Portugal stands out as one of the few European nations offering investor visas. To qualify, applicants must be non-EU citizens investing funds sourced from outside Portugal.
This initiative, known as the Portugal Golden Visa program, launched in 2012 and has since granted visas to over 20,000 individuals. It has injected billions of Euros into the Portuguese economy, significantly boosting the real estate sector.
While Chinese investors have traditionally been a major group of applicants, interest in the Portugal Golden Visa has grown from other nations like Brazil and South Africa.
More recently, Hong Kong investors have demonstrated a surge in interest, seeking Portuguese citizenship through investment.
Here’s what makes Portugal an attractive destination for investors from Hong Kong.
Rising Property Values and Lucrative Investment Returns
A key step to obtaining a Portugal investor visa involves purchasing property in designated areas, with values set at €500,000 or €350,000. This investment then allows you to apply for the Portugal Golden Visa.
Hong Kong investors are increasingly willing to sell assets in Hong Kong to capitalize on Portugal’s growing real estate market.
Fueled by rising demand from foreign investors, real estate prices in Portugal are climbing. Investing in a city apartment now could yield substantial returns within the five-year holding period required by the visa program.
Properties outside city centers are also gaining value. Recognizing rising prices in major cities, the government encourages investment in older or less desirable properties, revitalizing previously overlooked areas.
The potential for high returns on real estate is a key motivator for Hong Kong investors pursuing the Portugal visa.
Political Stability in Portugal
Faced with recent political uncertainty, many affluent Hong Kong citizens and investors seek more stable countries to relocate.
Portugal offers not only investment opportunities but also a politically secure environment.
Amid ongoing concerns about the political climate in Hong Kong, the Portugal Golden Visa offers a pathway to citizenship and peace of mind.
Dual Citizenship Allowed
The Portugal visa scheme permits investors to retain their Hong Kong citizenship.
This dual citizenship option means investors can live and work in their home country while having a secure alternative if desired or needed.
As a visa holder, you gain the freedom to live and work across Portugal and the wider EU region.
Access to the EU Region
Being part of the European Union, the Portugal investor visa grants access to live and work in any EU member nation.
With the Portugal visa, you’re effectively considered an EU resident, providing access to 26 countries for travel, residence, and employment.
Similar visa programs in other European countries can be more costly, making Portugal a relatively affordable and legitimate entry point to the EU. This opens up potential opportunities for various investments and services.
Affordable Visa Options
The Portugal visa application process through the Golden Visa program is straightforward, offering several affordable categories.
A direct investment of €1,000,000 transferred from a foreign bank account to a Portuguese bank account is a top-tier option.
However, the €500,000 real estate purchase is a popular path. Documentation of the property is included with the visa application.
A growing trend is the €350,000 category, offering a range of investment possibilities, like investing in properties over 30 years of age or investing in a regulated private equity fund, or research programs being conducted in the country. The flexibility and relative affordability of this category makes it a favorite.
The Portugal visa program is clear-cut. Meeting requirements in the category chosen will earn you the visa.
Consequently, potential Hong Kong investors have a variety of choices on how to get a Portugal visa. Once qualified, the application is submitted and reviewed. Await review to receive an investment visa in a few months.
Visa Includes Family Members and Dependents
Family inclusion adds to the Portugal visa program’s popularity. Relocating due to political uncertainty shouldn’t mean leaving family behind.
The visa process allows dependents to apply. Dependents can include children under 18, spouses, parents, and college aged children over 18.
Dependents apply under the Family Reunification category, coinciding with the primary investor’s application. This enables families to move together.
Simple Application Process
The application process of the Portugal visa has been made simple.
Eligibility is based on designated investment in government sectors ranging from €350,000 to €1,000,000. Incorporating a company in Portugal creating a minimum of ten jobs is another route, or proof of a clean criminal history.
An interview will then be held, and recording of your fingerprints and signatures will be required.
The online application portal is on the Portugal Immigration and Borders department website. Submit all requisite documents and receipts.
The process is designed to be executed independently, however, using a trusted legal representative makes the process even easier.
Golden Visa consultants and Portuguese legal representatives are accessible both in Hong Kong and Portugal. They can assist with suitable investment options, the interview process, and provide consulting during the process.
After the online application, allow two weeks to six months. After approval, and collection of the visa, a residency permit will be granted.
Beneficial Investor Tax System
Portugal’s favorable tax system for visa holders appeals to Hong Kong investors.
Foreign investors can apply for Non-Habitual Resident status, providing a ten-year exemption on income tax especially if you money is earned from investments abroad. If working in Portugal a flat tax of 20% will be required.
Visa investors also receive capital gains tax exemptions when reinvesting within Portugal’s borders.
The Portugal government also ensures that visa investors do not pay housing, wealth and inheritance tax.
Minimal Residency Requirement
The Portugal visa has flexible and minimal physical stay requirements within Portugal.
The Portugal Golden Visa Program dictates staying at least seven days within Portugal in the first year. After the 1st year the visa has to be renewed. After the visa is renewed, the visa has to be renewed in two years.. For those renewals, investor visa holders must remain within Portugal for at least 14 days. The visa is again reviewed on year five and the investor could then become a Portuguese citizen.
Easy to become a Portuguese Citizen
Hong Kong investors view Portugal visas as an expedited path to gaining Portuguese, and hence, European citizenship.
Becoming a citizen and availing all privileges afforded to Portuguese citizens can be attained in only five years and after substantial investment within Portugal. Becoming a Portuguese citizen affords Hong Kong investors ability to invest and freely live in other European markets.
Affordable Cost of Living
Portugal has one of the most affordable costs of living in the European region. Goods, services and cost of rents is considerably low.
For those living in expensive areas, such as Hong Kong, Portugal is quite attractive.
Market protections has been regulated in Portugal. Portugal’s Central Bank controls inflation and keeps interest rates low. Investors have the assurance that their financial risk remains at par with interest rates. This will attract more investors into Portugal.
Portugal’s Growing Economy
Portugal has one of Europe’s fastest growing economy, largely driven by tourism and an increase in Portugal’s exports.
Real estate buyers in Portugal benefit from this market by increasing the value of their investments. Leases on newly purchased property can generate tax-free income.
Those allowed to incorporate companies across Portugal may create companies that invest in export markets. Fast returns on investments can be experienced due to the profitability and thriving industry.
In Conclusion
Experiencing numerous political challenges, Hong Kong citizens are anxious and require seeking alternative countries to live in, and Portugal has become their most popular alternative.
Portugal’s value, Hong Kong investors had invested and seek the advantages Portugal offers.
