Residency in Portugal via Golden Visa ProgramGolden visa in EU withsea access

Residency and Citizenship in Portugal Through Real Estate

Why Portugal Remains a Leading Residency Destination

Portugal offers a high quality of life, EU residency access, a stable political and economic environment, and a welcoming culture for foreigners. Its Mediterranean climate, healthcare system, and safety rank it among the best countries for relocation. The Golden Visa program, although recently modified, still makes Portugal an attractive option for property-based residency, especially through commercial or rehabilitation real estate projects.

Golden Visa and Property-Based Residency Routes

Portugal’s Golden Visa allows non-EU nationals to obtain residency through qualifying investments. As of recent reforms, residential real estate purchases in Lisbon, Porto, and coastal areas no longer qualify, but investments in interior regions or in tourism-linked commercial properties still do. The minimum threshold is 280,000 to 500,000 euros, depending on location, renovation status, and regional development classification.

From Residency to Permanent Status and Citizenship

Golden Visa holders must spend at least seven days per year in Portugal to maintain their permit. After five years, they can apply for permanent residency or Portuguese citizenship, provided they pass a basic language test and demonstrate ties to the country. Portugal allows dual citizenship, making it one of the most accessible EU passports through legal residence. Real estate ownership helps establish long-term presence and simplifies document renewal.

Application Process and Legal Requirements

To apply for the Golden Visa, investors must provide proof of qualifying investment, a clean criminal record, valid health insurance, and sufficient funds. Applications are submitted through Portugal’s online immigration platform and processed in coordination with local authorities. Legal assistance is strongly recommended, especially for evaluating eligible property types and managing municipal approvals and notarial procedures.

Taxation, Lifestyle, and Relocation Benefits

Portugal offers favorable tax treatment under the Non-Habitual Resident (NHR) program, which can provide flat tax rates and exemptions on foreign income for up to ten years. The country ranks high in global safety, healthcare, and environmental quality. Coastal towns, historical cities, and rural wine regions all offer unique lifestyle choices. English is widely spoken in urban centers, and the expat community is well established.

Real Estate Market and Investment Opportunities

Property prices in Portugal remain attractive by EU standards. Commercial and hospitality properties in eligible Golden Visa zones start from 280,000 euros. Residential real estate in rural or inland areas may also qualify. Yields in cities like Braga or Évora range from 4 to 6 percent, with steady rental demand. Investors may also consider rehabilitation projects, which offer lower entry points and meet program criteria when approved by local councils.

Until recently, the purchase of real estate was included in the “Golden Challenge” program, which gave the right to obtain a residence permit in this country. Now the main channel for obtaining a residence permit for non-EU residents is investing in investment funds, cultural or research projects, and other legal methods.
If you are faced with the task of obtaining Portuguese residency, VelesClub Int. will help you with this.

Which areas of Portugal are the most interesting for buying property?

Lisbon region. It includes the capital of Portugal, Lisbon, the municipal centers of Setubal, Amadora, Cascais, Sintra, Estoril, and an area of fashionable oceanfront resorts called the Lisbon Riviera.
The capital of Portugal combines a tourist center, an ideal place for those looking for a comfortable place to live and one of the best options for real estate investment.
It should be noted that among other European countries, real estate prices in Lisbon are lower, and the rental rate is higher, averaging 5-7% per annum.
If you are pursuing a strategy of generating passive income from renting out real estate, you can consider both long-term rentals and short-term rentals during the tourist season. Outside the tourist season, you can perfectly use your property for wintering in a comfortable climate and a modern cultural center.
Also, don’t lose focus on commercial real estate. It is also popular with investors, as Lisbon is one of the top ten cities in the world that are attractive for remote work.

Porto is a large, lively city on the banks of the Douro River. It combines a cultural center with the preservation of centuries-old history and a place of active modern life. This city will be interesting for purchasing not only residential real estate, but also commercial real estate - mini-hotels, warehouses, premises for shops and warehouses. Each area will be of interest to investors in its own way.
The tourist flow here is formed not only due to external tourism, but also internal. At the same time, a comfortable climate and well-developed infrastructure create year-round interest in the region.
Over the past 5 years, Porto has shown one of the best dynamics of real estate value growth (more than 10% per year).

The Algarve is the southernmost part of Portugal. Being a tourist and sports center of the country, the area has a developed residential infrastructure.
This area, despite the fairly high cost of real estate, is always in demand and opens up great opportunities for investors.
It has everything: natural beauty, Mediterranean climate, stunning beaches, resort housing both for your own living and for generating passive income.
In this region, it is worth taking a closer look at investing in suites - small hotel-style apartments. It is better to give preference to the first coastline and developed infrastructure. Daily rent in this location will vary from 100 to 120 EUR per day. Despite the tourist focus, commercial facilities on the coast are also possible.

The Azores and Madeira are year-round resorts that attract tourists from all over the world for their unique climate, nature and volcanic origin.
Property prices in the Azores and Madeira are very different. So, in Madeira the luxury segment is valued and this is more an investment in comfort and status. While in the Azores you can buy good housing in the price segment up to 100,00 EUR.

What additional costs does an investor bear when purchasing real estate in Portugal?

When we talk about investing in real estate, any strategy must take into account all the costs of buying, selling and owning an asset.
Taxes and fees are one of the significant items that have the greatest impact on profitability.

Thus, when purchasing real estate in Portugal, the investor’s main additional expenses are approximately 9-11% of the cost of the property:

• tax on transfer of ownership from 0% to 8% (depending on the value of the object and its type);
• stamp duty - up to 0.8%;
• transaction support with the involvement of a lawyer and notary - approximately 2.5%
• registration of property rights - from 250 EUR.

If you purchase personal residence property, the cost of maintaining the property will include:

• municipal ownership tax - from 04% to 0.8%, also depends on the value of the property and its type;
• wealth tax - from 0.7% to 1%, if the value of the property is more than 600,000 EUR;
• Utility payments (electricity, water, electricity, gas) - according to meters.

When renting out real estate, the following expenses will be added to the above expenses:

• for non-residents, rental income tax is 28% fixed;
• stamp duty for license - 10% of the rental rate

In case of sale of real estate, the seller will have to pay:

• tax on income received from sales - 28% (of the difference between the sale and purchase prices);
• sales tax - 0.4; from cadastral value
• real estate agency services.

With any taxation system, as a rule, there are opportunities to optimize costs, and our experts will always help you understand these details.
  
It is important to remember that investing in international real estate, particularly Portugal, requires careful analysis, expertise and discretion. We recommend seeking advice from VelesClub Int. professionals who can provide valuable information and strategies throughout the investment process.