Does the 350K or 500K Go To The Developer Or Just Our Bank Account To Start Application Now?

Residencies & citizenships 🛂 Portugal Golden Visa 🇵🇹
#1

Hello.

Question, if we pursue a new build/rehab that qualifies for a GV but will not be complete let’s say until 2022 how does the money flow work if we wanted to apply now for the GV?

Does the capital have to go to the developer in full at the 350K or 500K (depending on the project) level to start the application? That would make us a bit uncomfortable given these are under construction - normally you would pay 15%, 15% after 6 months, etc…

Or, can you just transfer to your Portugal bank account the full amount (for proof of funds) and then pay your developer on a the regular agreed upon schedule and apply for the GV now?

Thanks,

Mark

#3

Hello - thanks for the initial information. Is there a website I can visit that would have some of the initial information on the projects you were discussing? Thanks,

Mark

#4

You need to have a signed contract for an approved project and enough money to cover that or at least the GV investment minimum) in a Portuguese bank. I had initially thought of building a house, but getting approval from the local council can take considerable time (3-6 months or so, but up to 9-12 if you are unlucky). With upcoming restrictions on Lisbon and Porto that could be announced at any time, it’s a very risky time to invest in real estate for the purpose of a golden visa. Current news is:

  1. Lisbon, Porto, and surrounding areas will be ineligible.
  2. Coastal areas are most likely ineligible.
  3. The 20% discount for sparse areas will probably be eliminated (why discount if it’s the only option).

I would hold on any real estate plans until after the new regulations are released (due December 2020).

#5

Hi Mark -
I have similar concerns about investing in Developer based projects. I have come across a project in a small town of Evora by RA developers with completion date of 2022. But I am afraid to make a decision based on upcoming changes in the GV process.
I am also concerned about the COVIDs lingering effects on the Real-estate market beyond 2020.
Have you made any progress in your anlysis since the time you posted this message and willing to share your thoughts?

Satish - US