Best 3 Types of Investments in Portugal
This small southern European country has long been known only for its farming and fishing industry. Over the past couple of decades, investing in Portugal has become an attractive way for foreigners to earn a steady income. The country is seen as a profitable platform for long-term investments in various industries. Benefits in such a decision are quite numerous, including the possibility of obtaining a residence permit under a simplified procedure and open avenues for business in the EU. Optimal options for expats look like this:
- investing in technology development;
- investing in private foundations;
- purchase of real estate for renovation or lease.
Each of these options has its advantages and disadvantages, with which it is better to learn before making a final decision.
How to benefit from technological investment
Companies engaged in technological development are actively attracted to Portugal. The country is pursuing a deliberate policy of creating and developing technology centers that bring together specialists from all over Europe. These companies seek out promising ideas and their implementers. Concentrated in and around the capital, they are able to communicate with each other and have access to a large audience.
With the support of the government, Startup Visa was created to attract young and enterprising developers to Portugal. Here they can learn about the benefits of the program. Being at the top of the Portugal investment program, investments in technology are considered attractive in the medium term. The Immigrant Invest company estimates that it is technology equity that has the greatest potential to grow in the coming decades.
Banking and stock investments
Portugal has one of the most stable banking systems in Europe, with little exposure to shocks. This is due to the moderate profitability of banks, which is ensured by low interest rates. Therefore it is better to invest in private funds, which are more profitable. They are controlled by banks which guarantees the transparency of financial operations. The profitability of investments in such funds, according to Victor Esik, the expert of the company Immigrant Invest, may reach 2.8%. In contrast to banks, the funds are easier to redirect to the most profitable areas, and thus increase the profitability of investments. Foreign investors may prefer the investment to obtain a Portugal D2 visa.
Why invest in real estate
The most win-win way to gain capital in 2022 remains the purchase of housing in Portugal. The price of it is constantly growing, and over the past decade has increased at least twice. This trend is expected in the future, so the benefit of such investments is obvious. In addition to this factor in the acquisition of real estate can be identified and other advantages:
- It is possible to rent an apartment or house remotely through Booking and Airbnb platforms. The profitability of such operations is one of the highest in Europe.
- After the expiration of the terms stipulated by law, the property can be sold at a profit. The rise in prices in the cities contributes to the development of infrastructure and increasing demand due to the constant influx of expats.
- Affordable transaction costs compared to neighboring countries. A simplified system of taxation of all real estate transactions and a reasonable starting price of the object minimize the associated costs.
- Obtaining Portugal residency or citizenship after 5 years of residency for the investor and his family.
Before you decide to buy real estate, you should study the market and determine for yourself the goal of such a step. Some options will be more profitable for a short-term lease, others as a long-term investment with an eventual sale, and others are suitable simply to obtain citizenship.
What to consider when choosing the type of investment
The good news for potential investors in Portugal is that most of the transactions can be done remotely. Even without plans to relocate, an investor can qualify for a residence permit on one of the visas. It gives the opportunity to stay for a long time, permanently reside, get an education and conduct business under attractive conditions. One of the most common tools for obtaining a residence permit remains the Portugal Golden Visa program. Through participation in it become available:
- residence, education, business, medical services and work in Portugal and EU countries;
- low taxation;
- the use of benefits for relatives through the reunification procedure;
- travel to Schengen countries;
- obtaining a residence permit after 5 years of investment;
- portuguese citizenship after 5 years of permanent residence.
Obtaining a Portugal Golden visa is possible with any type of investment, but expats most often choose from 3 options. This is due to the transparency of the procedure, affordability and minimum package of documents.