Portugal

Comprehensive Services for American & Canadian Real Estate Investors in Portugal

At Palm Leaf Realty Group, we specialize in assisting Americans and Canadians with buying, investing, retiring, and selling properties in Portugal. Our goal is to market effectively to the USA and Canadian markets, ensuring a seamless transition for our clients. We have partnered with professionals from the north to the south of Portugal, including the Azores and Madeira islands, to provide a full range of services, set clear expectations, and deliver a safe and stress-free transaction and process.

Our Services Include

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Education & Exploration

Educational Webinars: Participate in our webinars to learn about the Portuguese real estate market, the buying process, and investment opportunities.

Specialized Trips: Join our organized trips to explore different regions of Portugal, understand the local culture, and visit potential properties. This hands-on experience will help you choose the perfect location for your new home.

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Integrity & Trust

Our partners have been vetted through a rigorous process to ensure they meet our standards of integrity and share our common goal of welcoming you to Portugal. We are your focal point for all things Portugal, providing you with the knowledge and support you need to make your transition smooth and successful.

Let us guide you through the process of finding your dream property in Portugal. Contact us today to start your journey.

Why Portugal is the Place to Invest Right Now

Portugal has demonstrated robust economic growth over the past few years. The country's economy is diverse and resilient, making it an attractive destination for investors looking for stable opportunities.

The real estate market in Portugal is thriving, with a steady appreciation in property values. Demand for both residential and commercial properties is high, driven by both domestic buyers and international investors.

Portugal's Golden Visa program offers an attractive route to residency for non-EU investors who purchase real estate. This program not only provides a path to citizenship but also attracts a significant number of foreign investments, boosting the property market.

Portugal offers a favorable tax regime for foreign investors, including the Non-Habitual Resident (NHR) program. This program provides substantial tax benefits for individuals relocating to Portugal, making it financially advantageous to invest and live in the country.

With a growing tourism sector and increasing demand for rental properties, Portugal offers high rental yields for investors. Cities like Lisbon and Porto, as well as popular tourist destinations in the Algarve, provide excellent opportunities for profitable rental income.

Portugal has been investing heavily in its infrastructure, improving transportation, communication, and public services. These enhancements make the country more attractive to businesses and residents, contributing to rising property values.

Portugal offers an exceptional quality of life, with its beautiful landscapes, pleasant climate, and rich cultural heritage. This high quality of life attracts expatriates, retirees, and professionals, driving demand for real estate.

Portugal is known for its political stability, a key factor for investors seeking a secure environment. The government actively promotes foreign investment and has implemented policies to ensure a favorable business climate.

Portugal is a top tourist destination, with millions of visitors each year. The thriving tourism industry boosts the demand for short-term rental properties and hospitality investments, presenting lucrative opportunities for investors.

Portugal is emerging as a hub for innovation and technology, with a growing start-up ecosystem. Cities like Lisbon are becoming hotspots for tech companies and entrepreneurs, attracting talent and investment, and further driving demand for commercial real estate.

Portugal is committed to sustainable development and green energy initiatives. The country's focus on environmental sustainability attracts investors interested in eco-friendly projects and technologies.

Portugal's strategic location in Western Europe, combined with its excellent connectivity through ports, airports, and railways, makes it an ideal gateway for businesses and investors looking to access European and global markets.

Investing in Portugal right now offers a blend of economic stability, favorable investment conditions, and a high quality of life, making it an excellent choice for those looking to diversify their portfolio and secure profitable returns.

Taxation Benefits for Americans & Canadians to Buy Real Estate in Portugal

NHR Program

Non-Habitual Resident (NHR) Program

A flat 10% tax rate on foreign pension income.

Exemptions on many types of foreign-sourced income, including dividends, interest, and royalties, for a period of 10 years.

A flat 20% tax rate on certain Portuguese-sourced income, such as income from high value-added activities, for individuals moving to Portugal.

Capital Gains Tax

For non-residents, capital gains tax on the sale of real estate is set at a flat rate of 28%.

However, if the property is the primary residence and the proceeds are reinvested in another primary residence in the EU/EEA, the capital gains tax may be deferred.

Wealth Tax

Portugal does not have a wealth tax, which can be advantageous for high-net-worth individuals.

Inheritance & Gift Tax

Portugal does not impose inheritance or gift taxes on assets transferred to immediate family members (spouses, children, parents). For others, a flat rate of 10% applies.

Property Tax (IMI)

The Municipal Property Tax (Imposto Municipal sobre Imóveis - IMI) ranges between 0.3% and 0.45% of the property's tax-assessed value for urban properties. Rural properties are taxed at a rate of 0.8%.

There are exemptions for new permanent residences for the first three years and reductions for energy-efficient properties.

Stamp Duty

A stamp duty of 0.8% is levied on property purchases, which is relatively low compared to many other countries.

DTA

Double Taxation Agreements

Portugal has double taxation agreements with both the United States and Canada, which help avoid double taxation on income. These agreements ensure that income is not taxed in both countries simultaneously, offering clarity and potential tax relief for foreign investors.

Tax Deductions & Credits

Property owners can deduct expenses related to property maintenance, repair, and improvement from their rental income, reducing their taxable income.

Mortgage interest can also be deducted for rental properties, further lowering the overall tax burden.

Golden Visa Program

While not a direct tax benefit, the Golden Visa program allows for residency with minimal stay requirements, enabling investors to benefit from Portugal's favorable tax regime without the need to reside permanently. This can be particularly attractive for investors who wish to spend part of the year in Portugal.

These taxation benefits make Portugal an appealing destination for American and Canadian investors looking to buy real estate, offering a combination of tax relief, favorable investment conditions, and residency advantages.

How to Obtain Portugal Residency by Investment Outside of the Golden Visa Program

In addition to the Golden Visa program, there are other pathways to obtain residency in Portugal through investment.
Here are some alternative options:

Eligibility: Suitable for retirees and individuals with a stable passive income (e.g., pensions, rental income, dividends).


Requirements:

  • Proof of sufficient passive income to support yourself and your dependents.
  • Minimum income thresholds, which can vary, but generally around €7,980 per year for the main applicant, €3,990 for a spouse, and €2,394 per dependent child.
  • Valid health insurance.
  • Proof of accommodation in Portugal.

Process:

  • Apply at a Portuguese consulate in your home country.
  • Submit proof of income, health insurance, and accommodation.
  • Attend an interview if required.
  • Once approved, you will receive a temporary residence visa, which you can convert to a residence permit after arriving in Portugal.

 

Eligibility: For entrepreneurs and self-employed individuals who wish to start or relocate their business to Portugal.


Requirements:

  • A viable business plan or proof of an existing business.
  • Sufficient financial means to support the business and yourself.
  • Relevant professional qualifications or experience.
  • Proof of accommodation in Portugal.

Process:

  • Apply at a Portuguese consulate in your home country.
  • Attend an interview if required.
  • Once approved, you will receive a temporary residence visa, which you can convert to a residence permit after arriving in Portugal.

Eligibility: Individuals purchasing property below the Golden Visa thresholds.

 

Requirements:

  • Purchase of property (no minimum value required, but must be intended as a primary residence or for rental income).
  • Proof of sufficient financial means to support yourself.
  • Valid health insurance.
  • Proof of accommodation (the property you purchase can serve as proof).

Process:

  • Apply for a standard residence visa at a Portuguese consulate.
  • Provide proof of property ownership, financial means, and health insurance.
  • Convert the visa to a residence permit after arriving in Portugal.

Eligibility: For individuals who have secured a job offer from a Portuguese employer.

 

Requirements:

  • Job offer or employment contract from a company in Portugal.
  • Proof of qualifications and experience relevant to the job.
  • Valid health insurance.
  • Proof of accommodation in Portugal.

Process:

  • Apply for an employment visa at a Portuguese consulate.
  • Submit the employment contract, proof of qualifications, and health insurance.
  • Once approved, you will receive a temporary residence visa, which you can convert to a residence permit after arriving in Portugal.

Eligibility: For individuals accepted into a recognized educational institution in Portugal.

 

Requirements:

  • Acceptance letter from a Portuguese university or educational institution.
  • Proof of sufficient financial means to support yourself during your studies.
  • Valid health insurance.
  • Proof of accommodation in Portugal.

Process:

  • Apply for a study visa at a Portuguese consulate.
  • Submit the acceptance letter, proof of financial means, and health insurance.
  • Once approved, you will receive a temporary residence visa, which you can convert to a residence permit after arriving in Portugal.

General Steps for All Residency Applications

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With decades of combined experience in Houston, Portugal, and other International locations’ real estate market, Claudia Da Silva and her team are ready to help you with your next real estate transaction.

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