Investors can again get a residence permit in Portugal for the purchase of real estate
Since January 2022, investors have not been able to obtain a residence permit in Portugal. One reason was that the country’s Immigration Service (SEF) platform had not been updated to reflect the new residence permit program rules.
SEF resumed accepting applications for a residence permit in June 2022. Now the residence permit program in Portugal is also available to citizens of Russia and Belarus. We tell you how to become a resident of the country by investing in real estate according to the new rules of the program.
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Investors can again get a residence permit in Portugal for the purchase of real estate
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The residence permit program in Portugal has been operating since 2012. Investors most often choose one of the options with the purchase of real estate: Portuguese properties are highly liquid. Real estate prices are growing at an average of 10% per year. The cost of housing in the country has increased by 50% over the past 10 years, according to Eurostat.
At 50%
The price of residential real estate increased from 2010 to 2021
Return on investment is the main advantage of options with the purchase of real estate. After 5 years of ownership, the investor has the right to sell the object.
From January 1, 2022, Portugal has changed the cost of participation in the residence permit program for four options. Minimum investment increased by:
€150,000 - in shares of investment funds, in scientific research and in a new or existing business;
€500,000 - when transferring capital to Portugal, for example, opening a deposit in a local bank.
The minimum transaction amount for the purchase of real estate remained the same, but the choice of objects was limited.
What kind of property can be bought under the residence permit program in Portugal
To obtain a Portuguese residence permit, investors buy residential or commercial real estate.
The purchase of residential real estate is limited by the new rules of the residence permit program. It is allowed to buy housing only:
in Madeira and the Azores;
in the interior regions of Portugal, which do not include coastal resort areas and major cities such as Lisbon and Porto.
The interior regions do not include the major cities of Lisbon and Porto, the coastal and resort regions of Portugal. A complete list of internal regions is in the annex to the decree of July 13 No. 208/2017.
The purchase of commercial real estate is not limited. Investors can purchase properties in any region of the country, including Lisbon, Porto and resort towns such as Cascais. You can invest both in new objects and old commercial real estate for renovation.
How much to invest in real estate to get a residence permit in Portugal
The residence permit program in Portugal provides for two options with the purchase of real estate. Applicants for a residence permit invest:
from €500,000 to objects of the primary or secondary real estate market, under 30 years old and not requiring restoration;
from €350,000 for objects over 30 years old for restoration.
You can invest 20% less if you buy an object in a region with a low population density. In this case, objects for restoration should cost from €280,000, the rest - from €400,000.
Areas with low population density are defined as regions with fewer than 100 people per square kilometer or where GDP per capita is less than 75% of the national average.
An investor can buy one or more properties in order to fulfill the condition for the minimum transaction amount. But you can’t combine options. For example, all objects must be under restoration.
A residence permit in Portugal allows you to live in the country or not live at all - and get citizenship after 5 years. Investors with a Portuguese residence permit travel without visas to the Schengen countries, optimize taxation and open bank accounts in the European Union without any problems.
Immigrant Invest is a licensed agent of the residence permit program in Portugal. If you want to become a resident of the country and travel around the Schengen countries without visas, please contact investment program experts for advice.
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