Golden Visa Portugal: The Costs you Need to Know Before Applying
When applying for a Portuguese Golden Visa there is a lot you must take into consideration, other than just the property value itself. The Portuguese Golden Visa has a few costs associated, mainly taxes, government and professional fees, as well as travel expenses. So please have this in mind when starting your application.
Also note that, though professional assistance is not mandatory, it is advisable to enroll a professional to help with all the process and paperwork when applying for a Golden Visa in Portugal. Whether it is a lawyer or a solicitor, you will find the process fair complex and need, or at least appreciate, the help of someone who knows how to simplify the process for you.
The Portuguese Government charges an application fee of €517, plus a fee of €80 for every family member. Also, it charges an initial visa issue fee of €5,173 per visa holder and a renewal fee at the end of years 1 and 3 of €2,587. This means that, during the 5-year duration of the Golden Visa, a couple and one child will pay the Portuguese Government a total of €33,000.
During the 5-year period – or sometimes after – the government will also charge €350 for each permanent residency application – per adult – and a €250 fee for citizenship application – also per adult. Under 18-year old children are exempted from these application fees.
Professional Fees and Expenses
You will need – and it is recommended to have – some professional assistance, for which you need to take into account the fees for:
– Translation services and legal recognition of documents;
– Legal assistance with the Golden Visa application and renewals, as well as permanent residency and citizenship application;
– Tax representation, for those with more than just a banking account in Portugal (investments, properties, companies);
– For property buyers and real estate investors, legal assistance with the purchase (and/or renting) process, including Deed and other legal stages;
Legal assistance fees may vary a great deal, but on average, each family may expect to spend around €5,000 for assistance with the Portuguese Golden Visa application and €2,000 with each renewal. Legal assistance for property purchases above €500,000 tend to be around €5,000. The combined legal assistance fees for the Golden Visa application plus the property purchase assistance fees tend to be close to €10,000.
Property Purchase Taxes
As the most common and preferred way to acquire the Portuguese Golden Visa is through property purchase, you will also have to be aware of the property purchase taxes and fees instituted by the Portuguese Government.
The first – and one that applies to every transaction and money transfer -is the stamp duty (imposto de selo) at the rate of 0.8% of the transaction value for every property purchase. This means that, for a property of €500,000 – minimum property value eligible to apply for the Portuguese Golden Visa -, you will have to part with around €4,000 just for stamp duty.
In addition, you will need to be aware of the most significant tax, the property transfer tax (IMT), which applies to every property purchase. While there are variations according to property type, condition (rehabilitated properties benefit from exemptions and tax reductions) and intended use (property for permanent residence benefit from lower tax rates), you will still have to part with a considerable amount of money, depending on the property value. The most common occurrence is that of a residential property, purchased for permanent residence by the owner. In these cases, the tax may vary between 6% and 8%, depending on the value and the transacted price of the property.
For example, the above property, located in Príncipe Real, in the center of Lisbon, is priced at 560.800€. On a property value over 550.000€ the tax is calculated at 6%. So, in this case the total cost of the IMT tax (or the property transfer tax) will be of 33.648€. See which other properties can help you qualify for the Portuguese Golden Visa Program in Portugal.
Besides the Stamp Duty and the Property Transfer Tax, you will also have to pay fees while signing the Promissory Contract (CPCV) – not taking into account the agreed deposit for the property – and also the Deed (Escritura) expenses. For those using bank leveraging or credit, don’t forget the bank fees and property evaluation. In case you choose to renovate a property, don’t forget that you will have to pay VAT (IVA) added to the price of the materials and services, at the rate of 6%, given that these do not exceed the 20% limit of the total works cost, or the rate for the excess will be 23%.
So, before you make your Golden Visa application make sure you are well aware of all the details and information necessary regarding costs and fees of the Portuguese Golden Visa Program regarding a specific investment.