How to apply for Golden Visa Portugal

In this article, we’ll explain how the program works and how to apply for the golden visa Portugal.

If you’re looking for a way to invest in Portugal and get a residency at the same time, then you may be interested in the Portugal Golden Visa program.

The process of applying for a Portugal Golden Visa is a simple one. Nevertheless, it typically takes just over half a year if everything goes as planned.

It is advised to work with an immigration attorney if you are thinking about applying for the Portugal Golden Visa.

Getting legal assistance will ensure your investment pays off and that you receive your visa as soon as possible.

Why people want to move to Portugal

In recent years, Portugal has become increasingly popular as a destination for people looking to relocate.

And it’s no wonder why – the country boasts warm weather, a low cost of living, and according to the Global peace index, Portugal is the sixth safest country in the world.

For many people, the appeal of Portugal lies in its climate. The country enjoys temperate weather year-round.

This makes it a great choice for those looking to escape the cold winters of Northern Europe or North America.

In addition to its pleasant weather, Portugal is also relatively affordable compared to other Western European countries. Expenses such as food, transportation, and housing are all relatively low when compared to places like London or Paris.

This makes Portugal an attractive option for retirees or any person trying to get a high-quality life offshore.

The requirements: What you need in order to apply

Portugal offers multiple investment options you can take to be eligible to obtain the Portugal golden visa.

But, if you have decided to invest in real estate, then you want to choose an approved property for Portugal’s golden visa purposes.

You can use it as your home, rent it out, or use it as a vacation home. Most of these properties have a guaranteed rental income.

They will also reap the benefits when the home’s value increases over time.

You must know the requirements to invest in real estate to obtain the Portugal golden visa.

The real estate investment amounts are as follows:

500,000 EUR for residential or commercial property in high-density areas.
400,000 EUR for residential or commercial property in low-density areas.
350,000 EUR for residential or commercial property for a renovation that is older than 30 years and located in a high-density urban rehabilitation area.
280,000 EUR for residential or commercial property for a renovation that is older than 30 years and located in a low-density rehabilitation area.

You must be aware there are location restrictions due to the changes of January 2022. Residential properties in Porto, Lisbon, or coastal towns on mainland Portugal are not eligible for the golden visa.

However, commercial properties, such as hotels, are eligible. So, if you want to live in larger cities, investing in hotels may unlock new areas for you.

Documents required for application

Along with the Portugal golden visa application, you will need to submit the following documents:

Passport or valid identification document
Proof of legal entry into Portugal
Proof of health insurance
Criminal record certificate from country of origin or residence
Evidence of compliance with tax and social security obligations
Receipt of payment of the Portugal golden visa investment and fees.

In addition, you must commit to maintaining your investment for a minimum of five years. You might need to provide evidence of your investment, such as:

Bank statement for financial investment
Employment contracts (only for business investment option)
Deeds of purchase for real estate investment

The process: How to apply for golden visa Portugal

If you decide to work with an immigration consultancy, they will organize your pre-registration appointment and complete it for you through the Portuguese Immigration and Borders Services (SEF).

The processing time for a Portugal golden visa will take several months.

Once your golden visa has been processed, the SEF will contact you (or your legal representatives) to set up an appointment.

Learn more about the Portugal golden visa application process.

What you get from having a Portugal golden visa

While there are outstanding lifestyle benefits, there are also great professional and financial rewards when you get the Portugal golden visa.

To name a few:

Fast-tracked path to EU citizenship: After five years of maintaining your investment and meeting the minimum stay in the country, you will be eligible to apply for Portuguese citizenship.
Visa-free travel in the Schengen area: You’ll get to take advantage of visa-free travel. This means you don’t have to go through border control or checks when crossing into member countries.
Family reunification: You can bring your immediate family members with you. They will also obtain a Portuguese residence permit and can take advantage of the same benefits as you.
Favorable tax rates: If you choose to relocate to Portugal full-time, you can be exempted from income tax for ten years with the Non-habitual residency program.
Minimal time required in Portugal: To keep your residency permit valid, you must spend at least seven days every year in Portugal.

The drawbacks: What to be aware of before applying

There are guidelines set that you must fulfill to be eligible for a golden visa. The requirements include:

You have to be above 18 years old.
Make a significant investment in Portugal. See the Portugal golden visa investment options here.
You must not have any history of criminal records.
You must commit to maintaining the investment for at least five years.

Learn more about the Portugal golden visa requirements.

We’ve gone through how to apply for the golden visa Portugal.This residency program is an excellent way to obtain residency in Portugal.

The process is relatively simple and straightforward, and the requirements are not overly onerous.

If you are looking for a way to live and work in Portugal, the Golden Visa may be the perfect solution for you.

Portugal golden visa application process

This article will outline the Portugal golden visa application process and what you’ll need to do to get a golden visa.

Portugal’s golden visa program is one of Europe’s most popular residency-by-investment programs. The program offers investors a fast track to Portuguese residency and citizenship.

Obtaining a Portugal Golden Visa is a straightforward process. Even so, it takes a little more than six months to complete the process if you do all the work yourself.

It’s advisable to work with an immigration lawyer to assist you with obtaining a Portugal Golden Visa, so you can be sure that your application is submitted.

Working with an immigration attorney will ensure that your investment pays off, as it’ll put in a visa application faster.

What is the Portugal golden visa program?

The Portugal Golden Visa program offers a quick and easy way for non-EU citizens to get residency in Portugal.

To qualify, applicants must make at least €280,000 investment in real estate. Once granted residency, holders can live and work in Portugal and travel throughout the Schengen Area.

The program has been popular with Chinese and South African investors, who have made up the majority of applicants in recent years.

Basic requirements

The Portugal golden visa program needs you to fulfill particular requirements, which include:

You must be 18 years or older
Invest in Portugal. See the Portugal golden visa investment opportunities listed here.
You must not have any criminal history.
Not have EU or Swiss citizenship.

The application process

Step 1: Decide on your investment

When deciding between the Portugal Golden Visa, you first need to decide what investment you want to make.

If you wish to buy qualifying real estate, this can delay your visa process as you may need to search for the property.

Step 2: Open a Portuguese Bank account & get a NIF number

After deciding on the investment that you intend to make, you must open a Portuguese bank account and get a Portuguese tax identification number (NIF).

You must get your NIF number from Portugal by visiting and submitting proof of your address from your own country.

But, if you use an immigration consultancy and give them power of attorney, they will get the NIF number and open the account for you.

Step 3: Make your investment

Before starting your investment project, you’ve got to underwrite your account with funds from abroad.

The money will need to come from your Portuguese account, which your immigration consultancy helps you set up with your outside capital.

Step 4: Submit visa application & documents

Once your investment is finalized, you can submit your application for the Golden Visa to Portugal. If working with a Portugal golden visa lawyer, they will handle this.

You’ll need to submit the following documents:

Passport or valid identification document
Proof of legal entry into Portugal
Proof of health insurance
Criminal record certificate from country of origin or residence
Evidence of compliance with tax and social security obligations
Portugal golden visa investment receipt
Receipt of payment of the application fees

You should remember that these documents must be translated into Portuguese and legalized with an apostille if they do not originate from Portugal.

Step 5: Attend SEF appointment

When you submit your application, you (or your immigration consultancy) will schedule a SEF appointment.

At the SEF appointment, they will take your fingerprints.

This indicates your application is complete, and you’ll receive your permit cards.

Step 6: Collect your Portugal golden visa & residence permits

After the SEF biometrics appointment, it will take about four months to receive your residence cards. If a Portuguese immigration lawyer is helping you, you’ll receive your cards at home.

These initial permits are valid for two years and can be renewed before you can apply for a lifetime permit.

Tips for a successful application

If you want your application to be successful, one of the most critical aspects that will make or break your application is criminal records.

It’s unlikely that the Portuguese government will reject your application for any other document. Another tip is to ensure you have all the required documents, including a valid passport, clean criminal records, evidence of compliance with tax and social security obligations, etc.

Only complete or accurate applications are accepted. So double-check everything before you submit it!

Once your application is approved, you will receive a visa to live and work in Portugal for up to five years.

After that, you can apply for Portuguese citizenship. Are you interested in moving to Portugal? The Golden Visa program may be right for you.

Contact us via email or schedule a free consultation call and talk to our immigration consultants to start the application process.

Portugal golden visa properties for sale

Digital nomads, entrepreneurs, investors, and high-net-worth individuals are part of the list of applicants investing in the Portugal golden visa scheme and getting a residence permit.

While there are many ways to secure Portuguese residency, purchasing a property in Portugal is the most popular route to secure residence permits for yourself and your family.

In this post, you’ll comprehend how working with a Portuguese immigration consultancy specializing in the real estate investment route can give you a huge advantage.

Portugal’s high quality of life, perfect climate, and tax incentive schemes make Portuguese residency by investment an attractive option for foreign investors.

As a result, many immigration consultancies offer all the investment routes and assist you to choose the best suited for you.

However, we only offer the real estate investment option at Golden Port visa, which allows us to work with the best project developers in the country to assist you to find your dream apartment, rental home, condo, or hotel, you name it.

Finding the right area is not the same as finding the perfect apartment or rental home. Our Lisbon-based brokers know the local real estate market and have their pulse on new listings.

We offer you more listings with exclusive deals than those that are easily uncovered by internet searches.

The process of purchasing a property is already complex, you don’t have to spend all day on your computer looking for Portugal golden visa properties for sale.

A helping hand in a foreign country makes it easier for you to accomplish your goals.

The chances of a better offer, a faster sale, guaranteed rental income, and experience of the whole investment process are major benefits you can get if you work with a consultancy.

But that’s just the tip of the iceberg.

An immigration consultancy in real estate also serves you as an advisor, preparing you for every move in a competitive and often unpredictable rules of the investment program.

All of this is second nature for us.

If you plan to apply for the Portugal golden visa via real estate investment, it’s important that you work with the correct immigration consultancy who knows the local area and law.

Contact us via email or schedule a free call to learn more about the Portugal golden visa investment, or read the Portugal golden visa guide to know more about the program.

FAQs - Portugal golden visa properties for sale

What Portugal golden visa are for sale?

Villas, houses, apartments, duplexes, and hotels, there are many property types on the market.

Why invest in property for the Portugal golden visa?

Aside from Portugal’s stable real estate market, the thriving tourism industry in Portugal means you can potentially acquire a good return rate on your investment if you let out your property.

Can you buy a Portuguese passport if you buy a property?

No. You’ll first be granted a temporary residence for yourself and your family. With the renewal of your golden visa permit in the fifth year, you’ll be eligible to apply for Portuguese citizenship.

Portugal US tax treaty: Tax treatment for Americans

Wondering how the Portugal US tax treaty can help you with taxes as an American citizen?

It’s time to do an explanation of the tax benefits in Portugal and how you can stop taxes slowing your efforts to scale your businesses.

Give it a full read to this article of Portugal US tax treaty if you’re an American citizen, you will learn how the tax incentives of Portugal can benefit you and your business.

Many Americans across the globe have foreign assets, accounts, investments, and income generated in Portugal.

However, some Americans are still subject to US tax on Portugal-sourced income unless you claim a treaty position under the Portugal US tax treaty.

The US and Portugal entered into a tax treaty back in 1994.

By claiming tax treaty benefits, as a resident of one of the contracting states, you’ll be able to limit certain taxes.

The agreement between the US and Portugal covers the corporate income tax, personal income tax, and local surtax in the case of Portugal.

The US Portugal tax treaty aims to ensure proper tax treatment of money earned by US citizens, Portuguese citizens, and residents of each other’s countries.

We’ll walk you through some basics examples to understand how the tax rules work.

Why invest in Portugal?

Portugal is an attractive country for foreign investors. As tourism generates quite generous profits, many people choose to buy a property in Portugal and get residency in return.

The simplified process of getting Portuguese residency, the multiple real estate projects, the advantageous taxation system, and the stable and solid business climate represent some of the benefits Portugal offers to those who decide to invest in the country.

What is the Portugal US Tax Treaty?

The Portugal US tax treaty is an agreement between the two countries that regulates taxation for individuals and businesses. The treaty was first signed in 1994 and has been updated several times since then.

Its purpose is to prevent double taxation of income and to encourage cross-border trade and investment.

How Does the Treaty Work?

Under the treaty, US citizens living in Portugal are subject to Portuguese tax laws on their worldwide income.

However, you are also entitled to certain tax credits and exemptions that can help reduce your tax liability.

For example, US citizens living in Portugal can claim a foreign tax credit on their US tax return for taxes paid to the Portuguese government.

Similarly, Portuguese citizens living in the US are subject to US tax laws on their worldwide income.

However, they are also entitled to certain tax credits and exemptions to help reduce their tax liability.

Tax Treaty for individuals

When it comes to businesses, the tax rules get more complicated.

Taxes vary depending on whether or not the company has a permanent establishment in the other country. For that reason, we’ll explain how the tax rules work for individuals.

Real estate taxes

As a foreign investor or a resident, if you own a rental property in Portugal, you must pay tax on the income derived from it.

The rental income taxation in Portugal has different categories, but the Portugal US tax treaty would prevent this double taxation on your rental income.

Read more about rental income tax in Portugal here.

Business profits

This will apply if you choose to apply for your Portugal golden visa with the job creation route.

According the Article 7 of the US Portugal tax treaty, “the business profits of a company shall be taxable only in that State unless the company carries on or has carried on business in another State.”

For example: If a company operates only in Portugal, it will not be taxed in the United States. Even if the business is conducted in the United States.

If there is no permanent establishment in the United States, the profits are generally still not taxable in the US.

If a Portuguese company operates through a permanent establishment in the US, naturally the portion attributed to that permanent establishment may be taxable.

Dividends tax in Portugal

The portion of the Portugal US tax treaty on the issue of dividends is complicated.

To put it in simple words: If a Portuguese company pays dividends to a resident of the United States, the US can tax that income.

Portugal may also tax the dividend, but if the beneficial owner of the dividend resides in the other state (US), the tax Portugal charges should not exceed 15% of the gross amount of the dividends.

Capital gains in Portugal and USA

When it comes to capital gains in Portugal and the US, it may be taxed in both countries. The taxation includes: gains made on real estate, stocks, participation, or other rights in a company.

Self-employment income tax

Lastly we got the income derived by a resident of one country for personal services is only taxable in that country. There might be some exclusions and limitations that apply though.

Conclusion

If you’re a US citizen living in Portugal, it’s important to understand the Portugal US tax treaty and how it affects your tax liability.

By taking advantage of the treaty’s provisions, you can avoid double taxation and ensure that you’re paying the right amount of taxes in each country.

At Golden Port Visa, we specialize in assistance with residency and property investments in Portugal. We’ve helped clients worldwide find the ideal property providing local insights and finding the best investment opportunities in real estate.

FAQ - What does the Portugal US tax treaty cover?

Are pension funds taxable in the US?

Pension tax law is complicated. Due to the distinction between contributions, growth and distributions. Pensions earned by a resident of one country in consideration of past employment shall be taxable in that country.

Is there a tax treaty with Portugal?

Yes, there is a tax treaty between Portugal and the USA. The US Portugal tax treaty aims to ensure proper tax treatment of money earned by US citizens, Portuguese citizens, and residents of each other’s countries.

Do I report interest income or dividends from Portugal?

The taxation rules for interest follow the same general rule as dividends.

For example, if a person from Portugal resides in the USA, the United States can tax them on their interest income.

Likewise, if the company paying the interest is a Portuguese company, then Portugal can also tax them, but the interest is limited to 10%.

Do I have to pay taxes in both countries if I get dual citizenship?

The answer to this question all depends on how much time you’ll spend in Portugal every year and the rules in your current country of citizenship.

If you spend less than 183 days in Portugal each year and don’t consider Portugal your country of residence, then you’re considered a non-tax resident.

You won’t pay tax in Portugal on your worldwide income, but you’ll pay tax on any Portuguese-sourced income (if any).

Comporta Real Estate

Comporta is part of the interior areas of Portugal, set within stunning natural surroundings boasting 50 Km of beach, peace, privacy, and security, making Comporta Portugal real estate one of the most sought-after.

The large neighborhood of Comporta, which consists of Muda and Melides is turning into one of the most dynamic real estate markets in Portugal and southern Europe.

Comporta’s success is due to the attractive, high-quality, existing constructions set within a spectacular and safe environment.

When investors search for Comporta real estate for sale, they include Troia at the peninsula’s tip down to Melides.

Comporta consists of Brejos da Carregueira, Carvalhal, Carrasqueira, Torre, and Muda, which is a little different inland.

Comporta boasts a coastline stretching 50 Km and expands into nature, reaching the towns of Grandola and Alcader do Sal.

Comporta Real Estate

Foreign nationals are the largest buyers in Comporta, including French, Belgian, British, and Americans. Buyers are purchasing near beach houses, country estates, and smaller homes in the village.

Though it looks like a beachside place suitable for short holidays, Comporta has a real estate scene that can get you the best returns. It has multiple boutique hotels, rental homes, restaurants, and countless visiting spots to enjoy some of the stunning views of nature.

Most of the Comporta beach houses for sale are typical homes that need renovation. You’ll also find several building plots for new homes with views of the ocean, and as you move to the countryside, you’ll find more private estates.

Why buy a property in Comporta?

Many factors make Comporta an ideal place for your real estate investment. Here’s a brief of all of those:

– Popular tourist destination

Comporta is on the beachside, so it is an ideal location for tourists. People from all around Europe consider Comporta as a runaway location for vacations.

In Comporta, the four months from June to September are flooded with rich and elite crowds from the country.

Therefore, if you have a rental home in Comporta, it can be a goldmine for you in the season.

– Diversity of properties

The properties in Comporta are more affordable than those in Lisbon and other major cities.

Other than that, you can choose from various types of houses, such as villas with lagoons, beach houses, or small houses in the village.

Route to citizenship

Portugal’s Golden Visa program is making it easier than ever for investors to take advantage of the advantages of living in Europe.

Portugal Golden visa program permits qualified applicants to buy qualifying real estate and get residency in Portugal.

It also allows you to travel visa-free inside the European Schengen area and makes you eligible for citizenship after five years.

Comporta is among the low-density areas in Portugal. You can benefit from Portugal Golden Visa 280,000 real estate option.

How long does it take to buy property in Comporta?

Buying a property in Comporta may take around three to four months easily. Most of the time is spent looking for the property.

Rest can be easily taken by other aspects like mortgage planning, paperwork, and more.

If you’re interested in the process, learn more about buying a property in Portugal here.

Alentejo Portugal Real Estate: What are the best areas?

Alentejo is one of the true gems of Portugal set with tranquility, golden plains, green hillside, affordable cost of living, and slow pace of life, making the Alentejo Portugal real estate one of the most sought-after markets by investors.

Famous for its cork oaks and olive oil, real estate in Alentejo Portugal is an excellent option if you want an authentic Portuguese experience and a peaceful lifestyle.

If you want to live in Portugal, the Alentejo is an excellent option, providing you with a largely undiscovered part of the country.

Buying a house in Alentejo, like anywhere in Portugal, is perfectly possible for foreigners, and there are no restrictions for you.

To buy a property in Portugal, you’ll need to obtain a Portuguese NIF number (tax identification number) and open a bank account to avoid transaction costs.

Learn more about the process of buying a property in Portugal here.

Alentejo Portugal real estate: What is it like?

When buying property in Alentejo, you can find many properties at very affordable rates. In 2020, the average asking price for property in Alentejo was €1,488/m2.

Portugal is renowned for its affordability compared to other European countries.

The Alentejo is considered very inexpensive in Portugal, meaning you can find exceptional properties at very good prices.

However, some properties on the Alentejo coast can be expensive, such as Comporta and Melides.

Luxury properties will come with a much higher price tag, although they should still be reasonable compared to neighboring countries’ real estate markets.

Many areas in Alentejo remain eligible for the Portugal Golden Visa after the changes that came in early 2022 – this means if you’re looking to invest in residential real estate, then you can only do so in areas considered interior areas.

Where to buy property in Alentejo?

From excellent beaches to rolling hills, the Alentejo has ample options for any type of buyer.

Here are some places we recommend looking at:

Évora

The best place to start is with the capital of Alentejo. Évora is just two hours east of Lisbon and a little over two hours from the Spanish border.

Buying a house here means you are still very close to the capital and can enjoy the advantages while living a quiet life in the countryside, allowing you to experience the best of both worlds.

Comporta

Buying a property in Comporta is synonymous with luxury living (as with Tróia close by). Here, you can enjoy sun-kissed beaches in a relaxed resort. It’s the perfect mix of luxury, nature, and simplicity.

What should I consider when buying a house in Altenjo?

Paperwork

One of the most important things to consider when buying a house in Alentejo is paperwork.

It is important to have everything in order when purchasing a property and do your due diligence so that you are fully aware of the property that you are buying and have all the documents required when purchasing the property.

Neighborhood

When looking into your property’s neighborhood, make sure to properly check out the area.

What age group tends to live there? Is it a good area to retire to? Are there good areas for your children to play or for you to head out into the countryside for a nice walk?

We recommend looking at the neighborhood or asking your local team what’s life like before starting the purchasing process.

Buy Property in Portugal and get residency

Not many years ago, if you wanted to move to another country, you needed to have a specific skill set, a job offer, or a spouse from that country, but that’s not the case these days, many countries have what is known as a golden visa program, and we’ll give you the step-by-step roadmap to buy property in Portugal and get residency.

Many people find the option to buy property in Portugal to support their application more attractive than the other investment options because they’re investing their money in a tangible asset that they can hold onto, rent out, get to enjoy, or one day, resell.

When you apply for and get a residency in Portugal as part of the golden visa program, you don’t get citizenship automatically. Still, you get permanent residency and can eventually apply to become a Portuguese citizen.

The Portuguese residency by investment program or Portugal golden visa has gained immense popularity due to the attractiveness of Portugal’s real estate market and partly because of the flexible stay requirements to maintain your residence status.

How to buy property in Portugal and get residency?

To buy property in Portugal and obtain residency and eventually citizenship, you’ll need to follow this step-by-step roadmap we’ve prepared.

Before we dive into it, you should know that if you were looking to buy a residential property in Lisbon, Porto, and the Algarve, that might not be possible – as the new rules for real estate only allow investors to purchase commercial properties in these high-density areas.

Getting your Portuguese golden visa through real estate investment is still possible. There are many areas nearby these larger cities you can choose from.

Now that you are aware of these geographical restrictions, these are the steps you need to follow to buy property in Portugal and get residency.

Getting a property in Portugal allows you to acquire a Portuguese residence permit, as long as you stay in the country for a minimum of seven days within the first year and fourteen days in the following years.

Buying property in Portugal as a foreigner can be stressful and confusing. That’s why it’s essential to consult local experts in real estate and legal to save your time and money.

How long do I have to keep the property?

If you choose to buy property in Portugal to support your golden visa application, you won’t simply be able to sell it when you choose. If you plan to go through the whole process and eventually apply for citizenship, you’ll need to keep the property for at least five years.

However, you have the flexibility to spend a short time in the country to maintain your residence status, and you can rent out your property and earn money while you wait for your citizenship.

Learn more about the Non-Habitual residence tax scheme in Portugal.

What is required to buy property in Portugal?

You must have a notary witness for signing the sales contract and your Portuguese tax number from a local tax office. Learn more about Portugal’s golden visa requirements here.

Here’s a list of documents that you’ll need when buying property in Portugal:

Photo ID
Property’s energy certificate
Stamp
Land register

If you choose to go with residential property, there are many other regions, such as the Alentejo area, Évora, and Comporta.

Most larger cities and beach towns in Portugal have all the amenities and infrastructure you’d find in any other developed part of the world.

Golden Port Visa has been helping families and investors to make Portugal their new home. We specialize in the Portuguese residency by real estate investment program.

Best beach towns in Portugal to live

When you hear about Portugal, you will usually think of the popular cities such as Lisbon and Porto but also the beautiful coastal towns with beautiful views and beaches. There are plenty of places when choosing a beach town in Portugal and in this article, we’ll show you some of the best beach towns you could invest in.

Most beach towns are concentrated either around Lisbon or the region of the Algarve, but don’t let that limit you in your exploratory efforts.

These seaside destinations will leave you speechless while satisfying any thirst for the sea and sand.

Without any further ado – let’s begin…

Comporta

Comporta is a charming beach town about an hour’s drive south of Lisbon. Situated on the Alentejo coast, Comporta is blessed with long stretches of empty beach backed by dunes, pine forests and rice paddies.

Comporta is a hideout for celebrities, artists, architects, and those searching for one of the best hideouts in Europe. If you have an online business, Comporta is the ideal place to work remotely and enjoy a sophisticated and private lifestyle!

Vila Nova de Milfontes

The largest beach town on the Alentejo Coast, Vila Nova de Milfontes features an exceptional combination of beaches, history and nightlife. There are several secluded spots along the coast where you can go for a quieter living.

The population of Vila Nova de Milfontes swells as high as 50,000 in summer, if you’re looking for a festive beach atmosphere while also having quiet spots to unwind, then Vila Nova de Milfontes is your go to.

Lagos

The beautiful Algarve region in southern Portugal ends in red and yellow cliffs, sea caves, and rocky outcrops on golden beaches. Lagos is one of the most interesting of these towns and is located right beside some of the most beautiful beaches in the world.

Lagos has a lively nightlife, it’s a beach town that offers something for every kind of traveler, but it’s best for families because it’s away from the younger and overcrowded places.

The Algarve region is considered a high-density interior area, meaning the only properties available here are commercial. If you’re looking to invest in commercial properties for the Portugal golden visa then Lagos it’s your best bet!

If a seaside town isn’t necessarily on your list, don’t let that limit your efforts. At Golden Port Visa we’re going to help you find the perfect property that fits your lifestyle.

We have an exclusive portfolio where you’ll find the best properties that no other immigration consultancy has.

What you need to know about Portugal property rental income

Portugal has attracted foreign investors worldwide to invest in the Portuguese real estate market. Investors are guaranteed favorable rental property income, which has raised the profile of Portugal as an investment destination and a beautiful home to many.

The real estate market has attracted investors for the construction and purchase of properties. And as the world falls in love with Portugal, this has generated many hotels to cater to the millions of tourists in the country – this is the best time to invest in Portugal!

But every investor in Portugal needs to be aware of what is expected of them regarding tax obligations. This article will cover everything about the Portugal Golden visa rental income.

What taxes should I be aware of?

When purchasing a property in Portugal, you should be aware of two important taxes:

Property acquisition tax (IMT): It can range between 6% and 8%, depending on what kind of property you buy, where in Portugal is located and at what stage the of its construction is when you buy it.
Annual property tax (IMI): It can go between 100 to 500 EUR, also depending on similar factors as the IMT.

You’ll also have to pay stamp duty. This is calculated at 0.8% of the price of the property you’re investing in.

The land registry fees are valued at €1,000 and negotiate lawyer’s fees.

Learn more about buying a property in Portugal here.

Rental income tax in Portugal

As a foreign investor or a resident, if you own a rental property in Portugal, you must pay tax on the income derived from it.

Rental income tax in Portugal has different categories; if you searched for this, you might have seen it is a bit complex.

Here’s a simple overview of the categories in rental income in Portugal:

Individual not resident in Portugal

Rental of a Portuguese building

If you’re a natural person not resident in Portugal and you’re renting under a furnished or unfurnished rental contract, the tax rate is 25%.

This is based on the rent you’ll receive, from which are deducted the property tax and the maintenance costs of the building.

Furnished tourist accommodation for rent in Portugal

You’ll be subject to VAT if your turnover is over €10,000.

However, it is advisable to consult a competent accountant as it is quite possible to adopt a simplified income tax if your turnover from seasonal rents doesn’t exceed €200,000 per year.

A non-Portuguese resident will be taxed here at 25% for a tax base of 35% of the turnover. This amounts to an overall tax of approximately 8.75% of your turnover.

Individual resident in Portugal

Taxes on income from a Portuguese property

If you’re a Portuguese resident and decide to rent out one of your properties in Portugal. Whether furnished or not, you’ll be taxed at 28%.

The basis of taxation is the rents received, net maintenance costs, and property tax.

Rental of furnished apartments for tourists

You’ll be subject to VAT if your turnover exceeds €10,000

Taxation on this type of rental of real estate in Portugal by a resident is between 14.5% and 48% on the basis of 35% of turnover.

Legal person resident in Portugal

Taxes on property rental income in Portugal

Whether the property is rented, furnished, or not, the tax rate is 21% plus a possible municipal tax of up to 1.5%.

Taxation is based on the net accounting result, with the possibility of deducting interest and depreciation.

Rental of furnished apartments for tourists

If you buy an apartment in Portugal on behalf of a company to rent it to tourists, this activity will subject you to VAT at the rate of 6%.

The tax rate is 21% (excluding municipal tax) and the tax base, if the simplified scheme is opted for, is 4% of turnover for a hotel activity.

Non-Habitual Tax Residents Portugal

The Non-habitual tax scheme (NHR) registers foreigners who are residents in Portugal. This registration ensures that double taxation on income earned from other countries doesn’t occur.

If you’re a high net worth person, retiree, or successful entrepreneur with income from other countries, you can benefit from the NHR.

Here’s a list of the benefits granted from registering in the NHR tax scheme in Portugal:

Tax exemption on all foreign earned income
You don’t pay wealth tax
You won’t pay inheritance tax
Subsidized rate for all income earned in Portugal (you’ll pay 20% tax for 10 years on all your income earned in the country)

When you earn your income in Portugal, you’re to pay income tax. Depending on whether you’re a tax resident or not, you’ll still pay taxes. The only difference is the rate at which residents and non-residents pay.

Americans Moving to Portugal: What you Should Know

Americans are moving to Portugal, be sure to read this article on the benefits of living in Portugal and how you can get your golden visa.

According to the US State Department, about 10 million Americans left the country temporarily or permanently in 2020. That’s more than twice the number of people who moved overseas two years ago.

Life in Portugal

The idea of moving to Portugal may seem daunting to you. And you probably are thinking, what’s life like in Portugal anyways?

The minute you set foot in Portugal, you can see why it’s so popular among expats.

Who doesn’t love the mild climate, wide beaches, golf courses, and natural beauty throughout the country? Its cities and towns look like fairytale-like villages, timeless cities with rich history and culture.

And, of course, the genuinely friendly spirit of the Portuguese makes it such a natural choice for anyone moving to Portugal.

Americans moving to Portugal have many advantages: a warm climate, stunning landscapes, the ocean on your doorstep, and a relatively low cost of living.

The country has a low crime rate, good education and healthcare, and there are significant tax advantages for residents.

Although the Portuguese generally speak good English, it is worth knowing some basics if you are committed to spending more time in the country.

How to move to Portugal From the USA

You should know certain things about living in Portugal as an American. To stay and live in the country, you’ll need to have a Portuguese resident permit.

This can be obtained if you work in the country, enroll in a long-term course of studies, marry a Portuguese citizen or invest in Portugal’s economy via the Portugal Golden Visa Program.

We’ll give you all the information about this program, the visa process, and the best investment option.

The Portugal Visa Process

You’ll need a visa to establish your residence as an American citizen. Some of the best common visa options include:

Golden Visa
D7 Visa
Schengen Visa (these are short-term, tourist visas required from some countries)

At Golden Port Visa, we specialize in the Portugal Golden Visa, a residency-by-investment scheme via Golden Visa open to non-EU nationals.

Introduced in 2012, the program offers different investment routes to investors including:

Purchase residential real estate in designated interior areas of Portugal worth at least €500,000 or €350,000. If you invest in a rehabilitation project and the project is based in a low-density area, then a 20% discount will apply to your investment.
Buy commercial real estate anywhere in the country worth at least €500,000 or €350,000. If you invest in a rehabilitation project is located in a low-density area, you’ll get a 20% discount.
Make a capital transfer of at least €1.5 million.
Make a contribution to scientific or technological research worth at least €500,000.
Support the arts or reconstruction of national heritage with a donation of at least €250,000.
Company incorporation and creating ten jobs, amounting to a minimum value of €500,000.

Benefits of the Portugal Golden Visa

The Portugal Golden Visa is granted based on an investment in Portugal. The residency by real estate investment has been popular with investors who wish to Buy Property in Portugal in 2022 – the program’s benefits include:

The right to family reunification
Visa-free travel through the Schengen Area
Permission to live, work and study in Portugal, as long as you spend at least one week in-country during the first year and two weeks in the following years.
After five years, you have the right to apply for permanent residence and citizenship.

Timeline Application Process

The time it takes to process and issue new GV applications will depend on how busy the immigration offices are.

Though you could expect a backlog of between 4 to 12 months, if you plan to apply for the Portugal Golden Visa – we advise starting now.

This is the application process in an overview:

Portugal golden visa timeline

Month 1-3

Application starts here

Get a NIF number,open a bank account € make your investment

Month 10th

Get your golden visa

You and your family get a two years valid care after submitting your fingerprints

Year 2

Renew your residence permit

In these two years,you must have spent 14 days in portugal to renew your card

Year 4

2nd renew or residence permit

With each renewal your residence permit will be extended for anothwer 2 years

Year 5

Apply for citizenship

At the end of the fifth year,you can apply for Portuguese citizenship or permanent residency

How to find the right property in Portugal

Going alone can be hard, especially if you don’t speak the language and you don’t have a trusted partner in Portugal.

Relocating is not an easy DIY project to go through. At Golden Port Visa, we assist you with all the legal paperwork, looking for your ideal property, and most importantly, we help you beat the local bureaucracy.

Learn more about the entire property-buying process in Portugal in our article, buying properties in Portugal.

Education in Portugal

Portugal’s population is well educated, and one in three Portuguese people speaks English. The number is higher among younger generations, especially those under 25, because English is widely taught in both public and private schools in Portugal.

As mentioned earlier, the GV applications might get delayed due to the high demand. We recommend planning your application since you might want to arrive in Portugal before September, when classes start in the middle of this month.

How can Golden Port Visa help you?

You’re about to embark on the most exciting journey – moving to Portugal! Golden Port Visa is here to assist you through the entire process. We are more than an immigration consultancy – we are your trusted Portuguese partner that will help you achieve your relocation goal.

We specialize in assistance with residency and property investment in Portugal. Contact us to schedule a free call or send us an email to know more about the program.

FAQ about Americans moving to Portugal

What is the Portugal Golden Visa?

The Golden Visa Program (GV) is a residency by investment program created by the Portuguese government in October 2012 that grants you a residence permit to live and work in Portugal and circulate freely in 26 European Countries (Schengen Area countries) and the Portuguese Passport (if after the initial 5 years of the investment, you choose to apply for citizenship) allows you to travel to 188 countries without the need for a visa.

Is healthcare in Portugal free?

Public healthcare is free for those under the age of 18 and over the age of 65. For other ages, it’s not entirely free, but it’s relatively cheap.

Is an American driver’s license valid in Portugal?

Yes, you can use a car in Portugal with your American driver’s license.

Is Portugal a safe country?

Yes, it is. Portugal is one of the safest countries in the world. It is always in the Top 10 list of the Annual Global Peace Index released by the Institute for Economics and Peace.

Portugal Golden Visa Specialists

+351 926 293 220‬

+351 926 293 220‬

Moving to Portugal

How to apply for Golden Visa Portugal

Why people want to move to Portugal

The requirements: What you need in order to apply

Documents required for application

The process: How to apply for golden visa Portugal

What you get from having a Portugal golden visa

The drawbacks: What to be aware of before applying

Portugal golden visa application process

Portugal golden visa application process overview:

What is the Portugal golden visa program?

Basic requirements

The application process

Tips for a successful application

Portugal golden visa properties for sale

FAQs - Portugal golden visa properties for sale

Portugal US tax treaty: Tax treatment for Americans

Why invest in Portugal?

What is the Portugal US Tax Treaty?

How Does the Treaty Work?

Tax Treaty for individuals

Real estate taxes

Business profits

Dividends tax in Portugal

Capital gains in Portugal and USA

Self-employment income tax

Conclusion

FAQ - What does the Portugal US tax treaty cover?

Comporta Real Estate

Comporta Real Estate

Why buy a property in Comporta?

Route to citizenship

How long does it take to buy property in Comporta?

Alentejo Portugal Real Estate: What are the best areas?

Alentejo Portugal real estate: What is it like?

Évora

Comporta

What should I consider when buying a house in Altenjo?

Buy Property in Portugal and get residency

Buying property in Portugal overview:

How to buy property in Portugal and get residency?

How long do I have to keep the property?

What is required to buy property in Portugal?

Best beach towns in Portugal to live

Comporta

Vila Nova de Milfontes

Lagos

What you need to know about Portugal property rental income

Breaking down the Portugal property rental income:

What taxes should I be aware of?

Rental income tax in Portugal

Non-Habitual Tax Residents Portugal

Americans Moving to Portugal: What you Should Know

Americans moving to Portugal overview:

Life in Portugal

How to move to Portugal From the USA

The Portugal Visa Process

Benefits of the Portugal Golden Visa

Timeline Application Process

Portugal golden visa timeline

Month 1-3

Application starts here

Month 10th

Get your golden visa

Year 2

Renew your residence permit

Year 4

2nd renew or residence permit

Year 5

Apply for citizenship

How to find the right property in Portugal

Education in Portugal

How can Golden Port Visa help you?

FAQ about Americans moving to Portugal

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