Who may apply?
Citizens involved in an investment activity, either individually or through a company conducting, at least, one of the following operations in the Portuguese territory, for a minimum period of 5 (five) years:
1. Acquisition of a property with a value equal to or above 500 thousand euros;
2. Capital transfer with a value equal to or above 1 million euros;
3. Creation of, at least, 10 jobs.
It covers shareholders of companies already set up in Portugal, or in another EU State, with residence in Portugal and fulfilled tax obligations.

Investment Requirements
Performing an investment activity for a minimum period of 5 (five) years, attested by a bona fide declaration signed by the applicant.

1. Acquisition of Real Estate with a value equal to or above 500,000€
Provide evidence of giving the ownership of Real Estate Property.
Public deed or promissory contract of the property, with a declaration of an authorized financial institution to exercise its activity in Portugal stating the effective transfer of capital to stating the effective transfer of capital to its acquisition or to execute as a down payment of the promise to purchase in the equal or superior value of 500,000€ and;
An up-to-date certificate issued by the Real Estate Registry, which must always be, in the case of contract-promise and where legally feasible, the respective register.

2. Capital transfer with a value equal to or above € 1 million
Provide evidence of having invested the minimum amount required, including stocks or shares of companies.
Declaration of a financial institution authorized to exercise its activity in Portugal certifying: the effective transfer of capital in the amount of not less than €1 million, to an account demonstrating the investor is the sole or first holder of capital; or de-acquisition of stocks or shares of companies, and;
An up-to-date certificate issued by the Commercial Register, certifying that the applicant holds a share in the capital of a company.

3. Creation of, at least, 10 Jobs
Provide evidence of having created 10 jobs and registered the employers in the Social Security.
An up-to-date certificate issued by the Social Security.

Minimum Permanent Residence Periods
For the purposes of renewing a residency permit, you may have to show that you have resided in Portuguese territory for a minimum period of 7 days, either consecutively or non-consecutively, during the first year, and 14 days in the subsequent two year periods.

Family Reunification
The holders of Golden Residence Permits for Investment have the right to family regrouping and may gain access to a permanent residence permit, as well as to Portuguese citizenship in accordance to the current legal provisions.

Required Documentation
• Passport or another valid traveling document;
• Proof of legal entry and permanence in national territory;
• Proof of health insurance;
• A signed application enabling consultation of the Portuguese Criminal Record 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;
• As means of evidence of compliance with tax obligations, the applicant shall deliver a declaration proving the absence of debts issued by the Inland Revenue and Customs Authority and by the Social Security

Other Requirements under General Law
• Applicants must not have been convicted of a crime punishable with deprivation of liberty exceeding one year;
• Applicants must not be subject of an entry ban in the national territory following a removal order from the country;
• Applicants must not be subject of alerts in the Schengen Information System;
• Applicants must not be subject of alerts in SEF Information Integrated System issued for purposes of non-admission.

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2. The Promissory Contract (Contrato Promessa de Compra e Venda)
The Promissory Contract is a legally binding contract signed between seller and buyer and includes the following information:
•  Identification of the parties;
•  Identification of the property;
•  Stage payments;
•  The standard penalty clause;
•  What is included in the purchase, e.g. furniture, golf membership, etc, in the form of an attached inventory list;
•  Completion date.

On the day the Promissory Contract is signed, the buyer (either directly or through their appointed lawyer) pays the seller the agreed deposit (normally between 10% and 20% of the purchase price).
The Promissory Contract protects the buyer and the seller, in that if the seller withdraws from the contract they are required to return the deposit in double to the buyer, whilst if the buyer withdraws from the contract, the seller is entitled to keep the deposit.

3. The Portuguese Fiscal Number (Número de Contribuinte or Número de Identificação Fiscal)
Before you are able to purchase a property and open a bank account in Portugal, you need to obtain a Fiscal Number from the local tax office (Autoridade Tributária e Aduaneira). To obtain this number, you will need a valid passport and a document which proves your residence (driving license, German Identity Card, etc.).

4. The Deed of Purchase and Sale (Escritura de Compra e Venda)
The Escritura is the official Deed of Purchase and Sale and can either be signed straight away, without a Promissory Contract being signed before or after the latter was signed. There is usually a period of time between these contracts, which depends on the terms agreed between the parties, although it is normally not more than 90 days.
After the Deed has been signed in front of a Portuguese Notary, your lawyer will register the property in your name at the Land Registry (Conservatória do Registo Predial) and change all utility contracts from the previous owner(s) into your name. The registration at the Tax Office (Autoridade Tributária e Aduaneira) is nowadays automatically done by the notary.

5. Your Lawyer’s Duties
In Portuguese law, an attorney-at-law is known as advogado. His or her job equals that of both solicitors and barristers.
It is normally the buyer’s lawyer who prepares the Promissory Contract after carrying out all the necessary legal searches on the property and after making sure that the property has no debts, i.e. that there are no outstanding charges against the property, such as utility bills, taxes, mortgages, condominium fees, amongst others. Your lawyer will also help you obtain a Portuguese fiscal number.
As long as you give your lawyer Power of Attorney (Procuração), he/she can represent you and sign the Promissory Contract and the Deed on your behalf, as well as any other documents directly or indirectly related with the purchase of the property.
After the Deed has been signed, your lawyer will register the property in your name at the Land Registry (Conservatória do Registo Predial) and change all utility contracts from the previous owner(s) into your name.

6. Legal Expenses
Some lawyers charge a fixed rate for their work (minimum 800€ + VAT), whilst others charge a percentage of the purchase price, which can go up to 1.5%.

7. Real Estate Transfer Tax – IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis)
This tax must be paid by the buyer prior to completion, i.e. prior to the signature of the Deed. The amount payable varies according to the purchase price. Up to a purchase price of 550,836.00€ the percentage is variable on a sliding scale up (from 1% to 8%). If the purchase price is higher than 550,836.00, there is a fixed percentage of 6%. The applicable IMT tax for plots or properties within a touristic complex is always 6,5%. The IMT tax is slightly higher for second homes than for permanent homes. Your estate agent and your lawyer will be able to provide you with an exact simulation.

8. Stamp Duty, Notary and Registration Fees
These need to paid by the buyer as well. The Stamp Duty is currently 0.8% of the purchase price and can either be paid together with the IMT tax or at the notary where the Deed is signed. Notary fees vary according to the purchase price. Registration fees apply when the new owner(s) are registered at the Land Registry and are currently 225€ (online) or 250€ (Land Registry).

9. Estate Agent’s Fees
In Portugal, these are generally paid by the seller.

10. Corporate Ownership
Some properties are owned by companies which offer you the possibility of buying the company instead of the property. Most of these companies have their domicile in Delaware, the U.S.A., although some properties may also be owned by Portuguese companies, this is rather seldom.
The purchase of a company located in a jurisdiction with a more favorable tax regime, such as Delaware or Malta, usually involves the purchase of the seller’s ‘beneficial interest’ in the shares of the company, rather than the actual shares themselves.
Most of the companies are set up using nominee shareholders, who are the registered owners. They, in turn, hold the shares or share capital, in trust for the true owner. The company administrators will also provide directors and other company officers and take care of all the legal requirements of filing returns and preparing accounts, which may be necessary for certain jurisdictions.

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With Portugal being nominated the third safest country to live by the Global Peace Index in 2017 and, Lisbon and Porto placed on the top ten of best destinations worldwide as safe(r) places to visit, affordable way of living, and cultural and architectural richness, suddenly increased the demand in the tourism section and the need to provide the right supply.

Additionally, the warm and sunny climate, numerous well-known restaurants and white sandy beaches combined with rich culture and history, has helped to create a vibe of excitement in the country and making investment opportunities more appealing.

Tourism Boom

Indeed, tourism plays a significant role in the Portuguese economy and Portugal has become an attractive destination worldwide by several renown identities. However, Portugal was not prepared to supply the high demand for new constructions, which was the primary reason that encouraged many investors to acquire real estate to meet this growing request for tourist accommodation.

With the tourism sector sudden growth, since 2012, not only hotels have increased its bookings but also short rentals companies like Airbnb were fully booked throughout the whole year. This made properties seem very appealing in investment terms. Residents started to convert their residential property into short-term rental apartments when they discover they were having a low taxation on their short rentals and the high-income rental was substantially appealing for an additional source of income.

All of this combined have put Portugal on the map for investors, and people from the most diverse countries in the World have found great investment opportunities. Mostly, you guessed it, on properties.

And here is where the real estate boom came in. Basically, a more favorable economic environment and the good performance of tourism took the real estate sector into a remarkable recovery.
Residency Programs for Foreign Investors

On the other hand, while Portugal´s property market offers good returns for investors, new Residency Programs and Investment Benefits Scheme launched by the Portuguese Government to non-residents have appeared in the picture. Since 2012, the Golden Visa Program together with the “Non-Habitual” Resident Scheme have been the determining factors in the real estate sector and to help recovery the Portuguese economy.

While investors from countries such as France look to Portugal to take advantage of the tax benefits the government offers to foreign investors, nationals from China, USA, Saudi Arabia and most middle eastern countries are looking for the Portuguese residency programs, and consequently, gain access to the rest of Europe and free trade.

The Golden Visa Program for instances helps to further boost the volume of foreign capital investment in the real estate market, while also enabling the renovation of city centers to make them more attractive.

An important thing to retain is that the Golden Visa Program was not only launched to bring foreign investment to the country but also to help renovate city centers.

Candidates for the Golden Visa Program and Non-habitual Residents Scheme usually look for rehabilitated apartments in historical neighborhoods. In this areas, not only investors can generate an income around 8 to 12 percent a year through a daily rental basis, but this also has helped to bring new life to historic and rich parts of town.
Reasons why Portugal is so attractive to foreign investment:

– A cheaper way of living
– Solid Real Estate Sector
– Part of European Union
– Banks loan access
– Safe place to live
– Growing economy
– Diverse touristic offer
– Tax benefits (from €280k)
– Excellent communication infrastructures
– The sunny weather

Fact is, Portugal is not just a dream travel destination but also dream investment too, either in business ventures or real estate. It all depends on the capital you have available.

As it is, the real estate market is still on the rise, with Lisbon going through a deep landscape makeover. To invest now is to take advantage of all the benefits, whether you are looking for a luxury permanent residency, a holiday home, or a profitable rental property investment.

Here, at Gabi Miguel Lda we monitor closely these events so we can better advise those who seek us. We can help you provide all the legal information needed, tax consultancy and investment guidance.

If you think we can help you in any way, please contact us for more information.

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