Portugal’s Golden Visa programme has captured the attention of investors worldwide, largely due to its comparatively low investment thresholds. However, the true cost of obtaining and maintaining a Golden Visa extends beyond the initial investment.
Prospective applicants must consider a range of fees and taxes throughout their journey, from application to potential exit.
Government Fees
Golden Visa applicants must budget for several government fees. The application fee stands at €539.66 per person, payable for both the initial application and subsequent renewals.
The residence permit fee is more substantial, at €5,391.56 for the initial permit and €2,696.29 for each renewal. These fees apply to each family member included in the application.
Over the course of the programme, including two renewals before eligibility for permanent residency or citizenship, these fees total €12,403.12 per person.
Renewal and Citizenship Costs
Legal expenses continue beyond the initial application, too. Visa renewals typically cost between €500 and €2,500, depending on whether fees are charged per family member.
If you choose to get a second passport, citizenship applications usually range from €1,000 to €2,000 per family member. Applicants who choose to use a lawyer throughout the entire process may face costs of €8,000 to €12,000 for a single applicant, or €14,000 to €24,000 for a family of four.
Taxes for Golden Visa Holders
Tax obligations for Golden Visa holders depend largely on their residency status. Those spending less than 183 days per year in Portugal generally have limited tax liability. However, individuals spending more than 183 days annually in Portugal become tax residents, subject to the country’s tax system.
Key Portuguese tax considerations include income tax, with rates ranging from 13.25% to 48% depending on income level. Property tax is levied annually at rates between 0.3% and 0.8% of the property’s taxable value.
Capital gains tax on real estate is applied at income tax rates, with only 50% of the gain taxable for residents. For investment funds, a 10% rate applies for tax residents, while it is tax-free for non-resident golden visa holders.
Rental income is generally taxed at 25% for residential leases and 28% for non-residential leases, with deductions allowed for property-related expenses. Portugal does not impose inheritance tax, though a 10% stamp duty applies in certain cases. Notably, the country does not levy a wealth tax.
IFICI Tax Regime (formerly NHR)
Golden Visa holders should be aware that Portugal’s Non-Habitual Resident (NHR) scheme was closed to new applicants on 1 January 2024 and has been replaced by the Tax Incentive for Scientific Research and Innovation (IFICI), often called NHR 2.0. Unlike the old NHR, IFICI is limited to highly qualified professionals in designated sectors such as science, technology, and innovation. It offers a flat 20% tax rate on eligible Portuguese-source income and exemptions on most foreign-source income for up to ten years, but most passive investors and retirees will not qualify. Existing NHR holders registered before the cut-off retain their benefits for the remainder of their ten-year period.
Understanding the true costs and taxes associated with Portugal’s Golden Visa programme requires expert guidance. International Wealth Ventures specialises in advising investors on global residency and citizenship programmes.
