“In the end, this is not a miracle. This is work and organization,” … “We follow a strategy. In Portuguese, we say this: ‘If you don’t know where to go, no wind is favorable.’ “So we knew where to go and we took advantage of the two weeks ahead of us to prepare.”

Watch the full article

 


Living, Working and Retirement in Portugal Post COVID-19


“Move on…” as the Portuguese say: “Seguir em Frente…”. It must be our Mindset during these times, the world as we know it is stopped, most of us are grounded at home in the last month and a half and probably will continue to be for a while longer.

We compare countries, government policies, and their consequences. We are overwhelmed with a variety of pandemic experts’ opinions (even football news anchors now consider themselves an amateur Epidemiologist).

As in any war, what our “generals” (a.k.a. politicians) are transmitting to us is that the number of people infected with the virus, the total of deaths, the economic recession, and the remaining “Seven Biblical Plagues” will be much less serious thanks to the all of their good decisions.

This is how in this time of global pseudoscience, fake news, and the massive manipulation of public opinion by some media. The Fear Pandemic was installed, the biggest Pandemic in memory.

Portugal appears in this scenario as an Oasis, this is the image that some international press (Reuters, CNN, Independent, or the Italian Internazionale) have transmitted.

Although we all pray that it will be so, let us remember that also that the “generals” do not comment on the fact that fewer tests are being carried out. The numbers of this public health crisis will be confirmed later, proving that the country managed to “flatted the curve” with the National Health System having an effort rate of 50%, far from being saturated.

Eventually, COVID 19 will be contained and global markets and economies will recover. But the experience of having lived through this challenging period will leave us with an enhanced and perhaps reinvented understanding of what matters most in life.

Now we have a moment while taking this collective break, to rethink how we would like our lives to be, to connect the dots between our ideal lifestyle and the best options of where and how to spend our time and money.

Analyzing from a post-crisis perspective, which city or country will be the best option to reposition ourselves in the world? Diversifying our lifestyle and investment portfolio to take advantage of the many opportunities that our world continues to offer is today a more important agenda than ever. Thus, it will be a way to ensure that we are prepared for what the future will offer us. To decide where we will go, and not being at the mercy of a single government, economy, market, or currency.

Imagine living in a country that offers you the best conditions to organize your life and be able to face any “storm” comfortably and safely.

Although at this moment it is not possible to travel to personally explore these possible destinations, given the current circumstances of the pandemic, this lockout is temporary, and when it is lifted, where should you go?

Kathleen Peddicord is an analyst specializing in investments and residents abroad with over 30 years of experience in this matter. Peddicord stated in an article featured in Forbes Magazine’s April issue, that the best place in the world where one can settle in the following: Portugal.

The reasons mentioned are essentially logical, but also rational and emotional, and now that Europe and part of the world are beginning to come out of confinement, we must make decisions that count.

Why Portugal? According to Peddicord, this country wins the competition as a destination for the following reasons:

Safety

Portugal ranks as the third safest country in the world. Violent crime is rare, and petty crime is limited to pickpocketing during the busy tourist season. This country has managed to keep itself separate from the immigration crisis that is playing out in other parts of Europe.

Good Infrastructure

Portugal has had major investments in infrastructure in recent years, specifically to do with the country’s highway network and airports. As a result, it is an excellent base for exploring all of Europe and North Africa.

International Standard Health Care

Health care in Portugal is of high quality, both in the public and in the private sector, and has a National Public Health Service that tends to be free for residents.

Affordable Cost of Living

The cost of living in Portugal is among the lowest in Western Europe (on average 30% lower). As an example, a couple can live in Portugal reasonably with a budget of only 1,300 euros per month. If they have a budget of 2,000 euros per month or more, they can enjoy a quality lifestyle in the heart of the Old World

Affordable Real Estate

In 2019 Lisbon reached the 1st place with regard to the destination of the real estate market in Europe, having sales values ​​well below those of other European cities. Real opportunities can be found in the surroundings and in smaller towns.

Healthy Living

The Portuguese are the biggest fish eaters per capita in Europe, and fresh fish of great variety is available in the ever-present daily markets. The year-round sunshine and fertile earth in this part of the world mean an abundance of fresh produce, too, also available in the local markets. Meantime, pollution rates are low, and streets, towns, and beaches are clean and litter-free.

The Language

English is widely spoken, so any foreigner can live in Portugal without needing to learn the language.

Year-round Sunshine

Portugal has one of the most stable climates in the world with around 3,300 hours of sunshine per year, which means more days of sunshine than in any other country in Europe. The South does not have months of bad weather.

Great Beaches

In the 800 km of beaches that the country has, the European Blue Flag Association has granted 378 beaches along the coast Blue Flag status, recognizing the excellent water quality and environmental standards.

Golf

Portugal has about 90 golf courses (in a country with 15,000 golfers) most in the south where you can play practically all year-round.

Retiree Residency

Portugal offers the most user-friendly residency option in the Euro-zone. You can qualify to live in the country full time simply by showing a reliable income of at least 1,200 euros per month. 

For these and other reasons, expatriates living in Portugal, despite expressing concern for their families and friends in their countries of origin, say that they feel safer overseas, citing quick government’s responses to the crisis, community-oriented cultures, and a subsidized or free health system.

If you wish for more information, please contact us.

Duarte Jardine

Copyright © 2020 GETiNPORTUGAL®, All rights reserved.
This Newsletter concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on privacy and
 electronic communications) according with DIRECTIVE 2002/58/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 12 July 2002

Contacts :
GETiN- Relocation Services, Av. Sidónio Pais, 26-R/C Esq. 1050-215 Lisboa Portugal


“We have a moment now, while we sit on collective pause, to regroup what we’d like our lives to look like and to connect the dots between our ideal lifestyle and the top choices for the best places to think about spending time and money overseas.”

Watch the full article


They will be free to use country’s health service, welfare system, bank accounts, and work and rental contracts

Watch the full article


Changes to Portugal’s Golden Visa program to take effect next year, 2021


Lisbon, 20th February 2020

On the 7th of February, the Portuguese Government approved the State Budget for 2020, which contains some changes regarding the necessary conditions for the attribution of Golden Visa (GV), as well as the tax benefits for Non-Habitual Residents (NHR).

The international press, namely the Financial Times on the 28th of January, stressed that these measures contained in the State Budget would hinder access to the Golden Visa (GV) programs, and to obtain tax benefits for Non-Habitual Residents (NHR), foreigners who live or intend to live in Portugal under these laws.

The Assistant Secretary of State to the Prime Minister, recently declared in an interview, that these changes, despite being presented in this year’s budget, should only come into force in early 2021, so as not to affect any process that has already started.

Regarding these changes, the major differences expected(1) for 2021 are: the issuance of Golden Visas based on real estate investment can no longer be carried out in Lisbon and Porto.

It is true that the vast majority of the 8000 GV’s issued since 2012, about 95% of these, were for real estate investment and the majority being in these cities (one of the reasons for the renovation of many buildings), which implied a substantial increase in the values ​​of the real estate.

On the other hand in relation to (NHR), due to pressure from several European countries, namely Finland and Sweden, the current total tax exemption for 10 years will be changed to an annual IRS rate of 10%. Apesar de ser uma situação menos interessante, continua a ser uma vantagem bastante compensadora tendo em conta os 40 % ou mais que se paga nos países de origem.

Given this scenario, many investors, real estate companies, law firms and other stakeholders in these processes have already publicly expressed their dissatisfaction with that legislation.

These issues have already been discussed since November and these changes are only valid for the future, not applying to foreigners who already benefit from the GV and RNH concessions, as the law does not allow these changes to have retroactive effects.

In the case of our customers, as of last December, we were informed of this possibility of changing the law, so the contracts for the purchase and sale of the intended properties were immediately executed, the bank deposits defined by law were made and all the necessary documentation with the Foreigners and Borders Service (SEF).
Whoever does not do this in this period, and who has already defined that claim, is because he was misinformed or advised.

And now?

Will these changes to the law be a problem for anyone wishing to buy an apartment in Lisbon or Porto and still enjoy Golden Visa status? Yes.

Apart from some specific situations, we have to see each case in the proper perspective, that is, changes in the new State Budget imply that in 2021, the purchase of real estate in the two largest cities, Lisbon and Porto, more specifically in its Metropolitan Areas (see Map I below), that is, within a radius of about 50 km from these cities, in the amount of 500 thousand euros, it no longer qualifies the non-European buyer to have a Golden Visa. But access to this Program is still possible, now with investment in other areas of the country.

Map I – Lisbon and Porto Metropolitan Areas

Objectively, what are the main reasons for wanting a Portuguese Golden Visa: besides being the third safest country in the world, from possibility to move freely in the Schengen space, as well as the possibility of obtaining nationality for yourself and family members in the first degree, the objective is to have a plan B, taking into account the uncertainty of the future, both for economic and political reasons.

We know from clients coming from New York or São Paulo, that when we offer them houses in the cities they answer that they are fed up with metropolises and want peace and quiet, preferably with sun and beach.

We even see advantages in this claim of some customers for two reasons: first, due to the excellent network of motorways, they are still 30 minutes from the beach and an international airport, and on the other hand, the real estate aspect, while in the cities of Lisbon and Porto for half a million euros (capital required for GV), currently a T1 is purchased, in the vicinity of these areas for the same price you can get a villa with a pool and also 30 minutes from the sea.

In summary, Portugal, due to its small size, the quality of its infrastructures and the price of real estate on the outskirts of large centers, continues to offer a quality of life for those looking for a European Golden Visa.

If you wish for more information, please contact us.

Duarte Jardine

 (1)– changes mentioned above will only take effect after the publication of the budget law in the official Journal, Diário da República, which should take place from 24 February.

 

 

 

Copyright © 2019 GETiNPORTUGAL®, All rights reserved.
This Newsletter concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on privacy and

 electronic communications) according with DIRECTIVE 2002/58/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 12 July 2002

Contacts :
GETiN- Relocation Services, Av. Sidónio Pais, 26-R/C Esq. 1050-215 Lisboa Portugal


GODSPEE BRITAIN


Lisbon, 14th April 2019

Since the start of 2020, there have been discussions in European circles on changes to the golden visa legislation. This European Commission Press Release and this article in the The Guardian were both published on the 23rd of January of this year.

There are two schools of thought, on opposing sides of the political spectrum:

On the one hand, you have groups that argue that these schemes can pose a threat to EU security and make it easier for money laundering and tax evasion schemes, they cite cases of Russian oligarchs and their families acquiring residence in the EU. This kind of criticism of the golden visa programmes is popular in the liberal press.

On the other hand, commentary from parties further to the right of the political spectrum, primarily defend economic values and hold up the numbers as evidence of the positive impact golden visas are having on the national economies of countries which have adhered to the scheme. The investment achieved through these golden visa programmes is not negligible. For those countries, which have adopted these programmes, the investments, both direct and marginal, have become an important source of revenue.

Since 1994, nine European Union countries have adopted legislation for golden visa programmes:

1 – The Program is called Tier 1, it is currently suspended
2 – Government Bonds
3 – Also provides Passport directly
4 – Start Ups

Capital investment derived from the golden visa programmes has been important, especially for countries where the global crisis of 2008 led to direct interventions by the EU, the ECB, and the IMF.

Let us look at Portugal as an example:

Since the inception of the golden visa programme, (Autorização de Residência para a Atividade de Investimento, ARI) in October 2012 and up until February of this year, 7,208 residency permits have been granted, 4,159 were granted to Chinese citizens alone, according to SEF, the Portuguese Foreigners and Borders Service. If you add to that the 12,254 additional permits given to family members, the total granted totals 19,462.

According to SEF, golden visas have yielded an investment of 4.4 billion euros, of which the lion share, 4 billion, has been invested in real estate and a little over 415 million as a transfer of capital

This alone represents a huge investment, but these numbers do not take into account other gains for the Portuguese state, namely property taxes.

Below are some figures that GETiN has calculated based on fees accumulated by SEF for issuing golden visas (GV) and payments made on property tax by new residents.

The Portuguese state has collected a total of 332 M € in taxes, from applicants, family members and property taxes.

It should be noted that this is the initial revenue collected by the Portuguese state. There will be further revenue as the visas need to be renewed every two years and municipalities collect property taxes annually.

Lastly, there is what can be called “Marginal Investment”, this investment is not itemized by the state, but this is also a considerable source of revenue. Tax contributions from the construction and real estate sectors as well as law firms and the service industry (GETiN fits into this latter category), fuelled by the golden visa programme are important. If we take this economic activity into account as part of the golden visa economic effect, then the overall benefits far outweigh the negative stories of possible corruption, money laundering and security risks mentioned in the press.
This is not to say that we should not be paying attention to potential security risks, money laundering, tax evasion, etc. and all these risks highlighted by Members of the European Parliament, largely affiliated to the Progressive Alliance of Socialists and the United Left. It is clear that we absolutely must pay attention to these risks and problems and effectively catch and punish those that attempt to break the law.

However, the reality is that 99.9% of people who are using their savings to have access to a European country are looking for an alternative for themselves and their families due the uncertainty and upheavals in the countries they live in, such is the case for people coming from China, the Middle East or South America. They are looking for a European quality of life and often somewhere to peacefully spend their autumn years. It is no coincidence that Europe has been rated as one of the most peaceful places in the world and as offering a high quality of life, consistently for the past 80 years.

Greece is an interesting case in point, where the radical left government of Syriza has adopted a golden visa programme despite condemning the principles behind the idea. Notably, its programme offers the lowest financial threshold (250K). Greece, in fact, actually attracts more investors than Portugal and Spain. It would seem that Syriza has carefully weighed the pros and cons of the idea!

As a direct result of the Greek government’s policies, there has been a noticeable shift of golden visa applications towards Greece, especially those coming from China. Their success in attracting applicants, however, has resulted in a back log as the authorities struggle to process so many requests. As a result, waiting time for a visa in Greece can take as long as 2 years.

The current government in Portugal supports the recommendations made by the European Commission in their press release of 23 January. Already in October 2018, the Minister for Foreign Affairs spoke in the Portuguese Parliament about the need to make changes to the current laws governing the golden visa programme.  These changes, when they come, will probably make the process of application more arduous, but on the other hand, because of its success, it could mean that the only changes we see will be increases in fees and taxes.

Presently, the wait time for a golden visa in Portugal in anything up to a year, a lot more time than the initial projection of 4 to 6 months.

For now, there have been no changes to laws that govern the granting of golden visas in Portugal, but changes could come.  The European Parliament is now debating an idea for a European wide system of control and verification of all the different golden visa programmes, currently functioning in nine EU countries. This new system will undoubtedly further bureaucratize the process and lengthen waiting periods.

How can you avoid getting caught up in these possible changes? Start your application process now! Any changes that are made to the golden visa programme in Portugal will take a while to be implemented and they will not be enforced retroactively, so any applications made now, will not be affected later.

Once your application has been submitted and accepted, you have a contract with Portuguese state to grant you a golden visa, in accordance with the current legislation and providing you continue to fulfill all the requirements (investments, no criminal record, etc.) and the same applies to family members.

So, in order not to get caught up in changes to the current system or to the government (2019 is an election year for Portugal and for the European Parliament) it’s advisable to take decisions and act quickly.

How to move forward?

Having some local advice from trusted specialists who will take care of your interests is important. Specialists who have nothing to gain from your real estate decisions and who will operate on the basis of transparency and fair pricing to help you reach your objectives.

We are talking about the kind of service that GETiN Relocation Services can offer you: professional advice! We can help you with essential advice such as where to live, real estate options, legal support and advice to expedite your application process, practical financial advice and assistance with your move and settling in.  We can take care of all the red tape for you through our reliable partner realtors and lawyers.

We can take care of everything for you and tailor the experience to your needs. No detail is too big or too small.

We are committed to offering a unique and personal service to each of our clients and always aim for integrity, transparency, and independence. We offer trust solutions.

 If you wish for more information, please contact us.

Duarte Jardine

 

 

 

Copyright © 2019 GETiNPORTUGAL®, All rights reserved.
This Newsletter concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on privacy and

 electronic communications) according with DIRECTIVE 2002/58/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 12 July 2002

Contacts :
GETiN- Relocation Services, Av. Sidónio Pais, 26-R/C Esq. 1050-215 Lisboa Portugal


Hot Market

Portugal is now the eurozone’s hottest property market seven years after introducing golden visas

Still Cheap

Lisbon home prices remain one of the lowest among western European capitals

Watch the full article


The country is attracting foreign investors and migrants thanks to its perceived open attitude to foreigners and a low crime rate.

“I wouldn’t dream of doing it back home,” said the Brazilian businessman, who was robbed and assaulted several times while living in São Paulo. “In Lisbon, you don’t have to keep looking over your shoulder.” Says Eduardo Migliorelli decided to move his family to Portugal the evening he discovered he could walk the few hundred meters from a restaurant to his hotel without fear of being attacked.

“Portugal is the most open, tolerant and liberal society I have ever lived in,” said Chitra Stern, a Singaporean of Indian descent who moved to the Algarve in the south of the country in 2001 to look for business opportunities.

Itay Kastel, an Israeli, moved with his family to Portugal in 2016 to expand the property business he had been running for 10 years in Angola. “We’re really happy with our decision. The atmosphere here is embracing and helpful,” he said.

Andy Yacoub, a Londoner, chose Portugal to start a new life with his Mexican wife and young son, obtained Portuguese residence permits for the family within a few weeks and found local banks happy to lend on his existing properties so he could expand his portfolio. “In Portugal, you are welcomed into the community,” he said. “We feel at home here.”

Watch the full article


“It was a chance to live in a tax haven that isn’t an island in the Caribbean,”

“We’re in Europe, in a country that has been going through a revival over the last few years.”

Watch the full article


What is the future for European Golden Visas?


Lisbon, 14th April 2019

Since the start of 2020, there have been discussions in European circles on changes to the golden visa legislation. This European Commission Press Release and this article in the The Guardian were both published on the 23rd of January of this year.

There are two schools of thought, on opposing sides of the political spectrum:

On the one hand, you have groups that argue that these schemes can pose a threat to EU security and make it easier for money laundering and tax evasion schemes, they cite cases of Russian oligarchs and their families acquiring residence in the EU. This kind of criticism of the golden visa programmes is popular in the liberal press.

On the other hand, commentary from parties further to the right of the political spectrum, primarily defend economic values and hold up the numbers as evidence of the positive impact golden visas are having on the national economies of countries which have adhered to the scheme. The investment achieved through these golden visa programmes is not negligible. For those countries, which have adopted these programmes, the investments, both direct and marginal, have become an important source of revenue.

Since 1994, nine European Union countries have adopted legislation for golden visa programmes.

The question on everyone’s minds is: Is Lisbon’s real estate market in a bubble?

Despite the indisputable prestige of PwC, looking through the 92 pages of this report will not give you an answer to this question. Let’s not forget that the 800 professionals interviewed for this survey work in real estate, and real estate companies don’t usually talk about bubbles in the market, especially when they are talking about products they themselves are selling.

The reality is that the price per square foot has increased substantially in the last years, but Lisbon’s market is not really comparable with the other 9 cities in the top ten.
And let us not forget that Lisbon is a small city, central Lisbon is even smaller, so with less on offer prices will tend to go up and not down…something we have known since the 19th Century, thanks to David Ricardo’s Law of Rent.

The question shouldn’t be viewed from the price per square foot, but more from the value of the investment as a whole. A property selling for a higher cost per sq foot, can be seen as an excellent financial investment (location, quality construction, liquidity etc), and the exact opposite can be true too.

At the end of the day, the key, as in other markets, is being able to distinguish between opportunity and opportunists. How do you do that? It is always wise to get some impartial advice from local specialists, who above all look out for the client’s interests. They are impartial because they do not work for a real estate agency and their top priority is to leave their clients feeling that their advice was worth it.

And this is exactly what  GETiN Relocation Services has on offer for you: Professional Advice. We can help you with the important stuff like explaining to you all the different areas of the city, we can provide you with an impartial study on a property search, we can work with the best legal partners to ensure you get your Visa and Immigration papers in order, we can offer practical financial advice and finally, we can help you settle into your new home.

With a large network of experienced consultants in the Portuguese market, analysts and project managers, GETiN can help business and private clients with their long-term and short-term relocation projects.

We pride ourselves in offering our clients a personalized service, with total integrity and transparency, to achieve reliable solutions.

 If you wish for more information, please contact us.

Duarte Jardine

 

 

 

Copyright © 2018 GETiNPORTUGAL®, All rights reserved.
This Newsletter concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on privacy and

 electronic communications) according with DIRECTIVE 2002/58/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 12 July 2002

Contacts :
GETiN- Relocation Services, Av. Sidónio Pais, 26-R/C Esq. 1050-215 Lisboa Portugal