In the past two years, the Golden Residence Permit program launched by Portugal (the €500,000 buy property immigration policy) has increasingly attracted the attention of the middle class in mainland China. What makes this immigration policy appealing is the opportunity to obtain European identity for the whole family while purchasing affordable properties with permanent ownership in Portugal.
In 2013, the Portuguese government issued a total of 494 Golden Residence Visas, and by June 30, 2014, a total of 1,166 investors worldwide successfully obtained the Portuguese Golden Residence Visa, of which 952 were Chinese investors, accounting for 81% of the total. However, according to immigration experts from Worldway, most of these Chinese investors who obtained residence visas do not intend to live abroad after purchasing property; instead, they continue to focus their business activities in China and live domestically. Over 60% of them purchase properties solely to obtain visas, rather than to reside in Portugal, and many of these properties purchased for visa purposes are waiting to be rented out.
Next, immigration experts from Worldway will explain in detail how investors can maximize the value of their overseas properties:
1. Short-term Tourists
Portugal is a tourist destination with a moderate climate year-round, attracting over 20 million visitors annually. Therefore, the rental market in this country has stable demand throughout the year. Although rental prices are not extremely high, they are not cheap either. A moderate rental price encourages many people to rent apartments and seaside villas for vacation.
2. WorldWay People
There is also a significant number of business tourists in Portugal, which has created a mid-to-high-end market. Many individuals engaged in business and negotiations prefer to play golf in Portugal and discuss business with partners afterward. Ultimately, they can close deals while enjoying their vacation and entertainment.
3. Local Residents
Westerners do not have the same mindset as Chinese people regarding living conditions; they do not feel the need to own one or several properties to feel secure or to maintain value. Their perspective is more relaxed; as long as they have a place to live, it does not necessarily have to be their own. Therefore, many Westerners do not prefer to buy properties and do not worry about the depreciation or preservation of savings. This mindset is, of course, related to certain welfare and policies in their countries. Generally, ordinary citizens do not worry about not being able to afford medical care, being left without support in old age, or lacking living security in case of unemployment, as companies have bankruptcy insurance, etc.
4. The Portuguese Government
While the government does not directly intervene in the rental market and rental prices, it is controllable and manageable, maintaining stable growth without significant spikes. Therefore, for ordinary residents, rental prices do not become a burden for typical families. For them, rent constitutes only a small portion of their expenses, and if their requirements are not high, it ranges between €150 and €600. Of course, if one insists on living in a wealthy area or a high-end apartment, that would require a different discussion.