Portugal is a pretty interesting golden visa scheme that comes with unique benefits. This is why Portugal has become one of the most popular golden visa schemes in Europe. But what makes the golden visa scheme stand out from the rest of the golden visa schemes around the world?
Let us explore some of the solid reasons why PGV (Portugal Golden Visa) scheme attracts some unique clientele.
1. Peaceful country
Portugal consistently ranks in the top spot for being the most peaceful country in the world. For 2020, Portugal remained in 3rd sport in the Global Peace Index. Europe still remains the most peaceful region in the world,
2. Stable Real Estate
According to Knight frank report, The Global residential house prices in Portugal remained at 8.3% in Q2, 2020 compared to previous year. The property prices did not decline much in Portugal compared to other world countries in negative dip.
The immediate rental income, yields, stable and prosperous economy makes Portugal a top pick for number of foreigners who wish to gain residency (not citizenship) in the schengen area.
3. Citizenship without Living
Portugal is the only country in the world that offers citizenship without living after 5 years wait through golden visa scheme. You are only required to visit and spend only 2 weeks every year in Portugal. All other golden visa programs including UK, Greece require you to immigrate and live continuously to become a citizen through naturalization.
4. Tax free for Cryptocurrencies
Portugal is one of the few countries in the world that remains tax free for cryptocurrency investors. There are no capital gains tax or VAT levied for bitcoin transactions.
5. Citizenship for children
New born children can benefit with Portuguese citizenship. It is now easier to acquire citizenship for children in one year, if their non-EU parents hold a residency in Portugal.
6. Powerful EU passport
The Portuguese passport is a highly respected and powerful EU passports in the world with visa free access to 180+ countries and territories. Portugal has visa waiver agreements with United States, Canada, United Kingdom etc.
7. Best Geographic location
Portugal lies conveniently in perfect geographic location in western europe with close proximity to UK, Canada, US and South America, Africa and Middle East countries. Portugal has excellent flight connections and sea routes connecting east and west of the planet. This means you don’t have to take long flights to reach Portugal a great advantage for many families.
Portugal is a perfect second home destination and an ideal place not far away from where you live, especially if you want to be surrounded by beaches, blue waters, sun, wine and football
8. Sunshine and Warm Climate
Portugal has over 300 days of sunshine, all year around warm and hot climate. There are no winters only mild rainy season, perfect those who hate cold and dark winters.
8. Free Education
Portugal has the best education systems in the world. Education for children is free in Portugal until age of 18, while UK, US and Canada being the most expensive for education. You can save a lot of money making your children study in Europe.
9. Non Habitual Tax Regime
The Non Habitual Tax regime was introduced in 2009, with the aim of attracting talent and high net worth individuals taxed at a flat rate of 20% if the income is derived from ‘high value activities’, while many forms of foreign source income (including foreign source pensions) are exempted from taxation. Portugal does not impose wealth taxes. This is ending soon by 2025.
10. Expat Destination
Portugal has become one of the most popular retirement destination for expats from UK, US, Canada and other countries. Portugal’s siliver coast and algarve are very popular among expats. From 2021, when the UK divorces from EU, British expats qualify to apply for golden visa scheme because of their non-EU citizen status.
11. Chinese and Brazil connection
Wealthy Chinese investors also emigrate to Europe in search of political stability away from problems in China. Many of them seek to invest in their children’s quality of life, a way to secure their children’s primary and secondary education abroad. The low presence requirement of the PGV scheme is especially important to Chinese so that they could spend more time in their home country.
Brazil is also portuguese speaking country being a former colony. In recent years Brazil has become an economic powerhouse creating wealth. Many brazilians seek EU citizenship through portugal as Plan B for the future since Portugal does not have any special citizenship for brazilians.
The interest for portuguese nationality from immigrants, remained all time high. In 2019, SEF registered a total of 74,116 requests for acquisition of Portuguese nationality, with nationals from Brazil, Israel, Cape Verde and Angola applying in record numbers.
12. PGV investment becomes cheaper
Portugal golden visa program has now become cheaper for many investors. With the real estate being scrapped, you have 250,000 cultural and artistic donation option or 500K euro investment fund available for investors.
13. Special Tax Benefits
Golden visa holders who do not stay in Portugal more than 183 consecutive days, he/she will not be required to pay taxes for income generated outside of Portugal. Only income arising in Portugal (e.g. from rent, interests) are taxed in Portugal at 28%.
14. No inheritance or estate taxes
Portugal has 0% inheritance or estate taxes. This means upon death, the property can be passed down to your children or family members without any taxes.
15. Citizenship tests
Portugal does not have citizenship tests for investors unlike other EU countries. Normally you have to take Covic, integration and cultural tests to apply EU citizenship. You can keep your existing citizenship without renouncing.
16. Military Service
Portugal unlike other countries has no compulsory military service for its citizens. Enrollment is voluntary.
17. Children
The Portuguese citizenship now became easier for children after recent amendments in citizenship law. Minor immigrant children must be born in Portugal and must hold residence for one year.
18. EU connection
Portugal became EU member state since Jan 1, 1986., later adopting euro in 1999. There are 21 members of the European Parliament from Portugal. In 2018, EU spend in Portugal – € 5.011 billion (equivalent to 2.55% of the Portuguese economy)
19. Right to Work
Portugal GV scheme offers full right to work for investors and family members. This is not possible with other golden visa schemes in Europe. This could also benefit self employed people work for their business or children seeking employment in the future.
20. Become a EU citizen
Portuguese citizens are also full EU citizens. After 5 years of residence, GV investors and their family members can naturalize for citizenship provided they have no criminal record and pass language test. New citizenship rules in 2024 approved by government , now allow applicants in waiting list for golden visa will counted for EU citizenship in Portugal in 5 years.
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