The Government has issued a further 49 Golden Visas in the first 25 days of 2014, according to Rui Machete, Portugal’s Minister of Foreign Affairs.
Since the start of the scheme to January 23rd 2014, the government has approved 535 applications for the special residence permits, according to data provided by Machete's Ministry.
The total investment so far in high-end property in Portugal has been €335 million, €27 million of it coming in the first 25 days of January 2014.
The Chinese are still the number one applicants with a total of 416 issued, followed by Russia with 23 and Brazil with 14. Only 9 applicants have been refused so far on the grounds of criminal history, or just looking shifty at interview.
"The first year of the golden visa scheme has stirred the interest of these markets and judging by the numbers seen already this year, this year looks promising," said Rui Machete in Lisbon today.
Successful golden visa holders gain a foothold in Europe with unrestricted travel within the Schengen zone and have no obligation at all to pay any tax on their foreign earnings for five years. After the initial five years, visa holders may become Portuguese passport holders and therefore full citizens of the European Union, a golden objective for many as they then can live in the UK which is the stated aim of many of the Chinese taking up the golden visa offer.
Much of the property sold will be let, according to estate agents handling sales, with the buyers taking advantage of Portugal’s generosity, but basing themselves elsewhere.
The tax income to the country will come about if the properties sold are privately owned, i.e. not owned by an offshore company, a sale will trigger a stamp duty charge. Also there may be a capital gains tax charge depending on the price and whether the seller reinvests in property.
