Golden Visa Solution from Park Place

 

FAQ

 

What is the Portugal Golden Visa Program?

The Portugal Golden Visa Program is a residency-by-investment scheme designed to attract non-EU citizens to invest in Portugal. The program offers a fast-track to obtaining a Portuguese residence permit, allowing investors and their families to live, work, and study in Portugal, as well as benefit from visa-free travel within Europe.

 

What is the current status of the program in 2023?

The Portugal Golden Visa Program is still active in 2023. However, the Prime Minister of Portugal has proposed new legislation to effectively end the program. This is expected to be passed in government (they have a majority) in the coming 60 days. On April 15, 2023, the Prime Minister stated that applications received before the new legislation is passed as law would be accepted under the current program.

 

What are the qualifying investment options to obtain a Golden Visa?

The program offers several investment options:

• Real estate investment, with a minimum ranging from €280,000 to €500,000 (with the lowest minimum of €280,000 applicable for a property in a low density rural area requiring rehabilitation and over 30+ years old)

• Capital transfer: €1 million or more to a Portuguese bank account or the purchase of Portuguese securities.

• Job creation: Creation of at least 10 full-time jobs in a Portuguese business.

• Investment in research and development: €350,000 or more in R&D conducted by accredited institutions.

• Investment in cultural activities: €250,000 or more in the support of artistic production or the preservation of national heritage.

• Investment in small and medium-sized enterprises (SMEs): €500,000 or more in the capitalization of Portuguese SMEs.

 

How long does it take to obtain a residence permit through the Golden Visa Program?

The process typically takes 3 to 6 months from the submission of the application, however current wait times are over 12 months. After approval, the investor will receive a temporary residence permit, valid for one year, which can be renewed for subsequent two-year periods.

 

Can my family members also obtain residency through the Golden Visa Program?

Yes, the program extends to the investor's immediate family members, including spouse or legal partner, dependent children, and dependent parents. They will also be eligible for residency permits under the same investment.

 

When can I apply for permanent residency or Portuguese citizenship?

After holding a temporary residence permit for five years, you can apply for permanent residency. After six years of legal residency, you may be eligible to apply for Portuguese citizenship, provided you meet the necessary requirements, such as passing a language test and demonstrating ties to Portugal.

 

What are the tax implications of the Golden Visa Program?

Golden Visa holders are considered tax residents in Portugal if they spend more than 183 days per year in the country. Portugal offers a Non-Habitual Resident (NHR) tax regime for new residents, which provides substantial beneficial tax rates and exemptions for a period of 10 years. It is essential to consult a tax advisor to understand the specific implications based on your personal circumstances.

 

 

Solution

 

You invest €280,000 with Park Place, which is used to purchase a fractional share in a countryside real estate project. The project qualifies for the €280,000 investment level as it is located in a low-density area and includes a ruin over 30+ years old that needs to be rebuilt. 

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Initial closing costs of approx. €20,000 (land transfer taxes, stamp duty, GV lawyer fees) are covered by Park Place on behalf of the investor.

 

Park Place has up to 3 years to complete the renovation for it to qualify. It is expected to be completed in 1-2 years.

 

Park Place’s solution is a no risk solution. Although it is structured as a real estate project, its purpose is to meet the criteria for clients to apply for their Golden Visa and have capital preservation. There are many real estate developers offering Golden Visa projects with potential yield/capital appreciation, and with full downside risk of capital loss. Most projects offered at the €280,000 level are hotel developments in rural Portugal that are not viable due to the lack of tourism demand to stay in the countryside. Furthermore, investors are bearing all of the financial risk with these projects and are likely to lose their capital.

 

Park Place provides a generous no-questions-asked secured repurchase guarantee. At any moment, for any reason, you can request a repurchase from Park Place and you will be returned your €280,000 investment (within 12 months).

 

For example, you might request a repurchase if:

• Citizenship is obtained and you no longer needs to hold the investment in Portugal

• You decide that you no longer want the visa, or you need the funds for other purposes

• The visa is not renewed (needs to be renewed every 2 years), either because you chose not to renew or because the government changed the renewal requirements

• You do not get the application submitted in time before the program ends (in which case the repurchase will happen within 15 days)

 

Additionally, the repurchase guarantee will be secured with €280,000 worth of equity in Park Place’s portfolio of luxury real estate residential properties in Cascais, a suburb of Lisbon.

 

There are no other Golden Visa solutions on the market that have a no-questions-asked secured repurchase guarantee. This is what makes the Park Place solution unique and completely safe.

 

Process

 

The Golden Visa program is about to end, forever. We do not believe there will ever be such an efficient way to obtain a European residency visa and path to European citizenship ever again in our lifetimes. 

 

Immediate next steps

1. Confirm intent to proceed with Park Place

2. Prepare all of the Golden Visa application documentation (see next section)

3. Open a Portuguese bank account (see next section)

4. Agreements with Park Place

   • Promissory agreement & rehabilitation construction contract, including payment of €280,000 via Portuguese bank account to Park Place

   • Repurchase agreement & security agreement with Park Place

   • Loan agreement to help you cover tax payments (see below) 

5. Submit Golden Visa application

 

Golden Visa approval and renewal: it is currently taking 12+ months for the government to process golden visa applications, so it could easily be 1 year from now that the visa is obtained. It is initially issued for 1 year and needs to be renewed every 2 years. To renew, you need to demonstrate that you have held the investment the entire time and have stayed at least 7 days per calendar year in Portugal.

 

Deed: the initial agreement is a promissory agreement and the actual deed will be signed within 12 months. When the deed is signed, there will be land transfer and stamp duty taxes. Park Place will loan you the funds to pay for these taxes. The taxes will be reimbursed to you by the government once the project is completed, at which time you repay the Park Place loan.

 

Repurchase: at any time, you can request Park Place to repurchase your investment. If it is because you were not able to submit your Golden Visa application before the deadline, your funds will be returned within 15 days. Otherwise Park Place can take up to 12 months to return your funds. The repurchase is secured with the right to €280,000 of equity in Park Place’s luxury residential property portfolio for additional investor protection.

 

 

Application Checklist

 

Here are the key documents to prepare for investors:​

1. Passport: Photocopy of your valid passport.

2. Criminal Record Certificate: Criminal record certificate from your country of origin and any other country where you have resided for more than one year in the past five years.

3. Tax identification number: copy of tax identification card or equivalent from home tax residency country

4. (For Spouse) All of the above(#1-#3), plus a copy of the marriage certificate

5. (For Dependent Children): All of the above (#1-#3), plus a copy of the birth certificate, proof of financial dependence (if over 18 years old)

 

Portuguese bank account

It is required that the investment be made from a Portuguese bank account in your name. This can be tricky to set up. Some Portuguese banks have foreign branches. Otherwise setting up the bank account requires a visit to Portugal or engaging a local lawyer (and having all of the above documents certified at your local Portuguese consulate or apostilled).

 

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 Fees 

 

Application

• Golden Visa application fees paid to the government :

  • €533 for the initial application (+€183 for each additional family member)

  • €5,325 for the initial residence permit (+€5,325 for each additional family member), paid once you have the visa, likely 12+ months after application

  • €2,662 for the residence permit renewal fee (+€2,662 for each additional family member), paid for the 1st and 2nd renewals (after year 1 and year 3)

• Total government fees are estimated to be (over a 5 year period):

  • €11,182 for a single individual

  • €21,914 for a couple

  • €43,378 for a family of 4

 

Legal

• Application legal fees: Park Place will make available its Portuguese law firm to review your Golden Visa application, at no additional cost. 

• Park Place agreements: Park Place will cover all legal costs associated with the agreements that you are signing with Park Place. You may choose to additionally engage your own lawyer to review the Park Place agreements, at your own expense.

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