Top Residency and Visa Options for Investors and Expats · Prohibitions •Being an EU, EEA or...

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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Country highlightsPortugal

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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


• 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

Overview

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Lisboa

Algarve

Porto

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Relocating to PortugalWhy and how?

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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


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


Choosing the type of residency

Golden VisaEligible

Investment

Temporary Residency

Long term stay required

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Short stayToe in the water

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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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The processTimings, dos and don’ts

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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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Overview

•Dual Citizenship?

•Typical routes

•Special regimes34




• 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




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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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: [email protected]

Web: www.lugna.pt

© 2017 LUGNA



Top Residency and Visa Options for Investors and Expats · Prohibitions •Being an EU, EEA or...

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