Golden visa and real estate in Portugal: investment size, property value, income and expenses

Portugal is famous for its warm climate, rich history and culture, excellent pastries and port wine. Due to its proximity to the ocean, this country has several climatic zones, and everyone can choose the most comfortable place to live. With the accession to the Eurozone, Portugal is actively growing economically, developing infrastructure and attracting investment capital.

Investing in real estate in Portugal with the Mercury Group means investing in a sustainable life by the ocean in a country with a promising economy and a rich cultural heritage. And most importantly - get a residence permit in the country with the prospect of acquiring citizenship!

Portugal has been issuing a residence permit for investment since 2012. This is one of the most convenient and simple programs, which makes it possible to obtain European citizenship in 5 years. Most often, investors invest in real estate. There are several options, the most popular are:

• purchase of real estate older than 30 years with subsequent restoration in the amount of 350 thousand euros;

• investments in commercial real estate in any region of Portugal from 350 thousand euros;
• purchase of new real estate in the amount of 500 thousand euros.

Five years after obtaining a residence permit, the investor and his relatives have the right to apply for permanent residence or citizenship. However, there is no need to live in Portugal permanently. To maintain the status of a residence permit, it is enough to spend only 7 days a year in the country.

Real estate prices in Portugal are among the fastest growing in all of Europe: the price per square meter is growing on average by 2% every quarter! Buying property in Portugal - you get a very liquid asset! The dynamics of prices for Portuguese real estate is ahead of the dynamics of the EU as a whole. Since 2010, the cost of housing in Portugal has increased on average by 75.11% in the second quarter of 2022, and in the European Union - by 48%.

The price per square meter strongly depends on the region of Portugal: the most expensive housing is located in large cities - Lisbon and Porto, as well as in the resorts of the country. The average cost per square meter of housing in Portugal as of December 2022 is 2415 euros.

• Lisbon €3,812 (+4% compared to 2021)

• Faro €2,981 (+16% compared to 2021)

• Porto €2,382 (+5% compared to 2021)
• Madeira €2,312 (+23% compared to 2021)

• Stamp duty - 0.8% of the property value

• Tax on the transfer of ownership - 6-8% of the property value

• Real estate tax (annual) - 0.4% of the cadastral value of real estate

• Medical insurance - from 400 euros per person
•   Application fee – EUR 533 per family member
• Residence permit card - 5340 euros for each family member

Namely: investment in the shared construction of a four-star hotel in the center of Porto from 262,500 €

•  Guaranteed yield: 5% per annum;

•   Starting from the 6th year, investors will receive 70% of the operating result of the hotel;
• After 10 years, you can sell your share (and receive income, taking into account the increased market value)