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Madeira Acqua Residences

INVEST IN MADEIRA

GOLDEN VISA

Portuguese legal provisions open up the possibility of applying for a residence permit for pursuing investment activities to those who have entered the country regularly (e.g. holders of valid Schengen Visas, or beneficiaries of Visa exemption), by acquiring real estate.

The holders of Golden Residence Permits for Investment Activity have the right to family regrouping, and may gain access to a permanent residence permit, as well as to Portuguese citizenship in accordance to the current legal provisions.

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Who can one request a residence permit for investment activities?

Third country nationals who either carry out investment activities personally or through a company that lead to, as a rule, the following situation in Portuguese territory for a minimum period of five years:

 

  • The acquisition of real estate with a value of 500 thousand Euros or more, but if intended for housing, the investment is only eligible if carried out in Madeira and Azores Islands and in the interior territories of mainland Portugal listed in Decree 208/2017, of July 13th.
How to fill the request for Golden Residence Permits, in case of real estate acquisitions?

An online request can be made at www.sef.pt. Requests can also be made at Portuguese diplomatic posts and consulates overseas, or at the central or regional offices of the foreigners and borders service.

What are the minimum permanent residency periods?

For the purposes of renewing a residency permit, you may have to show that you have resided in Portuguese territory for a minimum period of 7 days, either consecutively or non-consecutively, during the first year, and 14 days in subsequent two year periods.

How to fill the request for Golden Residence Permits, in case of real estate acquisitions?
  • By demonstrating full ownership of real estate through the presentation of property transfer deed or a property purchase undertaking. These documents should include a declaration from a financial institution, authorized to carry out activities in Portuguese territory, stating that a transfer of 500 thousand Euros or more has effectively been made for its acquisition, or as a signal of a purchase undertaking.
  • by submitting an up-to-date certificate from the property register, which, in the case of a promissory contract, if it is legally viable, should always include the respective entry.

Property may:

  • be acquired under a co-ownership scheme, provided that each co-owner invests 500 thousand Euros or more, or through a promissory sale-purchase agreement indicating an amount of 500 thousand Euros or more, per co-owner. The deed shall be submitted before requesting the permit of the residency permit for investors;
  • be encumbered starting from a threshold in excess of 500 thousand Euros (considering that holders of Golden Residence Permits for Investment Activity may apply to credit loans from credit institutions);
  • be leased and exploited for commercial, agricultural or tourism purposes.
Does the program include the family?

The holders of Golden Residence Permits for Investment Activity have the right to family regrouping, and may gain access to a permanent residence permit, as well as to Portuguese citizenship in accordance to the current legal provisions.

THIS INFORMATION IS NOT INTENDED TO BE A SUBSTITUTE FOR CONSULTING THE APPLICABLE LEGISLATION.

Source: Serviço de Estrangeiros e Fronteiras

TAX REGIME FOR NON USUAL RESIDENT AT THE TAX ABOUT THE INCOME OF INDIVIDUALS (IRS)

benefits:

  • In case of income from dependent or self-employed work earned in Portugal, an applicable tax rate of 20%, Taxation, for 10 years;

 

  • Possibility of exemption of taxation, in the case of income earned abroad.
How to acquire non-habitual resident status?
  • Not being considered resident in Portuguese territory in any of the five years prior to the year for which the taxation as a non-habitual resident is applied;

 

  • Register as a tax resident in Portugal at the Local Finance Service (for that purpose one must have stayed in Portugal for more than 183 days, consecutive or interpolated, or in case of the stay has been for a shorter period, on December 31st of that year, one has to have a home in conditions that suggest the intention to keep and occupy it as habitual residence);

 

  • The application for registration, as a non-habitual resident, must be made by March 31st, inclusive, of the year following that in which one becomes resident in Portuguese territory.
What right does a citizen who is considered a non-habitual resident acquire?

 

  • A citizen who is considered a non-habitual resident acquires the right to be taxed as such for a period of 10 consecutive years from the year, inclusive, of his registration as a resident in Portuguese territory, provided that in each of these 10 years he is considered a resident.

 

Taxation of income earned in Portugal:

 

  • In case of dependent or self-employed work, the applicable tax rate is 20%, if the option for its aggregation is not exercised.

 

Taxation of income obtained abroad:

 

Exemption from taxation on income earned abroad for:

 

  • Pensioners that:
  1. a) Are taxed in the other contracting State, in accordance with a convention to eliminate double taxation entered by Portugal with that State; or
  2. b) According to the criteria set out in paragraph 1 of article 18 of the CIRS, the income is not to be considered obtained in Portuguese territory.



  • Dependent workers that: 
  1. a) Are taxed in the other contracting State, in accordance with a convention to eliminate double taxation entered by Portugal with that State; or
  2. b) Are taxed in the other country, territory or region, in cases where there is no convention to eliminate double taxation entered by Portugal, provided that the income, considering the legal criteria applicable, is not considered to be obtained in Portuguese territory.

 

  • Income from Self-employment (from high added value services, with a scientific, artistic or technical character.), Capital income, Property income and Income derived from capital gains:

 

    1. a) May be taxed in the other contracting State, in accordance with a convention to eliminate double taxation entered by Portugal with that State; or
    2. b) May be taxed in the other country, territory or region, in accordance with the model of tax convention on income and assets of the OECD, interpreted in accordance with the observations and reservations formulated by Portugal, in cases where there is no convention for to eliminate the double taxation celebrated by Portugal, as long as they are not included in the list approved by the Minister of State and Finance regarding privileged taxation regimes, clearly more favorable and, as well, thus, as long as the income, according to the applicable legal criteria, is not considered to be obtained in Portuguese territory.

THIS INFORMATION IS NOT INTENDED TO BE A SUBSTITUTE FOR CONSULTING THE APPLICABLE LEGISLATION.

Source: Ministério dos Negócios Estrangeiros, Portal das Comunidades Portuguesas.

Home Loans in Portugal

After choosing your new home in Portugal, all that remains, if necessary, is to find the best mortgage loan for your home in Portugal.

There are essentially three types of Home Loans in Portugal to buy a house:

 

  • Credit for purchase, which is the most used to buy a house in Portugal. It can be used to purchase permanent housing, holiday home or rental property;
  • Credit for land acquisition. It is a special type of credit that is used to buy land for the purpose of building a house on it;
  • Transfer of mortgage credit from one bank to another bank.

Contact our partner CC Team to receive a funding proposal.

www.ccteam.pt

A CC Team Crédito Consigo is a Linked Credit Intermediary, registered at Banco Portugal with the code 6519, specializing in the provision of credit intermediation and consultancy services.

Steps to apply for a mortgage loan:

1) Simulate

First, keep in mind that just by simulating the various bank offers, you'll be able to compare and see which one best suit your portfolio.

2) Gather the necessary documentation

Once you have identified the institution at which you want to take out your credit, you will have to present certain documents for the bank to analyze your process. If you do not reside in Portugal and intend to buy a house in Portugal, make sure that the following documents are up to date and in order, as you will have to accompany them when applying for the mortgage loan:

  • Identity Card or Citizen Card;
  • Income tax returns;
  • Employment Contract, if applicable;
  • Bank statements from all bank accounts;
  • Photocopy of the last three salary receipts or others;
  • Credit report.
3) FINE

In case of approval, you will be provided with a proposal by the financial institution accompanied by FINE (STANDARDIZED INFORMATION SHEET), prior to the signing of the contract. In it you can see all the features of the credit agreement, as well as a table with the detailed financial plan of the loan, indicating all monthly installments until the end of the loan term.

4) Property valuation

The contracted banking institution will assess the property to be financed in order to determine its real value. It is based on this value that the bank will determine the percentage of financing it will be willing to assume.

5) Purchase and Sale Promise Agreement

Between the visit to the house and the signing of the deed, there is always a period of request and subsequent approval of the mortgage loan by the bank, which can last a few weeks.

 

Although not mandatory, the Promissory Contract for Purchase and Sale (CPCV) is a document signed between buyers and owners, which safeguards the rights and establishes the duties of both parties in the business until the signing of the definitive contract: the public deed of purchase and sale.

 

Legally, with the signature of the CPCV, the buyer acquires the real right to acquire the property in question, regardless of who its owner at the time is. Basically, the CPCV is a guarantee to stakeholders that the deal will take place.

6) House deed

As this is the last step in the acquisition of a property, it is truly the moment when you acquire the house and become its legal owner. The deed of purchase and sale of the home can be done at the Notary Office, Land Registry Office or at one of the Casa Pronta service counters and both the buyer and seller are required to be present.

 

In the case of recourse to mortgage loans by the buyer, it is precisely upon the conclusion of this contract that the bank releases the amount necessary to pay the property to the seller.

 

Note that all deed costs are fully borne by the home buyer. The deed itself (the document itself) is not too expensive, but it adds a series of taxes that those who are going to buy the house must pay, in addition to the expenses associated with the mortgage loan:

 

  • Stamp duty on transaction = 0.8%
  • Stamp duty on credit (above 5 thousand euros) = 0.6%
  • Registration of the deed
  • Payment of IMT = Deed Value or Tax Equity Value (the greater of these two) x Rate to be applied - Installment to be deducted

This ends the process of acquiring a home using Mortgage Loans.

This is such an important decision in anyone's life that they will want to be as informed as possible in time.

The International Business Centre of Madeira

It consists of a set of incentives, mainly of a tax nature, granted with the objective of attracting inward investment into Madeira.

The International Business Centre of Madeira comprises the following main areas of activity:

  • Industrial Free Trade Zone
  • International Shipping Register of Madeira – MAR
  • International Services

Favorable operational and fiscal conditions are offered in the context of a preferential tax regime, fully recognized and approved by the European Commission.

 

The International Business Centre of Madeira is therefore fully integrated in the Portuguese and E.U. legal systems and, as a consequence, it is regulated and supervised by the competent Portuguese and E.U. authorities in a transparent and stable business environment, marking a clear difference from the so-called “tax havens” and “offshore jurisdictions”, since its inception.

The present tax regime is outlined in Article 36º-A of the Portuguese Tax Incentives Statute.

 

Among other tax benefits, international companies licensed to operate in the Madeira International Business Center benefit from the Corporate Income Tax rate of 5% and exemption from withholding tax on payments to non-residents.

Take a look at the apartments

Dream, live, or invest in Madeira Acqua Residences.

Hendon

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