Portugal golden visa program offers an exciting opportunity to invest in new construction of four and five star hotels (marriott, hilton etc). The good news is you can purchase atleast €280,000 buy back share in hotel projects from developers. This is the minimum golden visa requirement for residential or commercial properties in low density rural areas in Portugal.
The minimum investment required to invest in hotels are
Hotel buy back shares
Investing in hotel buyback shares are usually bought back by developer after 5-6 years
- €280,000 euro in Low density areas (eg. Evora)
- €350,000 euro in Urban areas (Porto, Algarve etc) in Hilton, Marriott or other brands
The benefits of investing in hotels are:
- Buyback with full return of investment with yield
- Commercial investment in tourism sector
- No maintenance required taken care by developer
- High profit margins of yield
- Creates jobs and contributes to economy
- Spend your holidays in the hotel you have invested
- Return Yields are high compared to residential properties.
How to invest in hotels?
Here is how it works for a single investor:
- First you invest 280K in buyback hotel share in a hotel project in Portugal.
- The Developer will buy back the shares after 5-6 years, the entire 280K investment (guaranteed). You pay only residual costs such taxes, golden visa costs, totals around 20K euro.
- Investment yield – 3% to 10% depending on the hotel project.
For the 280K property investment please see below the additional costs paid to authorities.
- Stamp duty – 0.8% of the property investment (€ 1,120)
- IMT Municipal fee – € 9,100 (6.5% of the property investment One-off cost, payable at signing of sale and purchase deed)
- Taxes, legal costs, notary – €3,000
- SEF Golden visa fee – €5,336.40 for each family member
- SEF Residence permit application – € 533.90 for applicant, € 83.10 for dependents
So all in all you get to pay around €300K euros in total for the entire hotel project plus golden visa for a single investor. This is for the first year. The running costs such as renewal of permits will be additional.
Total Net costs
Considering your 280K buy back share will mature after 6 years and investment refunded by developer, your net costs for portugal golden visa is only around 20,000€
If the investment performs well, the profit would cover all expenses you have paid and it can even lead to profits on your investment.
It is important to note that due to Covid, the yields with hotels are poor, but at the same time it has become cheaper to invest in hotels, due to falling commercial prices. It gives you a window of opportunity to invest in the luxury hospitality sector. Portugal has largely resisted real estate decide due to Covid and lockdowns
Pick your investment wisely! It is upto you to decide buying investing in a hotel or residential properties. Both are accepted for golden visa program.
You can apply for Portuguese nationality after six years of time with your family.
We have several hotel and residential projects available in Portugal for investment starting from 280K euros. Please contact us for more information.