Creation of 10 new full-time jobs within a Portuguese business in the form of a single-member limited company. (Reduced to 8 positions if in a low-density area*).

• Investment into an existing Portugal-registered business, or at least €500,000 to either incorporate or increase the share capital and create at least 5 full-time permanent jobs for at least 3 years.

*The threshold will be reduced by 20% should the funds be committed to a low population density area, defined as less than 100 inhabitants per km² or with a GDP per capita below 75% of the national average.

€500,000 REAL ESTATE INVESTMENT

Portugal’s original Golden Visa legislation requires investors to purchase Portuguese real estate for a minimum of €500,000 or above. The real estate can be residential or commercial; however if the project is residential, it will only qualify in certain interior areas of the country, following the changes introduced in January 2022. Investments can also be of any age, resale, new-build or off-plan. This original option is known as Category 65A-C and is still popular with investors who are looking to purchase property at this price or above, with no limitations on the area or type of property.

€400,000 REAL ESTATE INVESTMENT

Investors purchasing a property in certain locations of Portugal which are considered to have a ”low population density” can benefit from a 20% discount from the €500,000 investment threshold and purchase any property at a minimum of €400,000. As above, the property can be resale, new or off-plan, it just needs to be located within a qualifying area.

To qualify as an area with “Low Population Density”, the location or region should have a permanent resident population of less than 100 people per square km or a GDP per capita that is lower than 75% of the national average.

€350,000 REAL ESTATE INVESTMENT

In 2015 the legislation was amended to include a new category known as 65A-D. The investment threshold can be lowered to €350,000 (a 30% reduction) provided the real estate purchased is more than 30 years old or located in an area of ‘’urban rehabilitation’’ and will undergo refurbishment. Similar to Category 65A-C, the real estate can be residential or commercial; however if the project is residential, it will only qualify in certain interior areas of the country, following the changes introduced in January 2022. Certain parts of Lisbon and Porto are classified as urban rehabilitation zones, making this option extremely popular for those looking to invest in one of the country’s main cities at a lower rate. The cost of the renovation work can be included within the €350,000 investment. The government’s rules regarding how the property can be renovated are extremely stringent and certain conditions need to be met. Undertaking extensive renovation work on an old or derelict property abroad can be a timely and challenging process. The best solution is to invest in a project where the entire process is managed for you. This investment category has become one of the most popular routes in Portugal.

€280,000 REAL ESTATE INVESTMENT

In addition to the above requirements, if the property is also located within a “low population density” area, the minimum investment amount can be reduced by a further 20%, to €280,000. Projects which tick both of these boxes are much harder to come across and when they do become available, they sell quickly due to the high demand and low supply.

It is important to note that all property purchases must be liquid, and no loan or mortgage can be taken in Portugal to fund the required investment threshold. Should investors decide to purchase a property priced above the investment threshold then they may finance the additional amount. For example, a property priced at € 8000,000 would need a minimum cash investment of €500,000, but the additional € 300,000 above the investment threshold may be mortgaged.

To find out more about the various investment projects available, please contact our expert advisors for a personalized consultation.

The following steps are a guideline and actual procedure may vary depending on the specific situation.

• Once the investment has been identified, the legal representative shall review all of the documents for the property (or financial instrument) and, if required, effect changes or draft up a promissory contract (Contrato Promessa de Compra e Venda). The promissory contract describes the property, identifies the owners and the buyers, outlines the terms of the purchase and the timeframe for completion of the sale. This document is agreed upon by all of the involved parties.

• The buyer and seller (or their legal representatives) sign the promissory contract and at this time the buyer pays the deposit to the seller. This deposit may range from 10% to 20%

• After signing, under Portuguese law, should the buyer withdraw from the purchase they lose the entire deposit they have paid. If it is the seller who pulls out of the deal then the seller has to pay double the amount of the deposit to the buyer.

• Once the terms of the promissory contract have been met, then the buyer and seller (or their legal representatives) meet again in order to sign the final deed. The buyer pays the remaining amount to the seller and the seller hands over the keys to the property. The property is then registered in the name of the new owner with the Land Registry and the process is complete.

Taxes related to the purchase of property in Portugal:

• Property Tax (Immovable Property Tax, IMI) - as an owner of property in Portugal you will have to pay property tax (Immovable Property Tax, IMI). The Tax rates range from 0.3% to 0.45%.

• Wealth Tax (AIMI) - AIMI is seen as Portugal's version of a wealth tax, which affects owners with a share in Portuguese property worth over €600,000. The Additional Municipal Property Tax (AIMI) is a tax levied on the sum of the taxable asset values (VPT), as on 1 January of the year to which it relates, of urban residential properties and of land for construction that appear in the land register owned by the taxpayer.

• Property Purchase Tax - IMT (Imposto Municipal Transmissões) - IMT is a property purchase tax which is calculated by the higher value of either the value of the deed or on the rateable value. The rate is variable, and depends on the type of property and the value of the property.

• An additional stamp duty (Imposto de Selo) of 0.8% over the value of the deal is payable on purchase.

For non-residents, tax on rental income is set at a flat tax rate of 28%, although maintenance, repair expenses and IMI may be deducted.

The following are the costs to be considered when calculating the investment in real estate for the Golden Visa [the actual break-up and details are project specific and need to be calculated for each investment decision in (min. Euro 280,000)]

• Purchase property tax (0.3%-0.45% of investment amount)

• Stamp duty (0.8% of investment amount)

• VAT

• Government (SEF) Golden Visa fees (as stipulated by the government and to be calculated based on the prevailing rates at the time of application for the GV)

• Lawyers’ fees (for opening bank account, obtaining fiscal number, scrutinizing property documents, registering the property, applying for the GV, renewal of GV and any other legal costs involved)

The Golden Residence Permit Programme (Autorização de Residência para Atividade de Investimento - ARI), launched by Portuguese authorities in October 2012, is a fast-track for foreign investors from non-EU countries to obtain a fully valid residence permit in Portugal (otherwise known as a Golden Visa).

Under the Golden Residence Permit Programme, non-EU citizens must carry out one of the investments set out in the law to qualify for a residency permit in Portugal. This permit allows the investor to enter and/or live in Portugal and to travel freely within the vast majority of European countries (Schengen Area).

Aimed at attracting foreign investment in Portugal, the Golden Visa is a straightforward, flexible program with transparent legal requirements. By reducing the country’s minimum stay requirements, the Portuguese government has made the Golden Visa one of the most attractive residency programs in the world.

The D7 visa, also referred to as the Passive Income visa, is aimed at retired international citizens or other immigrants (regardless of age) with a stable income wishing to reside in Portugal. D7 visa holders may be away from Portugal consecutively for 6 months per year only or 8 non-consecutive months per year (during the validity of each residence permit).These timings may vary, if duly justified for personal or professional reasons.

Applicants have to prove that they have a regular AND reliable income, drawn from any country, from their own resources such as pensions, rents from real estate / other assets, intellectual property, financial applications etc.

Besides the regular income, applicants should be in a position to prove that they have additional funds beyond the minimum required; this amount varies depending on the number of family members composing the applicant’s household.

Approximate income amounts to be secured by the applicant are:

• Main applicant – +/- 9.500,00€ per year;
• Second or more adults – +/- 4.600,00€ per year ;
• Underage and dependent children – +/- 2.750,00€ per year.

The following is a guide to the process of applying for the D7 visa:

• Apply for the Portuguese TIN (Tax Identification Number).
• Open a bank account in Portugal;
• Secure a long-term accommodation in Portugal (either by purchasing a property or by signing a lease agreement);
• Even if the applicant’s nationality entitles them to enter Portugal without a visa, an appointment at their local Portuguese Consulate / Embassy is mandatory.
• The application will be assessed by the Foreigners and Borders Service (SEF) which will issue a binding legal opinion on the decision of the visa application (this typically takes up to 60 days)
• After the special visa allowing the applicant to enter the Portuguese territory is issued, the applicant may proceed with the process for the D7 permit;

Advantages of the D7 residence permit:

• Free-entry and travel in the 27 Schengen Area countries;
• Opportunity to live and work in Portugal;
• Apply for family reunification;
• Access to public education, healthcare, social security;
• Option to become a non-habitual resident of Portugal;
• Apply for permanent residence or Portuguese nationality after 5 years of residence;
• This residence permit is valid, at first, for two years, following which, the permit may be renewed for 3 years;
• After 5 years of legal residence in Portugal, the applicant has the right to apply for permanent residency and / or Portuguese citizenship.
• Relatively low cost of visa application and processing fees

By October 2022 over 11,200 global investors had participated in the Golden Visa Program and 18,400+ family members had been approved. In Europe, only the UK’s Tier 1 Investor Visa program has raised more capital than Portugal’s Golden Visa Program.

Every year more and more people are taking advantage of the Portuguese government’s residency-by-investment programme showcasing trust in the economy and quality of life provided by this Iberian country.

Once issued, the Golden Visa will be valid for an initial period of one year (since COVID-19, the initial card is issued for two years, however this may change back in future) and can be renewed for subsequent periods of two years.

It is important that the investor seeks a legal representative. The investors are making a sizable investment. As such, it is crucial that no chances are taken during the preparation, submission and renewal of the residency application.

Investors should ensure that the law firm performs these tasks:

• Complete legal due diligence on the investment as to ensure safety, compliance and security of the investment;
• Preparation and submission of initial application and required documents for main applicant and family members if applicable;
• Procure necessary documents sourced in Portugal;
• Representation before the Portuguese Authorities via a Power of Attorney;
• Assistance in document translation and legalization;
• Assistance with payment of government charges;
• Full assistance with renewals for main applicant and family members;

The following services can be acquired separately:

• Assistance in obtaining permanent residency;
• Allocation of a fiscal representative;
• Company legal entity creation and / or relocation with incorporation of a company in Portugal or relocation of company headquarters to Portugal;
• Allocation of a tax and / or accounting specialist.

• Visa-free travel across the 27 Schengen zone countries
• Live, work and study in Portugal
• Same rights apply to your spouse and your dependent children
• Rent out the property and expect 4% to 7% in average rental income
• Initial residency permit granted 3 to 6 months following application and permanent residency granted after 5 years
• Stay only 35 days in Portugal over 5 years to obtain the visa
• Possibility of income tax exemption via non-habitual tax regime
• Possibility of remission of taxes on wealth, gifts or inheritances between parents, children and grandchildren
• Investment options from as little as EUR 280,000
• High quality of life in one of the safest countries in the world
• Live, work, study and travel across EU

In general, all investors have to meet the following requirements:

• Keep the investment for a minimum of five years
• Make sure the funds for investment come from abroad
• Enter Portugal or the first appointment using a valid Schengen Visa (afterwards holders of a valid residence permit benefit from visa-free entry)
• Have a valid healthcare insurance (if you decide to reside in Portugal)
• No breach of immigration control in the Portugal and Schengen Area
• Absence of conviction of relevant crimes
• Minimum stay in Portugal: Seven days during the first year and 14 days during each subsequent year, for a period of two years. Total 35 days over five years.

Kindly get in touch with us so that we can provide the updated government fees.

The Schengen Area includes the following countries: Austria, Belgium, Croatia, 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 and Switzerland.

Once the application is submitted at Serviço de Estrangeiros e Fronteiras (SEF), it can take 12-18 months for the application to be processed. Please note that this is an estimate based on past experience. Time taken by SEF to approve the residency may be shorter or longer.

Yes. You may work during the period of your Golden Visa, as well as after you get the permanent residency permit.

Yes. Under the Golden Residence Permit Program, the investor’s family members can obtain a Portuguese resident permit by applying for a “family reunion”. The Golden Visa can then be extended to dependent family members (children, spouse and dependent family members).

One of the benefits of the Golden Visa is the possibility of applying for the family reunion at the same time as applying for your Golden Visa.

Like the primary investor, these family members may then be eligible for permanent residency after five years and Portuguese citizenship after six years.

The following dependents may apply for the Golden Visa at the same time as the main applicant:

• Spouse or legal partner;
• Minor children under 18 years of age;
• Adult dependent children under 26 as long as they are unmarried, financially dependent on the parent and enrolled as full-time students;
• Parents of either spouse if over the age of 66 years of age (or 55 and dependent); and / or
• Siblings under the age of 18 from either spouse or partner, if legally responsible.

Permanent residency may be granted to those who have successfully renewed their residence permit for a full five-year period. Permanent residency shall be granted to someone who can provide:

• Proof of income/financial independence
• Proof of accommodation in Portugal
• Basic knowledge of the Portuguese language
• Have no relevant criminal convictions during the last five years

The permanent residence permit is granted for life. Notwithstanding, the card has to be renewed every 5 years or whenever there is a change of particulars, namely the holder’s address in Portugal or his / her marital status.

A permanent residence permit is not subject to minimum stay requirements. But, except in the case of the Golden Visa Permanent Residency, a permanent residence permit may be canceled if the holder, without an acceptable justification, is away from Portugal for a period of 24 consecutive months, or for a period of non-consecutive 30 months over 3 years. However, it is explicitly deemed acceptable to be away for any period of time in one’s country of origin in order to carry out a professional, entrepreneurial, cultural or social activity. In practice, SEF will only demand to see proof of the holder having actually lived in the country or of a justification of absence from the country in the event the renewal of the card is requested after its expiry date. As such, provided the renewal of the permanent resident’s ID card is applied for before the expiry date, Portugal’s minimum stay requirements should not be a major concern.

Rights And Duties Of A Residence Permit Holder

Without prejudice to any special provisions, a residence permit holder is implicitly entitled to:

• Family reunification
• Education and study
• Undertaking remunerated employment
• Pursuing activities as a self-employed Professional
• Professional guidance, training, improvement and redeveloping
• Health care
• Access to the law and justice

The legal provisions securing equal treatment to foreign citizens, specifically in connection to social security, fiscal benefits, participation in unions, recognition of diplomas, certificates and other Professional qualifications, as well as the right of access to goods and services available to the public and the application of provisions granting them special rights, are secured

Duty To Communicate

• Residents have a duty to inform SEF, within 60 days of the occurrence, any alteration to their civil status or place of residence
• The holder of a temporary Residence Permit who intends to be absent from Portugal, during the validity period, for a timeframe exceeding six consecutive months or eight non-sequential months has a duty to inform SEF before leaving national territory. These time limits do not apply to Golden Visa holders, who only need to stay in Portugal for 7 days each year.
• The holder of a permanent Residence Permit who intends to be absent from Portugal, for a period exceeding twenty four consecutive months or, in a timeframe of three years, be absent thirty non-sequential months, has a duty to inform SEF before leaving national territory
• The holder of any other Long Term Residence Title, may not be absent from European Union territory for a period equal to or exceeding 12 consecutive months, or from national territory for a period equal to or exceeding six consecutive years, failing which the loss of such title may ensue.
• Students of higher education institutions, who are holders of a residence permit may have a remunerated or independent professional activity provided they inform SEF accordingly, by submitting the contract or declaration of employment at the beginning of the activity within the tax authority, as well as supporting evidence of registration on social security.

Duty Of Regular Entry And Legal Permanence

• It is mandatory for all foreigners who enter into national territory to hold an appropriate visa, and to apply for the renewal of such visa in case they wish to extend their stay. Residence Permits must also be renewed at the end of their term.
• Holders of temporary residence permit must also apply for its renewal thirty days before the end of its validity date.

Duty To Respect Public Order, Public Security And Public Health

Foreigners must abstain from engaging in activities that lead to convictions that, separately or cumulatively, exceed one year imprisonment, independently from the suspension of sentences delivered on grounds of deliberate crime as contained in the provisions of this Law, or on grounds of terrorism, violent crime or organized crime.

• Foreigners must not enter the territory during the period of the entry ban following a removal measure
• Foreigners must abstain from engaging in activities that lead to the insertion of alerts in the Schengen Information System (SIS)
• Foreigners must abstain from engaging in activities that lead to the insertion of alerts in SEF’s Integrated Information System for the purposes of refusing entry, pursuant to the provisions of Article 33 of the Legal framework on the entry, permanence, exist and removal of foreigners from Portuguese territory (REPSAE – Regime de Entrada, Permanência, Saída e Afastamento de Estrangeiros do Território Português)

Notes:

• Failure to comply with the duties of communication and regular entry and legal permanence will result in administrative offenses in accordance to the Aliens Act
• This list of rights and duties is merely informative and does not replace full reading of Act 23/2007 of 4 July, as amended by Act 29/2012 of 9 August, no. 56/2015 of 23 June, no. 63/2015 of 30 June, no. 59/2017 of 31 July, and no. 102/2017 of 28 August, and associated regulation.

Proving basic knowledge of the Portuguese language is required from every applicant for either permanent residency or citizenship, regardless of the basis on which the application is submitted. The language knowledge requirements for obtaining citizenship are exactly the same as those for obtaining permanent residency. Under the Foreigners’ Law, the applicant for a permanent residence permit must prove having knowledge of “basic Portuguese”. According to SEF (Portugal’s border agency), in case such knowledge cannot be proved, the temporary residence permit will be renewed until this requirement is met. In case the temporary residence permit is a Golden Visa, this may be renewed every two years as long as the required investment is kept in place. The proof consists of a certificate of A2 level proficiency (in accordance with CEFR, the Common European Framework of Reference for Languages) issued by one of the following institutions:

• An accredited school in Portugal or in another Portuguese-speaking country
• IEFP (Portugal’s Institute for Employment and Professional Training)
• An accredited center for evaluating the knowledge of Portuguese as a foreign language

The test has a written and an oral component, but the written component may be waived for people over the age of 60, who are illiterate and for seriously ill or handicapped people. In addition, under 10-year old children and people having special needs may request that the test be adapted to their particular circumstances. Under 18-year old children may not take the test at some of the centers for evaluating the knowledge of Portuguese as a foreign language, but the certificate may be replaced by a declaration issued by a school that the minor has attended.

Unlike residency, the application for citizenship is to be submitted to a civil registry office and not to SEF. However, once citizenship is acquired, passport applications are handled by SEF. Portuguese citizenship by naturalization may be applied to someone who:

• Has been a legal resident of Portugal for at least 5 years
• Is under-aged, was born in Portugal and either concluded at least 1 cycle of schooling in Portugal, or has one parent who, at the time of the application, has legally resided in Portugal for at least 5 years
• Was born in Portugal to foreign parents and has habitually lived in Portugal during the 5 years prior to the citizenship application
• Is a Sephardic Jew who descends from the Portuguese Sephardic Jews

The applicants for citizenship must submit documentary evidence of the existence of effective ties to Portugal and / or the Portuguese community, and the State Attorney may oppose the granting of citizenship if such ties are either too few or too weak. Examples of acceptable ties include:

• Registration with Portugal’s Tax Authority and National Health Service
• Regular trips to Portugal in case the applicant does not live in the country
• Having owned or rented property in Portugal for at least 3 years
• Living in a historic Portuguese community abroad or having ties thereto
• Having participated during the previous 5 years in the cultural life of a Portuguese community existing in the country of residence of the applicant, namely in the activities of the cultural or recreational associations of such community
• Specifically for descendents of Sephardic Jews, proof should include either property inherited in Portugal or regular visits to Portugal throughout their lives.

A fiscal number is an identification number for the Portuguese Tax Authority (also known as the tax number). This number is required to carry out the investments. Unless you are a fiscal resident in the EU you will need a fiscal representative in the country.Despite recent alterations that permit residents outside the EU to choose to be notified online rather than have a tax representative, in practical terms, in order to access online notifications, the person will still need a tax representative to acquire the tax number and up until they select to be notified online (via their online access to the Tax Authorities website). It should be noted that even after this stage it is important to have a tax representative, as the notifications (which can contain important deadlines) will be sent entirely in Portuguese and will only be sent to the website, which requires the person to constantly check if they have been notified.

The following documents must be submitted by Golden Visa applicants for the initial application and then for applying for each renewal:

• Receipt of payment of the application fee
• Signed statement by the applicant that he / she will fulfill the investment requirements
• Bank statement regarding the effective transfer of the amounts that will be invested
• Portuguese tax identification number
• Criminal record from country of residency (and if he / she lived in a different country within the last year, a criminal record of that country is also needed) duly translated into Portuguese, with both documents (criminal record and translation) duly certified by the Portuguese Consulate / Embassy in the country of origin, and apostilled. This applies to investors, spouses, dependent children over the age of 16, and dependent parents.
• Up-to-date declaration issued 45 days prior to the application date by the Portuguese Tax Authorities and by the Portuguese Social Security confirming the absence of any outstanding debts to those authorities owed by the applicant
• Application form with permission for checking the Portuguese criminal records
• International health insurance or documentary evidence of adequate health insurance (issued within the prior three months), valid in Portugal for the entire family. This needs to state clearly that medical care and hospital expenses are covered in Portugal for the duration of the stay (when applicable) with indication of automatic renewal on the expiry date.
• Applicants need to show commitment to maintain their investment for a minimum of five years, plus evidence of their investment, for example: a bank statement for financial investment, employment contracts for job creation, deeds of purchase for real estate investment.
• For each and every applicant, a full copy (all pages) of the passport.

For the main applicant:

• All applicants must provide the lawyers with Power of attorney - parents sign the powers of attorney for the children if they are underage. Normally the main applicant signs theirs first, because they normally also give the lawyers powers to purchase the property/make the investment.
• A certified copy of the criminal record or Police clearance letter (FBI report in the case of US residents) issued by the country where the applicant previously lived for at least one year.

For the spouse of the main applicant:

• A marriage certificate; or, for the co-inhabitant or “common law spouse” who has been so for over 3 years, an attestation of this status issued by an official entity, such as a court of law.

For each dependent applicant who is over 16 years of age:

• A certified copy of the criminal record or Police clearance letter (FBI report in the case of US residents) issued by the country where the applicant previously lived for at least one year; plus, if not living in the country of nationality,
• A certified copy of the criminal record or Police clearance letter (FBI report in the case of US residents) issued by the country of nationality of the applicant.

For each child, a birth certificate and, if over 18 and no more than 25 years of age at the time of the initial application and unmarried:

• A proof of marital status;
• A proof of economic dependency (bank statements e.g.); and
• A proof of enrollment as a full-time student.

For each dependent parent, the main applicant’s (or his/her spouse’s)

• Birth certificate plus, if under 65 years old, a certificate of no income issued by the tax authority of the country of origin.

Note:

To be accepted, the criminal record certificate (or Police clearance letter) must have been issued no more than 90 days before the date of its submission and, in the case of other certificates, 180 days.

In addition to the above, in order to apply for permanent residency or citizenship, a basic Portuguese language test must be passed.

• Except for the passport, in order to be accepted by the Portuguese authorities each document issued outside of Portugal has to be a) legalized and, if it is not in Portuguese, b) translated into Portuguese by means of a certified translation.

• Documents may be legalized in one of the following alternative manners:
  • By a Portuguese Consulate; or
  • By the apostille of The Hague Convention, if the country of issue is a signatory thereof.
• Documents must be accompanied by a certified translation thereof into Portuguese, which may be done in one of the 3 following alternative manners:
  • By a translator who is accredited by a Portuguese Consulate; or
  • By anyone if the translation is certified by a Portuguese lawyer (we provide this service); or
  • By the issuing country’s Consulate in Portugal

The rules governing the granting of Residence Permit for Investment (ARI / Golden Visa), in force from 8 October 2012, enable third country nationals to obtain a temporary residence permit to conduct business activities with visa waiver to enter national territory. The beneficiaries of ARI / Golden Visa are entitled to:

• Residence visa waiver for entering Portugal;
• Living and working in Portugal, on condition that they stay in Portugal for a period of 7 or more days, in the first year, and 14 or more days, in the subsequent years;
• Visa exemption for traveling within the Schengen Area;
• Family reunification;
• Applying for permanent residence (pursuant to the Aliens Act – Act number 23/2007 of 4 July with the current wording) - To the citizens holding a residence permit for investment purposes and their family members, complying with the requirements provided in article 80 of the Aliens Act and wish to be granted with a permanent residence permit, a permanent residence permit for investment purposes shall be issued, exempt of the provision in a) article 85, n.ºs 2, 3 and 4, subparagraph b) of the same diploma (cancellation of the right due to absences from the national territory, see article 65-k of the Regulatory Decree 84/07 of 5/11, as amended). The Permanent Residence Permit for investment purposes may be subject to specific fees of analysis and issuance, to be regulated by amendments to Ordinance 1334-E/2010, of December 31;
• Applying for Portuguese citizenship, by naturalization, provided all other requirements set out by the Nationality Act are fulfilled (Act number 37/81 of 3 October, with the current wording).

All Non-EU citizens who conduct an investment activity, provided these citizens fulfill the quantitative requirements and the time requirements set out by the relevant legislation, may apply for a Residence Permit for Investment, by one of the following routes:

• Capital transfer with a value equal to or above 1.5 million Euros;
• The creation of, at least, 10 job positions;
• The purchase of real estate property with a value equal to or above 500 thousand Euros;
• The purchase of real estate property, with construction dating back more than 30 years or located in urban regeneration areas, for refurbishing, for a total value equal to or above 350 thousand Euros;
• Capital transfer with a value equal to or above 500 thousand Euros for investing in research activities conducted by public or private scientific research institutions involved in the national scientific or technological system;
• Capital transfer with a value equal to or above 250 thousand Euros for investing in artistic output or supporting the arts, for reconstruction or refurbishment of the national heritage, through the local and central authorities, public institutions, public corporate sector, public foundations, private foundations of public interest, networked local authorities, local corporate sector organizations, local associations and public cultural associations, pursuing activities of artistic output, and reconstruction or maintenance of the national heritage;
• Capital transfer of the amount of 500 thousand Euros, or higher, for the acquisition of units of investment funds or venture capital fund of funds dedicated to the capitalisation of companies, capital injected under the Portuguese legislation, whose maturity, at the moment of the investment, is, at least, of five years and, at least, 60% of the investments is realized in commercial companies with head office in national territory;
• Capital transfer of the amount of 500 thousand Euros, or higher, for constitution of a commercial society with head office in the national territory, combined with the creation of five permanent working jobs, or for the reinforcement of the share capital of a commercial society with head office in national territory, already existing, with the creation or keeping of working jobs, with a minimum of five permanent jobs, and for a minimum period of three years.

Note:

Portuguese, EU and EEE nationals are not eligible for the ARI / Golden Visa scheme.

Yes, as the investor, you only need to hold the investment during the Golden Visa’s validity period of five years. After this, the investor can sell the property, transfer the money to another country or close the job positions. We recommend that you keep the investment until citizenship is granted.

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

Yes, the application can be made in your name or through a Portuguese company fully owned by you.

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

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

No, if the holder of the Golden Visa is not staying in Portugal for more than 183 consecutive days, he / she will not be required to pay taxes for income generated outside of Portugal.

The Golden Visa is a temporary visa and has no impact on tax residency. Only if a person is considered a tax resident in Portugal will he / she be subject to tax here.

Rental income and income arising from capital (e.g. interest, dividends etc.) will be taxed at a flat tax rate of 28%. All expenses related to the property are deductible, such as insurance costs, levies, monthly costs, municipality tax, rental and property management fees, and any maintenance done on the property prior to or during the rental period.

The non-habitual resident (NHR) regime is open to anyone who is a tax resident in Portugal (the person must have the right to reside in Portugal - i.e.,EU / EEA / Swiss citizens or a holder of a residence permit) and has not been a tax resident of the country during the previous 5 years.

The tax regime for non-habitual residents aims at attracting to Portugal non-residents engaged in high value-added activities or receiving income from intellectual or industrial property rights or know-how, as well as beneficiaries of pensions obtained abroad. It is applied for a period of 10 consecutive years.

Foreign-source self-employment or sole trader income derived from an eligible occupation, royalties, capital gains and investment or rental income will be exempt from Portuguese tax as long as they may be taxed in the source country either under a double taxation agreement or under the OECD model tax convention.​ In addition, such income must not be deemed Portugal-sourced under applicable Portuguese law, and must not be sourced from a blacklisted tax haven.

Foreign-source employment income will be exempt from Portuguese tax as long as it is liable to tax (at whatever rate) in the source country either under a double taxation treaty or under the OECD model tax convention and is not deemed Portugal-sourced under applicable Portuguese law.

Occupational pension income will be subject to a flat tax rate of 10% as long as it is liable to tax in the source country under a double taxation treaty or it is deemed as not being Portuguese-source income under applicable Portuguese law.

If your occupation is eligible (see list of eligible occupations below ), Portugal-source employment or self-employment / sole trader income will be taxed at a flat rate of 20%, while other Portugal-sourced types of income will be taxed at the normal rates applicable to resident taxpayers, the calculation of the applicable marginal tax rate taking into account all income, including exempt income.

Portugal does not tax wealth or capital duty, and an inheritance or a gift received by a spouse, descendant or ascendant is tax exempt. Inheritance or gifts received by other individuals will be either not taxable under territoriality rules, or else may be subject to a flat 10% stamp duty.

Note : List of eligible occupations:

• General director and executive manager of companies,
• Directors of administrative and commercial services
• Directors of production and specialized services
• Directors of hotels, restaurants, commerce and other services
• Specialists in the physical sciences, mathematics, engineering and related techniques
• Doctors
• Dentists and stomatologists
• Professor of university and higher education
• Specialists in information and communication technologies (ICT)
• Authors, journalists and linguists
• Creative and performing arts artists
• Intermediate level science and engineering technicians and professions
• Information and communication technology technicians
• Farmers and skilled workers in agriculture and animal production, market-oriented
• Skilled forest, fishing and hunting workers, market-oriented
• Skilled workers in industry, construction and crafts, including in particular skilled workers in metallurgy, metalworking, food processing, woodworking, clothing, handicrafts, printing, precision instrument making, jewelers, artisans, workers in electricity and electronics.
• Operators of installations and machines and assembly workers, namely operators of fixed installations and machines

The individual must be deemed a resident, for tax purposes, of Portugal when he / she submits the application.

For this one must fulfill one of the following criteria:

• To have remained in the territory for more than 183 days, consecutive or with interruptions, in any 12-month period beginning or ending in the year in question;
• If the remaining period is inferior, to have a house in such conditions that it is clear that the person has the intention to maintain and occupy it as an habitual residence, on any day of the period referred to in the paragraph above.

In order to qualify as a “non-habitual resident”, a Portuguese national or a foreign individual having the right to live in Portugal must register as a tax resident of Portugal as long as he / she has not been resident in Portugal during the last 5 years. It should be noted that under the law, an unregistered individual will be deemed resident for tax purposes if he / she either spends more than 183 days in the country during a 12-month period, or has a place of abode in the country, “in a way that may lead to the supposition of an intention to keep and occupy it as a habitual home”.

EU, EEA and Swiss citizens have an automatic right to live in Portugal, individuals of other nationalities must obtain a residence permit.

Recognition of non-habitual resident status is not automatic and must be requested by March 31st of the year following that in which the applicant became a tax resident in Portugal. This regime is granted for a period of 10 years upon successful application to the Portuguese tax authorities..

In order to apply, one must fill out the request and provide a statement that the applicant was not resident for tax purposes in Portugal during the 5 years preceding arrival in Portugal. In case of doubt, tax authorities may request additional documentation such as a tax residence certificate from the previous country and / or a document ensuring that the vital and economic interests of the applicant were in another country during the previous 5 years.