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Despite a few recent changes to the program, Portugal’s Golden Visa remains largely appealing to South African investors and residents.
Whether you’re a farmer looking to emigrate; a family in need of a cheaper cost of living; or perhaps an investor searching for a property in the sun-soaked capital – there aren’t many drawbacks to the scheme no matter what your personal circumstances.
What is the Golden Visa?
Portugal’s Golden Visa program is a residency by investment scheme designed to attract non-EU citizens. It was officially launched in 2012 to attract international capital into the country following the 2008 economic crisis, and has so far raised €5,5bn (R98.82bn) in just over eight years.
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The holder can obtain the right to live, work, and study in Portugal, with the opportunity to become a permanent resident or Portuguese citizen in just five years – one of the fastest in Europe. What’s more, you’ll have visa-free travel to Schengen countries.
Portugal was recently voted Europe’s best tourist destination for the fourth successive year at the 2020 World Travel Awards, and topped the Annual Global Retirement Index for 2020, published by International Living. Portugal is also one of the most welcoming and safest of countries, sitting ninth out of 50 destinations in the Family Life Index.
If all of that – alongside the dreamy landscape, picturesque coastline, sunshine filled climate, and an affordable high-quality life – wasn’t already enough, the delicious cuisine is surely the cherry on top.
Is it for me?
The scheme has a lot to offer for all different walks of life, however it is vital that non-EU residents choose the correct way to access Portugal that suits their own family and financial circumstances.
All options should be explored before making a final decision, as planning is essential to avoid double or high taxation. However, Portugal has a tax-friendly jurisdiction – a 20% flat rate for non-habitual residents for 10 years, with an additional surcharge of 3.5% applicable to income obtained within the country. As a result of a tax treaty, South Africans do not face double taxation, which is an added bonus.
What’s new?
After 1st January 2022, the required minimum investment amounts are set to change. The Investment Fund option will increase from €350,000 (R6, 290 947.33) to €500,000 (R8, 987 067.61), whereas the Capital Transfer to a Portuguese bank will increase from €1 million to €1.5 million.
Alongside this, residential properties in high-density areas such as Lisbon, Porto, and the Algarve, as well as in coastal areas, will not be available to buy by investors. This is to encourage more investment in the development of less prosperous areas. However the restrictions will not be applicable to commercial properties.
The golden ticket to a better life?
Despite the changes to the program over the last few years, Portugal’s Golden Visa is still a worthwhile investment for many.
With varying benefits, there is little that can undermine what is on offer. Nevertheless, research and planning is the key to answering the question of its value for yourself.
