Mortgage loan for a Golden Visa program

[ravikumar]

Hello,

I have read the ultimate guide about a golden visa program Portugal, it was really very helpline but i have a question can a investor take a mortgage bank loan to buy a property in portugal? and will he or she qualifies immediately for a golden visa after obtaining a mortgage loan.

Thanks

Ravi Kumar

[tkrunning (Thomas K. Running)]

Hi Ravi, this has already been answered by @teixeiradasilva here:

Understanding the Portuguese Golden Visa real estate market

Hi Justin From memory (I don’t have the table in front of me) most of the Azores islands are low density but some places such as S. Miguel I assume will not be. You can finance properties in Portugal as a foreigner up to 70% LTV but NOT within the Golden Visa level. The Golden Visa requires no recourse to finance within the GV level, anything above the level is fine. You may accumulate and then apply when you hit the threshold, whatever level it is. Importantly, if you aim for €350K, for exam…

Basically, no, you can’t take out a mortgage to cover what’s required to qualify for the GV (e.g. €350,000), but you can for any amount above that in case you buy a more expensive property than is required.

[guifig (Gui)]

Hi there. If you have the required monies but don’t want to spend it (for ex if you have EUR or USD 1 million in Apple shares but don’t want to sell them in order to purchase the property), you can open a private banking account (for ex in Switzerland) and borrow money against such assets. The bank will keep your shares in a bank account and lend you say EUR/USD 500k. This would be a personal loan and thus this money could be used to purchase the property in PORTUGAL for the purposes of the golden visa. Rates charged by the bank on the money lent are usually low (between 1% and 2% I think)