Properties for the Golden Visa Portugal
We explain the cost of the Golden Visa in Portugal
Your Portugal Golden Visa cost will constitute travel expenses, government fees and taxes and professional fee. Among these costs, the professional fee is known for significantly adding to the total cost and it is always advisable to make sure whoever you choose as a professional provides a full and transparent quote.
Expenditures on Government visa application and issuing fees and the fee for obtaining professional assistance with the Portugal Golden Visa application are costs common to all investment routes. Although it is not mandatory for you to engage a professional to assist you in your application, in practice, it’s almost impossible to ignore assistance from professionals. Applicants for Portugal Golden Visa are always advised to consider it a standard cost that should not be avoided.Properties for the Golden Visa Portugal
Portugal Golden Visa Government Fees
For a renewal or initial application of aPortugal Golden Visa, the Portuguese government charges an application fee of €517.40 (€80.60 in the case of family members). Each visa holder is expected to pay a visa initial issue fee of €5,173.60 plus a renewal fee at towards the end of year one and three of €2,586.80. This makes the total Government fees payable by a couple with a child during the 5-yer Golden Visa period to stand at:
Application fee = 3 x €517.40 + 3 x 2 x €80.60 = €2,035.80
TOTAL = €33,077.40
In the case of permanent residency which can be given after thePortugal Golden Visa 5-year period and citizenship (one year later), the government application fee is as follows:
- €350 for each adult applying for permanent residency
- €250 for each adult applying for citizenship
- Children below 18-year old are exempted from this fee.
Portugal Golden Visa Professional Fees
The costs of the following professional Portugal Golden Visa services are to be taken into account:Properties for the Golden Visa Portugal
- Legal aid with your Portugal Golden Visa initial application, renewals, permanent residency and citizenship.
- Translation and registration of documents.
- Tax representation, except in cases where you own just a bank account in Portugal.
- Preparation of annual tax return and filling in case you have a Portuguese source income such as rent that is not subject to autonomous tax withheld at the source.
- If you choose the real estate investment route, legal assistance with the purchase (and possibly renting) of property.
- If you decide to own a startup or buy a business – legal, administration and accounting aid in starting up and running a business.
Though legal assistance fee may greatly vary, the average legal fee for assistance rendered to a family seeking a Portugal Golden Visa cost is around €5,000 and €2,000 per family seeking assistance a renewal. For a €500,000 purchase property, legal assistance tends to be around €5,000. Adding the legal assistance fee for the visa application to the legal fee of the property purchase will amount to a combined legal fee that tends to be around €10,000. There will be no need for legal assistance before making a regular financial investment. Where you will need legal assistance is when you are setting up or acquiring a business, but the great variety of possible circumstances has made it impossible to determine the average fee.
Portugal Golden Visa Property Purchase Taxes
In Portugal, there is a stamp duty (“imposto de selo”) that stands at a rate 0.8% of the transaction value of the Portugal Golden Visa property purchased.
To add to this, Portugal has the most significant tax – property transfer tax (which is also applied to property purchase). These taxes vary depending on the type of property, the property’s status (exemptions may be granted on rehabilitated properties) and what the property will be used for.
Golden Visa Properties that are purchased for permanent residence attracts relatively lower rates, a typical of such situation is that of a new residential property that will not be used as the owner’s permanent residence. The applicable transfer tax for the purchase of such property will be as follows:
- For a property valued between €172,348 and €287,213, the tax is calculated at 7% less €8,163.12.
- A property worth between €287,213 and €550,836, the tax is calculated at 8% less €11,035.25.
- For a property valued above €550,836, the tax is calculated at 6%.
If you take the property renovation route, a 6% VAT (‘IVA’) will be added to the price of the work assuming the cost of materials is not more than 20% of the total works. Where the cost of materials exceeds 20% of the total works, the excess value of materials will be taxed at 23%.