Living in Portugal- E&V Presentation

PortugalPortugalPortugalPortugal
One of the best places to liveOne of the best places to liveOne of the best places to liveOne of the best places to live
PortugalPortugalPortugalPortugal, 2015, 2015, 2015, 2015

Top reasons to live in Portugal
1. Satisfaction: Over 80% of the tourists who visit Portugal are satisfied with their trip and
want to come back
2. Climate: Did you know that Portugal has an estimated 3300 hours of sunshine per year,
one of the highest rates in Europe?
Portugal:Portugal:Portugal:Portugal: One of the best places to liveOne of the best places to liveOne of the best places to liveOne of the best places to live
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3. Price: The average housing prices in Portugal are very competitive compared to the main
European cities
4. Taxation: Advantages of tax foreign earned income
5. Safety: Portugal is ranked as the 17th safest country in the world among a list of 153
countries

One of the best places to live
Imagine living in a country where you can find a huge diversity of landscapes and environments in a small area: sandy beaches as far as
the eye can see, golden plains and mountains, vibrant and cosmopolitan cities and a millennial heritage.
Here you can practice water sports, play golf on the best courses in the world, contemplate nature, experience the most novel well-being
treatments, or just get out into the country and discover unbeatable heritage, wines and cuisine.
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treatments, or just get out into the country and discover unbeatable heritage, wines and cuisine.
Climate
In terms of climate, our winters are mild and summers are hot and dry. Did you know that the number of hours of sunshine per year
reaches values as high as 3300 in the south of the country and 1600 in the north, some of the highest in Europe?
The Portuguese
The Portuguese are gracious and friendly, welcoming all visitors regardless of where they come from. And, in fact, visitors do come here
from all over the world, as the country is located on the western coast of Europe and, as such, is a point of entrance into the Schengen
zone. A large part of the population speaks foreign languages, specifically English.

Geographical
Portugal has an excellent geographical location. At the meeting point between three continents - Europe, Africa and
America -, it has always been central to the most important international routes. Here you can find international airports
all over the country - Lisbon, Faro and Porto have regular connections to major cities in the world.
Did you know that Lisbon is just two and a half hours away from Paris and London by plane? If you want to discover
the beauties of Portugal, the country has a modern road network waiting to be explored: it only takes two hours to get
from Lisbon to Porto or Faro, the major cities in the north and south of the country. Madrid is just six hours away.
The Country
With almost nine centuries of well defined geographical borders, a democratic parliamentary regime with political
stability prevails in Portugal. Portugal has been a member of the European Union for 26 years and forms part of the
European Monetary System, using the European single currency. According to the World Bank, Portugal is the 43rd
largest economy in the world, with one of the highest GDP growth rates over the last 40 years among the OECD
countries.
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Portugal is the 17th most peaceful country in the world out of a sample of 153 countries (Global Peace Index 2011)
and holds 32nd place out of 182 countries in Transparency International (Corruption Perception Index 2011): Portugal
holds 32nd place out of 182 countries.
Best Quality of Life
In 2010, the European Consumers Choice Awards rated Lisbon (capital of the country) as the "Best Destination 2010”
and in 2011 it was voted one of the 42 cities in the world with the best quality of life, by the Worldwide Quality of Living
Survey 2011.

Cost of Living
Most foreigners consider the cost of living to be low. According to UBS (Prices and Earnings 2010), the price indices
are attractive:
Food: 68.2 (index: New York = 100);
Clothing: 53.3 (index: New York = 100);
Services: 67.9 (index: New York = 100);
Metro ticket: € 1,40 (journey of approximately 10 km);
Bus ticket: € 1.80 (journey of approximately 10 km);
Restaurant: € 40 (3 course meal in a good quality restaurant).
Tax Rules
Portugal is also one of the best countries for buying a house, because it has clear and transparent tax rules and offers
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Portugal is also one of the best countries for buying a house, because it has clear and transparent tax rules and offers
facilities for obtaining residence permits, as part of new legal provisions that are more attractive to foreign investors.
It also has a special regime for non-habitual residents, aimed at attracting foreign investors through very favourable
income tax rates.

Competitive property sector
And if you need any more reasons for making the decision to live in Portugal, you should know that the range
of property available in Portugal is very attractive and competitive.
Portugal is recognised internationally for the high quality of the work done by its architects. Proof of this are the two
Pritzker Prizes that have already been awarded to the architects Eduardo Souto Mouta and Álvaro Siza Vieira.
Likewise, very attractive prices have made real estate in Portugal into a competitive and trustworthy sector.
Over the course of the last 20 years, Portuguese real estate has experienced major development, both due to the fact
that construction quality is becoming increasingly more sustainable, and due to the evolution of spending power, which
reached its highest point at the beginning of the noughties.
However, even so, the Portuguese real estate market did not suffer the exaggerated growth seen in other European
countries. There was no excessive construction in Portugal and the figures are not misleading - the national housing
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countries. There was no excessive construction in Portugal and the figures are not misleading - the national housing
stock only grew by 16% between 2001 and 2011.
In economic terms, over a 7 year period Portugal experienced a nominal variation in prices in the order of 18%, which
is practically irrelevant when compared to other countries and corresponds to a percentage much lower than recorded
inflation (25%). As a result, the figures are well below those seen in other countries.
Therefore, Portuguese real estate is a safe haven for domestic and foreign investment, and none of the data
available suggest the existence of a property bubble in Portugal. This fact in itself is proof that there are
competitive conditions for investment in the sector.

In a comparison of median property prices in major European cities (properties with an area of around 120m2)
Portugal comes 26th out of a total of 38 places, showing that the prices charged in Portugal are much lower
than those charged in the rest of Western Europe. The potential of the Portuguese market is shown in a study
by the World Bank which, in its "Doing Business" report (2012), ranked Portugal in 30th place in a ranking of
185 economies.
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Portugal is also ranked among the best countries in the world for doing business: in 2012, Forbes business
magazine ranked Portugal in 24th place, on a list made up of 141 countries. Aspects such as property rights,
innovation and technology, individual, commercial and monetary freedom and investor protection were all
taken into account for this evaluation.

Entry requirements
Entry into Portugal by foreign citizens who are nationals of third states is decided on based on the reason for their visit
and the amount of time that they stay. For short stays, foreign citizens must meet the requirements of the Schengen
rules. For long stays of more than three months, the requirements of Portuguese legislation in force must be met.
If you intend to visit Portugal for the purpose of tourism, and you are a national of a country subject to a visa
requirementfor entry into the Schengen area, you must request a Schengen visa prior to your trip from an embassy
or consulate in the area where you live, or from the embassy of a Schengen country representing Portugal for
this purpose.
Aside from tourism, the Schengen visa also allows entry to Portugal for foreign citizens travelling on business or for
professional, family, scientific, cultural, sporting, political or religious reasons. All foreign citizens intending to remain in
Portugal for a period of up to one year, or to establish their residence for more than one year, must request the
respective long-stay visa – Temporary Stay or Residence - from the Portuguese embassy in their country of
residence or from the Portuguese embassy with jurisdiction over their country of residence.
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residence or from the Portuguese embassy with jurisdiction over their country of residence.
Visas may be requested for the following purposes: investment, work (employed or independent), study,
professional training, research, highly skilled work or teaching, religious training and medical recovery and
treatment.
All nationals of European Union Member States, States that are part of the European Economic Area (EEA), states
with which the European Community have free travel agreements and nationals of third States who are family
members of a Portuguese citizen or family members of EU or EEA citizens are excluded from long-stay visa
procedures. The only requirements for these applicants is that they have to hold a Schengen visa, if applicable, upon
arrival in Portugal and must register with the Foreigners and Borders Service in their area of residence.

Residency requirements
If you are a national of a European Union country, Iceland, Liechtenstein, Norway or Switzerland and you remain in
Portugal for a period of more than three months, you must request a Registration Certificate (Certificado de Registo)
from the City Council of your area of residence. This document formalises your right to reside in Portugal.
After you have held a registration certificate for five consecutive years, you may request a Permanent Residence
Certificate (Certificado de Residência Permanente) from the Foreigners and Borders Service (Serviço de Estrageiros e
Fronteiras). Contact the Foreigners and Borders Service for more details about the requirements necessary for making
this request.
If you are a citizen of a third state (all other situations), and you wish to become resident in Portugal, you
must hold a residency visa that is suitable for the purpose of your stay. This visa allows you to enter Portuguese
territory for the purpose of requesting a residence permit from the Foreigners and Borders Service.
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territory for the purpose of requesting a residence permit from the Foreigners and Borders Service.
Notwithstanding any special legal provisions that may apply, the temporary residence permit is valid for a period of one
year from the date on which the document is issued. It may be renewed for successive two year periods. After five
years of temporary residence, holders of this document may request a permanent residency permit.
Please note that you must make an appointment before going to one of the offices of the Foreigners and Borders
Service, either over the phone or through its website.

Golden residence permit programme
New legal provisions open up the possibility of applying for a residence permit for pursuing investment activities to
those who have entered the country regularly (v.g. holders of valid Schengen Visas, or beneficiaries of Visa
exemption), by transferring capital, creating jobs or acquiring real estate.
The holders of Golden Residence Permits for Investment Activity have the right to family regrouping, and may gain
access to a permanent residence permit, as well as to Portuguese citizenship in accordance to the current legal
provisions.
Who can request a residence permit for investment activities?
Third country nationals who either carry out investment activities personally or through a company that lead to, as a
rule, at least one of the following situations in Portuguese territory for a minimum period of five years:
•The acquisition of real estate with a value of 500 thousand Euros or more
•Transfer of capital worth 1 million Euros or more (including investments in company stocks or shares)
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•Transfer of capital worth 1 million Euros or more (including investments in company stocks or shares)
•The creation of at least 10 jobs

Golden residence permit programme
How should a request to acquire real estate be filled in?
• By demonstrating full ownership of real estate through the presentation of property transfer deed or a property
purchase undertaking. These documents should include a declaration from a financial institution, authorised to carry
out activities in Portuguese territory, stating that a transfer of 500 thousand Euros or more has effectively been made
for its acquisition, or as a signal of a purchase undertaking. and
• by submitting an up-to-date certificate from the property register, which, in the case of a promissory contract, provided
that it is legally viable, should always include the respective entry.
Property may:
• be acquired under a co-ownership scheme, provided that each co-owner invests 500 thousand Euros or more, or
through a promissory sale-purchase agreement indicating an amount of 500 thousand Euros or more; the respective
transfer deed should be submitted before requesting the renewal of the residency permit for investors;
• be encumbered starting from a threshold in excess of 500 thousand Euros; be leased and exploited for commercial,
agricultural or tourism purposes.
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agricultural or tourism purposes.
How can I request a residence permit for investment activities? You can make a request online at www.sef.pt.
Requests can also be made at Portuguese diplomatic posts and consulates overseas, or at the central or regional
offices of the foreigners and borders service.
Family Reunification?The holders of Golden Residence Permits for Investment Activity have the right to family
regrouping, and may gain access to a permanent residence permit, as well as to Portuguese citizenship in accordance
to the current legal provisions.
Minimum permanent residency periods? For the purposes of renewing a residency permit, you may have to show
that you have resided in Portuguese territory for a minimum period of 7 days, either consecutively or non-
consecutively, during the first year, and 14 days in subsequent two year periods.

Buying a house
The acquisition of property in Portugal, because it is subject to the payment of taxes, requires that you register with the
Tax Authorities to obtain the corresponding taxpayer identification number;
Residents abroad, as well as those who, although resident in Portuguese territory, leave for more than six months,
should appoint a representative residing in Portuguese territory for tax purposes.
If you are a resident or if you are leaving for a member state of the European Union or the European Economic Area,
the designation of this representative is merely optional.
The place of residence for tax purposes is the place of habitual residence or, in the case of citizens resident abroad,
the place of residence for tax purposes corresponds to that of the tax representative.
In order to finalise the purchase of your house, you must submit various documents that identify the property
and that confirm the legitimacy of the owner and the buyer:
1. Land Registry Certificate (Certidão do Registo Predial): The information made available by the land registry tells you about the
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1. Land Registry Certificate (Certidão do Registo Predial): The information made available by the land registry tells you about the
composition of a certain building, the legitimacy of the person intending to sell the property and the types of encumbrance that may affect it
(mortgages, collateral, etc).
2. Title Certificate (Caderneta Predial): This document may be requested from any tax office. It contains information about the property's
tax situation and can be used to find out which entity is responsible for meeting fiscal obligations related to the property.
3. Usage Licence (Licença de Utilização): The purpose of the Usage Licence is to certify the intended use of the property, and that it is
suitable for its licensed purpose. This licence must be requested from the City Council of the district where the property is located.
However, proof of the licence request may be submitted along with the purchase agreement if the licence is yet to be issued.
4. Housing Technical Datasheet (Ficha Técnica de Habitação): The Housing Technical Datasheet is a document that describes the main
technical and functional characteristics of a property. It must be requested directly from the City Council of the district where the property is
located.

Wealth taxes
Before moving on, you should know that the concept of property used in Portugal is "full ownership", which is based on
the full and exclusive right to use, enjoy and have immovable property at your disposal. This right gives the Portuguese
property system an important competitive advantage.
IN THE AREA OF TAX LAW, YOU SHOULD KEEP IN MIND RELEVANT INFORMATION ABOUT TAXES, RATES
AND BENEFITS APPLICABLE TO WEALTH.
The Municipal Tax on the Transfer of Property for a Valuable Consideration and Stamp Duty is charged on the
acquisition of property.
What is the Municipal Tax on the Transfer of Property for a Valuable Consideration? It is a tax charged on the transfer, for a valuable
consideration, of property rights over immovable property or parts of this right (use and habitation, surface rights, usufruct, among others).
What is this tax applied to? It is applied to the value of the purchase contract or to the taxable value of the property, whichever is
greater. The tax is the result of the application of variable rates which, in the case of property exclusively for residential use, can vary
between 0 and 6%. Property located in the Autonomous Regions of the Azores and Madeira benefits from reduced rates.
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between 0 and 6%. Property located in the Autonomous Regions of the Azores and Madeira benefits from reduced rates.
What is Stamp Duty?: It is a tax applied to all acts, contacts, documents, deeds, papers and other legal factors or situations, including the
transfer of goods free of charge. In the case of property purchases, it is applied to the value of the purchase contract, or to the taxable
value of the property, whichever is greater. It is the result of the application of a 0.8% rate.
What is Taxable Value? It is the value registered in the property register on the date of sale. In this register appears the description of the
property, its location, its taxable value and the identity of its owners. Registers are updated annually on December 31.
Who is responsible for paying the taxes? The interested party purchasing the property.
When should these taxes be paid? They should be paid before the property purchase document is signed. If the transfer of ownership
occurs overseas, the tax must be paid during the following month.
How are the taxes paid? They can be paid by visiting any Finance Service Office, through the Finance Website or at a Casa Pronta
service desk.

Living in Portugal- E&V Presentation

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