You would have thought that the Covid 19 pandemic would have proved a major blow for holiday home bookings and purchases with travel coming to a standstill. Surprisingly enough demand for bookings and purchases of holiday homes are at an all-time high in many places across the globe.
Asian and African investors have been especially keen on purchasing vacation real estate in Portugal during the pandemic with an eye on taking advantage of the country’s Golden visa program. Our Advisory Service has seen a multifold increase in inquiries regarding investment properties for sale from such customers who had not previously considered owning real estate outside their home countries.
From working with a few dozen customers in the past year, here are my insights as to the top seven reasons you should consider obtaining a Portugal Golden visa:
1. Visa-free travel to the Schengen territories:
A huge plus if your passport does not have great travel benefits. The Portugal Golden visa eliminates the need for months of planning and visa approvals before a trip to one of the 26 Schengen countries. Simply book your tickets, pack your bags and head to the airport!
2. Eligibility for EU citizenship within 5 years:
If you are a Citizen of India, China, Malaysia, Singapore, or any other country that does not allow dual Citizenship, it is understandable that you may be hesitant to give up your primary Citizenship. What the pandemic has taught us though is that having options is always a good idea! While you will be eligible for Portuguese / European Citizenship after 5 years of obtaining a Golden Visa, you can choose to continue to maintain your existing Citizenship and indefinitely renew your Golden Visa for travel. The option to file for Portuguese / European Citizenship will continue to be available to you anytime after you have completed the 5-year requirement if you want to apply for Citizenship in the future.
3. No taxation on worldwide income if residing in Portugal for less than 183 days a year:
Great News! – If you reside in Portugal for less than 183 days a year, you will not owe any taxes on your worldwide income. Simply pay the necessary taxes on any income earned in Portugal.
4. Affordable cost of living:
The cost of living in Portugal is among the lowest in Western Europe – on average 30% lower than in any other country of the region. You and your significant other can live comfortably but modestly in Portugal on a budget of 1,300 Euros per month. A budget of 2,000 Euros per month will let you enjoy an outgoing and fun lifestyle in this beautiful country.
5. Capital appreciation and yields:
Real estate in Portugal is among the most affordable in Europe with prices expected to continue increasing. You will also enjoy favorable property yields and cash flow in a strong currency. As property prices increase with time so should rental rates boosting your cash flow.
6. Amazing beaches:
If you spent the majority of the last year cooped up indoors, Portugal’s beautiful beaches and stunning waters will come as a welcome getaway. Fire up the laptop and get to work while enjoying some of the best weather and most beautiful waters the world has to offer. Portugal’s best beaches are in the south of Lisbon, the southwest coast, and scattered along the Algarve coastline and come equipped with lifeguards during the summer.
7. World class golf:
If you are like me, golf can help you fulfill your competitive urge while helping you hit your weekly exercise goals. Even better if you can throw in a few business meetings while you enjoy the beautifully landscaped greenery. Portugal is one of Europe’s most popular golfing destinations. Its warm, sunny Algarve region alone accounts for more than 40 golf courses, many of them world-famous championship layouts.
If reading this article has sparked your interest in the Portuguese Golden Visa, the time to act is now! The Portuguese government has announced changes to the Golden Visa program beginning January 1, 2022, that will limit the locations where investors can purchase a qualified property. Property purchases in major cities such as Lisbon or Porto or in coastal towns of the mainland will no longer qualify for the Golden Visa and investors will be restricted to investments further inland where the yields and liquidity may not be as appealing.
Want to learn more about the Portugal Golden Visa? You can download our Complete Guide to the Golden Visa here.
If you are interested in learning more and would prefer to speak with someone over the phone, please feel free to book a time to speak with us here.
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