Post on 18-Jul-2020
Top Residency and Visa Options for Investors and Expats
Carvoeiro, Portugal
July 2017
© 2017 LUGNA www.lugna.pt
Topics
• Short Stays vs Residency vs Investment
• Residency Permits & Golden Visa
• Portuguese Citizenship
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Reasons to relocate
• Cost of living, Weather & Well-being
• Health & Personal Safety
• Tax & Asset protection
• Backup plan
• Alternative citizenship
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Porto
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• Population 10.4 million
• Gateway to Portuguese speaking jurisdictions and the E.U.
• Strategic location to do business worldwide
• Excellent infrastructures
• Modern banking & financial sectors
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• One of the safest countries
• Old world glamour
• Tax incentives
• Big nearshoring operations in Portugal
• Whitelisted jurisdiction
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Lisboa
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• Subtropical -Mediterranean climate
• Short winters & warm summers
• Above average sunshine hours in South Europe
• Real estate market revival
Algarve
Portugal for the investor
• Real estate market revival• Highest volume and number of transactions• 6.3% increase in 2nd Q 2016• High ROI• Tax incentives for short term rentals
• Corporation tax exemption: dividends and capital gains on shares
• Highly skilled and educated workforce
• Competitive labour cost
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Portugal for the expatriate
• Low cost of living
• Diverse landscape | Excellent climate
• Historic cities, culture and excellent infrastructures
• Free Healthcare System
• Direct flights to America, Africa and Asia
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Rankings
• 1st place in the Trading Across Borders Rank 2016
• 5th place in the Global Peace Index 2016
• 23rd place in the Ease of Doing Business Index 2016
• 15 World Heritage Sites
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Alternative perspectivesTargets and routes
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Each case is worthy of a bespoke solution.
ASSETS
TAX
VISA
or PR
InvestorNon resident
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Two perspectives
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ExpatResident
• Real estate investments
• Visa with low stay requirements
• Second passport
• Low cost of living and low to nil tax
• Visa with high stay requirements
• Second passport
Reasons to apply for PT residency
• Free travel in the Schengen area
• Tax residency under a special income tax regime
• Possibility to apply for citizenship
• No inheritance tax in Portugal
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CitizenshipPermanentResidency
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Choosing the type of residency
Golden VisaEligible
Investment
Temporary Residency
Long term stay required
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Short stay visa
• Visa free scheme
• Valid Passport – at least 3 months after the end of stay
• Minors
• Visiting other EU countries
• Travel insurance
• Renewals
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Residency in the E.U.a) Investing in Portugalb) Full time residency
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A. Golden Visa
• Investment residency permit for non E.U. citizens
• Access to Schengen Area
• Low stay periods
• Residency Permit & Citizenship
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GV Real Estate Investments
•Standard minimum investment – Euro 500,000
•Lower thresholds:
• Euro 350,000 – > 30 years or in an urban rehabilitation area.
• 20% discount for property in low density areas.
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GV Business Investments
•Capital investment or transfer - Euro 1,000,000
•Creation of at least 10 jobs
• Investment or venture capital funds – Euro 500,000• Capitalization of SMEs
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GV Other Investments
•Funding scientific research – Euro 350,000
•Sponsorship – Euro 250,000• Art production or restoration of national cultural heritage
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GV Possible future alternatives?
• Investment in small and medium-sized companies
• Euro 200,000 into companies under a Plan of Recovery or Revitalization
• Euro 350,000 into Portuguese companies
• Euro 350,000 into new Portuguese companies with 5 employees
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GV Structuring the investment
• Initial steps depend on the:
• Type of investment – real estate or financial assets;
• Type of investment vehicle – Corporate vehicle or individual.
•International tax planning considerations.
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The process
•Obtain professional advice and legal representation;
•Trigger the investment process;
•File documentation and apply;
•Minimum Stay + Apply for Renewals.
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B. Temporary Residency Permit
• Employees
• College Professors and Researchers
• Self-employed individuals
• Students
• Family regrouping
• Passive earner / Retired individuals with occupational pensions*
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The process
• Need to start application before travelling to Portugal
• Two stage process
• Minimum stay requirements
• Minimum income per month
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Investment
Application
Free access
Y1Renewal
Free access
Y2Renewal
Free access
Y4 Permanent
Residency
Y5Citizenship
Y6
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Timetable
Prohibitions
• Being an EU, EEA or Swiss citizen
• Criminal convictions of a crime punishable with imprisonment for more than one year, or on grounds of terrorism, violent crime or organized crime
• Ban from entering the Portuguese territory
• Alerts in the Schengen Information System or the Portuguese Customs and Borders Authorities’ Integrated Information System
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Portuguese citizenshipSecond passport and a backup plan
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Overview
•Dual Citizenship?
•Typical routes
•Special regimes34
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• Naturalization• Individuals of Portuguese descent (1st, 2nd degree)
• Residence:• Legal – Six years• Illegal – Ten years
• Born in Portugal* or full adoption;
• Marriage and civil partnership.
Eligibility – Typical routes
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•Communities of Portuguese ancestry;
•Sephardic Jewish Ancestry.
Eligibility – Special cases
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•Adults and minors;
•Criminal Record;
•Evidence of Portuguese Sephardic ancestry.
Sephardic Jewish Ancestry
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Benefits
•Multiple citizenship allowed
•No citizenship or wealth tax
• E.U. member – Schengen area
•Access to 155 countries visa free
•Whitelisted jurisdiction
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Summary
• Short Stay Visa – Stays up to 90 days
• Temporary Residency Permit + Permanent residency permit
• Golden Visa + Permanent residency permit39
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Three months prior to departure
• Seek professional coordinated advice
• Establish your plan
• Collect all the necessary documents
• Apply for a Visa / Residency Permit
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Two weeks prior to departure
• Obtain a Portuguese Taxpayer Number
• Appoint a fiscal representative
• Ship your personal belongings
• Find lodging in Portugal – Rental or Ownership
• File an exit tax return
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Arrival
• Collect your Visa / Residency Permit
• Open a Portuguese bank account
• Implement your tax plan
• Utility contracts and shipped personal belongings
• Register at the local Town Hall
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Each case is worthy of a tailored solution.
ASSETS
TAXVISA
Remember…
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Conclusions
• Plan ahead
• Full time residency vs Investing
• Minimum stay requirements
• Path to citizenship – Second passport
• In a safe harbor.
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Lisbon OfficeRua Rodrigo da Fonseca nº 9 – 3º B
1250-189 Lisboa
Portugal
Tel.: +351 21 131 04 08
Fax.: +351 21 131 04 08
E-mail: lisbon@lugna.pt
Web: www.lugna.pt
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