EUR 280,000 Properties Comparison & Refundable


I nearly did the Golden Visa late 2021, had the NIF, Bank, but didn’t quite line up the funding via my bank for the EUR 350k for Investment Fund. Also a little scared off by delays, glad to see online renewals and backlogs getting addressed now (Still sounds bad, but much better).

I’m back given the last chance, EUR 500k still not do-able, EUR 350k perhaps doable, but I’d much prefer the EUR 280k option.

I do realize as Pella Terra brilliantly put it, the lower investment options are more limited, less open-market, and so are just naturally more risky.

First, why I don’t like the big boy (Mercan):

  • EUR 280k level has no dividend/yield, and no capital gain (Guaranteed buy back means in 10 years they’ll buy it back at EUR 280k right?). 0% return over 10 years (not even inflation!) is a instant NO. The Buy Back’s are also a bit BS (exit clause makes it easy to break apparently).

What I (reasonably) want:

  • To buy an asset, aim (I’m flexible) for say a 5% compound capital increase over 10 years, so EUR 280k = EUR 456k in 10 years. Ideally there’s also a modest yield (2-5%) in most of those years.

My favorite 2 project so far, and compared:
Rossio Palace & The Society Lagos

My general pros of each (over the other):


The Society:

  • Developer seems a lot more experience in properties
  • You own the actual individual unit, and seemingly could sell that yourself on the open market (I’m not sure how much freedom you have though to say live in it, vote on property stuff, etc.)
  • Location seems more desirable (southern, coastal)

Good things about both:

  • They both offer free stays (Saves $1,000’s in hotel costs during the 2 weeks required visits and visits for visa/biometrics/etc.)

I’d love to hear your thoughts (If you chose another EUR 280k, If you went with one of these, If maybe there was a EUR 350k investment you think is worth me stretching myself a lot more)

One thought. If you are making a small yield the admin cost (payment plus your time) of doing portuguese taxes wipes out most of it. You may want to trade yield for capital appreciation where you do taxes once. I am assuming you won’t be moving to Portugal anytime soon.

Full disclosure - I have a zero yield 280K with Mercan and am just eating this for the above reason. It’s low hassle and depending a bit on their reputation/ size to get that 280k back. My choices , may not be yours.

Second , is the developer paying all your VAT for the transaction and refurb and annual IMT? I assume so - that can add up otherwise.


Agree on the whole “0% yield” thing.

I really LOVE how most commercial properties will give you a free week or so as an owner, that’s better than a dividend.

I’m surprised the industry hasn’t expanded this concept further.

They could presumably have a lawyer on a retainer to provide “free” services to investors and reduce/eliminate yields, that would be very appealing to have legal included from application until citizenship.

I disagree on the yield not being worth the headache. I am making 4% on my 280K euro investment renting it out and should continue to do so for the foreseeable future. I pay about 28% in tax and about $300 for an accountant to file my taxes for me, although I could do it myself. So that’s about 8K euros a year net on the Portugal side. I did have to pay taxes on the property purchase so that’s not factored in there. But overall it was worth it to me for the annual yield and hopefully some appreciation on sale. I wanted a long term rental residential property rather than a hotel.

Unfortunately, the company I worked with no longer does property residential property purchases and renovations anymore.