Portugal’s Golden Visa Program is among the most popular across the globe.
While many nations have similar schemes in place, the southern European country’s scheme offers enticing benefits for those who are looking to invest.
The residency by investment program was launched all the way back in 2012 after economies around the world were left crippled by the global financial crisis. It has played a crucial role in ensuring the economy of the nation on the Iberian Peninsula bounced back swiftly in the face of adversity.
The Golden Visa allows foreign investors who are from non-EU countries to secure permanent residency in Portugal in just five years. South Africa is among the many nations that the program is open to. Around 8,400km separates South Africa and Portugal – with major contrasts between the two countries.
Changes are planned to be introduced to the Golden Visa scheme in 2022, which will see a number of investment thresholds changed, although it will continue to offer major benefits to those who are interested. People from South Africa have a range of options that they can take advantage of to qualify for the program – the most popular is through real estate.
What are some of the benefits of the Golden Visa for South Africans?
While it only takes five years for people to gain permanent residency, they are only required to stay in the nation for seven to fourteen days per year during this period.
Moving across the globe to a new home can be extremely daunting, however with this benefit, people can ease into life abroad by spending small amounts of time there each year.
But, of course, not only does the Golden Visa allow people to secure residency in the stunning nation, it also presents a major opportunity to generate income from an affordable investment.
Portugal’s real estate market is extremely strong, so those who are looking to invest into it have a good chance of making financial returns.
Furthermore, the Golden Visa permits visa-free travel to the 26 European countries in the Schengen Area. Along with providing an affordable investment opportunity, the program also offers the route to gaining the freedom to live and work in Portugal. Other benefits available as part of the Golden Visa Program is access to public services in the country, including health.
Portugal has quite a low cost of living, but by no means does this mean it is a poorer standard of living. The extra money saved by individuals who move to the nation will be able to be spent how they wish – more of their hard-earned money kept in their pockets.
Tax benefits for individuals
Furthermore, if people do secure the right to reside in Portugal through the Golden Visa Program, there are a set of rules that allow professionals to reduce their tax bills. If people gain the right to reside in Portugal, they will then be able to apply for non-habitual resident status to take advantage of the tax benefits.
However, people who want to qualify for the tax regime cannot have been a tax resident in Portugal in the five years prior to the application. If this is the case, they would unfortunately not be able to qualify for it.
People who do secure non-habitual resident status are given a set of tax exemptions, in addition to a flat rate taxation for a period of 10 years.
Find out more about the Portugal Golden Visa benefits and key advantages.
Investment options available for individuals
In the program’s current form, the cheapest real estate investment available to people is one totalling €280,000. But it is important to note that a number of requirements need to met to be allowed to qualify for this, including the property being located in a low-density area of the country.
There are also a range of other investment options available for people. They are able to transfer capital totalling €1 million into a Portuguese bank account or create at least 10 jobs in the country.
Although there are a range of different options available for people, it is crucial to select the one which works best for you. Each one can be turned into a success – if planned properly.
Your chance to begin the next chapter of your life abroad
Without a doubt, moving from South Africa to Portugal is a huge decision and one which requires in-depth due diligence, budgeting and research.
But this could be the move you have been waiting for to begin the next chapter of your life.
With its glorious weather, stunning landscapes and friendly locals, there is certainly no shortage of factors that make Portugal an inviting destination for people around the world.
A beautiful country and a great investment opportunity await you – now it is up to you to make a decision. Will you be applying for Portugal’s Golden Visa Program?
