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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.

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.

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.

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 23^rd 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.

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 19^th 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.

According to, Emerging Trends in Real Estate Europe 2019, Lisbon’s real estate market has taken the lead, moving up from 10^th place to 1^st. European cities were ranked according to their overall investment and development prospects. The annual report published jointly by PwC and the Urban Land Institute (ULI) is based on the opinions of over 800 real estate professionals in Europe, including investors, developers, lenders and advisors.

Interviewees emphasized Lisbon’s “quality of life” and “positive” leadership as its main attractions. Lisbon has been grouped with other smaller European cities into the new category called the “risking stars”. The top ten European cities, expected to do well in 2019 are a mix of smaller new cities like Lisbon and larger more established markets such as Berlin, placed in 2^nd, followed by Frankfurt, Hamburg and Munich ranked five, seven and ten respectively. Madrid, Amsterdam, Vienna and Dublin are all amongst the top 10 and are expected to fare well in rental growth.

The traditionally stronger European markets, seen as peak markets, are less popular as they are seen as entering an end-cylce. The focus of investment is now moving towards smaller more dynamic cities. Portugal’s economy is growing at a healthy rate and Lisbon has become an international destination for companies, investors and tourists. Its high quality of life, its potential for attracting innovation and talent are also strong factors contributing to its positive evaluation.

Despite continued investment and demand for its commercial real estate remaining strong, London’s market is overshadowed by Brexit affecting its short-term prospects, with 70% of Europe’s senior professionals believing that the UK’s capacity to attract international talent will fall after the March 2019 deadline.

One of the main barriers to investment continues to be the availability of suitable assets as capital continues to flow into Europe, especially driven by Asia which has shown great interest in European cities. This is putting pressure on the core end of the market with 70% of survey respondents agreeing that prime assets are over-priced. Meanwhile, 28% of respondents believe that the amount of available equity for new investment will continue to grow from last year’s, despite particularly high confidence in the 2018 market.

The growing influence of social value alongside the financial returns means that the industry is moving towards using a wider range of non-financial measures to assess the value of real estate businesses. Non-financial metrics are thus increasingly important in measuring the financial returns and satisfaction levels for an investor.

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 19^th 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.