Portugal Golden Visa For Canadian Citizens

Route to Citizenship and Passport

This is the most exciting part of the golden visa program: after 5 years, you are eligible for citizenship and get a Portuguese passport. And this gives you the same right as a Portuguese, such as being able to vote and be voted for, accessing public benefits and having free healthcare. Obtaining Portuguese citizenship can also make it easier for your dependents to get permanent residency or citizenship.

Tax Benefit 

If your golden visa application is approved, you will not need to pay taxes to the government unless you spend over 183 days out of a possible 365 in Portugal.  Even if you spend more than 183 days, Portugal has a relaxed tax rule for foreign nationals. Under the non-habitual residency program (NHR), you are not required to pay tax for the first 10 years of your stay in Portugal.

Low Cost of Living

Portugal is one of the most affordable countries to reside in Europe. You can live comfortably in Portugal at CAD 1900 per month. Their Education and healthcare are also one of the cheapest in Western Europe. Portugal also has some of the best schools in Europe where you or your dependents can get a quality education.

Minimum Stay Requirement

Unlike other immigration pathways, this is the most lenient. You don’t have to spend much time in Portugal. You must only spend 7 days in the first year and 14 in the next two years.

Picturesque Country

If you want to settle in a country with beautiful beaches and colorful streets, you should consider moving to Portugal.

Low-Cost Investment

With €280,000, you can invest in the country and become eligible for the golden visa. This amount is one of the lowest investment requirements in Europe.

Minimum Stay Requirement

If you are applying for the golden visa, you must ensure that you stay in Portugal for at least 7 days per year.

Commitment to Maintenance

To apply for the golden visa, you must prove to the authorities that you will commit at least 5 years to maintain your investment.

Your Capital Must Be Yours

It is important to note that you cannot take loans in Portugal and use it to invest in Portugal. The money you will use must come from outside of the country for it to be valid.

Real Estate Acquisition

The real estate acquisition route to obtaining a golden visa has been the most famous for years. Foreign nationals are expected to buy a property worth between €280,000 to €500,000. The amount you are expected to invest depends on the property type and location.

• You can get a property anywhere in Portugal for €500,000. However, if the property is in the less populated regions of Portugal, you will only need to get one worth €400,000.

• You can purchase an old property (over 30 years old) in the urban regions of Portugal and renovate it with not less than €350,000. If the property is in the less populated areas in Portugal, you only need to get one worth €280,000.

Before investing, you must know that you are not eligible for a golden visa if you buy a residential property in Porto, Lisbon or any of Portugal’s coastal cities. In these places, you will need to buy a commercial property.

You must not also pay the minimum required amount for one property. You can purchase multiple properties as long as they all meet or surpass the minimum required amounts.

It is also possible to combine wealth in purchasing a property. For example, you and your friend or sibling can partner to buy a property worth €1,000,000, and you both would meet the minimum requirement. It is assumed you both paid €500,000 each.

Last year, Portugal golden visa new rules were released. The government sought to close that route to citizenship. However, the golden visa route is still up. But the golden visa by real estate acquisition will soon be scrapped.

Foreign nationals can no longer apply for golden visas via real estate. The government, however, has not published a date when this will stop. Until then, applications and renewals will go on.

People already on the visa or whose applications are being processed will be moved to the Entrepreneur’s Permit visa (D2).

Capital Transfer

You can also get a golden visa if you can transfer a minimum of €1,500,000 into a bank account in Portugal. According to Portugal golden visa latest news, this is another route to the golden visa the government intends to stop soon. One of the reasons the government is stopping this route is due to the housing scarcity issue currently growing in Portugal.

Fund Subscription

This is also called the Venture Capital Fund Investment. You must invest at least €500,000 in a business. You can invest in any business as long as it has no relationship with real estate. Your investment must last for a minimum of 5 years. A minimum of 60% of your investment must be in a business located in the national territory.

Company

You can also start a company or business in Portugal with a minimum of €500,000. It is expected that the company must create a minimum of 10 jobs. Alternatively, you can invest such an amount in an already existing company or business to increase their capital and create 5 permanent jobs.

Note that the company or business you will open must follow the due process of job creation and company incorporation as stipulated by the laws of Portugal.

Donations

This is another way to invest in Portugal and get your golden visa. You can donate money towards a particular private or public project. Your donation can be towards:

• A research carried out by a private or public organization. The research must be in the field of science and technology. You can donate €500,000 if it is in an urban area or €400,000 if it is in a rural area.
• A  cultural or national heritage in need of maintenance or recovery. It could also be donations towards an artistic production. You need to donate at least €250,000 if the project is in the urban area and €200,000 in the rural area.

Real Estate Route

Pros

• The real estate route allows you to buy property and invest in something tangible. You can see what your money is going into and assess whether you want your money to go there. There is something tangible you are seeing that helps you make the decision.
• The real estate route is highly liquid. This means you can easily sell your asset and get cash.
• The real estate route has the flexibility of usage. There are diverse things you can do with a property in Portugal. You could decide to lease the property (land) to farmers for food and livestock production. You can rent the building to a company or business that needs a space for them to operate. You could convert to a residential building and get rental income from people living there.
• The investment is in your hands to do as you please. You decide what you want to use your property for. If you’ll keep leasing or renting out, or you want to sell or keep it as an inheritance for your children, or a gift for a friend, the ball is in your court.

 Cons

• The first disadvantage of the real estate route is that it incurs high taxes. If you rent your property out, you have to pay 28% tax on whatever amount you get for renting it. If you want to sell, you will also pay 28% of the amount you sold as tax.
• The issues with property management is another disadvantage of this route. You may not know much about property management, and such may be at the mercy of property managers.
• The rental management problem is another issue that scares people away from this route. There is no way to ensure that the people you rent your property to will always pay on time. Landlord and tenant issues are common, and you could find yourself struggling with a tenant to pay what is due. Sometimes these issues can end up in court, incurring more expenses.

Funds Route

Pros

• The investment by funds is a highly regulated market, so you are sure your investment is safe. Once the market goes well, you are confident you will also enjoy the profits.
• The investment opportunities are vast. You could spread your investment across many sectors to mitigate the total capital loss.
• The route is income tax efficient. The government will not tax your return on investment fund.
• The chances of you getting huge returns on investment are higher with this route. There is no cap on how much you can gain from the market once it is flourishing.

Cons

• The investment funds route is riskier as there is no certainty or guarantee that you will get a return on investment. You could wake up one morning to see everything you worked for vanish due to losses in the Portuguese market.
• The route does not give you much power to make decisions. You cannot decide when to sell or keep. The decision-making is left to the fund managers, who may make decisions you are not okay with.
• The last disadvantage of this route is that it can be a bit harder to sell. Even if you reach an agreement to sell your stocks and shares, no one would want to buy them if the market is not doing well. And you may not want to sell also if the profits are good.

If you need advice on which path to take, depending on your preference and circumstance, you can reach us online or call us on +1 844 290 6312.  We have attorneys at Total Law that can help you decide and inform you of legal steps to secure your investment.

Minimum Residence Requirement

The golden visa rules require the visa holder to stay in Portugal for a minimum of 7 days in a year. This means that for the initial 2 years, you must have stayed in Portugal for at least 14 days. To be eligible for another 2-year renewal, you must have stayed another 14 days in 2 years.

Making and Maintenance of the Right Investment for a Minimum of 5 Years

When applying for a golden visa, you must show SEF proof that you have an investment in the country. It is also essential to know that when applying for Portuguese citizenship after 5 years, the Ministry of Justice in charge of citizenship application will require proof that you maintained your investment over the 5 years.

After you acquire citizenship, it is no longer mandatory for you to maintain the asset. Also, note that not just any investment will fly. It has to be an investment in tandem with the rules specified by SEF.

Proper Documentation

You must gather and present the proper documents. Providing the correct document makes it easier for your visa to be approved. Below are the documents you need to show while completing your application:

• Passport or other travel documents issued by the government.
• Evidence of investment. This can be a property deed with a receipt of payment, fund subscription proof from the fund manager, or a statement from a Portuguese bank or financial organization confirming the receipt of your funds.
• Evidence of health insurance policy worth at least €300,000. You must present a health insurance policy for each family member when applying with them.
• Criminal history certificate from the country of origin or residence in the past 1 year. This certificate should be issued 90 days before you submit your application.
• Filled consent form permitting SEF to do a criminal background check on you.
• Affidavit confirming that you will maintain your investment for at least 5 years.
• Evidence of visa application fee payment.
• Evidence of tax and customs compliance in Portugal. This should be gotten 45 days before the start of your application.

Note that if your documents are not in Portuguese, you have to translate and legalize them in Portugal through an authorized translator.

You can get your documents legalized at the Portuguese embassy or consulate in Canada.

You must submit your documents with the certified translations. You can use any of the means below to translate your documents:

• A translation done by the Canadian embassy or consulate in Portugal.
• A translation done by an authorized translator in the Portuguese embassy or consulate in Canada.
• A translation done by anyone and confirmed by a Portuguese attorney.

NIF Number and Bank Account in Portugal

It is required that you invest in Portugal from your Portuguese bank account. This means you must have a bank account in Portugal for you to apply for the golden visa.

To open a bank account in Portugal, you must have an NIF number. This is your tax identification number.

To get a NIF number, you only need to walk into any tax office in Portugal and submit evidence of your address either in or outside of Portugal. Also, give them your identification document. You will get a tax ID number soon after.

If you are applying outside Portugal, you can give your solicitor the power of attorney so they can do this for you. Our attorneys at Total Law can do this quickly – contact us at +1 844 290 6312 or online.

After getting the NIF number, you can open an account with any Portuguese bank you choose. Here are the documents you need when opening a bank account in Portugal:

• Your passport.
• Your NIF number.
• Your Portuguese mobile phone number.
• Your evidence of income.
• Your address in your home country.

If you are not in Portugal but have an account with a bank with a branch in Portugal, you do not need to open a new one.

You can use banks that allow opening bank accounts online.

However, if you are not in Portugal, your best bet is to contact our attorneys at Total Law to help you with this.

Talk to us at Total Law

Get in touch with us at Total Law so we can help you decide on what investment opportunity is best suited for your circumstance. Once settled, you can start the application with or without your dependents.

Get Your NIF and Bank Account Number

The next step is to get the NIF number and open a Portugal account. You can do this yourself, or we can help direct you to a bank that can open an account for you seamlessly without you being in Portugal. If you want to do this and are not in Portugal, you can travel to Portugal for this purpose since Canadians have free entry into Portugal for 90 days.

Gather Your Supporting Documents

Before kick-starting the application, you must ensure you have all the documents you need.

Make the Minimum Investment

The next step is to make your investment. This should be after you have scouted for the best opportunity in your chosen area. Our team at Total Law can guide you to make the necessary paperwork to secure your investment.

Make a Pre-Application

After making your investment, you will have to make a pre-application to SEF. They have to look at your investment to ensure it meets the standards. To apply, you have to do the following:

• Create an account at the ARI (Residence Permits for Investment Activities) access portal.
• Attach all your supporting documents.
• Attach proof of payment for all visa-related fees.

You can do this yourself or empower us with a power of attorney to handle this process for you.

Biometrics Collection

Usually, after 2 to 6 months, you will get a mail from SEF to submit your biometrics if your pre-application was successful.

Collect Your Passport

SEF will approve your application if it is successful. You can now travel to Portugal. On getting to Portugal, you will now attend an interview with SEF. You will get your residence permit after paying your visa issuance fee.

Overview

The processing time for the golden visa varies and depends on the workload on SEF and the particular visa application center you used.

After the pre-application, it can take 2 to 6 months to get a decision from SEF and for a biometrics collection date. If successful, you will receive the visa in your passport.

After moving to Portugal, it will take another 4 months to get your residence permit.

Years 1 & 2

Your residence permit and golden visa are valid only for 2 years. In these 2 years, you must have spent at least 14 days in Portugal.

You must schedule another appointment with SEF 30-90 days before your initial residence permit expires.

You must submit all the documents you submitted before and pay for biometrics processing.

Years 3 & 4

After renewing your permit, you can live, work and study in Portugal for another 2 years. You have to ensure you spend 14 days minimum in Portugal. At the end of the 2 years, you have to apply for renewal again.

Year 5

After the 5th year, you can do any of the following:

• Continue your golden visa program.
• Apply to become a citizen.
• Apply to become a permanent resident.

Non-Habitual Resident (NHR) Tax Program

To be a tax resident, you must spend more than 183 days in 1 year in Portugal. Under this program, you are exempt from paying taxes on any income you make outside Portugal. For income gotten from Portugal, you only pay 20% tax. This program is valid for 10 years per person. The program has changed, though. Foreign nationals who live in Portugal must pay tax from their pension.

Real Estate Taxes

If you choose to get a golden visa via the real estate route, know you must pay taxes. You must pay yearly local tax depending on the kind of property you have.

You must also pay a rental tax of 28%.