分类: patricia valadas coriel

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Portugal Publishes New Golden Visa Minimums – Fund, Deposit Routes Costlier From Jan. ’22

The Portuguese government today published long-anticipated details on the new terms for its golden visa program, which will apply from 2022 onwards. Minimum investments amounts will rise in several categories.

“[…] contrary to what had been voiced by the Portuguese Government,” writes João Cunha Vaz, Senior Partner of Lisbon-based Edge International lawyers, “the amendments now released will only be applicable to Golden Visa applications submitted after Decree Law 14/2021 is in force, which is to take place on 1st January 2022. This means that, until then, the existing rules and requirements shall be applicable to all investors.”

The government had initially signaled July 1st, 2021 as the starting date for a “transition period” that would last for several months, but today’s announcement indicates we’ll see a clean break between the old and new rules on New Year’s Eve at the end of this year.

The amendments published today, explains Cunha Vaz, centered around two chief features:

  1. Raising the minimum investment requirements for a number of categories;
  2. Delineating the geographic areas in which property investments may substantiate a golden visa application.

The salient amendments announced today:

  • The capital investment/deposit category: Minimum investment requirement will rise from the current EUR 1 million to EUR 1.5 million;
  • The investment fund category: Minimum investment requirement will rise from the current EUR 350,000 to EUR 500,000;
  • The property investment category: Minimum investment requirement will remain unchanged at EUR 500,000 and EUR 350,000 (renovation properties) but qualifying for the golden visa through these options will be limited to the country’s interior as well as the autonomous regions of the Azores and Madeira;
  • The job creation category: The minimum capital required for incorporation/capital injection in an existing company that then must proceed to create five new job positions sustained for a consecutive three years will rise from the current EUR 350,000 to EUR 500,000;
  • The Science and Research Activities category: Minimum investment requirements will rise from the current EUR 350,000 to EUR 500,000.

Changes to the latter category, subparagraph 5 of the golden visa legislation, are likely to have virtually no impact as no applicant has ever chosen this option.

In our interactive and zoomable map below, you can see which municipalities will still be eligible for residential real estate investment under the golden visa. Municipalities marked yellow have limited qualification; some, but not all, parishes within that municipality qualify. To see qualification at the individual parish level, refer to the official decree.

Cunha-Vaz comments that it’s clear from the Decree Law that the amendments “do not prevent the possibility to renew the existing applications under the terms of the existing rules and requirements and also does not prevent the ability to add family members to existing applications.”

The changes will have no retroactive effect on applicants currently enrolled in the program.

“In practical terms,” says Cunha Vaz, “all investors who have submitted their applications under the terms of the existing rules shall continue to renew their residencies with the same requirements applicable at the time of the initial application. “

Anyone submitting their applications before the end of this year will be subject to the old rules, regardless of the status of their application on January 1st, 2022.

“It’s important to point out,” says Patricia Valadas Coriel of Valadas Coriel & Associados, “that that the changes to the real estate market are only applicable to residential properties. Commercial and touristic properties will remain eligible in Lisbon, on the coast, and in Porto.”

The developers with hotel products in Lisbon, Porto, and the Algarve, for example, will remain qualifying for golden visa applicants for EUR 350,000, she emphasizes.

“It’s not all that bad. You can still buy rehabilitation properties in the cities and on the coast at the lower price point as long as the property is intended for tourism. Furthermore, the criteria relating to low density remain unchanged, which means investments are 20% lower if in a less densely populated area. So regular property in low-density areas would be EUR 400,000, while rehabilitation properties in low-density areas would still be EUR 280,00.”

More Policy Updates

Big changes, also to prices, are coming to Portugal’s golden visa in January. See our interactive map to find out if your municipality qualifies for real estate investment.

The UAE will begin granting citizenship to investors and specialists. As constituted so far, however, the policy does not amount to a CIP.

The new rules mean a single applicant, choosing to rent on Gozo, could obtain a residence permit in Malta for a non-refundable EUR 150,000.

 

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Govt. Confirms Golden Visa Days Numbered for Cities: Not Necessarily Bad News, Say Stakeholders

Long-anticipated changes to Portugal’s golden visa program were confirmed yesterday as the country’s Council of Ministers approved a change in a decree-law that will see residence investment channeled away from metropolitan and coastal property hotspots such as Lisbon, Porto, as well as the entirety of the coast, and toward the less-densely populated interior and autonomous regions (the Azores and Madeira). This according to reports in ECO News yesterday.

The amendments have “the objective of promoting the investment of foreigners in low density regions, especially through urban rehabilitation, cultural heritage, activities of high environmental or social value, productive investment, and job creation,” wrote Lisbon-based attorneys Caiado Guerreiro in an update on its website yesterday.

The changes will, reportedly, only take effect on July 1st, and there would be “a transitional period in 2021 and 2022 for the application of such measures progressively,” according to a government statement that did not specify precisely how long into 2022 the transitional period would remain.

Minister of State and Presidency, Mariana Vieira da Silva, explained that the changes were now warranted because “the context in which that [original ARI] legislation was approved was different” from the current context.

Emphasizing that already-active ARI visas would not be affected, the Cabinet explained that its reasoning for placing the effective date more than six-months in the future was that the “government always made changes that impact the lives of people or companies take effect on either January 1 or July 1” and that, as January 1st had been considered too near in time, they had picked July 1st.

Caiado Guerreiro pointed out in its dispatch that “it should be noted that, although the final diploma has not yet been released, it is expected that these changes will reinforce the growing trend of investors in search for alternative investment options […]”

“Possibilities will be endless”
Questioned as to the purpose of the transitional period, Patricia Valadas Coriel of Valadas Coriel & Associados explained that because the diploma as yet remained unpublished, few specific details on what it would entail were known. She nonetheless expressed optimism regarding the program’s future:

“The Portuguese Golden Visa proposition will remain strong. There will be other, less expensive investment options. Property prices in the interior are considerably cheaper and fund investment options are becoming increasingly attractive. You will see that the possibilities will be endless; we just need to be creative,” she cheerfully concluded.

Speaking from Lisbon where he is currently spending Christmas with his family, Jeremy Savory of Dubai-based Savory & Partners, a goodly proportion of whose clients continue to apply for the Portuguese golden visa, was similarly sanguine about the changes.

“Although the minutiae of the legislation have yet to be laid out, it is welcome news for those potential investors that have been waiting for some clarity,” Savory said. “Now, those golden visa investors have a once-in-a-lifetime opportunity to invest in Lisbon and Porto at attractive prices, especially with the glut of AirBnB rental property that has come back onto the market in 2020.”

Several of the Portuguese immigration law firms with which IMI has been in touch on the matter indicated they preferred to reserve judgement until the details of the diploma had been published.

More Policy Updates

A transition period that will see the exclusion of metropolitan and coastal areas from the program will begin on July 1st next year.

Australia is bringing wide-ranging changes to its extremely popular BIIP, cutting five categories and raising capital requirements.

While welcoming the new scheme, market observers expect it to have only limited success until travel restrictions are removed.

 

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The post Govt. Confirms Golden Visa Days Numbered for Cities: Not Necessarily Bad News, Say Stakeholders appeared first on Investment Migration Insider.