The High Rise in Demands for Portugal Golden Visa
The good news for future investors in Portugal Golden Visa Program by Investment is that all the main political forces are in favor of developing the program. Portugal Golden Visa program has brought considerable funds for the country and investors added 88 million euros to the country’s budget only in March and April 2021; that is why the total number of visas issued was 9,200 only as for the end of 2020 and Portugal issued 401 residence permits in exchange for investments in March and April 2021. 770 people received “golden visas” to Portugal in the first four months of 2021.
Portugal Golden Visa has been the most wanted residency by investment program in Portugal. Today we will discuss the data and the reasons investors go after this option and we will also introduce some of these real estate projects. For more information please visit Portugal Investment Opportunities.
Portugal has accepted 20 % more applications since the beginning of 2021 than in 2020
The number of investors increased by 20% compared to the same period in 2020. And if we compare only the April data, the number of applicants almost doubled on an annual basis.
The demand for the purchase of units of venture capital and investment funds is growing in 2021.
Every year, more and more investors choose real estate that requires renovation: built more than 30 years ago or located in areas of cultural and historical heritage. There are also development companies that buy houses or entire neighborhoods, renovate and sell apartments to investors with a guaranteed income of 4—5% per annum. Apartments are rented to tourists, and the investor has the opportunity to use the property for a certain number of days a year. There are few such objects and there is a high demand for them.
If you are interested in luxury real estate or have a preference for the region of Portugal, you can start with an investment of €280,000. There are no restrictions on the number of objects: you can buy one house or several apartments. After five years, you can get a permanent residence permit or citizenship and return your investment by selling real estate.
Why do investors choose real estate more often?
Home prices in Portugal are rising despite the pandemic: in the first quarter of 2021, residential property values rose 17.4% compared to the first quarter of 2020. If an investor had bought a two-bedroom apartment in February 2020 for € 250,000, by April 2021 its market price would have been rising to € 293,500.
A participant in the program owns real estate for five years. During this time, he can rent it out. The cost of renting in Portugal is growing by an average of 3-5% per year. After five years the investor can sell the property. Given the increase in home prices, the investor will not only return the money invested but also earn the difference in the market value of the object.
Immigrant Invest real estate experts also recommend not putting off buying a home until the second half of 2021 for two reasons:
- Real estate prices will rise faster. The reason is the active recovery of the Portuguese economy. According to the country’s Central Bank, on April 25, 2021, economic growth was 20% compared with indicators on the same date in 2020. At the end of 2021, the European Commission predicts Portugal’s GDP growth of 4.1%, the International Monetary Fund – by 3.9%.
- The terms of the program will change from 2022. Investors will only be able to buy housing in the interior regions of the country, Madeira and the Azores. In major cities and resorts will be possible to buy only commercial real estate and objects under restoration.
While the old rules are in force, real estate is available for purchase in any city in Portugal. During the first quarter of 2021, the number of properties for sale in the country increased by 87.8% compared to the same period in 2020. Now investors will be able to choose from more properties in different regions of the country.
It is possible to become a resident of Portugal in two to six months if you take part in the state investment program. Holders of a residence permit have the right to live, work and do business, and study in the country. They also travel visa-free in the states of the Schengen zone.
After five years, the investor can apply for citizenship and obtain a Portuguese passport by naturalization. If you want to become a resident of an EU country before the conditions change, seek advice from the experts of the investment.
Benefits of participating in the Portuguese Golden Visa program
- Spouse and children may participate,
- You only need to spend seven days a year in the country,
- It is a shortcut to citizenship in only five years,
- Travel to Europe without a visa,
- You can stay in Portugal without restrictions,
- Doing business in Portugal is an opportunity to enter the international market,
- It is easy to open your own business.
For more detailed information on the requirements for obtaining Portugal Residency by Investment, please contact one of our advisers in the UAE, Denmark, or Canada, we will accompany you and your family until you obtain the Portugal Residency.
If you have any questions or comments about the Portugal Residency by Investment, you can share them with us in the comments section.