Portugal Residence by Investment Program Presentation for UBS 20130912

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Overview …

Overview
1. Henley & Partners Portugal
2. Portugal Residence by Investment Program (PRIP)
3. The PRIP Proposition
4. Requirements & Formalities
4.1 Key Qualifying Documents
4.2 Key Considerations
4.3 Costs & Fees
4.4 Tax Considerations
4.5 Residence to Citizenship
5. Key Advantages
6. Why Portugal?

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  • 1st read Western “gateway” to Europe. Member of the European Union, part of the European Monetary Union (the Euro), part of Schengen space and a member of NATO.Population of 10 million, concentrated along 800km seaboard. Lisbon (the capital) and Porto are the major population centers.The Algarve, in the south, is an internationally-renowned sun/golf tourist destination with average of 3000+ hours sunshine a year.Stable, diverse manufacturing and services economy, with highly qualified workforce and language skills.Government is strategically promoting Portugal’s geographic advantages as a maritime highway and point of entry to European mainland.2nd play the video untill 2m32’’Link to video http://www.youtube.com/watch?v=BjFmiOhfRiE untill t

Transcript

  • 1. Portugal Residence By Investment Program Andrew Coutts managing partners Henley & Partners Portugal Presentation prepared for: Zurich, 12th September 2013
  • 2. Overview Henley & Partners Portugal Henley & Partners Portugal Portugal Residence by Investment Program (PRIP) The PRIP Proposition Requirements & Formalities Key Qualifying Documents Key Considerations Costs & Fees Tax Considerations Residence to Citizenship Key Advantages Why Portugal?
  • 3. Henley & Partners Portugal • The Henley office is based in Lisbon - Portugal´s capital city; • We have a team of 13 professionals – fully operational since 02.09.2013; • The opportunity is provided by the 29/2012 Golden Residence Permit Programme to promote investment in Portugal by non-EU citizens; • Henley & Partners Portugal delivers an integrated turn-key service offering; residence permit process administration, investment option selection, real estate procurement, bank account opening, tax services, educational advisory, financial and administrative management and subsequent asset management for real estate investments. 3
  • 4. Portugal Residency by Investment Program (PRIP) Photo credits to Daniel Rodrigues – Portuguese photographer based in Portugal where he works as a freelance photographer. In 2013 Daniel won the first place in the WORLD PRESS PHOTO OF THE YEAR. In the category of ''Daily Life’’ 4
  • 5. The PRIP Proposition • PRIP has been designed for non-EU citizens wishing to apply for a temporary residence permit; • PRIP provides for Schengen Area circulation based on maintaining a 5-year investment activity in Portugal; • The program is speedy, simple and competitive, providing eligibility for long-term Portuguese residence and citizenship; • There are three qualifying investment options: - Minimum capital investment of €1 million; - Acquisition of real estate with a minimum value of €500,000; - Creation of at least 10 new jobs. 5
  • 6. PRIP Option 1: Capital Transfer Photo credits to Daniel Rodrigues – Portuguese photographer based in Portugal where he works as a freelance photographer. In 2013 Daniel won the first place in the WORLD PRESS PHOTO OF THE YEAR. In the category of ''Daily Life’’ 6
  • 7. PRIP Option 1: Capital Transfer A minimum investment of €1 million – The applicant must provide evidence of having made the capital transfer, by way of: • A capital transfer to a Portuguese bank - the account will be in the investor’s own name; • Investments in stocks and shares - quoted or private companies; • Proof of investment is required by providing: - Up-to-date commercial register confirming ownership of share capital of a company; - A statement by a bank or stock market regulator certifying ownership of shares; - Investments in non-listed companies require a statement to be issued by the management, together with a certified accounting report. 7
  • 8. PRIP Option 2: Real Estate Acquisition Photo credits to Vale do Lobo Resort 8
  • 9. PRIP Option 2: Real Estate Acquisition A real estate asset acquisition value of a minimum of €500,000 – The applicant must provide evidence of ownership of real estate by way of: • A public deed or promissory purchase agreement; • A declaration from a financial institution stating the effective transfer of capital for the acquisition; • A current property registration certificate of the purchase or the promissory contract; Real estate may be: - Bought individually or in co-ownership – each investor must contribute with at least €500.000; - Mortgaged or charged on any part of the value over and above the initial individual investment of €500,000; - The property may be used for residential, agricultural, tourism or commercial purposes; 9
  • 10. PRIP Option 3: Creation of 10 New Jobs Photo credits to Daniel Rodrigues – Portuguese photographer based in Portugal where he works as a freelance photographer. In 2013 Daniel won the first place in the WORLD PRESS PHOTO OF THE YEAR. In the category of ''Daily Life’’ 10
  • 11. PRIP Option 3: Creation of 10 New Jobs Provide evidence of having created 10 new job positions and registered the employees with the Social Security by way of an up-to-date certificate issued by the Social Security department. 11
  • 12. Requirements & Formalities Photo credits to Daniel Rodrigues – Portuguese photographer based in Portugal where he works as a freelance photographer. In 2013 Daniel won the first place in the WORLD PRESS PHOTO OF THE YEAR. In the category of ''Daily Life’’ 12
  • 13. Key Qualifying Documents The following qualifying documents are required for the PRIP process: • Passport or another valid travel document; • Proof of legal entry and permanence in National Territory (e.g. Schengen visa); • International health insurance valid in Portugal; • Signed authorization for the Portuguese authorities (SEF) to obtain a Portuguese Criminal Record Certificate; • Criminal record certificate from the relevant authority of the applicant’s home country or the country where the applicant has [currently] resided for more than one year; • Proof of investment (of any of the three investment options); • Affidavit by the investor guaranteeing compliance with the investment conditions; • A declaration proving the absence of debts issued by the Inland Revenue and Customs Authority and by the Social Security (where the qualifying investment option is the creation of 10 new jobs). 13
  • 14. Key Considerations The following are the key PRIP related requirements to maintain the residence status: • Minimum 5 years maintenance of the qualifying investment; • Minimum mandatory stay in Portugal: - 7 days stay in Portugal (or circulation in the Schengen Area via Portugal) in the first year; - 14 days during a two year period over the subsequent renewals of 2-years each. An average of 7 days per year over the 5-year period of PRIP. • The PRIP process is individual, yet family reunification can be requested at the same time as the primary PRIP application, or at a later stage if preferred; • The application will always be subject to granting the PRIP application to the main investor; • Reunification rules are extended to the spouse, children and dependents of the primary applicant. 14
  • 15. PRIP - Costs & Fees The following government costs relate to the PRIP process for a single applicant: Initial application (SEF) fee: Initial PRIP permit (Golden Residence Permit): Renewal of PRIP Permit (2 x €2,568.75 + €513.75) Total PRIP costs for the 5 year programme: € 513.75 €5,137.50 €6,165.50 €11,816.25 Note: The same fees apply for each family member. The Henley 5 year “hand-holding” service fee is also provided in the table below: Assuming a real estate investment of €500.000, the following acquisition related costs should also be considered: Transfer Tax (IMT 6%-6,5%) Stamp Duty (IS; 0,8%) Legal/Conveyance and Registration Fee Total Real Estate Acquisition related costs €32,500 €4,000 €5,000 €41,500 15
  • 16. Tax Considerations • In general, clients investing in Portugal under the PRIP will be non-resident for tax purposes unless they stay in Portugal for more than 183 days in a year. • As non-residents for tax purposes, the clients will only be liable to tax on income arising in Portugal. • A Non-habitual Resident Regime exists whereby: - For new residents staying 1) for more than 183 days per year and 2) possibly residing in Portugal, there is a special tax regime for non-habitual residents which may apply. - This regime applies for 10 years, provided that, in each year, the individual continues to meet the criteria as a tax resident. The main advantages of this tax regime are: • • For Portuguese source employment and self-employment income deriving from a “high-value-added” activity, a low 20% special tax rate would apply; For foreign source income, a tax exemption may apply in most cases for a) rental income, b) investment income, c) capital gains and d) pension income, other than that 16 arising in a designated tax haven.
  • 17. Residence to Citizenship • Being considered a Portuguese resident creates eligibility to apply for citizenship, provided that the applicant can also fulfil the following conditions: - Is legally considered to be an adult, i.e. 18 years old; - Has been a resident in Portugal for at least 6 years (PRIP contributes 5 years); - Has a reasonable knowledge of the Portuguese language; - Has not been convicted of a crime which corresponds to a penalty equal or more than 3 years according to the Portuguese law; - Provides proof of evidence of connection with the Portuguese community, e.g: property ownership, income or investment. • The citizenship application process requires minimal documentation and takes up to 60 days. Note: Portugal allows dual citizenship. 17
  • 18. Summary of Key Benefits and Advantages Photo credits to Pine Cliffs Resort 18
  • 19. Key Advantages • Residence permit gives visa-free access to all Schengen States • Straightforward and swift (< 2 months) application process • International standards of education for all age groups • Attractive corporate and private taxation system • Minimal physical presence requirements to secure renewal of residency permit and achieve Permanent Residence • Citizenship possible after six years of legal residence • Quality of life 19
  • 20. CITIZENSHIP by AICEP – Portugal’s Agency for Foreign Investment and Trade
  • 21. Danke Henley Portugal freut Sie begrüßen zu Portugal Henley & Partners Portugal Palácio Alagoas Rua da Escola Politécnica, 183, Bloco A, 1º 1250 -101 Lisboa. Tel: + 351 213 970 977. Fax: + 351 213 970 982