If you want to live in Portugal post-Brexit, some things have changed. British people are now considered “third-country nationals” in EU member states. This means that we no longer have freedom of movement within the Schengen zone and can only spend 90 days there, within a 180-day period.
For those who want to spend longer than this in Portugal, one great and flexible option is the Golden Visa. A simple investment in the country will give you five years of residency, as well as an opportunity to apply for permanent residency and citizenship.
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How does the Golden Visa work?
To obtain this type of visa, you need to invest in Portugal in one of the following ways:
●Buy property – If the property is over 30 years old it must have a minimum value of €350,000. Alternatively, newer properties must have a value of €500,000 or more
●Deposit €1 million into a Portuguese bank account
●Create at least 10 jobs – You will need to pay social security and the registration for your workers
There are a few other ways to get a Golden Visa, such as through investing in scientific research or art.
However, the Portuguese Government has announced a low phasing out of the Golden Visa. This will mean that those who invest in populous areas like Lisbon, Porto and the Algarve will not be able to get the Golden Visa. Luckily, these changes are not coming into force until January 2022, so you have until the end of this year to make your investment.
What are the benefits of getting a Golden Visa?
Firstly, you only have to stay in Portugal for a minimum of seven days a year, but you are welcome to stay as long as you like. This increases to 14 days after your first year.
Unlike other visas, the Golden Visa allows you to live and work freely in Portugal. Plus, your family – such as a spouse or children under 18 – can also benefit from this freedom.
Another really attractive benefit is that you can move freely within the Schengen area, without having to worry about the 90-day rule. This is particularly desirable after Brexit.
How do I apply?
1. Ensure you have all the necessary documentation for yourself and any dependents. Documents will need to be translated into Portuguese to be accepted.
2. Get a tax identification number (NIF) in Portugal and open a Portuguese bank account to confirm your investment. You will need to get a Portuguese fiscal representative to obtain a NIF.
3. Make your investment
4. Once your application is accepted, you will be given an appointment for biometrics collection. You will need to travel to Portugal for this.
5. It then usually takes four months to have your Golden Visa approved by the SEF.
6. Get your residency card
The whole process usually takes around half a year, but there have been some delays due to Covid. You can apply for a Golden Visa here.
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How long does the visa last?
Your initial Golden Visa will be valid for two years, after which you will need to renew the residency permit. Your visa will then be valid for a further two years. In your fifth year, you can apply for permanent residency and citizenship.
What taxes will I have to pay?
As the Golden Visa makes you a non-habitual resident you will only pay UK taxes. If you spend more than six months in Portugal, then you may have to pay some Portuguese tax.
Can I build a property that is worth €500,000?
The Portuguese government requires you to invest the €500,000 before you apply for the Golden Visa. Therefore, you will need to build the property first, and then apply for the visa.
If you’re ready to buy in Portugal once travel restarts, contact the friendly Property Guides Resource Team to plan your next move.
We can introduce you to a trusted estate agent or lawyer, or talk to you about currency. Call us on 020 7898 0549 or email email@example.com.