20 de April, 2022
At the beginning of 2022, the new rules of the Golden Visa Portugal came into force. The changes were small, but impacted investors wishing to acquire property located in certain areas of the country such as in the Algarve, Porto and Lisbon. This occurred because certain regions, with high population density, were no longer eligible for property investment for housing purposes. The government’s aim in changing the rules was to reduce pressure on the real estate sector by protecting the housing market. However, the coastal areas that are no longer eligible for Golden Visa, only do not allow investments in residential properties, leaving other types of properties still eligible, such as Services and Industry. In this way, we will show that it is still possible to buy property in these areas and with a value as low as 280 thousand Euros!
In this article we will present a property development with this value, being eligible for the Golden Visa Portugal and located in the city of Lagos, in the Algarve, one of the most profitable areas of the country! And all this with the signature of a leading group in the market and known for offering unique and secure real estate investment projects in Portugal.
Despite its name, the Golden Visa is not a visa, but a residence permit for investment activity. The Portugal Golden Visa Program offers several investment routes, including real estate investment. The minimum amount invested in this modality may reach 280 thousand Euros, but, for that it is necessary that the property to be acquired is located in a low population density area and that it is situated in an ARU- Urban Rehabilitation Area (or even if it has more than 30 years of construction and the buyer undertakes to carry out rehabilitation). This is the case of the property we present below.
In one of the best summer destinations in Europe, a development will be set up comprising 2 hotels located in the historic city of Lagos, in the beautiful Western Algarve: a 4-star hotel with 180 rooms and a 3-star hotel with 90 rooms (27 of which will be apart-hotels). This offer involves the purchase of a percentage of the total property (including the two hotels) in co-ownership.
This is a great choice and a unique opportunity, aimed at potential clients who are interested in obtaining the Golden Visa Portugal through an investment of 280 thousand euros280 thousand, the lowest possible within the real estate scope of the program. The development qualifies as a tourist commercial project and therefore falls under the new Portugal Golden Visa legislation in 2022.
This new project will be managed by a globally recognised hotel chain and is an ideal opportunity for Golden Visa investors looking to gain a stake in a secure project with a clear exit strategy. The minimum investment period is 6 years, with a buy-back contract at the same value from the moment you no longer need the property for Golden Visa purposes. In addition, whoever acquires this investment will not have to pay IMT (purchase and ownership transfer tax), VAT (Value Added Tax) and IMI (council tax), which will be borne by the developer company.
This investment is especially indicated for investors who cannot or do not wish to reside in Portugal at the moment, but who want to obtain Portuguese citizenship and access to Europe.
The funding period is from February to July 2022. It is estimated that the hotel will already be operating in the summer of 2024. The owners of the investment will be able to stay in the hotel for free, 7 days of the year, the number of days you need to spend in Portugal to maintain the investment, according to the Golden Visa rules.
For many years the Algarve has been considered a favourite destination for golfers and beach lovers. But not only that: in 2020, Forbes Magazine ranked the Algarve area as the best destination in the world to live and retire after the Covid-19 pandemic. Its mild climate and paradisiacal beaches are an invitation to the world. It was also considered the 6th best place in the world to invest in real estate, according to a ranking by International Living. With a good quality of life, international airport, good hospitals and schools, the scenario is complete!
Created in 2012, the Golden Visa Portugal programme has already benefited 10,510 investors and 17,498 family members who have been reunited. The acquisition of real estate accounted for 9,780 of the Golden Visa concessions in the country. The largest number of investors are from China and Brazil, but one group has been standing out in recent months: the Americans. In 2020, a total of 75 ARI were granted to Americans. In 2021, that number rose to 101. And now in 2022, in just three months, 52 ARIs have already been granted to applicants from the United States.
If you are considering living or investing in Portugal, talk to our consultants and find out which visa best fits your profile. Our team is ready to answer all your questions.