Last year, the Portuguese government made the decision to revise the Golden Visa programme, which will greatly affect those looking to invest in property in key areas. But, with Brexit also taking effect, is there an alternative?
The Portuguese Association of Real Estate Developers and Investors (APPII) have already made their position clear when it comes to changing the programme, arguing that it’s “not the right time” (read more here).
Now, the association – and other entities – are calling for alternatives to the scheme, which will limit eligibility of residence for real estate investors to inland areas of Portugal.
Golden Visa… or something else?
For those directly affected by Brexit, the deadline for Brits to secure a Golden Visa through property investment is set for July 1, 2021. According to Christina Hippisley, General Manager of the Portuguese Chamber of Commerce in the UK, there is still a wide range of attractive options in Portugal.
While Brits still have six months to benefit from the Golden Visa via property investment in popular areas, such as the Algarve, Hippisley emphasises: “Some of the rules are changing as a result of the UK’s Brexit agreement, so make sure you are getting the most up-to-date advice.”
However, there is another alternative: the D7 visa. Known as the “retirement visa”, the scheme aims to attract people who have their own financial resources and are able to promote their own livelihood in the country, and therefore spend or invest in the local economy.
Retirees may seem like the ideal profile, but people of working age are also eligible for the scheme, provided that they have enough accumulated resources, financial investments, interest and dividends from companies, certain categories of investment incomes, and so on.
The D7 visa requires no investment, but candidates must be able to prove their ability to support themselves (and their family, if that is the case) through passive income. The candidate must also have a home in Portugal, either owned or through a rental contract.
In return, visa holders will be able to move through Schengen countries freely, and apply for Portuguese nationality after five years. In this case, the applicant is required to have stayed in the country for that duration.
To apply for the D7 visa, candidates must stay in Portugal for a minimum length of six consecutive months, or eight months staggered, in the period of validity of the title. If candidates don’t comply with this requirement, the residence permit will be cancelled.
If you would like more information on the options available to you, get in touch with us at Algarve Home Sales here.