4 benefits of Portugal's Golden Visa for UK nationals
Brexit is driving Brits to move to Portugal
With the UK’s exit from the European Union, more and more UK nationals are looking for ways to maintain the ability to move freely within the European Union and one of the solutions they’re adopting is applying for Portugal’s Golden Visa – a special residence permit with a handful of benefits in exchange for a 5-year investment in Portugal.
Portugal’s Golden Visa is a golden travel ticket
This investment-for-citizenship program ultimately awards a Portuguese passport to the Golden Visa applicants, which for Brits means maintaining the same travel advantages as the pre-Brexit era. With Portugal as a member of the European Union, UK nationals will benefit from visa-free travel to 186 countries in the world.
The right to live, work, and study in EU/EEA countries
With a Portuguese Golden Visa in hand, UK nationals will not only benefit from extensive visa-free travel, but will also have the option to live, work, and study in any EU/EEA country if they choose to. Portugal’s Golden Visa program grants a temporary two year residency. This can be renewed provided that the investor resides at least 7 days per year in Portugal during the first year of the investment, and at least 14 days during each subsequent 2 year period. This also means that Brits can opt to maintain their habitual lifestyle in the UK while waiting for their Portuguese permanent residency and citizenship, or they can choose to live in Portugal or explore other lifestyles in a host of other European countries. Whether you’re a UK national looking for a new job or if you’re considering moving to Portugal to enjoy retirement, after 5 years of living in Portugal you, along with your family, will become a Portuguese citizen.
Low cost of living, safety and healthcare
Applying for Portugal’s Golden Visa program means opening the doors and being welcomed to a country that is filled with natural beauty, amazing weather (which our neighboring Brits definitely appreciate!) and is one of the safest in the world. In general, consumer prices in Portugal are 23% less than in the UK and vary depending on the region of the country. Low cost of living means that whatever the reason for moving to Portugal – investment, working, studying, retirement – Brits will definitely get their money’s worth. Excellent healthcare means UK nationals are covered in terms of wellbeing, and thanks to the program, will benefit from a premium health system that is extremely affordable. Portugal’s Golden Visa means quality of life for UK nationals.
Favorable tax benefits in Portugal for UK nationals
Filled with numerous advantages, Portugal’s Golden Visa is a program that also presents great tax benefits for UK nationals. In addition to attractive returns when it comes to investment properties or investing in real estate, Portugal has a Double Taxation Agreement (DTA) with many countries, including the UK. The main goal is to prevent the payment of taxes regarding the same income in two different countries and this agreement ensures that taxes are exclusively paid in one country only.
In addition, it is also important to keep in mind that taxation in Portugal is favorable for expats, when compared to other European countries. According to the Non-Habitual Resident (NHR) regime:
- Most foreign source income is exempt from taxation for ten consecutive years.
- If the foreign income is from a country Portugal has a DTA with, then it will not be taxed.
- If the person in question has a “high-added-value” profession, generous tax exemptions exist.
- Even if income is not from a Portuguese source, taxation is still lower for expats.
What will change in the Golden Visa program in 2022
With initial changes to the Portuguese Golden Visa program scheduled to become effective on July 1, 2021, the government extended this period and announced a new date for these modifications. As of January 1, 2022, there will be two important changes that should be taken into account:
- The required investment fund option will increase from €350,000 to €500,000 and the required capital transfer option will increase from €1,000,000 to €1,500,000. Other available investment options will also be registering increases.
- Golden Visa applicants will no longer be allowed to buy real estate property in Lisbon, Porto and the Algarve, nor on the coast line. Golden Visa applicants will be allowed to acquire properties in the country’s interior territories, as well as in the Autonomous Regions of the Azores and Madeira.