Portugal s Golden Visa Residence Permit for Investment Activities (ARI)
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1 Portugal s Golden Visa Residence Permit for Investment Activities (ARI)
2 Table of contents I. Why Portugal? II. The Golden Visa Regime III.Renewal and Family Reunification IV. About MCS The information provided on this guide was produced by our Partnership Network Law Firm Teixeira de Freitas, Rodrigues & Associados, SP RL 2
3 WHY PORTUGAL?
4 Why Portugal? Some reasons why you should consider relocating to Portugal. Climate 3000 hours of sunshine a year; Mild winters (rarely below 5 C), followed by hot and dry summers cooled by the country s Atlantic coast. Geography Unique geographic location. Portugal is between three continents: Europe, Africa and America; 4 International Airports and top road infrastructures. Education Prestigious international colleges and public universities. History, Culture and Science Europe's oldest country; 15 UNESCO Heritage Sites; Scientific research of international reference. Political and Governance Stability Legal System and Rights Civil Law of German influence, fully integrated in European Law; Influence on the legal systems of Portuguese-speaking African countries, Brazil, Timor- Leste, Goa (India) and Macao (China); Top 20 of the countries with the greatest economic and personal freedom; Top 4 in ILGA Europe ranking. Safety and Quality of Life Top 10 best country in the world to retire; Top 5 safest country in the world. Cost of Living Top 20 cheapest country in Europe; Tax regime favorable to expatriates and international companies. 4
5 THE GOLDEN VISA REGIME
6 The Golden Visa If you are not a European or a European Economic Area citizen and want to acquire Portuguese nationality or travel freely in the Schengen area, the Golden Visa scheme is the ideal solution for you and your family. The purpose of this scheme is not only to provide the applicant and his family with a residence permit in Portugal, but also to allow unhindered travel through the 29 countries which make up the Schengen area. General Conditions of the Regime Main Advantages This regime was approved in 2012 with the objective of increasing foreign investment in Portugal, simplifying the entry and residence requirements of foreign investors in Portugal. Exemption from the requirement to obtain a residence visa before entering the country; Significant reduction of minimum periods of residence obligatory for the respective holder in Portuguese territory; and It is intended for nationals of foreign countries (not members of the EU or the EEA) who wish to invest in Portugal in one of the following ways: transfer of capital; creation of jobs; and acquisition immovable property; Possibility to move freely within the Schengen area. 6
7 Types of Investment Types of investment allowed under the regime to obtain a residence permit. Only one type of investment is required in order to obtain the Portuguese Golden Visa. Transfer of Capital Euros - accomplished through financial investments in Portugal or acquisition of shares or quotas of companies; or 350,000 Euros - applied in research activities carried out by public or private scientific research institutions, integrated in the national scientific and technological system; or Euros - applied in investment or support of artistic production, restoration or maintenance of the national cultural heritage (through direct central and peripheral administration services, public institutes, public sector corporate bodies, public foundations, etc.); or 500,000 Euros - acquiring units of investment funds or venture capital aimed at the capitalization of small and medium-sized companies that present a viable capitalization plan. Real Estate Purchase Real estate in Portugal with a value of 500,000 Euros or more (this value can be reduced to 400,000 Euros if the property is located in areas of low population density); or Real estate with a construction date going back 30 years, OR real estate acquired in an area of urban rehabilitation, and rehabilitation of the real estate acquired in the total amount equal to or greater than 350,000 Euros (acquisition + works), this value may be Reduced to 280 thousand euros if the property is located in areas of low population density. Creation of 10, or more, job posts Employees must be duly enrolled in the Portuguese Social Security. 7
8 Other requirements Additional requirements for obtaining the residence permit for investment purposes. To be present in Portuguese territory. To establish the respective stay in Portugal for a maximum period of 90 days counting from the date of first entry in Portuguese territory. Possess means of subsistence. Have accommodation in Portuguese territory. Be registered with the Social Security and Portuguese Tax Authority (when applicable). Not have been convicted of an offense punishable by a prison sentence of more than one year. Not having been interdicted from entering the Portuguese territory as a result of a removal order Not being included in the Integrated Information System (SII) of the Portuguese Borders Control Authority (SEF) for nonadmission. Not having practiced any act that prevents the granting of the residence visa in general terms. Third-country nationals wishing to enter Portugal should: Hold a valid Schengen visa; or Be exempt from the requirement to obtain a Schengen visa. 8
9 RENEWAL AND FAMILY REUNIFICATION
10 Golden Visa Renewal Periods of permanence and renewal Renewal The golden visa has an initial duration of 1 (one) year as from its date of issue and its holder has to apply for renewal every 2 (two) years. Renewal conditions In order to renew the golden visa, the applicant must prove that he/she has fulfilled the following minimum requirements for permanence in Portuguese territory: seven days, be they consecutive or not, during the first year of the golden visa; and fourteen days, consecutive or not, during the subsequent periods of two years. Authorization for permanent residence After 5 years of possession of the golden visa, the applicant may apply for a permanent residence. Portuguese nationality After 5 years of possession of the golden visa, the applicant may apply for permanent residence. 10
11 Family Reunification Family members of Golden visa holders who are dependents may apply for the golden visa under the regime of family reunification. The golden visa holder is entitled to family reunification with family members who: Are outside Portuguese territory; Have lived with the golden visa holder in another country; or Depend on or cohabit with the golden visa holder, irrespective of whether family ties existed prior or subsequent to the entry of the golden visa holder in Portuguese territory. For the purpose of the golden visa, the following persons shall be considered family members: The spouse; Minors or disabled children dependent on the couple or on one of the spouses ; Minors adopted by the holder of the golden visa (if the latter is not married), by the holder of the golden visa or by the spouse, by decision of the competent authority of the country of origin, provided that the law of that country recognizes the rights and duties of the adopted persons as being identical to those of natural offspring and that the decision is recognized by Portugal; The oldest children, economically dependent on the couple or on one of the spouses, who are single and are studying in an educational establishment, irrespective of the country in which they reside; Direct ascendants and those at the first degree of the golden visa holder or of his spouse, provided that they are dependent on the holder of the golden visa; and Minor siblings, provided they are under the custody of the golden visa holder and in accordance with a decision issued by the competent body of the country of origin and provided that such decision is recognized by Portugal. The right of reunification may be extended to: Duly proven non-marital partners of the golden visa holder, whether in Portuguese territory or not, in accordance with the applicable legislation; and Single minor or disabled offspring, including adopted children of the nonmarital partner, provided they are legally entrusted. 11
12 ABOUT MCS
13 About MCS The founding of Madeira Corporate Services, S.A. (MCS) dates back to 1995 and it is part of the On.Corporate group. MCS started as a corporate service provider in the Madeira International Business Center and rapidly became one of the leading management firms. As a result of its position in the market, the quality of the services it has been providing for over a decade and full compliance with business ethics, MCS was awarded the Merit Certificate by the Concessionaire of the International Business Centre of Madeira, SDM Sociedade de Desenvolvimento da Madeira, SA. Within its international presence, MCS is also assisting its clients with both European and Non-European OECD tax compliant jurisdictions, thus reinforcing its international reach and scope as a global provider of management and corporate services. MCS has always understood the absolute need for continuous legal assistance to our clients for operations carried out through our company. This legal assistance was from the very start entrusted to the Portuguese law firm: Teixeira de Freitas, Rodrigues e Associados SP RL (TFRA), our associated law firm based in Lisbon. This advantage, essential in various sophisticated jurisdictions, has placed us in great demand by international clients and has resulted in the high standard of clients that MCS has today. They range from international groups and companies to international banking institutions and to high net-worth individuals. Rosana Rodrigues Executive Director rosana@mcs.pt Ambrósio Jardim Director ambrosio@mcs.pt Maria Alexandra Pires Director maria.alexandra@mcs.pt 13
14 Contacts Headquarters Av. Arriaga, 77. Edifício Marina Fórum, 6.º Andar Funchal, Madeira - Portugal T: F: E: management@mcs.pt Representative offices Avenida da República, n.º 32, 4.º Direito, Lisboa T: E: management@mcs.pt PORTUGAL (mainland) Rua Centro de Convenções S8, Edificio Masuika Office Plaza (in front of Kero Talatona), Bloco B 4º A, Talatona Luanda T: E: angola@mcs.pt ANGOLA Avenida Emília Daússe, 548,1100 Maputo T: E: mozambique@mcs.pt MOZAMBIQUE BRAZIL s Exclusive Point of Contact: Luiz Augusto Teixeira de Freitas T: F: E: luiz.augusto@tfra.pt 14
15 Disclaimer A informação fornecida nesta brochura é de carácter genérico, pretendendo apenas ser um resumo das regras aplicáveis e do processo, tendo sido por isso efetuadas algumas simplificações. Assim, recomendamos que seja obtido aconselhamento específico antes de tomar uma decisão sobre qualquer um dos assuntos aqui tratados. Poderão também existir implicações fiscais noutros países que deverão ser acauteladas. The information provided in this brochure is merely a summary and has therefore been simplified. Individual advice must be obtained before acting on any of the matters covered herein. There may be tax implications in other countries as well. A MCS opera através de profissionais dedicados e colabora ativamente com a sua Rede de Empresas Parceiras (o Grupo ) por forma a prestar serviços consultoria fiscal, consultoria empresarial, consultoria e assistência jurídica, e outsourcing para clientes selecionados. Cada membro do Grupo oferece serviços numa determinada área geográfica e está sujeito às leis e regulamentações do(s) país(es) e/ou território(s) no(s) qual(quais) opera. MCS operates through dedicated professionals and cooperates with its Partnership Network Companies (the "Group"), provides tax consultancy services, investment consultancy services, legal advice and assistance and outsourcing to selected clients. Each member of the Group provides services in a particular geographic area and is subject to the laws and regulations of the country(ies) and / or territory(ies) in which it operates. A MCS e as empresas do Grupo são entidades legais distintas e separadas, sendo por isso responsáveis somente pelos seus próprios atos ou omissões. Cada firma é estruturada diferentemente, de acordo com as leis nacionais, as regulamentações, as práticas de costume e outros fatores, assegurando a oferta de serviços profissionais nos seus territórios pelo meio legalmente mais apropriado. Por razões regulatórias, além de outras, certas empresas do Grupo não proporcionam serviços em todas as áreas profissionais. Nem a MCS, nem as empresas do Grupo têm responsabilidade sobre atos ou omissões umas das outras. Cada empresa é uma entidade jurídica própria e independente que opera em parceria com as restantes. MCS and the Group s companies are separate legal entities and are therefore liable only for their own acts or omissions. Each company is structured differently, in accordance with national laws, such as regulations, customary practices and other factors, ensuring that they provide their services in accordance to their territory laws. For regulatory reasons, in addition to others, certain companies of the Group do not provide services in all professional areas. Neither MCS nor the companies belonging to the Group are liable for acts or omissions of one another. Each company is a separate and independent legal entity that operates in partnership with others. 15
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