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- QUINTA DO LAGO -
- YOUR GUIDE TO VISAS, BREXIT AND TAX INCENTIVES IN PORTUGAL -

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Quinta do Lago - Your Safe Haven

 

- quinta do lago -
- YOUR GUIDE TO VISAS, BREXIT AND TAX INCENTIVES IN PORTUGAL -

Are you thinking of investing in property in Portugal but feel confused by all the different visa options, residency permits and tax incentives? Add to that the impact of Brexit, and you are right to feel overwhelmed. Not to worry, our property and legal experts here to help!
In Quinta do Lago, we are proud to provide a clean and trusted destination for people to make safe investments and enhance their overall quality of life. This commitment starts now; with a detailed guide designed to help you assess your options clearly and conveniently.
Quinta do Lago Real Estate have teamed up with local property lawyer Dr. Ricardo Ferreira, from  Martínez Echevarría & Ferreira Advogados, to share with you new insight into residency and financial incentives for citizens looking to invest in property in the Algarve
So, get yourself a nice hot drink, take out a notepad and pen, and read on to discover your options for property investment in Portugal.

 

VISAS & RESIDENCY OPTIONS

D2 VISA
Better known as the residence visa for entrepreneurs, which is an interesting solution for those who wish to start a business in Portugal or to work as self-employed.

D7 VISA
An excellent option for citizens who have their own income from pensions, assets, intellectual property or financial investments.

GOLDEN VISA
The famous Golden Visa Programme is a residence permit for who lives outside the European Union and intend to invest in Portugal.
In 2022, the Golden Visa Programme will suffer some changes, particularly related to investment possibilities, since the granting of residence permits through investment activity in real estate for housing purposes (apartments and villas) will be restricted to the countryside areas and islands of Portugal.
However, we believe that this will not significantly affect the Golden Visa, namely because the territorial restrictions will not apply for the purchase of plots or properties in developments with touristic license (i.e. resorts that have a management company in place to manage the properties in the resort).
It is still also possible to purchase a real estate for services (shops or offices) or through the acquisition of participation units in investment funds or venture capital, although, in these cases, the investment will increase to €500 k. 


NON-HABITUAL TAX RESIDENCY
The Non-Habitual Residents (NHR) regime allows its beneficiaries to access a number of interesting tax advantages, to either retirees or High Net Worth individuals to optimise their taxes in a global context. These create rational and tax-savvy options for families who aspire to live permanently or semi-permanently in their favourite holiday destination.
Moving forward, the Golden Visa can also continue to be combined with NHR status, which offers a set of tax advantages for foreign sourced income.
In order to benefit from the NHR status, the applicant must fulfil the preconditions to be deemed a tax resident in Portugal. These conditions are that the applicant must be physically present in the country for more than 183 days in any given period of 12 months, and have a dwelling available in Portugal in such conditions that it may be assumed that is the primary residency.
Under this regime, pensions may be subject to a 10% reduced tax rate and professionals performing high added value activities may be exempt on foreign sourced salaries or subject to a 20% reduced flat tax rate on Portuguese sourced salaries.
For these reasons, the projections for the future of the investment market will continue to be extremely positive and the Golden Visa should continue to be one of the best and most efficient mechanisms for citizens who intend to move freely between the entire Schengen Area while having to possibility to stay, to work and live in Portugal.


BRITISH CITIZENS & THE IMPACT OF BREXIT
Since the United Kingdom left the European Union in 2020, the process for British citizens has changed. Despite this, during the first seven months of 2021, British citizens continued to be particularly interested in living and buying a property in Portugal and the Portuguese Government has been creating innovative solutions to facilitate the process.
For British citizens, Portugal has offered two strategies:
1. For citizens already living in Portugal before the end of 2020 (that is, until the withdrawal agreement came into force), a simplified procedure was created, allowing British citizens to request the exchange of their registration certificate of the Union citizen for new residence permits;
2. For citizens who did not live in Portugal before the end of 2020, a visa or a residence permit is now required, in order to benefit from the same privileges as EU citizens.


WHICH OPTION IS BEST FOR BRITISH CITIZENS?
Despite the D2 and D7 Visas advantages, the Golden Visa continues to be the most compelling solution for British citizens, namely because with this type of residence permit, the applicant can continue to live in the UK and only needs to complete an investment in Portugal to stay, on average, seven days a year in the country.