Portugal has established itself as the destination of choice for South Africans seeking a straightforward route to EU residency.
Why Portugal? It offers one of the more enviable European climates, 800 kms of coastline, excellent food and wine, captivating culture, intriguing art and architecture, fascinating history, welcoming people, good health care, low crime and high affordability.
And, of course, Portugal is a full member of the European Union, so legal residents of Portugal can travel freely and visa-free throughout the Schengen Area of 26 European countries.
Add to this, Portugal’s favourable investment landscape – not to mention the ‘Non-Habitual Resident’ (NHR) tax benefits that can be obtained by residents who also choose to become tax resident in Portugal – and it should become clear why Portugal is now the number one destination worldwide for residency and why Lisbon is the ‘hottest’ city on the planet.
There are several routes to obtaining Portuguese residency but the most popular – and one of the simplest – is the Golden Visa Residence Permit (GVRP). It is also the only resident status that makes the holder eligible for citizenship after five years, while only requiring them to spend a minimum of seven days per year in Portugal. So, you can get with your life and keep the citizenship clock ticking at the same time.
But, as of 1 January 2022, the GVRP rules in respect of qualifying investments are to be significantly amended, so anybody currently considering this option would be well advised to take urgent action.
Portugal’s special tax regime for Non-Habitual Residents (NHRs) enables qualifying entrepreneurs, professionals, retirees and high net worth individuals to enjoy reduced rates of tax on Portuguese-source income, while most foreign-source income is exempt from Portuguese taxation, for a decade.
The Portuguese Passive Income Visa – also known as a ‘D7 Visa’ – provides residency status to non-EU / EEA / Swiss citizens, including retirees, who intend to relocate to Portugal and are in receipt of a reasonable and regular passive income.
Sovereign has been operating in Portugal for 30 years and whether you wish to live, work or retire in Portugal now, or are simply keeping your options open for the future, is well placed to offer all the practical advice you require. Join our panel of experts for a discussion about the forthcoming changes to the GVRP regime and the other Portuguese residency and visa options available.
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