Months after updation of Portugal’s Immigration Service (SEF) platform, accepting applications for a residence permit in the country has been resumed as of June 2022.
The facility hit a snag in January 2022 when the platform had not been updated to reflect the new residence permit program rules; however, the glitch has been removed and now the residence permit program in Portugal is also available to citizens of Russia and Belarus.
The Residence Permit Program in Portugal is operational since 2012 and Return on investment (ROI) is the main advantage here as after 5 years of ownership, any investor has the right to sell the object whereas the prices of real estate are growing at 10 percent every year.
As of January 1, 2022, Portugal has changed the cost of participation in the residence permit program for four options. The authorities increased minimum investment by:
€150,000 – In shares of investment funds, in scientific research and in a new or existing business;
€500,000 – When transferring capital to Portugal, for instance opening a deposit in a local bank .
The minimum transaction amount for the purchase of real estate remained the same but the choice of objects was limited.
What kind of property can be bought under the Portuguese residence permit program?
To obtain a Portuguese residence permit, investors buy residential or commercial real estate; however, the purchase of residential real estate is limited by the new rules of the residence permit program. Under the rules, it has been allowed to buy housing only in Madeira and the Azores and in the interior regions of Portugal, which do not include coastal resort areas and major cities such as Lisbon and Porto.
The interior regions do not include the major cities of Lisbon and Porto, the coastal and resort regions of Portugal.
On the other hand, the purchase of commercial real estate is not limited and investors can purchase properties in any region of the country, including Lisbon, Porto and resort towns such as Cascais. One can invest both in new objects and old commercial real estate for renovation.
How much to Invest for residence Permit?
The residence permit program in Portugal offers two options with the purchase of real estate. Applicants for a residence permit invest:
From €500,000 to objects of the primary or secondary real estate market, under 30 years old and not requiring restoration;
From €350,000 for objects over 30 years old for restoration
You can invest 20% less if you buy an object in a region with a low population density. In this case, objects for restoration should cost from €280,000, the rest – from €400,000.
Areas with low population density are those with fewer than 100 people per square kilometer or where GDP per capita is less than 75% of the national average.
An investor can buy one or more properties in order to fulfill the condition for the minimum transaction amount; however, you can’t combine options. For instance, all objects must be under restoration.
A residence permit in Portugal allows you to live in the country or not live at all except few days a year– and get citizenship after 5 years. Investors with a Portuguese residence permit travel without visas to the Schengen countries optimize taxation and open bank accounts in the European Union without any problems.
