Investor opportunity in Portugal’s fiscal woes

Recently voted one of the best places to invest, work and live, Portugal is offering investors residency permits and the chance benefit from a favourable tax regime. Michelle Funke reports

PROPERTY investment opportunities in Portugal are extremely popular among investors globally, as the region features beautiful beaches, great golfing, and a very active tourism industry.

And despite recent reports about the continued downward spiral of the Portuguese housing market — banks reportedly selling hundreds of thousands of distressed properties in a reaction to the country’s poor economic situation — opportunity exists for savvy investors.

James Bowling, CEO of Monarch & Co, a company that specialises in investor and immigration programmes globally, says: “The South African market finds the similar lifestyles, hospitality and quality of life in Portugal extremely attractive, added to which is the fantastic climate on par with anywhere in SA.”

Added to this, Bowling explains that Portugal launched a residence programme late last year that is linked to certain property investment requirements, in order to attract investors looking to enjoy the excellent quality of life, great weather and safety that the country has to offer.

“Investing in Portugal will allow buyers to take advantage of being a part of the European Union (EU) without any obligation to reside permanently in the country. Portugal has been a member of the EU for 26 years and uses the euro.”

According to the World Bank, Portugal is the 43rd-largest economy in the world, with one of the highest gross domestic product (GDP) growth rates for the last 40 years among Organisation for Economic Co-operation and Development (OECD) countries.

Property prices are at a low, and investors can purchase multiple properties in order to meet the investment requirement for the residence programme.

Those looking to purchase in Algarve and Silver Coast can expect to pay anywhere from ¤250,000 for a three-bedroom, standalone home and from ¤150,000 for a two-bedroom apartment in a secure complex.

In addition to this, the programme requirements are also clear simple to understand.

The Golden Residence Permit has been in effect since August last year as the Portuguese government looks to generate capital and real estate investment and opens the European door to its potential investors.

The Golden Residence Permit is available to all foreign national investors who are not citizens of the EU. The criteria, is simple and transparent, the Portuguese state is committed to supporting investment in Portugal in order to attract capital, promote job creation and increase investment in real estate.

Bowling says that holders of the Golden Residence Permit can enjoy all the benefits that the premium Schengen Visa has to offer including freedom of movement to the other 26 member states.

“The programme still allows for applicants to carry on living in SA permanently should they wish to. Family and dependents will also qualify for residence and after the fifth year a permit holder may apply for Portuguese citizenship and thereby an EU passport.” Contact: Monarch & Co James Bowling 011 883 9018