Dear Clients
We received the update from the government regarding the changes to Portugal’s Golden Visa program on Friday, I wanted to wait a few days before updating you as additional information usually comes in the days after an announcement.
Here is what was announced,
The proposed changes will now take place from the beginning of next year, this means you have until the end of 2021 to submit your Golden Visa applications, any applications done after this date will be subject to the new laws that will take effect from January 1st 2022.
The new laws have several changes so I would like to go through each of them step by step to avoid any confusion,
Price increases to the program,
From 2021 the cost to apply for a golden visa will not change when applying through a property transaction, this means that the 350k and 500k options will still exist in their current format with the 20% reductions applicable in low density areas.
However there have been price increases to alternative ways of investing,
If you would like to invest through a fund then the new amount will be 500,000€ to qualify, increased from the 350,000 currently required, the terms of the application remain the same.
If you would like to make a Capital Investment then the new requirement will be 1.5 Million Euros, increased from 1 million currently, again the terms of the application remain the same.
For Science and Research, you will also have an increased amount, with your investment now 500,000€ which is increased from the current 350k threshold, with no changes to the requirements other than the amount.
For anyone looking to create jobs you will now need to invest 500,000 along with creating 5+ new jobs in Portugal, increased from 350,000€ that is currently in place.
These are all the price increases in Portugal that will take effect from the 1st of January 2022.
Changes to areas you can Invest,
For Commercial, Offices and Touristic Developments there is no changes to the areas and regions you can invest, the whole of Portugal and its autonomous regions are all still possible and qualify for the Golden Visa program.
For apartments in general then the major cities and coastal regions have been restricted with some exceptions, what this means is that from 2022 you will not be able to invest in Lisbon, Porto, Algarve, Braga etc etc… apart from the areas that are listed below, all interior regions of Portugal will still qualify along with the autonomous regions of Madeira and the Azores.
What the government have done is taken out all of the larger cities and developed areas and included regions of Portugal that currently need investment, what we will do over the coming months is assess each of these areas and look at the structure and investment potential, giving you a report on each of the ones we feel has potential and will give a steady return for your investment, for now you have another 10 months to still invest in the better regions of Portugal so from this aspect my advice would still remain the same, use the opportunity to get your investment in Lisbon whilst it’s still available.
Now that we have a set timeframe it makes everything much clearer and easier for me to guide you both currently and after the changes, we will make sure all of our staff become fully aware of the best areas moving forward from 2022 onwards and as always be in a position to offer you the best possible returns from your investment.
Regarding what to do now my advice doesn’t change, the 350k products are starting to run out and although we may now have some more later in the year I wouldn’t advise waiting in the hope that something better comes along, If you are in a position to move forward and 350k is your max budget, sooner rather than later would give you a much broader choice and better investment for your money.
The key areas that the government have allowed to remain open for property investment next year are Tavira, Monchique, Castro Marim, Evora, Vila Do Bispo, Alte, Coimbra, Silves, Guimaraes, Douro, Serra Da Estrela along with some metropolitan areas of Porto.
We will be going through the list in great detail and we will offer a full report to all our clients later in the year regarding each option and the potential it has, for a full breakdown of the areas please go to our website page and for now please feel free to contact us should you have any questions regarding the current program or what will exist from next year.
The most important information to take from this report is that you still have time to invest in Portugal’s Capital City which will enable you to have a safe and profitable investment over the next 5/6 years, and the good news is you now have more time to do it.
From myself and the rest of our staff I would like to wish everyone a Happy Chinese New Year and hope the year of the OX brings us all some relief to the current pandemic that has taken up enough of our freedoms, stay safe and we will see you all soon in Portugal.
Kind Regards
David Poston
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