Traditional countries like Canada and Australia have begun to close or tighten their investment immigration policies. Since last year, property investment immigration in Europe has become a "lifeline" for many immigration applicants, and this perception seems to be even stronger now.
According to statistics from the Portuguese Real Estate Association, since Portugal launched the "Golden Visa" program for residence permits through property investment a year and a half ago, it has attracted £300 million in foreign investment. The association expects that foreign investment through the Golden Visa program will see a sharp increase this year. So far, 542 foreigners have obtained Portuguese residence permits through the Golden Visa program, the majority of whom are Chinese.
In October 2012, the Portuguese government launched the Golden Residence Visa program, allowing non-EU citizens to obtain residence rights in Portugal by purchasing real estate worth €500,000 or more. This has attracted many entrepreneurs and investors, including wealthy individuals from China. It is reported that Golden Visa applicants can also obtain a visa by having financial assets of €1 million or more or by creating 10 jobs. The minimum investment period is 5 years.
The €500,000 is an investment threshold, and as long as the total value of the selected properties exceeds €500,000, it becomes effective. Therefore, just like buying property in China, choosing the right property is very important. The property tax in Portugal generally ranges from 0.3% to 0.8%, so the holding costs are not very high.
According to Portugal's new immigration policy, the Golden Visa requires a minimum annual residence period in Portugal. Typically, one only needs to reside for 7 days in the first year, and then 14 days every two years in Portugal to meet the requirements. After 5 years, one can apply for permanent residency, and after 6 years, one can apply for citizenship.
For the surge in property purchases in Europe that has been popular since last year, industry insiders remind to be cautious: "Be careful about local properties. Are these property developers and agents trustworthy? You can buy a property for €300,000, but is the market value of that property really €300,000? Or will some unscrupulous agents sell you a property worth €100,000 for €300,000? This is a significant risk."
Some property developers sell properties that are not yet built, which poses a high risk. If investment immigrants buy properties that are already available, that is still acceptable.
