GOLDEN VISAS & NON HABITUAL RESIDENTS TAX REGIME: TWO STORIES OF SUCCESS

It seems like everyone in Portugal is aware that in the last six months, the Portuguese Government has introduced a new “Golden Visa Programme” and clarified the “Non Habitual Resident’s Tax Regime”, both highly promoted by the Ministries of Economy and Foreign Affairs, mostly under the scope of the New Programme for Economic Dynamism.

 

These continuing efforts in the promotion of Portugal as both a tourism and an entrepreneurial destination have been rewarded with an increasing amount of investment in Portugal, especially investment by individuals. Recent experience has also shown that foreign clients who are attracted to Portugal are so for different sets of reasons. 

 

There is, as a result, a buzz amongst professionals in all tourism related businesses, especially because, since 2008-2009, the market was stagnant. For each investor applying for the ARI Programme (commonly known as Golden Visa Programme), either via the acquisition of a property, the investment of € 1,000,000 in the acquisition of any shares in Portuguese companies, or the creation of at least 10 jobs, a number of business opportunities will necessarily arise. Promoters will sell, local businesses will increase their sales, etc..

 

Take the example of Miss Pi (fictional name due to confidentiality reasons), a Chinese business women who, upon gaining knowledge of the Portuguese Golden Visa programme, has made an investment of € 1.000.000,00 via a Portuguese bank so that she could further apply for the Golden Visa. After having made the investment, Miss Pi has travelled to Portugal and while in Lisbon, fell in love with the old parts of the city and decided to acquire a property in the Lapa area for an amount of over € 500.000,00. Notwithstanding this, Miss Pi is also envisaging incorporating a small company in Portugal and starting a small business in the tourism area.

 

Another example is that of Mr. and Mrs. Beekman (fictional name due to confidentiality reasons), a South African couple, whose sole contact with Portugal occurred during their holidays in Mozambique, where they met several Portuguese people. Now, close to their 60’s, they have decided to live and work from Portugal and take advantage of the Non Habitual Resident’s Tax Regime. They have now bought a small cottage in the Algarve and are planning on moving to Portugal before the Summer.

 

It is indeed interesting to see that the efforts made by the Portuguese Government have turned Portugal once again into a much sought-after destination by investors, which clearly shows that Portugal is not only seen as a tourism destination but also as a country where foreign investors settle and thrive.

 

Joao Cunha Vaz

Corporate Department