Hope for the best and prepare for the worst.
Can someone help to explain how this 5 year lease requirement will work for rehabilitation projects where they are still under construction?
The big question here is what happens to commercial real estate, e.g. Mercan hotels. Are they required to lease the hotel rooms out for 5 year intervals, effectively turning the hotel into residential real estate? That hardly seems practical.
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Yeah, I canāt see how the proposed wording would work on a practical level. Technically youāre leasing your part of the hotel to the operator, but of course itās not anyoneās primary residence.
Also not sure if I read the proposal as any application past Feb 16 being invalid, just a guarantee that applications prior to that will be unaffected. But legalese isnāt my first language (and neither is Portuguese), so 
ā¦
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There is nothing specifically stating that people in investments other than real estate (e.g. buying real property) are eligible to renew. The paragraph 2 of Article 32 could be read to mean they canāt. Letās wait a few more weeks to see what they come up with as I hope they will clarify things in a positive way.
Also, when it mentions āawaiting a decision form the competent authoritiesā¦ā does that mean awaiting pre-approval or awaiting final approval?
There is so much wrong with this on so many levels it is hard to comprehend.
My reading was that (a) the new law revokes in their entirety the previous legal provisions for GVs (the definitions in the old Article 3, and the whole of old Article 90-A), (b) then new Article 32 carves out an exemption for applications that were pending a decision on 16th Feb, regardless of investment type, and also for the renewal of permits, and then (c) new Article 31 imposes additional conditions on renewals for real estate.
I think on this text, an application filed on 17th Feb falls, because GVs cannot be granted once this law is passed, except for those specified in the Article 32 carve-out.
My own view is that 32(2) does give a path for renewal of GVs backed by fund investments, because it links applications that were pending on 16th Feb (regardless of investment type) in 32(1) with renewals of the same.
But Iām not a lawyer either, and I donāt think the drafting is particularly clear, at least in translationā¦ I agree with Garbonzo, letās see how this all pans out.
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So the question is how to prove the property you own is for personal use. We own a property in a touristic exploration resort but are not renting it out throught the resort so how do we prove this for renewal?
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I donāt think anyone knows. The law seems to assume everyone has bought a single flat or villa. Itās completely unclear how this all applies to investors in hotels etc. You could even I think qualify for a GV with an investment in a shop or office building - supposedly you now have to show that itās leased for housing purposes. Baffling. I assume that this language will have to be amended as the law goes through parliament.
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Well, this here draft states that:
"The following are considered supporting elements for the purpose of renewing the residence
permit provided for in the previous number:
a) Registration of the lease agreement with the Finance Portal, in the case of properties rented for
a period of not less than three years;
b) Document attesting the tax domicile, in the case of properties intended for the ownerās or
his/her descendantās permanent residence."
So yeah, itās like you rent it out long-term or become a PT-tax resident with your PT property registered as your tax residence address with AT. Or you can send your ādescendantsā to tax-reside in PT.
Why they say 5 years in one place but then 3 years in another is beyond meā¦ 
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But if we live in the US most of the year we wont be able to be full time PT tax residents so that disqualifies us for renewals even though we literally own the property and use it for ourselves? Makes no sense.
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That is not true.
Existing Portuguese tax law considers you a tax resident if you spend at least 183 days in Portugal OR if your primary residence is in Portugal.
The updated Golden Visa law seems to explicitly use the latterās wording to compel you into tax residency.
You would then be tax resident in multiple countries - very common for Americans, as the US considers US citizens a tax resident even if you donāt spend a single day in the US.
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But if we live outside of Portugal most of the year how can we claim our Portuguese property as our primary residence?
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Iām not an expert and definitely talk to a tax accountant, but I donāt think you can and thatās the point.
I think you can make the argument if youāre spending the most amount of time in Portugal in the year (despite that being less than 183 days, eg 4-5 months) and are a nomad across a few countries otherwise (totaling more than 183 days).
If youāre spending vast majority of your time in the US, then the goal of this law is get you to either move to Portugal and live in that property, or rent it out for 5 years. The government doesnāt want the property empty for most of the year or used for short term rentals.
The Portuguese voters are angry about the housing shortage, and thereās a perceived injustice that rich foreigners are buying homes and leaving them empty for more than half the year/renting it out short term, and this is the government appeasing them (regardless of how little itāll actually alleviate the housing crisis).
Of course, the legality is being debated and Iām sure a few investors will sue, but until a court decides against the government I presume they will enforce this interpretation.
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This article echoes the discussion on this subforum over the last couple of days on the draft legislation:
Applications for Gold Visas that have been entered and are āawaiting a decision with the competent authoritiesā remain valid, but only those that were delivered by 16 February 2023 - the date on which the Government presented its package of measures for housing and announced the end of this instrument.
The rule is contained in the proposed law that puts in legal law the intentions then announced by AntĆ³nio Costa and, being approved, it locks any intentions of those who still want to take advantage of the Regime of Gold Visas until the new law reaches the ground.
The proposal, as had been announced, revokes residence permits for investment activity, known as Gold Visas, and creates new requirements for renewals of previously granted permits. Thus, foreign citizens who have acquired residence in Portugal through investment in a property, will have to prove that the house is being used for housing permenente of own or its descendants or, then, that it is rented for housing purposes and for a period of at least five years.
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The SEF portal is still accepting GV applications. Does anyone know whether the Portuguese president has indicated whether he would sign such a law, going retroactive back to Feb 16th, blocking GV applications submitted after this date? It seems that there would be serious legal issues with such a retroactive law.
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Yeah, especially since they didnāt even publish the draft law on that date. Also, that wouldnāt seem right for those that were already in the process (meaning already invested, or similar). I canāt imagine that being the case in the final law if Portugal has any hope of continuing to attract foreign investment.
Including it in the draft law can be a good way of avoiding a rush to get in at the last minute, however I donāt even see the point in that since you canāt even buy residential real estate in the places facing a housing crisisā¦ Maybe just political posturing or even incompetence.
If you really want in, then I still think it makes sense to get as ready as possible (bank account, NIF, background check) and be ready to pull the trigger. Iād only actually make an investment now if it is refundable in case you donāt get the visa, or if the law that gets to/past parliament is clear that youāll still be able to qualify.
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Thatās a good question, @globextrader, especially since the president will most likely be unable to deliver on this blunt statement. One could think that he said it to get more votes but then he actually made it worse for himself because what he said is illegal and therefore would not be enforceable. This whole thing does not make sense to me but hopefully one day we all will understand what this is about.
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It does not have to be āprimaryā.
** Spends more than 183 days, consecutive or not, in Portugal in any 12-month period starting or ending in the fiscal year concerned.*
** Regardless of spending less than 183 days in Portugal, maintains a residence (i.e. a habitual residence) in Portugal during any day of the period referred above.*
Source:
Official PT tax law source:
https://dre.pt/dre/legislacao-consolidada/lei/2014-70048167-121035481
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As per my understanding of the PT tax law I quoted above, a person can literally spend 0 days in Portugal but still be happily considered a PT tax resident (and registered accordingly with Autoridade Tributaria) as long as they maintain a habitual residence in PT on the conditions of Article 16 paragraph b):
b) Having remained in Portugal for less time, have, on any day of the period referred in the previous sub-paragraph, a dwelling there in such conditions that make presume a current intention of maintaining and occupying it as habitual residence;
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That would be a status quo for renewals then. Provided we can just declare PT tax residency. If thatās the case it eliminates the major hurdle for people like us. Iām not certain but hopeful.
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