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South Africans seeking a base abroad, visa-free access to Europe and the possibility of dual citizenship are increasingly investing in property in Portugal, says Sable International, specialists in migration, wealth and forex.
The Golden Visa program developed by the Portuguese government, which offers an economically accessible and efficient process, through which citizens from outside the EU can obtain Portuguese residence permits and citizenship through investment in the country, remains very popular and indeed during the 2020 Covid crisis it has shown no signs of abating.
As of mid-2020, more than 8,736 residence permits had been issued since the start of the program, which is equivalent to 14,936 residence permits if the main applicant’s family members were included.
With the visa, applicants and their families can live and work in Portugal, as well as travel visa-free throughout the European Schengen Area. “A key benefit of the program is that applicants do not need to immigrate to Portugal to have the Golden Visa.
They only need to spend (on average) seven days a year in Portugal to meet the residency requirements of the program, ”said Andrew Rissik, director of Sable International.
“It means you can make a solid investment abroad and secure your family’s future without the hassle of relocating to a whole new country.”
The Golden Visa not only allows the holder to live and work in Portugal, but also grants him the right to travel without a visa throughout the European Schengen Area.
This has been especially attractive to executives who want to work within the European Union (EU). Through the Portuguese residency program, South Africans can qualify for permanent residence after five years. Portuguese citizenship (an EU passport) entitles you to live and work in the EU, which currently includes the UK.
Rissik said South Africans are drawn primarily by the prospect of dual residency, visa-free travel in Europe, the option to invest in relatively affordable overseas property, and large tax benefits.
Get the golden ticket
To qualify for the program, applicants must make an investment in the Portuguese economy. “There are some routes available to investors; the most popular are the private equity capital investment of € 350,000 and the purchase of properties with a value of € 500,000 or € 350,000, ”said Rissik.
“Once you have invested, you will be granted a residence permit, which allows you to enter and / or live in Portugal and travel freely within most of the EU countries. Your Golden Visa is valid for an initial period of two years and is renewed for two more years every two years. “
To be eligible for permanent residence or citizenship, applicants must hold their investment along with their visa for a full five-year period. “Applicants will have to spend time in Portugal during the visa period; but it is not extensive and goes from one to two weeks a year, ”said Rissik.
As a resident holder, you must spend a minimum of 35 days in Portugal during this five-year period.
Why Portugal
Rissik said that most South Africans are drawn to a safe lifestyle. It was voted the third safest country in the world in the 2019 Global Peace Index.
“The tax benefits are also compelling: Portugal has one of the most favorable tax regimes in the EU for foreigners seeking to become tax residents. Individuals who are not tax residents only pay taxes at source on income obtained in Portugal.
“However, if you become a tax resident and spend more than 183 days a year in the country, you are exempt from almost all taxes on foreign source income under the so-called NHR tax scheme. There are also no inheritance, gift or estate taxes, ”Rissik said.
Apart from Covid-19, Portugal has a robust economy, he said. Since the global financial crisis, Portugal’s economy between 2008 and 2020 has become one of the fastest growing in Europe. Portugal has had higher than average GDP growth. It has a leading technology center and a strong manufacturing sector.
In the real estate sector, Portugal was ranked as the most popular real estate market in Europe (Bloomberg 2019), with high affordability and one of the lowest house price / income ratios in Europe. Forbes’ named Portugal the most invertible country of 2020 and ‘Knight Frank’ predicted the best price growth in Portugal for 2020-2021 after Covid-19.
Buyer beware
“We are seeing strong acceptance of investments in Portugal even through Covid, but the high demand also means that there are many unscrupulous operators selling properties that are bad investments or that
they don’t really qualify for the Golden Visa, ”Rissik said.
“We have been in Portugal doing properties and visas since 2012, and we have the largest number of South Africans invested there.
“You also have to look at all the options, is this just a Plan B, or are you planning to move and start a business or work there or do you want to retire in Portugal? You may find that a retirement visa is better for your purposes than applying for a Golden Visa. “
Read: These are the ways you can get citizenship in these 7 countries
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