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?

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.
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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’’
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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.
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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’’
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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.
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8. PRIP Option 2: Real Estate Acquisition
Photo credits to Vale do Lobo Resort
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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;
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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’’
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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.
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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’’
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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).
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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.
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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
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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
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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.
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18. Summary of Key Benefits and Advantages
Photo credits to Pine Cliffs Resort
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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
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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