Buying real estate is the most popular option amongst participants in the residence permit program in Portugal. Over the 9 years of the program, around 9,000 people have chosen to invest in real estate – that’s 95% of investors.
choose to buy property in order to obtain a residence permit in Portugal
Investors choose from two options with the purchase of properties:
From €350,000 – in properties under renovation that have not been renovated for more than 30 years;
From €500,000 – in any residential or commercial property, one or more properties.
From 1 January 2022, the terms of the state program will change: investors will still be able to buy real estate in the country, but the choice of properties and the minimum investment amount will depend on the region.
What a new project looks like in the Portuguese residence permit program
The five-star hotel Sheraton Cascais is located in the prestigious Quinta da Marinha arearnof Cascais. In the 19th century the Portuguese royal family frequented Cascais and the city became associated with a luxurious lifestyle.
Cascais is located on the Atlantic Ocean. Lisbon, the capital of Portugal, is about 25 minutes away by car. The international airport is 38 km from the resort and the Atlantic Ocean is 3 km away.
There is a gym, tennis club, spa, swimming pools, and restaurants on-site. The apartments are equipped with all the necessities of life, have access to their own terrace, and overlook the picturesque garden.
Sales of Sheraton apartments have already started: investors can buy properties from €600,000 and sign a management contract for up to 20 years. Additionally, investors and their families will be able to come on holiday to the hotel for four weeks a year.
Investment property options in Sheraton Cascais
|Price||From €600,000 to €1,450,000|
|Number of rooms||1-4 bedrooms|
|Square||From 80 m² to 230 m²|
Investors pay taxes when buying property in Portugal:
- Municipal Property Transfer Tax, or IMT, of 6%;
- An annual IMI municipal tax of 0.3-0.8% of the value of the property;
- Government fees of 0.8%.
Hotel Sheraton Cascais located in Quinta da Marinha, an upmarket arearnof the resort town of Cascais
The Sheraton Cascais Hotel has outdoor swimming pools and the Atlantic Ocean is 3 km from the resort
Living room of the suites is decorated in a modern, minimalist style: light walls, warm shades of furniture, and panoramic windows. Each apartment has access to a private terrace
Investor can buy apartments with one, two, three or four bedrooms
Why investors buy property in Portugal
Portuguese property is a liquid asset. Property prices are rising at an average of 7% a year nationally. And the value per square meter has risen by 86.5% over the last 10 years.
Portugal attracts foreign investors: in Lisbon, for example, foreign buyers account for around 40%. And Cascais real estate is often invested in by Portuguese celebrities. In 2020, for example, Cristiano Ronaldo bought a plot of land in Quinta da Marinha to build a villa. The world football star does not plan to live permanently in his new home – it is a profitable investment for the future, the Portuguese portal Vidas.pt quoted Ronaldo as saying.
Investors can sell the property after five years and get their money back. During the ownership period, they can rent it out and earn extra income.
Rental income in Portugal is 2-5% per annum and reaches 9% in the high season. In the new draft residence permit by investment, the income is fixed at 3-5% per annum depending on the size of the apartment.
Examples of investment property in Portugal
Apartments in a modern apartment complex in Funchal next to the Atlantic Ocean. Apartments start at €398,000 and have rental income of up to 5% p.a.
Apartments in the Old Town in Porto, Portugal. Apartments start at €356,900, with rental income of up to 7.5% per annum
Beachfront apartments in Sagres, Portugal. Apartments start at €285,000 and have a rental income of 3% per annum
What else an investor will get by buying a hotel apartment
Resident status in Portugal. Apartments at Sheraton Cascais are suitable for participation in the residence permit program in Portugal by investment.
Family members can obtain a temporary residence permit together with the investor. The residence permit entitles residents to live permanently in Portugal, work, and study. After 5 years, the investor and his family are eligible to apply for Portuguese citizenship.
Portugal has a strong economy and a high standard of living. Portugal is also one of the safest countries in the world, ranking fourth in the Global Peace Index in 2021.
Schengen free travel. Portuguese residence permit cards replace Schengen visas: the investor will be free to travel within the region and stay in any Schengen state for up to 90 days per half-year.
Tax optimization. A new resident of Portugal can receive tax holidays for 10 years and the special tax status of a Non-habitual resident.
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 to Schengen countries without visas, seek advice from experts in investment programs.