portugal golden residence permit program by henley & partners portugal
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PortugalResidence-by-Investment Program
Portugal is the westernmost country of mainland Europe, whose colonies, during its long and impressive history, extended across Africa and into Brazil, Persia, Indochina and the Malayan peninsula, helping to create one of the world’s most globalized and peaceful nations. Portugal has produced streamlined legislation to create an efficient process by which non-EU residents may obtain a residence permit based on investment. The legislation offers three qualifying investment routes to obtain resident status under the Golden Residence Permit program, which must be maintained for a minimum period of five years. After six years as a resident, the applicant is eligible for citizenship if desired.
A relatively small country of approximately 11 million people, Portugal is considered very safe and boasts a low crime rate. Portuguese is the main official language, but English is also widely spoken, particularly by younger people and especially in the tourist regions. The country is a member of the Schengen Zone of 26 European States and has been using the Euro as its currency since 2002. While Portugal is shifting towards business services, a third of its economy remains in manufacturing. It is also the world’s largest supplier of cork and enjoys the benefits of a strong tourism industry.
The capital, Lisbon, and its surrounding urban area has a population of 2.8 million, and is the country’s centre of culture, tourism and business. Porto, located further north, is the historic home of port wine and the centre of the more industrialised North of the country. In the south is the beautiful Algarve, the country’s most important tourist region, with one of the country’s three international airports.
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Key Contacts
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Henley & Partners is the global leader in residence and citizenship planning. Our clients are wealthy individuals and families, as well as their advisors worldwide, who rely on our expertise and experience in this specialized area. Our highly qualified professionals work together as one team in over 20 offices around the world.
Andrew Coutts Managing Partner
Luís Infante da Câmara Head of Real Estate Services
Cristina Silva Dias Head of Portugal Residence Program
Henley & Partners Portugal Palácio Alagoas Rua da Escola Politécnica, 183 Bloco A, 1º 1250 -101 Lisboa
Tel: + 351 213 970 977 Fax: + 351 213 970 982
Key Advantages
The residency program requires a total of only 35 days stay in Portugal during the five year period
It is a fast track process
A single process-motivated visit is feasible
The residence permit allows access to the 26 Schengen Area countries
Six years as a resident (including one additional renewal) creates eligibility for citizenship
The transfer of capital with a minimum value of €1 million
The acquisition of real estate with a minimum value of €500,000
The creation of at least 10 new jobs registered with the social security department
A valid passport
Proof of legal entry and permanence in Portuguese territory
Proof of international health insurance valid in Portugal
A signed application enabling consultation of the Portuguese Criminal Record by SEF
A Criminal Record Certificate from the relevant authority of the applicant’s home country or from the country where the applicant has been residing for over a year
Proof of the qualifying investment
A declaration confirming the absence of debts issued by the Portuguese Inland Revenue and Customs Authority and by Social Security (this document is only required where the investment option is the creation of 10 new jobs)
An affidavit signed by the investor that he/she will comply with the minimum quantitative investment requirements
A receipt for the payment of the application fees
Henley & Partners | Portugal Residence-by Investment Program | November 2013Henley & Partners | Portugal Residence-by Investment Program | November 2013
Requirements
The Portuguese Golden Residence Permit Program, which we refer to at Henley & Partners as PRIP – the Portugal Residence-by-Investment Program, is a five year investment-based residence process for non EU nationals. The residence permit allows free circulation in the Schengen Zone of 26 states and only requires an average of seven days per year stay in Portugal over this period, which can also count towards citizenship eligibility after six years. The program qualifying investments are:
The applicant will be required to choose the investment route he intends to follow at the start of the process.
The capital transfer option is a straightforward route and can include investments in stocks and shares. Henley Estates has an excellent real estate offering, whether for lifestyle or investment, with a large geographic, environment and price-point diversity, and many applicants desire to combine the residence permit’s mandatory qualifying stay (an average of seven days per year) with longer visits to Portugal. We will endeavour to match the applicant’s personal objectives with the program’s requirements, aiming for a rapid and seamless process which combines the residence permit procedure and the parallel investment. The application for the Golden Residence Permit must be submitted by the applicant directly or by his legal representative (for which Henley & Partners will provide the necessary Power of Attorney) using the procedure defined by the Portuguese Foreign Border Service (SEF).
Procedures and time frame
The Henley process accompanies the applicant’s needs and fully meets the requirements of Portugal’s Golden Residence Permit regulations. Following an initial contact, we will provide information on Henley & Partners Portugal and an overview of the process to assist the applicant’s assessment, including the terms of our Client Service Agreement (CSA).
We will share data with our Head Office for due diligence processing and request payment of a retainer (linked to the CSA) to put the process in motion. At this stage, the applicant should clarify the chosen qualifying investment option. When this is concluded, the required documentation assembled and financial arrangements completed, the process is formally submitted to the Portuguese authorities.
Finally, the applicant will be asked to visit Portugal for identification at his convenience. Henley will look after these arrangements, as well as provide specialist advice on taxation and schooling matters during the visit. This entire process can often be concluded in less than two months, subject to having complete documentation and the investment option already made.
The applicant may also apply for family reunification which may run at the same time or at a later stage, according to the applicant’s preference. It will be dependent on a successful main application.
The Golden Residence Permit is valid for a period of one year after issue, and renewable for two subsequent periods of two years making a total of five years for the program. There is then an option of another one year extension, and after residence in Portugal for six years, it is possible to apply
for citizenship. This also requires some knowledge (level A2) of the Portuguese language, and a criminal record clean of crimes implying more than three years imprisonment.
Citizenship
Naturalization as a citizen is possible after at least 6 years of legal residence. Portugal allows dual citizenship.
Taxation
Personal taxation for non-residents on Portuguese sourced employment and pension income is charged at a preferential rate of 25%, although interest and rental income, dividends and capital gains are taxed at 28%.
For new residents wanting to stay for longer periods and possibly reside in Portugal, there is a Non-Habitual Residents (NHR) regime which may be more beneficial. Once NHR tax status is obtained, income derived from a Portuguese source through a number of defined, high-value professions will be subject to income tax at a flat rate of 20%, though some surcharges may apply.
Income derived from a foreign source and relating to employment income, pension income and business and professional income can be subject to exemption. Portugal does not apply a wealth tax. There is no tax on gifts or inheritances between parents, children and grandchildren. Henley will start the process by requesting basic applicant
information (identification, address and elementary personal data) for a preliminary check. If these are favourable, an initial retainer fee is required to start the application process. A residency permit application form must be completed and submitted with a full set of qualifying documents, including: