Invest in Portugal
Portugal is often touted as the next sun-seeking and beach destination. However, there is more to Portugal than beach life. The country realizes its full economic potential, offering more investment opportunities to retirees, investors, and expats every day. Foreign investors are starting businesses, attracting more international companies, which are diversifying the economy. Investing in Portugal opens up a world of business opportunities and allows you to live outside the stress of city life. What makes investing in Portugal unique? Investors and individuals can benefit from the newly reformed tax system, which encourages residency by investment in all sectors – the property market, technology, food production, science. We will discuss purchasing property using the Golden Visa program, as well as how to invest in Portuguese companies, shares, and government bonds.
Portugal has a dreamy landscape, a wide coastline, and hospitable people. In a country with a bit of everything, Portugal consistently ranks as one of the best places to live. Besides having some of the best beaches and golf courses in the world, it is one of the safest countries to live in. The weather is wonderful; the food is delicious; the landscapes are beautiful, and there are many historical sites. Even better, the cost of living is very affordable, so you can enjoy a high quality of life.
These characteristics make Portugal a desirable destination for international investors to invest in and get the right to live, work and study there. In Europe, Portugal is one of the more affordable countries to reside in. Compared to Spain, Portugal has a much lower cost of living.
Portugal is still not a major tourist destination like Spain or France, so you can get the same high quality for less money. A large number of tourists visit Portugal each year, which can result in lucrative rental incomes from property investments. Invest in Portugal. It offers the possibility of getting a second passport, which is one of the most popular reasons for investing here. The country has seen strong economic growth for many years, making it one of Europe’s fastest-growing economies. Portugal offers plenty of opportunities for entrepreneurs to start businesses, as its population is among the youngest in Europe.
Why invest in Portugal?
People searching for an investment opportunity with great potential will find investing in Portugal an excellent option. The economy of Portugal is growing at a faster rate than many other European countries, which is good news for investors. Long term or short term, the Portuguese economy offers investors unparalleled opportunities. Whether you are expats, retirees, or foreign investors, Portugal is a great place to buy your investment property, primary residence, or secondary residence.
Real Estate Investment Opportunities in Portugal
Portuguese real estate has become a popular market for investors in recent years. According to a 2019 study, Lisbon is Europe’s most attractive city for investing in real estate. With the expansion of the real estate market in Portugal, investment opportunities have arisen. Investors buying into the property market are benefiting from significant capital gains thanks to the low mortgage rates and foreign property ownership requirements. The rental market in Portugal is also attractive. The number of tourists visiting Portugal in 2019 reached over 27 million. In response to this unprecedented growth in the tourism industry, rental properties have become more in demand and rental prices have risen. Investors have taken notice.
Property prices in Portugal are low for high-quality properties with great rental returns. According to statics, gross rental yields in Portugal are among the highest in Europe, ranging from 5% to 14%. Portugal also has one of the lowest vacancy rates in Europe (1,4%). Your investment funds can yield 5.5% to 7.5% for commercial real estate investments.
Portugal’s planning permissions are strict, preserving the natural beauty and limiting the supply of new properties – keeping the demand high. Quinta do Lago, for instance, is part of the UNESCO Ria Formosa bird sanctuary, where construction is prohibited by 8%. With excellent facilities, unique locations, and incentives, your investments are sure to thrive. One of Portugal’s most successful incentives is the Golden Visa programme created to attract investors with its benefits and flexibility. Portuguese government launched this visa program in 2012.
What is the Portugal Golden Visa Program? The Portugal Golden Visa grants qualifying investors and their family members the right to live, work, and study in Portugal and permits free movement in Europe’s Schengen Area. The program has become one of Europe’s most popular options for foreign investors.
The visa gives immigrants residence permits, and you can become a citizen or a permanent resident of Portugal in just five years. The Portugal government has raised more than €5 billion in less than eight years, making Portugal government bonds a lucrative purchase. Below are the qualifications for participating in the program:
-Invest approximately €280,000, the lowest threshold in Europe.
-Stay in Portugal for seven days a year. You do not have to reside in Portugal.
-After a 5-year stay, you will be eligible to apply for citizenship. It is one of the fastest processes in Europe.
Some of the benefits of the Portugal Golden Visa include:
Countries With Visa Free Travel With the Golden Visa permit, you are registered in the Schengen Area System. By signing the Schengen Agreement, most European countries have abolished their national borders, creating a borderless Europe. This means you can travel without a visa within Europe. You can apply for a Portuguese passport after five years if you want to become a Portuguese citizen. Portuguese passport holders will be able to travel visa-free to over 180 countries.
Live Work and Study:Portuguese Golden Visa users can work, live, and study in Portugal. Having medical insurance is a requirement if you plan to live full-time in Portugal when you obtain this residency permit. The government will, however, provide you with access to all of its services, including health and education. So, invest in Portugal. The state-run schools follow the Portuguese curriculum, although there are also several private American and British international schools. In Portugal, you can work anywhere and set up your own business with a work permit.
Tax Benefits: As long as you do not spend over 183 days in Portugal each year, you are not subject to any tax liability under the Golden Visa programme. However, if you do, then you are a tax resident of Portugal. Invest in Portugal. Whether you intend to relocate to Portugal or become a tax resident, Portugal’s tax administration is favorable. As part of its non-habitual residency program, the country exempts income taxes on certain income during the first ten years of Portuguese residency. In 2020, the program was slightly modified, eliminating tax breaks for foreign pensioners.
Residency and citizenship: Residents and citizens of Portugal can apply for dual citizenship (if allowed by their home country).
Golden Visa Programme Update for 2022: The Golden Visa programme will undergo a number of changes in 2022, and potential new Portuguese citizens and investors will have only weeks to seize this golden opportunity to invest in Portugal. Two significant changes are:
– If you purchase property in Porto or Lisbon, you will not be eligible for the Golden Visa. However, there are still qualifying areas along the coast that are low density or touristic. It is wise to act now before changes occur for the best chance of getting your dream investment.
-For renovations of properties 30 years old and older in high-density residential areas located in touristic districts, the minimum investment amount will be approximately €350,000. Property threshold amounts are currently around €500,000 for newer properties built within the last 30 years, but they are predicted to rise in 2022.
Excellent opportunities for companies in Portugal
The easy business setup makes it a breeze to invest in Portugal. The country has competitive wages, and you can find a variety of talented young professionals. Most residents also speak English. This means you can easily and quickly fill vacancies in your company with qualified personnel.
Standards & Poor’s credit rating for Portugal is BB+. Those planning to start a business in Portugal can expect in the years to come a stable economy and an increase in economic growth.
Fitch Ratings also gave Portugal a BB+. While Portugal has a few risks, the economy is relatively stable and has a good chance of improving in the future.
Great investment opportunities in Portugal
Portugal’s economy has grown for seven consecutive years. The real estate sector is one of the most promising investment sectors in the country. But Portugal also offers great opportunities for investing in government shares and bonds, Portuguese companies, and Portuguese shares.
Portugal’s vision for the future includes solar and wind energy projects. Energias de Portugal, a power company in Portugal, plans to invest $17.65 billion in energy projects. As part of a deal, China Three Gorges Corp purchased a 21.35 percent stake in Energias de Portugal at the cost of around $3.48 billion. Besides the money invested in shares, the financial package also includes $11.26 billion in investments.
Looking to invest in Portugal: How Can We Help?
Thinking about buying property in Portugal or investing in Portugal’s stock market? Contact one of the top property investment firms in Portugal. They can arrange for a purchase that will fit your wants, needs, and requirements. You can find detailed information about Portugal’s companies, real estate, government bonds, government stocks, and investment opportunities here.
Invest in Portugal. Right now, an experienced Portuguese law firm is ready to help you. You can speak with an expert who will guide you throughout your project.