Real Estate Investment
Investment in real estate is the most popular of all investment options available to applicants for the Portugal Golden Residence Permit
Low property prices, good room for capital appreciation, the relatively low amount of minimum required investment, relative security of a property investment in Portugal & the fact that there has been spectacular growth in tourism, all make investment in real estate in Portugal a very popular option under the Golden Visa Program – Portugal.
An investment in real estate may be made in any type of property (residential, commercial, industrial or agricultural land), in any number of properties & anywhere in the Portuguese territory, whether as a single owner or a co-owner, provided the Main Applicant invests singly the minimum required amount.
Investment in real estate must be made before the Portugal Residence Permit application is filed. Given the need for physical presence of the main applicant at the time of submission of application (for biometrics), an applicant will need to, at the minimum, make at least two trips to Portugal, the first being to view properties, choose & purchase one, and have the required registration formalities completed. The process can be expedited if the investor chooses to rely on the choice of properties by a trusted third party, which is a rare occurrence.
The Portugal Golden Visa Program provides the following two options for real estate investors in Portugal :
- Invest a specified amount in any real estate (reduced by 20% if located in a “low density area”), OR
- Invest a specified amount in a rehabilitated property which is at least 30 years old or is located in designated areas of urban rehabilitation (reduced by 20% if located in a “low density area”)
Under the first option, the Portugal Residency by Investment amount is the price that one actually pays for the property & which is mentioned on the ‘Contract’.
For the investment in rehabilitated property option, the Portugal Residency by Investment amount can include the cost of contracted renovation works.
Government fees, professional fees & taxes cannot be included in the calculation of whether you have met the minimum investment requirement.
Under the property rehabilitation option, a copy of the renovation contracts, along with proof of payments made to the contractor, will also have to be submitted.
The most important aspect in this option is the proposed “rehabilitation” of property. Town Hall is the official body which determines whether the renovation works on a property can be deemed as ‘rehabilitation’. For this, plans of the desired renovation will have to be submitted to Town Hall authorities. Only upon receiving a confirmation from Town Hall, can the cost of renovated works be included in meeting the minimum investment requirements under this category. An investor has the option to buy a property being sold by someone (eg. a developer) who has already obtained the Town Hall confirmation, or hire an architect to plan the rehabilitation work & submit the plans to Town Hall.
Some of the costs & government fees payable at the time of purchase of property are the Transfer Tax, Stamp duty & notary and conveyance registration fees.