Portugal currently has one of Europe’s most popular immigration and residence permit schemes, granting investors the right to live, work, and study in the country and visa-free travel within the Schengen Area. If you are considering taking advantage of the Portuguese Golden Visa application and getting a permanent residence, now is a smart time to get started because changes to the programme are being set into motion in January 2022, which means investors will no longer be able to purchase residential properties in the high-density areas.
Even though the Portuguese Golden Visa programme won’t change before the end of 2021, the first steps to apply, such as getting a Portuguese tax number and opening a Portuguese bank account, are taking a bit longer due to the high demand seen lately. Hence, if you’re intending on applying to the programme in its current format, it’s our advice to start the application before the second week of November, at the latest.
Covid, like any other aspect of life, has wreaked havoc, with investment levels dropping by 12.8% in 2020. Despite that, the Portuguese citizenship-by-investment programme still raised €647 million last year. Given the devastating effects of the coronavirus outbreak on other economies and real estate markets around the world, the Portugal Golden Visa program still managed to achieve impressive results, being the 3rd country that granted more residence permits. This further demonstrated that, while the real estate industry may fluctuate due to natural factors such as disease outbreaks, or even political and governmental reasons, it never actually deteriorates or drops over time.
What’s more, Covid has prompted foreign investors to reconsider the reasons behind their real estate investment in Portugal and, as a result, many are now placing a much greater focus on their family, rather than just the benefit to their professional endeavours.
Thus, Portugal has grown incredibly popular, with the opportunity to invest in the real estate industry to lay solid foundations for family life and provide Portuguese citizenship to family members and dependent children. Hence, it’s easy to see why more and more people are flocking to Portugal, far beyond its geographical allure and the possibility of visa-free travel across Europe. Diversity is also a primary consideration when investing in Portugal.
The Golden Visa is going to change at the end of 2021 which means that you will no longer be able to purchase real estate in major cities such as Lisbon, Porto and certain areas in the Algarve. The market will change considerably in terms of the outlook of what you can invest into next year.
If you’re looking to get the Golden Visa before the end of the year, and you still want to purchase in the premium areas of Portugal, we advise you to invest as soon as possible. You don’t need to physically be in Portugal as we have been dealing with clients remotely for many years, and we have a trained team of experts that will guide you through the whole process.
Although you have till December 31st, the first steps and processes that you need to take till November are:
Because there’s such a big influx of clients, it’s taking around 4 to 6 weeks to get these processes done. Your lawyer also needs to check the documents of the property and there are certain formalities that have to be done so our advice is to have your property purchased, or that you know you want to buy at the very least, and have your applications for your tax number and bank account submitted by at the latest second week in November. Any time after that would be very risky.
The 500K and 350K Golden Visa Options.
The country offers several investment routes, being one of them the €350K GV application, which saw a brimming growth in 2020, as applicants became aware of the highly competitive market that Portugal, specifically Lisbon, has turned into. For the hardened investor, Lisbon is one of the best real estate investments in Europe at the moment.
It becomes important to mention that, with the increase of international demand and due to the changes to the programme, the 350 option is undergoing a shortage of supply, meaning that properties eligible for this option in premium areas like Lisbon or Porto are getting less and less - these are cities that offer huge recapitalisation and profitability to those who invest here. Our advice is to stretch to the €500K option as it will give you a much better investment in Lisbon, but the truth is that with the market being the way it is now, any real estate investment in Lisbon is always going to make a good return on investment over the next five to ten years. The time is now to benefit from the full options of investment in the most cost-effective way, as there are still eligible properties for investors to select from and find the best investment route before the end of the year.
It’s clear that demand has started to increase as now there’s only a seven-month window to work with. As such, real estate investors who plan to buy properties in Lisbon, Porto, or coastal cities are speeding up. There’s also been a great surge from Hong Kong as investors there felt they may not have enough time to do the transaction because the process of obtaining a Golden Visa will usually involve onboarding, getting a Portuguese bank account and fiscal number, making the investment, gaining pre-approval, followed by a biometric visit and only then the issuing of the Visa itself.
It becomes important to mention that the real estate market in Lisbon has seen a growth of 10 to 15% per year, meaning that the historical centre has gone up at least 50% over the last 6 years and has doubled in some areas. This, all in all, has turned the Portuguese capital into the first choice for residency-by-investment for those wanting to invest in the sunny capital. A motivation for investors to pick this avenue is also the possibility of renting out the house they purchased, and its easy-to-comply requirements. You can learn more about all the requirements for the Portugal Golden Visa here.
What’s more, with Portugal Homes’ After Sales service, overseas investors have the chance to have their real estate investments looked after alongside capable professionals who are ready to offer the proper assistance and able to guarantee both the investment’s safety and a healthy return on investment.
We have created a unique service for our investors through the After Sales Department. Our team will:
If the second week of November is too soon for you in regards to timelines, you can expect to have a lot of good options next year, as well. We will still have touristic projects in central Lisboa and O’Porto, and we’re going to be looking at projects in university towns in and around Portugal; we will also have good investment opportunities in the more remote and Golden Visa 2022 qualified areas where you get more eco-tourism. Learn more about our new and upcoming investment areas here.
Portugal Homes has very experienced and knowledgeable professionals working with some of the most established and reputable developers Portugal has to offer. Our vast experience allows us to guide you through the best investment choices.
Whether you want a holiday home or an investment property, we select the best units for your profile and take care of all the process from start to finish. Even after the sale! Our After Sales services assume the responsibility of furnishing your property at your taste, taking care of the property in your absence, managing the rentals if you wish to rent your property when you’re not in Portugal and so much more!
To learn more about the Portuguese Non-Habitual Resident Program and our After Sales services, please fill the form below.
The overall experience was great from follow up to After Sales. I would like to give special thanks to Mr. Simon, Ms. Francisca and Ms. Mariana.Investor from UAE
Luísa is a very understandable person, she knew exactly what we were looking for and even showed us and gave us more choices to pick from. Very professional advice, hospitality and service.Roshana (Zulfiqar) Mian | Hong Kong
My property advisor, Mathew McGurn, was truly excellent! His knowledge, professionalism and attention to details was much appreciated. He worked hard to not only find a property that fit all my requirements, he negotiated successfully with agents making sure my offer won over other buyers bidding for the same property. In addition, his communication skills, prompt response time and general help with my getting settled in Portugal went above and beyond the normal.Investor from the USA
Dear Sérgio, thank you so much for arranging our 1º Esquerdo place. We love our place, and your attention to detail is very much appreciated.Tim Thronson - Investor from the USA
A full service, one stop opportunity. Very easy for us a foreigners. Ryan Dunn went above and beyond for us. We appreciate him and his work!Jose Arias - Investor from the USA
Everyone I met with and spoke with has been extremely knowledgeable and professional. Dealing with native English speakers who understand things from my perspective was very reassuring. Finally, knowing that I had Matthew in my corner gave me the confidence to proceed with the process of buying an apartment in Lisbon. Thanks very much.Investor from the USA