Big Changes to Portugal Golden Visa in June 2021
After Tea and Cakes with my Lawyer on Friday evening here in Cascais we got into the conversation about the Golden Visa and the promised exclusions to qualifying properties. She informed me that it has been decided to implement those changes in June with Porto, Lisbon Area and the Algarve to be excluded. Whilst Porto and Lisbon was on the cards it comes somewhat as a shock that the Algarve is to be included due to its size and low density. Maybe there will be some reprieve for the Algarve but not for Lisbon and Porto.
So if you are planning to do a Golden Visa and want to buy in Porto or Lisbon you need to get your skates on pretty quickly and have completed the property purchase before the new rules come into effect in June. This Is likely to see a spike in sales in Porto and Lisbon up to this period but beyond this we have no idea what it will do for property prices but the policy is meant to cool prices in these cities so local people have a chance of getting on the housing ladder. However, in reality there would have to be a big property correction like there was in Australia when they stopped international ownership of properties a few years back.
Whilst there might be a small correction it is hard to see a major crash happening in these cities so we don’t see any reason for clients not to complete their Golden Visa purchases which in reality is more about the Visa than the property.
Gray Stuart Portugal is opening an office in Lisbon around March time but I am not sure that will be soon enough to help those who want to beat the deadline. However, we are here for the long term and our business is based around tax advice as much as property advice as how you buy a property will create a much bigger saving than any discount you might get on the property. Also our Lawyers are here to advise on special structures that you can use after June.
Finally, don’t forget the NHR (non habitual tax regime) that is a major reason whilst a lot of HNWIs are relocating to Portugal.
If you want any additional advice on everything Portugal and Golden Visa please reach out to me at firstname.lastname@example.org