A residence permit in Portugal is granted by purchasing a property of €350,000 or more. From 1 January 2022, the conditions of the state program will change: investors will still be able to buy property in the country, but the choice of objects and the minimum investment amount will depend on the region. We told you which properties will be available to buy from 2022.
A new three-star hotel will be built in the Alfragide area, which is part of the municipality of Amadora and part of Lisbon County. The area is well-developed and has a good road and rail network. Lisbon can be reached in about 20 minutes by car. There is an international airport 10 km away and the Atlantic Ocean is 20 km away.
How the new hotel will look
Construction of the hotel will start in the first quarter of 2022: 225 apartments will be built. The hotel is planned to open to the public at the beginning of 2023. A world-class hotel group will manage it.
Property options in the new residential complex
|The value of the share||€350,000|
|Number of rooms||One bedroom|
This is what the hotel will look like when completed
The apartments will have a view of the city. The design of the rooms will be done in warm colors
View of the hotel in the Alfragide area after completion
The developer plans to use wood, plants, and minimalist furniture in the design of the hotel rooms
Only 180 investors will be able to buy a share in the hotel. The value of the share is €350,000. The owners of the shares will receive dividends: the developer predicts up to 3% per annum. And after 6 years, the developer guarantees to buy out anyone who wants to sell their share.
When buying a property in Portugal you have to pay taxes: the municipal IMI tax at the rate of 0.3-0.8% of the property value and the state fees of 0.8%. The developer will also pay a municipal transition of ownership tax, or IMT, for each investor of €14,300.
What an investor gets when he buys a share in a new hotel
Residence status in Portugal and the prospect of citizenship. Hotel apartments are suitable for participation in a residence permit program in Portugal by investment.
Together with the investor, the investor’s family will be able to obtain residence permit status. Portuguese residents live, study and work in Portugal. After 5 years, the investor and his family are eligible to apply for Portuguese citizenship.
Schengen free travel. Residents of Portugal visit Schengen states without a visa. Investors are entitled to stay there for 90 days out of 180 days.
Tax optimization. A new resident of Portugal can receive tax holidays for 10 years and the special tax status of Non-habitual resident.
Why investors buy property in Portugal
Buying real estate is the most sought-after option among investors. For example, in 2020, around 90% of investors bought a property in order to obtain a residence permit in Portugal.
Portuguese property is a liquid asset. Property prices are rising by an average of 7% nationally. Investors can sell a property after 5 years and get their money back. And during the period of ownership, they can rent it out and earn extra income.
Rental income in Portugal is 2-5% p.a. and in high season it reaches 9%. The new hotel in Alfragida has a fixed income of 3% per annum.
Examples of investment property in Portugal
Two-storey villa with swimming pool in Quinta de Valadares, Almada. Value — €565,000. Rental income — up to 5% per annum
One, two, or three-bedroom apartments in a residential complex Lisbon, the capital of Portugal. Price — from €350,000. Rental income — up to 4% per annum
Commercial premises] for a bar with a tenant in Odivelas, Portugal. Value — €380,000. Rental income — 7% per annum
Immigrant Invest is a licensed agent for a residence permit program in Portugal. If you want to buy a property, move to Portugal, and travel visa-free to Schengen countries, seek advice from the experts in investment programs.