Portugal: New Rules For Portugal’s Golden Visa Residence Programme
In October 2012 Portugal launched its Golden Visa Residence Programme with the aim to provide prospective Non-EU foreign investors with the opportunity to take up residency in Portugal through investment. Recently, the Portuguese Parliament promulgated a set of new rules pertaining to this particular programme. The said rules are still pending before the Portuguese parliament for their final approval.
Golden Visa Residence Programme – The Rules
The newly established rules shall not affect the original conditions which were first offered to attract investors. Thus, investors may still choose one of the following options, namely:
i. Investment in real estate with a minimum investment of €500,000 or
ii. A cash deposit or Financial Investment through bonds or stocks with a minimum value of €1,000,000 or
iii. Through the creation of a new company with at least 10 employment positions based in Portugal.
In addition to the above, the Portuguese have now introduced two new ways in which an investor may qualify for a Golden Visa.
Firstly, with respect to the investment in culture or scientific research, an investment of €350,000 must be made in a project within these sectors.
Secondly, an investor may now submit his application on the basis of purchasing, rebuilding or renovating urban properties. The financial costs resulting from this latter option must add up to a minimum of €500,000.
The Portuguese legislator remained focused on introducing other new rules relating to real estate. In fact, when prospective individuals intend to invest in real estate, it will be obligatory to provide a tax portrayal of the property. This exercise was introduced to compare and contrast the value of the property on acquisition with its tax value.
Additionally, applicants who invest in less preferred regions, that is, were a region has a population of less than 100,000 inhabitants or with a GDP of 75% or less than the national average, may take advantage of the fact that the conditions laid out with respect to real estate will be reduced by 20%. As a result, the added advantage will decrease the required property value to €400,000.
Another notable addition to the Golden Visa rules is the introduction of an external auditor, which will be a vital player in maintaining transparency and to deal with any money laundering and corruption issues.
