Residence by investment opportunities
Nov 16, 2022
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Golden Visa Programs: PortugalSome countries administer citizenship-by-investment programs that allow foreign nationals to literally ‘buy’ their passports. Make a sizable donation to the state fund and you will obtain second citizenship. As easy as that. Most of these countries, however, are not at the top of the list in terms of their GDP and the living standards that they offer are not the best in the world. There is an alternative though. You can legalize your prolonged stay in a reputable jurisdiction if you make use of one of the numerous residence-by-investment national programs. These are often referred to as ‘golden visa programs’ and some of them look extremely attractive.
There are quite a number of golden visa programs in the world and their terms and conditions vary greatly. How much would you have to invest if you would like to become a legal resident in a foreign country? This depends on the particular country. All you have to do to legalize your stay in Paraguay, for instance, is deposit US$ 10,000 in a local bank. On the other hand, if you’d like to relocate to Ireland or Great Britain, you’d have to invest millions. All other residence-by-investment opportunities would cost you more than the Paraguayan one but quite a number of them would cost you much less than the Irish or the British ones. For example, an investment of 500,000 euros will bring you a Spanish residence card, the same (or smaller) amount of investment will make you a legal resident of Portugal, and Greek residence will cost you even less. The choice of golden visa programs is large indeed and you certainly should seek professional assistance on the matter if you would like to become a legal resident of a foreign country.
What are the essential requirements of all golden visa programs? You have to make an investment of some sort into the host country’s economy: you can buy property, put money in the bank or in a venture fund, purchase company shares or government bonds, make a financial contribution to a scientific research project, invest in art or education in the country, and so on. Some investments will be returnable while some others will not. The most popular path to residence in a foreign country is purchasing real estate there. If you do so, you will have to retain the property in your possession to keep your legal residence permit. This requirement applies to all golden visa programs that provide for this kind of opportunity.
An important difference between different residence-by-investment programs is that some of them can eventually lead to full citizenship of the foreign country while others cannot. How long you have to wait before you can apply for citizenship also depends on each particular country. You can turn from a legal resident of Paraguay, for example, into a citizen of the country after three years only. In all other cases, you’d have to wait longer. Even though Paraguay offers the most affordable residence-by-investment opportunity and the waiting period is the shortest there, you’d probably have to have some really weighty reasons to want to relocate to this landlocked South American country. There are some more attractive options without doubt and here we would like to draw your attention to Portugal in particular.
Several characteristics of the Portuguese golden visa program make it compare favorably to other such programs. First, Portugal is a reputable jurisdiction without doubt. The country has a glorious history and it was one of the founding members of the European Union. Its economy is not the largest one in Europe but it is strong and stable enough. Taxes are comparatively high but there is an interesting Non-Habitual-Residence scheme that offers serious tax incentives to foreign investors in Portugal.
Second, the required investment amounts are not too large. An investment of 500,000 euros in real estate located in a well-developed part of the country will make you qualified for a residence permit. Since recently, foreign nationals purchasing real property in Lisbon, Porto, and most of the Algarve region are not entitled to apply for residence-by-investment even though they were before. The fact that the Portuguese Government has had to introduce certain limitations is an indication of the popularity of the Portuguese golden visa program.
You can also qualify for residence in Portugal by investing even a smaller sum of money. If you buy property in a less-developed area, you’d have to pay less (400,000 euros). If you buy an old house (built more than 30 years ago) that needs restoration, you’d have to pay less. If you buy an old house in an underdeveloped region of Portugal, 280,000 euros will be enough to make you eligible for a residence permit. Please bear in mind that the cost of the renovation that the house requires is included in this amount. Thus, if 100,000 euros is needed to renovate the building, its price can be as low as 180,000 euros.
Third, there are multiple other investment options available to you. You can make a bank deposit in Portugal, purchase securities, invest in a socially significant project, in sciences or in arts. Investments into venture funds have been gaining popularity recently. Besides, you can create ten jobs in Portugal, which will also make you qualified for residence. If you choose this option, the amount of investment required is not specified.
Fourth, you can apply for full citizenship of Portugal after holding your residence permit for five years. You have to meet certain requirements, however, to be able to do that. You have to spend a week a year on average in Portugal. The country is a popular tourist destination and its landscapes are very diverse so this requirement looks like a pleasant one. Besides, you’ll have to demonstrate basic knowledge of the Portuguese language and pass a history test when applying for citizenship. These factors make the Portuguese golden visa program worth considering.
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