Following the UK’s departure from the EU, Cluttons Portugal have seen a spike in interest from UK citizens looking to take advantage of the country’s popular Golden Visa. The program is only available to non-EU citizens and so it’s only since Brexit that have British buyer have been able to combine a Portugal property investment with a Golden Visa.
Article updated 27 July 2022.
The program grants residence status to non-EU investors who invest from 280,000 Euros in the property market allowing them to live and conduct business in Portugal, and travel freely in the Schengen area.
The residency can be extended to family members including spouse, children, parents and in-laws. Permanent residency and a passport can be applied for after five years.
Changes to the Golden Visa program
Changes to the program are due in January 2022 restricting the locations in which a property purchase will qualify for Changes were made to the program in January 2022 restricting the locations in which a property purchase will qualify for a Golden Visa, with city hubs Lisbon and Porto as well as the Algarve excluded, except for certain properties that are designated for touristic use. However British buyers seeking a Golden Visa should not be put off, Frederico Mendoça, head of Cluttons Portugal advises: “If the reason for your purchase is to secure a Golden Visa, then look to buy in one of the country’s many areas that will not be affected by the changes. There are beautiful, less developed areas of the country such as Alentejo and Alcacer which are stunning and offer as much if not more than Lisbon and Porto and you get much more for your money. For example, 500,000 Euros in the Alentejo will buy you at least 60% more square footage than in Lisbon. Furthermore, it is a lower entry point to secure a Golden Visa in these areas, 350,000 Euros if you buy an old property to refurbish, plus it can be 20% less in areas of low density – so 280,000 Euros.”
Changes and opportunities: Portugal’s Golden Visa for British Buyers
Cluttons’ Changes and opportunities: Portugal’s Golden Visa for British Buyers virtual event took place on 9 March 2022.
Watch Cluttons’ virtual event where we, together with a panel of experts, examined the the Golden Visa program and explained the changes that have been made. We’ll also take a look at qualifying locations offering great lifestyle benefits coupled with potential property price growth.
Buying property without a Golden Visa
A Golden Visa is not a necessity – buyers who are happy to stick to the new 90-day limit on visiting since Brexit can still buy and visit their property within the 90-day limits. The Golden Visa just opens up the opportunities for staying, as well as taking advantage of working, education, healthcare and travel.
It is important to note that the Golden Visa is separate from tax residency, in fact there is an obligation to only stay in Portugal for 7 – 14 days a year.
Buyers looking to relocate more permanently to Portugal will need to consider their tax situation and should investigate the Non-Habitual Residents scheme (NHR) which offers a flat rate of tax on foreign sourced income, including pension, if applicants spend at least half the year in Portugal, another popular program, particularly for retirees.
Disclaimer for information provided in Cluttons Webinars (including pre-recorded Webinars): This disclaimer applies to Cluttons Webinars and any documents, information or options obtained from or ancillary to the Webinars. Please read this disclaimer before accessing, participating in, reading, or making any other use of Cluttons webinars. Cluttons makes no representations or warranties about the accuracy or suitability of information provided in the Webinars and related materials. The information contained in the Webinars and related materials are not intended to constitute advice of any kind or the rendering of consulting, or other professional services. Registering for a Webinar only constitutes an agreement to attend, not a contract of consultancy or advice. Registration does not establish any contractual relationship with Cluttons. The options expressed in a Webinar are those of the authors only and may not represent the views of Cluttons. To the extent permitted by law, Cluttons and its agents and experts exclude any liability for any loss, claim or damage, cost or expense, including any indirect or consequential damages or lost profit, whether arising in negligence or otherwise, suffered in connection with the access to, participation in, or use of the Webinar by you or any other person. By acceding to this service, you acknowledge that the information and materials contained in the Webinar may contain inaccuracies or errors. The content of the information provided in the Webinar is for your general information and use only. It is subject to change at any time and without notice. The Webinar may include links to other resources or websites, These links are provided for your convenience only and do not signify that Cluttons endorses, approves, or makes representation or claim regarding the accuracy copyright compliance, legality, or any other aspects of, the resources or websites.