Portugal - Citizenship & Golden Visas for Investors
The benefits of investing in Portugal
Portugal Investor Visas for non-EU nationals provide an opportunity to obtain residence status and citizenship after the qualifying period.
The Non-Habitual Residence programme
The Non-Habitual Residence (NHR) programme was introduced in Portugal in 2009. Its aim is to attract foreign investment to the country by offering attractive tax benefits to incentivise expats to consider retirement in Portugal. The programme offers a 10-year tax break on qualifying foreign income. Qualifying income, amongst other things, includes annuities and company dividends.
One of the most attractive options is the ability to apply for permanent residency and after 5 years without the need to reside in Portugal. In fact, the applicant and their family need only visit for two weeks every two years in order to renew the Portuguese Golden Visa. In Portugal, citizenship can be granted without the applicant residing in the country.
However, the investor having acquired residency through the golden visa programme will need to demonstrate ties to the country and pass a basic language test. Citizenship of Portugal and a second passport conveys the right to live, work and study anywhere in the European Union.
The Portuguese residency card granted through the golden visa programme allows the holder to travel throughout the EU Schengen zone.
How to qualify for this programme
To qualify as a non-habitual tax resident in Portugal, you will first need to obtain residence in Portugal. This can be done through a special retirement visa. The retirement visa requires you to spend 183 days or more per year in Portugal or establish a place of abode there. Once you have done that, you will be able to get yourself designated as a non-habitual tax resident of Portugal.
As a non-habitual tax resident, you will be exempt from paying taxes on certain types of qualifying foreign income in Portugal and only pay a low tax rate on pension funds. Private pension and most other pension income are taxed at 10% in Portugal. Most double taxation treaties grant exclusive taxation rights on pension income to the country of residence, which in this case would be Portugal.
If your tax is planned properly and thoroughly, the low tax rate on pensions means you could significantly boost your net worth. What’s more, Portugal doesn’t have an inheritance tax regime, so all your assets can eventually be passed down to your family tax-free.
Why people chose Portugal
Not only is this an excellent programme for retirement, but the NHR also opens the door for everyone to claim EU citizenship. After holding a Portuguese visa for a qualifying period (usually six years) you may be eligible to apply for Portuguese citizenship.
The Portugal Golden Visa program remains an extremely popular Golden Visa opportunity for Europe with investors attracted by the low cost of entry along with the various secure investment options available.
Investment Visas for Portugal and other countries are no longer the preserve of the few. Migration Investment programmes are now the fastest growing area of immigration law globally as people come to realise residency and a second Citizenship is not just desirable but a vital part of any effective global freedom, privacy and security strategy.
Expert in the niche area of Golden Visas for investors in Portugal. Our team strive to provide the most suitable investment opportunities to meet our clients needs to ensure they can secure residency via the Golden Visa programme as an investor.
Investing in Portugal
More facts about Portugal
Portugal is the oldest nation-state in Europe
it became the kingdom of Portugal in 1139, and Portugal’s borders have barely changed since 1297 when the Portuguese and Spanish signed a treaty handing over the Algarve to Portugal. The first king, Alfonso I Henriques, came to power in 1143 and the country remained a kingdom for the next 800 years up until 1910 when it became a republic.
Portugal’s official name República Portuguesa (the Portuguese Republic) is named after the country’s second-largest city of Porto
Today, Portugal consists of mainland Portugal, the Azores and the Madeira Archipelago. The nine islands of the Azores are situated about two hours’ flight from the mainland in the Atlantic Ocean. The Madeira Archipelago, which consists of Madeira, Porto Santo and two uninhabited islands which are nature reserves, lies about 500km off the African coast.
Portugal was the world’s first maritime power and birthplace to some of the world’s first explorers
It was at the forefront of European exploration in the 15th and 16th centuries: During the Age of Discovery, Ferdinand Magellan was the first person to circumnavigate the globe; Vasco de Gama discovered the sea route to India; Bartholomew Diaz was the first to sail around the southern tip of Africa, which he called the Cape of Good Hope; and Álvares Cabral and others discovered new lands, including Brazil, parts of Africa and the Far East – and claimed them for Portugal.
Portuguese is the official language of eight other countries outside of Portugal
As a result of its colonisation, Portuguese is spoken in Angola, Brazil, Cape Verde, East Timor, Equatorial Guinea, Guinea Bissau, Mozambique, Sao Tome and Principe, as well as Goa in India and Macau. It’s the 6th most spoken first language in the world with around 203 million speakers (2014).
Portugal is a founding member of NATO and an EU member
It joined the European Economic Community (EEC), now the European Union (EU), in 1986. Portugal was awarded a 78 billion EUR EU/IMF bailout by the EU and the International Monetary Fund (IMF) in 2011 on the understanding that the government would adopt austerity measures.
Portugal was one of the first countries to adopt the euro
You can still exchange Portuguese escudo banknotes for euros: it officially gave up its own currency, the Portuguese escudo, in favour of the euro in 1999. The euro currency was introduced in 2002 and the Banco de Portugal (Central Bank of Portugal) will continue to exchange escudo banknotes until 28 February 2022.