Norton Finance has reminded investors that there are now only six months left to buy a holiday home in the Algarve, Porto and Lisbon using the Golden Visa – and claims re-mortgaging could help people get there.
Although Portugal is currently on the amber travel list, with travel there advised against, people can still travel abroad to purchase a second home granted they follow all the testing and quarantine requirements. The travel exemption, dubbed the Stanley Johnson loophole after the Prime Minister’s Greece-frequenting father, allows people to travel abroad ‘in connection with the purchase, sale, letting or rental of a residential property’.
Norton Finance warns that upcoming changes to current legislation on buying second homes in certain areas of Portugal will come into effect from January 1 2022. This will limit investors who will be unable to buy properties in high demand areas like Lisbon, Porto and the Algarve when using the country’s Golden Visa scheme, which has been open to Brits since January this year.
For those wanting to invest in property in these popular areas, Norton says now is the perfect time to do so.
Why buy in Portugal?
Portugal currently offers two incentivised schemes aimed at overseas buyers which will continue into 2022. The non-habitual residents (NHR) tax regime offers a 10% rate on pensions and tax exemptions on most income from foreign sources.
Meanwhile, the Portuguese Residency Visa Permit (also called the Golden Visa) allows people to live, work and study in Portugal, whilst also allowing travel in the Schengen area freely. After five years, applicants may qualify for permanent residency and even citizenship in Portugal.