Today we want to provide some great information about why property purchase in Portugal is a good investment alternative for non EU investors. According to the 2020 Real Estate Market Outlook: “. . . investment in income property will remain robust, at around 3 billion euros. The lack of core products will drive forward-purchase transactions.” Furthermore, in 2019, “the investment in non-residential real estate registered a new record value of 5.75 billion euros. There was a substantial investment . . . with great growth in the hotel sector and student residences.”
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Not to mention that most of this interest comes from foreign investors. Since 2012, non-EU investors have kept obtaining residency by buying a property in Portugal. Up until January 2021, 8,881 out of a total of 9,444 investors bought real estate and became residents in Portugal.
The process is known as a residency by investment. It is also called the Golden Visa Portugal program.
A wide range of property investment options is possible
Four different investment options are available. The minimum amount of each of them differs depending on some criteria. You can find them below.
- Buying a property at a minimum amount of €500,000. As of 2021, you cannot buy such property in Lisbon and Porto. The reason is that there is a huge demand in these cities. So, the program aims to revive other parts of the country.
- Buying a property at a minimum value of €400,000. This option is available if such property above is also in a low-density area.
- Buying a property at a minimum amount of €350,000. This option is available if a property is at least 30 years old or it is in an urban rehabilitation area.
- Buying a property at a minimum amount of €280,000. This option is available if such abovementioned real estate is also in a low-density area.
As you can see from the list above, such property purchase is quite affordable, especially when you compare it to other countries in Western Europe. Furthermore, it gives you the right to live in any EU country as an EU citizen.
It takes five years to get EU citizenship
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Upon completing the purchase process, you apply for temporary residency. In this case, you can have visa-free travel between Schengen countries. Stay in Portugal for at least seven days each year. Then, after five years, apply for citizenship. It will also be possible to apply for permanent residency as well, in this case.
So, not much is required from you to get citizenship. When you become a citizen, Portugal provides you visa-free travel to 186 countries. Furthermore, you can live and work in any EU country as a normal EU citizen.
This is why you can consider Golden Visa as both an investment option and as a Portugal citizenship through investment program.
Not finished yet: Tax schedules for foreigners offer tax exemptions
This is not the end of the benefits of this program. The Non-Habitual Resident (NHR) is another important schedule Portugal offers to its foreign investors as well. Briefly, shift your tax residency to Portugal. Then become exempt from taxes on almost all of your foreign income. Furthermore, it will last for a total of ten years.
The NHR program is available for you if you have the right to be a resident of Portugal. Also, you cannot be a tax resident of Portugal for the last five years.
Shifting tax residency means living in the same place for at least six months a year. So, you can combine these two schedules by buying real estate in Portugal. You can live in the house you buy. Then, when you shift your tax residency, you can relieve many tax burdens you had before. Note that you will also pay fewer taxes as a foreign resident of the country, even if you gain a Portuguese income.
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Life standards are high in Portugal
You may consider moving to Portugal upon completing your investment. It offers a quality lifestyle in many respects. For example, it has a quality healthcare system that ranks high among other countries. Furthermore, the basic expenses such as grocery shopping or rents are quite affordable again.
The Global Peace Index of 2020 also approves this fact. It ranks the 3rd safest country according to this index.
It is also a Mediterranean country. So, the country receives sunlight almost throughout the whole year. Lots of beautiful coasts, beaches, and holiday destinations complete this beauty. Surfing is also a very popular sport in Portugal as well.
Many international schools with various curriculums are also available in Portugal. So, you can be sure that your children can also receive a quality education.
All in all, second citizenship, tax benefits, quality of life are all just some of the benefits of this program. You can attain these and more only by property investment.
Read more real estate articles at ClichéMag.com
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