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Since this procedure is new, the exact time for the approval is yet unknown. However, the general rule regarding the time for a decision from the Portuguese Administration is less than 30 business days.
Yes, because the regulations mention “properties” in the plural: “the acquisition of real estate properties in the value equal or superior to 500.000 euros. As an example, one investor may for example, acquire two properties in the value of 250.000 euros each.
Yes, the investment can be made through a company, as long as the investor’s personal share in the company fulfills the minimum amount of investment.
For example: a person holding 50% of the shares of a company, to buy through that company, would need to buy a property of at least 1.000.000 euros (so that, proportionally, his investment will be 500.000 euros).
The initial permit is valid for1 year. Residence permit shall be renewed subsequently for a period of 2 years.
Besides the sale price of a property in Portugal, there are extra costs which should be taken in consideration while acquisition the real estate. In addition to several taxes (Municipal Tax on Real Estate Transfer, Municipal Tax on Real Property, Stamp Duty — IMT, IMI and IS) the purchaser of real estate must cover at least Notary fees and Real Estate registration fee.
The Tax on Real Estate Transfer (Imposto Municipal sobre Transmisões, IMT) is usually calculated through a percentage applicable to the property value. Its exact value depends on the value and use of the property. Estimates are the next:
- Rural property — 5%;
- Urban and other properties — ~6,5%;
- If the acquirer is a tax resident in an blacklisted jurisdiction — 10%.
- Urban properties or property units considered solely as a permanent place of residence — varies from 6% to 8% (depending on the price of acquisition).
Municipal Tax on Real Property (Imposto Municipal sobre os Imóveis, IMI) is an annual tax. The rate of IMI tax depends on many conditions: in which part of country the real estate is situated, if this real property is for habitation or for commercial purposes, if it is rustic, urban or mixed real estate, and finally — each municipality of the country puts its own rates for IMI. Normally this tax varies from 0,5% to 0,8% from the value of the property. According to the Portuguese law, only hotels are free from this type of tax.
The basic documents are:
Passport or another valid traveling document
Proof of legal entry and permanence in national territory
Proof of health insurance
Signed application enabling consultation of the Portuguese Criminal Records by SEF
Criminal Record Certificate from the relevant authority of the applicant’s home country or from any other country where he / she resided for over a year
Proof of the requirements’ fulfilment.
All foreign documents must be officially translated to Portuguese and apostilled (if no apostille is available, the certification of the documents and its translation to Portuguese is made in thePortuguese Consulate in the country of origin of the documents).
In most of the Portuguese legal documents, the applicant has to supply:
Names of both parents (required in the bank, notary office, local municipality and in another row of institutions)
Marital status or civil marriage status should be proven, whether there is joint property or personal assets / mutual assets
When selling,if there are capital gains the sellers need to pay a capital gains tax. In general, the tax rate of capital gains is about 25%, but detailed analysis and simulations can and should be made on a case by case basis.
No. The Golden Residence Permit Programme is applicable only for the investments made after the law is in force, which has taken effect from October, 8th, 2012.
The applicant shall deliver evidence that he / she complied the following minimum periods of permanence in National territory: 7 days in the first year and 14 days in the subsequent 2 years. By reducing the amount of days to stay in the country this makes the programme more attractive and appeling to potential international investors from longhaul destinations.
Click here to see what are the steps to obtain residence permit through acquistion of real estate property with a value of, at least, 500 thousand euros.
It is the contract value mentioned in the Purchase Contract (Escritura).
Yes, the property can be acquire in co-ownership, if each co-owner making an investment of a minimum of 500.000 euros.
Yes, the promissory sale and purchase agreement is acceptable for the initial investor application for residency. The conditions are:
The acquisition public deed or the promissory sale and purchase agreement with a declaration, issued by a financial institution in Portugal attesting the effective transfer of purchase price or down payment (minimum of 500.000 euros) and
Updated Land Registry certificate, attesting the registration of the acquisition or the registration of the promissory sale and purchase agreement.
In case of down payment of 500.000 euros, the actual purchase should take place before the first renewal of the residence permit.