Moving from the USA & Canada to Portugal?
Portugal is the chosen destination for many foreign internationals looking to immigrate and move to the most South Westerly point of Europe. Some of the reasons Portugal is so appealing is not just for its climate and thousands of miles of stunning coastline with golden sandy beaches (especially the Algarve), but also its rich culture and history, beautiful nature, quality of life, drinking wine where the grape is grown and tasty fresh food, but also two of the greatest benefits are the tax and residency options available to those who are applicable. Portugal is ranked as the 3rd safest country in the World by the Global Peace index 2021.
Portugal is ranked as the 3rd Safest Country in the World
You may have heard of the D7 visa (Passive Income Visa) which provides terms and conditions you need to meet to apply for residency status available to non-EU/EEA/Swiss citizens, even if you are retiring. This is aimed at foreign applicants intending to apply to legally live in Portugal, you can read more about it on SEF's website.
You can apply for the D7 visa if you meet the requirements such as you intend to relocate to Portugal, and are in receipt of a regular, reasonable passive income. The D7 enables the holder to apply to obtain a residence permit in Portugal, valid for two entries and entitles the holder to remain in Portugal for a period of up to 4 months. You will have 4 months to convert your visa into a residence permit.
If you are successful with the relevant Visa it can offer you the right to; study, work (get a job or start a business) and live in Portugal; visa free travel within the applicable European Countries; the option for the main applicant to apply to include dependant family members (such as a spouse or partner, children under 18 studying in Portugal, dependent parents and minor siblings); apply for the Non-Habitual Resident (NHR) tax regime status.
One of the benefits of the NHR is your foreign pension income is only subject to 10% tax for your first 10 years and there is special tax you can apply for on other foreign income such as rent, interest, dividends, some capital gains etc.
After 5 years you can apply for permanent residency or citizenship in Portugal which includes healthcare and education.
As a visitor to Portugal without a visa, the minimum stay period is 90 days out of 180 days as a tourist or for business. To stay longer you can apply within expiry of the 90 days for a residence visa for students, self-employed and investors.
One of the requirements of the D7 visa is to demonstrate proof of income, regular passive income which you may wish to hold within a Portuguese euro bank account, which can be from rental income, pension or other income, you are not required to invest in Portugal. Minimum yearly income requirements have the baseline of at least equivalent to Portugal's minimum wage each year (which changes) and may vary depending on each applicant's circumstances, as follows:-
a) 100% eg., 7620€ from the main applicant
b) 50% eg., 3810€ from the spouse of parents of the main applicant
c) 30% eg., 2292€ from the dependent children of the main applicant
An available renewal option is a 3 year residency permit, permanent residency or citizenship.
You may have also heard of the term 'Golden Visa Program' applying for residency in exchange for purchasing real estate property and other investment in Portugal by meeting the requirements. There are expected to be Government changes implented from July 2021 with regards to investment finances and locations.
Current requirements for permanent residency in Portugal include:-
You can apply for the Visa yourself direct on Portuguese official website. Alternatively there are registered companies in Portugal with fully qualified accountant staff that offer this service in English if you do not have the time to do it yourself and if you are happy to pay a professional registered company in Portugal that do this every day. They will review your circumstances to see if you meet the requirements and may be applicable.
You may find it helpful to acquire the services of these professionals who are tax, wealth and residency experts, the companies we work with have been around for decades with offices in Portugal, helping people like yourself offering private consultations, answering your questions for the best advice and support on tax saving systems applicable to your individual situation on your country move and guide you on your tax obligations when in Portugal.
You can take advantage of our affiliate foreign exchange company to get their best quote to transfer your US or Canadian Dollars straight into your Euro Bank Account here in Portugal.
We can also provide you with the contact details of our local village Bank Manager working for one of the biggest banks nationwide in Portugal who offer online banking in English, who we use for business and personally.
Let us know if you want any of these professionals' contact details. You can speak to or email them direct for independent advice and support.
As your licensed Real Estate Agent in the Algarve our service to you as a buyer or tenant is free, we help you whether you are buying or renting a long term residential accommodation and business, with all aspects of moving country, shared knowledge of neighbourhoods, guided tours of communities, facilities and amenities and helping you settle into your new lifestyle. We have provided lots of useful information and resources on this website. We are available to answer any questions, advice and support you before, during and after your move. We also offer a Property Management Service looking after you, your guests and your property, our services include airport transfers, setting up your rental home with shopping stocking up your fridge ready for your arrival, garden and pool maintenance, maid and laundry service, helping with your post and paying your bills and lots of useful help, advice and contacts. We are on the ground in the Algarve ready to help you.
The terms and conditions of visas and residency permits is subject to change by the Government of Portugal at any time. This information is provided as a guide only, each applicant has to meet the current requirements of the Portuguese Government available on their website. Diamond Properties Algarve are experts in Real Estate only. For tax, residency permit and financial matters we recommend you seek independent expert advice direct from the Portuguese Government or from one of the companies we can provide or through your own research.
Let us know if you found this information helpful or if you have any questions and please feel free to share with anyone who it may help. Contact us with any questions on Real Estate matters in Portugal. We look forward to helping you as your Realtor and welcoming you to the Algarve.
www.DiamondPropertiesAlgarve.com
3/4/2021
