Portugal: A Comprehensive Analysis

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Introduction to the Real Estate Market in Portugal

Portugal is a magnet for foreigners, offering a mild climate, security, top-notch services, and a welcoming atmosphere. Its stunning landscapes, rich culture, and English-friendly environment further enhance its appeal.

The Portuguese real estate market has experienced a positive upswing over the last decade. House prices have risen in line with tourism growth and demand from foreigners, and urban rehabilitation continues, especially in the historic areas of Lisbon and Porto. New real estate projects show investor confidence in the market.

STEP BY STEP

Portugal's welcoming government encourages new residents from all corners of the globe and offers various pathways to residency and citizenship.

However, there's more to consider when it comes to living in Portugal than just its history and residence options. There are other factors to keep in mind that may impact your transition to this beautiful country.

Exploring some Residence Visa Options

These visas have varying financial requirements, but all require proof of healthcare and accommodation. The most popular residence visasare the Golden Visa and the D7 Passive Income visa. The recently introduced Digital Nomad visa is a strict separation between active and passive income earners.

✔️Digital Nomad Residence Visa

✔️D7 Passive Income & D6 Family Reunfication Residence

✔️Golden Visa

✔️Startup Tech Visa

✔️Highly Qualified Activities (HQA) Residence Visa

Portuguese Citizenship

Portugal offers time-based permanent residence for who have lived in the country for at least six consecutive or eight non-consecutive months.

After five years of residency, one can apply for permanent residency and citizenship without needing to have permanent residency beforehand.

Physical presence requirements differ depending on the type of residence visa.

The Golden Visa requires a minimum of 35 days of physical presence over five years, while the HQA has no specific requirements.

Preparing to apply for citizenship

Residency

You must have lived in Portugal for a minimum of five as a resident and fulfilled the physical presence requirements based on your residence visa.

Integration

You must demonstrate that you have integrated into Portuguese society and have a basic understanding of Portuguese culture, customs, and history.

Good conduct

You must have a clean criminal record and not pose a threat to public order or security.

Language

There is a Portuguese language test requirement from an authorized CIPLE (Certificado Inicial de Português Língua Estrangeira).

Financial means

You must be able to support yourself and your dependents without relying on public assistance.

Portugal allows children born in the country to obtain citizenship even if their parents are not citizens. The child of a parent who has been a resident of Portugal for at least one year.

The one-year residence requirement while living in Portugal is an incredible opportunity to provide your children with dual citizenship.

Applying for permanent residency in Portugal 2024

The list below contains the main documents needed to apply for permanent residence in Portugal:

identification documents: the valid residence visa or temporary residence permit, as applicable, as well as the passport and two photographs
proof of income: the applicant must be able to prove that he/she has a steady or sufficient income to live in the country.
proof of accommodation: it is also mandatory to prove that accommodation is ensured, through a property purchase/rent agreement.
proof of uninterrupted Portuguese residency: the applicant must show that he/she has been living in the country for the previous five years; an immigration lawyer in Portugal from our team can help you with information about the maximum absent periods during this time.
proof of healthcare and social security: valid health insurance as well as proof of enrollment for social security and tax status.
proof of knowledge: the applicant must prove that he/she has sufficient knowledge of the Portuguese language through a language assessment certificate.

A residence permit is granted when the applicant is not subject to a prohibition to enter the country following an expulsion measure. The applicant cannot be convicted for a crime that is punishable in Portugal by a custodial sentence of more than one year.

Fees for residence permit applications in Portugal

When applying for a residence permit, as well as when renewing an existing one, the applicant is expected to pay a certain fee and provide the proof of payment together with the other required documents. List some of these fees below:

83,30 €: the fee for receiving and analyzing the application for granting a residence permit or renewing an existing one;
72.20 €: the applicable fee for a temporary residence permit the renewal thereof;
221.70 €: the fee applicable to applying for a permanent residence permit;
194.20 €: the fee for each temporary residence permit granted without a consular visa;
77.90 €: for the authorization to exercise the professional activity by a holder of a study residence permit;
a duplicate of a residence permit can be obtained upon paying a fee of 50% of the value of the respective type of permit.

The fees for those who apply for Portuguese residency through investment. Some examples include:

533.90 €: the fee for receiving and analyzing the application for granting or renewing an investment residence permit;
2,668.20 €: the renewal fee for a residence permit for investment activity and the fee for the renewal of a family member’s residence permit;
5,336.40 €: the residence permit for the family members who are reunited with the one who holds the permit for an investment activity; the fee is reduced by 50% when it applies to minor children

Finding your home in Portugal

Lisboa

Lisboa is the capital city of Portugal and is a popular destination due to its rich cultural heritage, historical landmarks, vibrant nightlife, and beautiful beaches

With its unique blend of culture, business opportunities, and natural beauty, Lisboa is an attractive destination for both business and pleasure.

Porto

Porto, located in northern Portugal, the city's historic center is a UNESCO World Heritage site and features stunning architecture.

Porto has a thriving economy, including a booming real estate market and a thriving startup scene.

The Douro Valley is a popular tourist destination offering amazing views and access to the world-famous Douro Valley wine region.

Coimbra

Coimbra is a historic university city with stunning architecture and a growing startup scene, making it an attractive destination for tourists and investors seeking a dynamic and vibrant experience.

Costa Vicentina

The Silver Coast, also known as the Costa de Prata, is a region located along the central coast of Portugal and is known for its stunning beaches, charming villages, and affordable real estate prices.

Alentejo

Alentejo in southern Portugal is a rustic region with rolling hills, olive groves, and charming historic towns. It's a perfect destination for those seeking a slower pace of life, nature, and world-renowned wines. With a growing ecotourism industry and a welcoming local community, Alentejo offers a unique experience for tourists and investors.

Algarve

This breathtaking coastal region is the perfect escape for those seeking a relaxed lifestyle, warm climate, and natural beauty. Algarve boasts picturesque beaches, world-class golf courses, and a delicious cuisine.

Seeking a laid-back lifestyle, outdoor activities, and excellent quality of life.

TAXES ASSOCIATED WITH BUYING A PROPERTY

Municipal Tax on Onerous Property Transfers (IMT)

This is a municipal tax and must be paid before the deed. The fee varies depending on the type of property.

To find out the value related to this tax, you must know the Taxable Asset Value and the value declared in the purchase and sale contract. A fee is applied to the higher of these two values, which is established annually in the State Budget. This fee varies depending on the location and purpose of the property in question.

Stamp tax:

A rate of 0.8% applies to the value defined in the deed.

Municipal Property Tax

This is an annual tax based on the asset value of the property, with rates varying between 0.3% and 0.8%.

Between 0.3% and 0.45% urban buildings (houses for housing and land for construction);

0.8%, for rustic buildings (land for agricultural purposes).