LISBOA PORTO FUNCHAL SÃO PAULO LUANDA MAPUTO PRAIA DILI SÃO TOMÉ MACAU
RÉSEAU D’EXPERTS AU PORTUGAL PORTUGAL: A PLATFORM FOR INVESTMENTS AND RESIDENCE
Rogério M. Fernandes Ferreira
2 September 2021 CONFIDENTIALITY
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2 INDEX
Portugal: A Good Choice Portuguese Residency Permit for Investment Activity (“Golden Visa”) The Non-Habitual Residence Regime (NHR) Inheritance and Donations Real Estate Taxation Corporate Income Tax (CIT) Network Double Tax Treaties
3 4
PORTUGAL: A GOOD CHOICE
▪ Good climate ▪ Historical heritage ▪ Low-cost living ▪ Landscapes ▪ Culinary ▪ Safe environment and low crime rate ▪ Quality education and health system ▪ Highly rated by the World Bank for "ease of doing business”
4 PORTUGUESE RESIDENCY PERMIT FOR INVESTMENT ACTIVITY (“GOLDEN VISA”)
GENERAL 1 PURPOSE 2 VALIDITY 3 CONDITIONS
▪ Obtain a fully valid ▪ Valid for an initial period of ▪ Keep the investment for a residency permit in 2 years minimum period of 5 years Portugal ▪ Then renewed for ▪ Entry in Portugal with a valid ▪ Revitalization of the subsequent periods of 2 Schengen visa Portuguese economy years. ▪ Absence of criminal references in the integrated system of the Portuguese Immigration Services (“SEF”) ▪ Absence of conviction of relevant crime ▪ Minimum stay in Portugal: an average of 7 days per year
5 ADVANTAGES
Possibility of Family Reunification
Visa exemption for travelling within the Schengen Area
Reduced minimum permanence period
Permanent residency acessible on the 5th year
Portuguese Citizenship accessible on the 5th year
6 ELIGIBLE INVESTMENT ACTIVITIES
REAL ESTATE FINANCIAL ASSETS CAPITAL INVESTMENTS JOB CREATION Purchase of Real Estate Venture Capital & Investment Research & Development Creation of ≥ 10 jobs Acquisition of property Funds > € 500.000 ≥ €350.000 in scientific ≥ € 350.000 in the research that is conducted by Or acquisition of participation Or institutions that are part of units in venture capital or the national scientific and Purchase and Rehabilitation investment funds established Company and job creation in Portugal and specialized in technological system of Real Estate ≥ € 350.000for: the capitalization of Acquisition and renovation of enterprises Or property > € 350.000 - for a) establishing a corporation in Portugal, combined with the properties more than 30 years old Or Cultural creation of ≥ 5 jobs; or or located in areas of urban Capital transfer in an amount renovation Other Financial Assets ≥ € 250.000 invested in, or b) reinforcement of a existing ≥ €1 million in any other type supporting, the artistic Portuguese corporation’s capital of financial asset production or the recovery or combine with the creation or maintenance of the national maintenance of the existing jobs cultural heritage that is conducted by accredited institutions
7 AMENDMENTS TO THE “GOLDEN VISA” LEGISLATION
▪ The Portuguese Government recently (Feb 2021) approved amendments to the Golden Visa program.
▪ The main changes will impact on the investments connected with real estate namely in Lisbon, Oporto, and coastal areas.
▪ In these areas the real estate investment will only be allowed for nonresidential properties.
▪ The minimum investment thresholds were also amended.
▪ The approved amendments will only enter in force on 1st January 2022.
8 THE NEW THRESHOLDS
AFTER 1st JANUARY 2022 – INVESTMENT ACTIVITIES INVESTMENT AMOUNT
▪ Nonresidential properties: €500.000. ✓ Purchase of real estate ▪ Residential properties: €500.000 – Only in the interior regions, Azores, and Madeira.
▪ Nonresidential properties: €350.000; ✓ Purchase and rehabilitation of real estate ▪ Residential properties: € 350.000 – Only in the interior regions, Azores, and Madeira
✓ Capital transfer €1.500.000
✓ Capital transfer to be applied in scientific research activities performed by public or private scientific research institutions integrated within the national scientific and € 500.000 technological system
✓ Acquisition of participation units in venture capital funds or investment funds established in accordance with Portuguese law and specialized in capitalization of enterprises, € 500.000 whereby the participation units’ mature ought to be of least 5 years and at least 60% of the value of the investments ought to be in enterprises
✓ Capital transfer for establishing a corporation in Portugal, combined with the creation of 5 jobs or reinforcement of an existing Portuguese corporation’s capital combined with the € 500.000 creation or maintenance of the existing jobs, with a minimum 5 permanent jobs for a minimum period of 3 years
9 THE NON HABITUAL RESIDENCE REGIME (NHR)
TYPE OF INCOME TAXATION CONDITIONS Most types of income e.g., employment, self- employment (that are Exempt from PIT If certain conditions considered from high for 10 years are verified, related to FOREIGN added value activity) , the provisions of the SOURCED dividends, interest, Double Tax Treaty rental income, capital- INCOME applicable, and which gains from the transfer must be thoroughly of properties (movable and individually Capital gains, as a rule, analyzed are taxed at 28%) Pension income 10% flat PIT rate
10 THE NON HABITUAL RESIDENCE REGIME (NHR) (CONT.)
TYPE OF INCOME TAXATION CONDITIONS
PORTUGUESE Employment or self- Employment and 20% flat PIT rate employment income SOURCED self-employment for 10 years obtained from a high INCOME income added value activity
11 INHERITANCE AND DONATIONS
Direct descendants 0% and spouses Non-Taxation of transfer inter vivos or in case of death 0%
Other cases 10% Transfer inter vivos is liable to stamp duty of 10%
12 REAL ESTATE TAXATION
Tax Tax Rates Exemptions
0,3% a 0,45%: urban property (if Lower tax rates for energy subject to a tax evaluation - VPT) Urban property efficient under Municipal buildings or for 0,8% on VPT for rural properties restauration Property property (maximum Tax allocated to the period of 10 (IMI) production of years) 7,5% on VPT: property held by an renewable entity resident in a “tax haven” energy
0,7% on the taxable asset value (VPT) of the taxpayer’s Additional property assets, from a value higher than € 600.000 (if a couple Municipal Individuals €1.200.000) Property 1% on the taxable asset value (VPT) of the taxpayer’s property Tax (AIMI) assets, from value higher than € 1.000.000 (AIMI) 0,4% on the taxable asset value (VPT) of the taxpayer’s Legal entities property assets
13 REAL ESTATE TAXATION (CONT)
Tax Tax Rates Exemptions
Up to 8%: urban property for residential use
Up to 8%:urban property not for Tax on the Rehabilitation residential use Acquisition of the Transfer of within 3 years real estate for Real Estate from the date of resale purpose (IMT) 5%: rural properties acquisition
10%: properties acquired by a resident in a tax heaven
0,8% on the taxable asset value Stamp Tax (VPT) to the acquisition of (IS) property rights over real estate
14 CORPORATE INCOME TAX (CIT)
23% 21% 21% 21%
2014 2015 2016 - 2018 - 2017 2021
Madeira's free trade zone – 5%
15 NETWORK DOUBLE TAX TREATIES
39 11 European African countries countries
17 12 Middle Eastern North and South and Asian American countries countries
16 Thank You !
Rogério Fernandes Ferreira
T. +351 215 915 220
17 Lisboa T. + 351 21 591 52 20 Praça do Marquês de Pombal, F. + 351 21 591 52 44 n.º 16 – 5.º (recepção) & 6.º andares www.rffadvogados.com 1250-163 Lisboa [email protected] Portugal
Porto Rua Eng.º Ferreira Dias, n.º 924, 4100-241 Porto Portugal
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