Low fees and taxes with Portugal’s Golden Visa Program

Portugal’s Golden Visa Program continues to attract huge amounts of investment for the southern European country.

Since launching in 2012, it has been leading the way when it comes to residency by investment schemes across Europe – and for good reason.

Not only does Portugal’s program open up an avenue to obtain permanent residency in the stunning country within five years, but it also has one of the lowest taxes among residency by investment visa programs in the continent.

The Golden Visa is a perfect match for those looking to embark on the next chapter of their lives overseas, while making a major investment and enjoying fewer taxes.

Portugal’s Golden Visa costs, fees and taxes, overall, are substantially lower than other countries’ programs.

Excellent tax benefits for investors

The country’s popular program boasts a range of appealing characteristics – particularly, the impressive tax benefits for potential investors who are looking to snap up an exciting opportunity.

Of course, people across the globe strive to keep as much of their hard-earned cash as possible.

Investors who qualify for the Golden Visa will only be taxed on their worldwide income if they stay in Portugal for more than 183 days in a year.

If they do not stay in the country for this long, then only income generated in Portugal would be taxed – at a rate of 28%.

So, for example, if an individual opted to invest in property with the Golden Visa and they immediately rented the property out, they would be taxed on this rental income at 28%.

But there is an additional way in which people can secure further tax benefits – through the tax regime for non-habitual residents. By taking advantage of this, along with the Golden Visa, people can expect to save significant amounts of money.

Taking advantage of tax regime after securing residency

The tax regime aims to attract people to the nation on the Iberian Peninsula by granting tax exemptions and flat rate taxation for a full decade.

The tax benefits are applicable for a number of types of income – including employment income, business or professional income and rental income.

However, there are a number of requirements that people must meet for this, including having the right to reside in Portugal.

Crucially, residency can be achieved by the Golden Visa Program. This can be achieved in five years – and individuals are only required to stay in the country for seven to fourteen days a year during this period.

If this is achieved, an individual would obtain permanent residency in the nation and subsequently be able apply for the tax regime to take advantage of the huge additional benefits.

It is also important to note that people looking to qualify for the non-habitual tax regime must not have been a tax resident in Portugal in the five years prior to the application.

More than 10,000 people from across the globe have successfully applied for the tax regime, with its benefits and appeal clear to see – and you could be added to the list after securing residency with the Golden Visa.

Window of opportunity for potential investors

Portugal’s Golden Visa Program played an integral role in the country’s recovery following the financial crisis.

It has generated massive investment for the county – and that is sure to continue in the years to come.

Tax-related incentives will, without a doubt, continue to attract investors to the country.

Although other nations have similar residency by investment schemes in place, Portugal’s is leading the way.

But, of course, who knows how long these benefits will be around for.

Changes to the Golden Visa Program are due to come into force in 2022.

This move will see the eligibility thresholds changed – however, there is still time to apply for the scheme in its current form.

It will be interesting to see whether the Government opts to introduce major tax-related changes in the coming years.

But one thing is for sure, there is no time like the present to take up this opportunity.

This could be the move that you have been waiting for – the next chapter of your life with more cash in your pocket thanks to the tax benefits.

Nevertheless, it is important to note that while these positives await investors, there will also be other costs associated to an investment such as lawyer fees and stamp duty.

However, the significant amount of money that will be saved with the tax benefits far outweigh any fees that people will face during the investment process.

Fewer taxes, sun, sand and beautiful landscapes – what more could you want?

Qualifying for the Golden Visa and tax benefits would ensure that you have plenty more money in your bank – and you will have the luxury of spending those additional funds how you like.

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