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Investing in real estate in Portugal offers numerous benefits. One notable advantage is the Golden Visa program, which allows investors to obtain residency by acquiring property in this European country. To understand more about the benefits you can gain from real estate investment in Portugal, let's delve into the details below.
A Vibrant Real Estate Market
The real estate market in Portugal is highly dynamic and consistently in demand, offering unexpected benefits to foreign investors. This is why the Portuguese real estate market is always bustling and never cools down.
One of the primary advantages of investing in Portuguese real estate is the low tax rate. According to a report by PwC, Portugal is one of the countries with the lowest personal income tax (PIT) and corporate income tax (CIT) rates in the European Union.
For PIT, Portugal applies a rate ranging from 14.5% to 48%, depending on the individual's income level. Additionally, Portugal's Non-Habitual Resident (NHR) program allows foreign nationals living and working in the country to be exempt from or pay reduced taxes for up to 10 years.
Regarding CIT, Portugal applies a 21% tax rate on companies with annual revenues not exceeding 15 million EUR. Furthermore, companies can benefit from tax exemptions if they engage in investment activities, research, development, or job creation in Portugal.
For real estate investors, they only pay low tax rates when buying, selling, or renting properties. When purchasing real estate, they incur transfer tax (IMT) ranging from 0% to 6% and stamp duty (IS) at 0.8% of the property's value. When selling real estate, they face capital gains tax (CGT) at 28% for non-residents and 14.5% to 48% for residents.
The quality of life in Portugal is exceptionally good
Investing in Portuguese real estate not only brings economic benefits but also allows you to enjoy a high-quality life in this country. Portugal offers several attractive features:
Mild Climate: With a Mediterranean climate, Portugal experiences hot, dry summers and warm, wet winters. The average annual temperature ranges from 15°C to 27°C, allowing you to enjoy sunshine and blue seas year-round.
Stunning Natural Scenery: Portugal's long coastline with white sandy beaches, spectacular cliffs, and peaceful fishing villages creates a majestic natural landscape.
Rich Cultural Heritage: With a long history and diverse culture, Portugal boasts unique architectural works such as ancient castles, magnificent churches, and quaint villages.
Distinctive Cuisine: Portugal is famous for its diverse and rich cuisine, combining various cultural elements. Additionally, Portugal is home to renowned wines like Porto and Madeira and various fruit wines.
Opportunity to receive a Golden Visa when investing in real estate in Portugal
Participating in Portugal's Golden Visa program is an attractive opportunity for foreign investors seeking residency and enjoying the benefits of living in the Schengen Area. This program, launched by the Portuguese Government in 2012, allows investors and their families (including spouse and children under 18) to reside, work, study, and travel freely within the Schengen Area.
As of January 1, 2022, the Portuguese Government has amended certain regulations of the Golden Visa program, emphasizing that investors are only permitted to invest in real estate in the Azores, Madeira, or designated inland areas defined by the Portuguese Government. Investors who submitted applications before January 1, 2022, are still subject to the old regulations to continue renewing their visas for themselves and their families.
Currently, the Portuguese real estate investment program for obtaining a visa offers two options for investors to explore and choose. With this investment program, investors not only own assets but also have the opportunity to receive the Portuguese Golden Visa, with the potential to apply for permanent residency and citizenship in this European country.
Long-term Residency Opportunities with the Golden Visa
The Golden Visa Program 500,000 EUR allows investors to purchase privately owned real estate to gain residency rights in Portugal, one of the safest countries in the world with a high quality of life and Human Development Index.
Residency cards are issued for the entire family, including spouse, dependent children, siblings under 18, and parents.
Freedom to travel within 26 European countries under the Schengen Agreement without needing a visa.
Permanent ownership of luxurious real estate in Europe.
Free public education and high-quality healthcare – ranked in the top 12 globally.
Permission to work and conduct business legally in Portugal.
Children born to investors in Portugal, if the investor has held the Golden Visa for at least one year, will be granted citizenship immediately.
After five years, investors can apply for Portuguese citizenship.
No global income tax.
Investing in Portuguese Real Estate
The Golden Visa Program 350,000 EUR allows investors to purchase renovated real estate over 30 years old, with a guaranteed rental return of 4% and investment refund after five years.
Residency cards are issued for the entire family, including spouse, dependent children, siblings under 18, and parents.
Freedom to travel within 26 European countries under the Schengen Agreement without needing a visa.
100% investment refund after five years, based on legal agreements between the parties.
Free public education and high-quality healthcare – ranked in the top 12 globally.
Permission to work and conduct business legally in Portugal.
Children born to investors who have held the Golden Visa for at least one year will be granted citizenship immediately if born in Portugal.
Processing time for obtaining residency cards for the entire family is only 4-6 months.
Guaranteed annual rental income from real estate up to 4%.
No global income tax.
Notes when choosing to invest in real estate in Portugal
Before making an investment decision, you need to thoroughly research the Portuguese real estate market. This includes evaluating location, development potential, market demand, and future property value growth prospects. Areas such as Lisbon, Porto, Algarve, Madeira, and the Azores are prominent investment destinations.
Select the type of real estate that suits your investment purpose and financial capability. If you intend to use the property for residence or future resale, townhouses or villas may be appropriate. If you aim for rental income or tourism business, apartments or vacation homes are reasonable choices.
Before deciding to purchase, thoroughly inspect the property's condition. This includes reviewing the area, design, amenities, construction quality, property age, and legal documentation status. Hiring an inspection expert or lawyer will help ensure a smooth and secure process.
Investing in Portuguese real estate offers potential for value appreciation and attractive profits. With a developing market and increasing demand, investors can seize opportunities to buy and rent out properties for appealing returns. Additionally, short-term rentals or participation in complex projects are effective methods to increase income from real estate.
Moreover, sooner or later, the policy of investment residency in Portugal through the Golden Visa program via real estate will be phased out. Therefore, if you are exploring and wish to reside in Europe through the Portuguese real estate investment program, now is the GOLDEN TIME to consider and decide.
Quốc tich thứ hai is a reputable unit, accompanying investors on the journey to obtaining the Portuguese Golden Visa for themselves and their families. Please note that Portuguese investment residency is currently one of the easiest ways to reside in Europe. For more detailed information, please contact Quốc tich thứ hai at https://quoctichthuhai.com/ for detailed and dedicated one-on-one consultation on the programs right away!
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