The Portuguese Golden Visa Program for residence by investment is considered one of the best in the world. The best choice is the most economic option, the 280k investment. The 280k investment comprises the rehabilitation of real estate in low-density areas. In this article, we will introduce you to the definition of low-density areas in Portugal as well as the best regions for investing for the golden visa program. Please contact us if you have any questions about the low-density areas or the program itself!
Low-density areas are determined by the so-called NUTS 3 regions. It defines them as areas which have less than 100 inhabitants per km2 or a GDP per capita of less than 75% of the national average.
Low-density areas are not the same as interior regions, which are valid from 2022 on.
The definition of low density applies basically to all inland regions of Portugal and some coastal areas (Silvercoast & West Algarve). These areas change constantly and must be checked at SEF every 6 months. The inland regions eligible for Golden Visa in Portugal are defined in Portaria nº 208/2017 July 13, and determine the type of investment to be made: residential or non-residential.
The Golden Visa Portugal 280k investment option is called restoration and renovation, both as a real estate investment option and in practical terms.
Why? Because though similar to the 350k investment option, it has a 20% reduction for investments in low-density regions, and these regions can benefit from urban and social development.
While ARI (Autorizações de Residência para Investimento) licenses have been suspended in Porto, Lisbon and the general coast, there are still quite some municipalities in the Algarve that you can still invest in. Either for residence, commercial or touristic purposes.
It can even be more beneficial for you – not only because of the 20% discount in investment in the low-density areas, but because this is a perfect area for expats. There’s a big immigrant community and it’s not too busy (especially in fall and winter). It’s especially a great option for retiring or buying a vacation house.
If you don’t plan on living in it year-round, you can rent it during the time that you’re not there, also.
For those who wish to invest in low-density areas, these are some of the best regions: Alentejo, Douro Valley, and Algarve.
They all offer low and competitive prices, ideal if you wish to retire or invest in tourism.
A great part of the real estate growth and investment around here can be explained by analyzing tourist behavior. For example, during the pandemic, we registered more corporate bookings of businesspeople working remotely. This means there are some who prefer to work from Portugal for a few months, given our great quality of life.
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