Portugal has granted 471 'golden visas' representing sales of €306 million, according to the Office of the Deputy Prime Minister, Paulo Portas. The share of this figure that goes to the treasury is a proportion of the property purchase tax.
Most visas were granted as the applicants purchased residential property, €272 million worth, with the Chinese continuing to lead the list of foreigners receiving the golden tax free key to Europe, followed by Russians, Brazilians, Angolans and South Africans.
The government has admitted to nine cases where the applicant was refused using the various criteria applicable such as ‘drug lord’ and ‘money launderer.’
Paulo Portas’ visa scheme is helping to sell some higher end properties but the appeal of the visa bribe is considerable for foreigners, not so much due to the allure of property in Portugal, but far more to do with gaining a foothold in Europe with unrestricted travel within the Schengen zone and with no obligation to pay any tax at all on foreign earnings for five years.
Many foreign buyers have been buying properties in prime Lisbon locations so as to rent them out, similarly in resorts in the Algarve so they are then free to travel within Europe and then set up shop where they eventually want to settle.
Portas may be crowing about the millions of euros of real estate being shifted but the effect may simply be more properties for rent, rich foreigners avoiding taxes, and a negligible positive benefit to the country beyond the property purchase tax receipts.
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See also Len Port's coverage of the scheme:http://www.algarvedailynews.com/property-news/956-golden-visas-offer-the-keys-to-europe
