City Matters 132

CITYMATTERS.LONDON
18 August - 14 September 2021 | Page 19
PARTNER CONTENT
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THE GOLDEN VISA
HOW TO GAIN RESIDENCY IN THE ALGARVE
Enjoy all the perks of living in Portugal
BACK in October 2012, the
Portuguese Government
introduced the Golden Visa
scheme – a residency program
which has since attracted
more than €5.7 billion of direct
foreign investment into Portugal.
With the aim of attracting High Net Worth
Individuals (HNWIs) to the country, the
Golden Visa offers a residency visa for up to
five years in exchange for a qualifying investment
made in Portugal, and is valid only for
non-EU-EEA or Swiss citizens.
As of the beginning of 2021, UK passports
lost their freedom of movement in the
Schengen Area. But don’t let that get you
down.
There are so many reasons why UK citizens
should look at Portugal for residency.
It would give you more travel rights across
Europe, a highly desirable lifestyle, and a
chance at getting the highly-coveted European
citizenship through investment.
The Golden Visa requires applicants to
invest and apply using one of the following
routes:
nReal Estate Acquisition: Purchase worth
at least €500,000.
nFund Subscription: Capital transfer of at
least €350,000 in a qualifying investment
fund.
nCapital Transfer: Capital transfer of at least
€1million to a Portuguese bank account.
nCompany Setup: Invest €1million in
a Portuguese company together with
creation of jobs.
Watch out for 1 January 2022
Following amendments to the Portuguese
2021 State Budget, the Golden Visa scheme
will see some big changes as of 1 January
2022, particularly for citizens looking to
invest via a real estate acquisition.
This system has been successful for
many years, but mostly for large cities like
ONE Select Properties can help you a find luxe home like this Quinta do Lago villa
Lisbon Faro and Port. Many other regions
have not experienced such real estate
success.
That’s why, as of beginning of 2022,
foreign citizens looking to invest in real
estate (in order to obtain legal residency)
will be restricted to invest only in “low
density” rural areas.
This amendment to the visa scheme has
been introduced to “boost” investment in
cities within the interior of Portugal.
Unfortunately, in the Algarve, this does
not include the most sought after touristic
parishes and will perhaps hinder real estate
investment, via the scheme, in the area.
What about the Fund Investment
Route?
This could be the alternative for investors
who do not see a profitable return in real
estate in “low density” rural areas – but still
wish to apply for the residency scheme.
The investment fund route was
introduced through an amendment in
Portuguese Law in August 2017.
This route might not be the answer for all
citizens. However for HNWIs, especially if
experienced and knowledgeable investors,
this application process could prove to be
an interesting business venture.
Alongside applicants needing to have
experience in fund investments, there is
also the need to supply proof and sufficient
funds. Which until the end of 2021 requires
a minimum investment of only €350,000,
which will jump up to €500,000 as of
January 1, 2022.
The fund investment route sees great
advantages. It presents a low investment,
security, tax-efficiency, portfolio diversification
and, most importantly, low fees
and taxes seeing as these do not require
payment of Transfer Tax, Stamp Duty or
Notary Costs which are applicable to real
estate purchases.
Nonetheless the exit period is at a
minimum of 5/6 years, depending on the
fund you choose to work with, as well as
perhaps some lack of control as to funds
allocation, performance and management
fees.
Get lost on the coastline
Choosing the right route for the
Golden Visa
In the current real estate market, for clients
who are made aware and interested in the
Golden Visa, we have noticed a surge in
buyers looking to invest for this particular
reason, before the amendment of January
1, 2022.
Needless to say, if Portugal is your destination
of choice and you are a non-EU-EEA or
Swiss citizen, this could be the perfect time
to buy.
If the fund investment route also represents
a profitable and stable market, bear
in mind the deadline for a €350,000 capital
transfer will only be available until the end
of 2021.
In conclusion, besides alterations to come,
the options still available are very attractive
given the freedom to travel throughout
Europe, alongside a residency in a sunshine
filled, safe and stable haven such as Portugal.
•For more info call +351 289 143 940 or go
online to oneselectproperties.com