Yes, I think that was the only ānewā information from the document that wasnāt mentioned in the press conference. In the FAQ document the requirement is different, however, just needing to be rented out as someoneās primary residence. In other words, I donāt even think the government knows how they can or will define this.
I continue to underestimate this goverment LOL. The 5 years is shocking and likely affect majority of investors who go the real estate route (including me). I donāt think many residential lease agreements that go that long.
1 Like
WHAT IF IT IS A GOLD VISA FOR INVESTMENT, SUCH AS CULTURAL PATRONAGE?
With the new legal regime for the entry, stay, exit and removal of foreigners from the national territory, the granting of visas for special purposes such as investment is still possible, and must follow these legal procedures.
Sounds like either the GV will still exist for the arts path, or at least SOME visa will? I am still hoping all the lawyers are right and PT allows existing applications to continue before closing the door, but at least there might be hope of another visa somehow.
4 Likes
In Portugal, rental agreements are often for 5 or 10 years. 3 years was considered short term.
1 Like
We bought a property located in Troia that is designated āfor touristic explorationā as a part of the Troia Resort and applied for the GV. We are still waiting for our appointment as our application is Under analysis. We are not renting it out and are just using it for short stays for ourselves when we are in the country. Does anyone have a clue how does this circumstance affect our renewals?
2 Likes
Thanks. I guess if this insane proposal ever comes into effect, those of us with leases less than 5 years can hopefully be able to cancel the lease with the tenants, before renewal timeā¦
Just came across this article:
2 Likes
Weāve gotten our GV via Mercan last year and feel we can recommend them highly. Their team is large and adept at navigating the terms in PT government and theyāve been doing similar programs in the US and Canada for decades. Using their in house legal team definitely seemed to streamline things for us, even during Covid delays.
Thereās a private forum started by some other folks that may be of help.
2 Likes
We submitted our applications in December and are feeling despondent about getting approved in time for our September travel arrangements. Does anyone know whether we can keep our GV applications active BUT ALSO submit D7 Applications in hopes that one will be approved in time?
If you submitted your application in Dec , there is close to ZERO chance you will be approved by September. You probably already know this if you have been reading this forum. If you are that concerned, you need to file for a D7 regardless of what might happen with the GV application. The long delays with GV have been well documented. It is unfortunate your lawyers didnt advise you of this. It is on them.
3 Likes
The official line from SEF is you are not allowed to do this, and it endangers your gv to do so. Nevertheless, apparently some people do, successfully
5 Likes
Thx. Useful. Checking with my accountants but the gist appears to be 1) if you register for tax and are not tax resident in another country and spend 183 of any rolling 365 day perid and own your house at the end of the years in question then you are tax resident for the years beginning and ending the 365 day period. 2) Tax rates for dividend, income and cap gains appear to be 28% and there are tax treaties with most countries but many tax treaties only accept the IRS and not the NHR regime and 3) one remains tax resident for the year one relinquishes tax residence plus the next 4 years but if you move to a non listed country the DTAA will bail you out anyway.
Check w your own advisors and post.
Thx
Many thanks for the links.
Yes, it does seem that a āpermanent residenceā will be the one listed by AT under your NIF record.
I.e. the GV applicant under this government proposal may be required to become a PT tax resident by registering his PT home as āprimaryā with AT.
(Coincidentally I wanted to do exactly that but AT did not allow it because they wanted to see my GV permit first)
Which further means a somewhat indirect conflict with the current GV rules allowing the GV applicant to remain a tax resident elsewhere. It does NOT conflict directly with the 7-day PT stay rule, because in theory a GV applicant can become a PT tax resident purely on the basis of having a āhabitual homeā in PT. PT does not require a 183 days presence to maintain PT tax residency.
2 Likes
If you own the property already, can you ārun it as the AL itās beenā (whatās an AL?) right now, before going there, and apply with that as your passive income?
IOW does your passive income need to come from outside of Portugal, because if it doesnāt then surely you could keep operating a property you already own & get a D7 on that basis?
3 Likes
AL = Alojamento Local = short-term rental accommodation
5 Likes
I applied for & received a tax residency certificate ( under NHR) after I entered Portugal for the first time having applied for a GV. Portugal is now my primary residence for tax purposes despite not having been granted a GV.
I will file my worldwide tax return here from now on.
I wonder if this will give me any benefit under any new regime the PT government may introduceā¦
6 Likes
No 183 only applies if you have no other tax residency. There is case law Spain vs Portugal.
4 Likes
What jurisdiction are you living in?
I live in Lisbon, my passport is UK. I enter and leave the schengen zone only via Lisbon.
3 Likes
In reality, we are talking about around 4500 properties. The law is not new and started in 2016. Since this time around 4500 houses have been considered vacant and this will certainly not solve the issue. I do not know why they appreciate the golden visa investment to boost the creation of normal housing in the cities. If you walk through Porto and Lisbon there are many properties that are run down and needed renovation.
5 Likes