Benefits of Golden Visa, NHR and SIGI in Real Estate

Investment in real estate in Portugal has grown significantly over the last few years, in particular foreign investment, which has helped towards the recovery not only of this sector but also all economic activities related to it.
There are two schemes that in recent years have attracted a number of foreign investors for the economic and tax benefits they can achieve by investing in real estate:
1. The Golden Visa programme, which is geared towards investors who are nationals of Third States, has proved to be a very successful scheme because, if the investment meets all the requirements prescribed by law, in particular investment in properties with a value equal to or more than €500,000 (five hundred thousand Euros), benefits from temporary residence for five years, allows the investor to work in Portugal and travel freely through the Schengen area, while allowing them to apply for their family to join them and at the end of the five years they can also request permanent residency or nationality;
2. The Non-habitual Residency Scheme is gear towards individual investors who have not been resident in Portugal for the last five years. It ensures excellent tax benefits, provided that all requirements prescribed by law are verified, and grants the possibility for exemption from taxation in Portugal, on pensions, interest, royalties, dividends and capital gains that originate abroad.
This year, the Sociedades de Investimento e Gestão Imobiliária scheme [Real Estate Investment and Property Management Companies] (SIGI) was approved, which aims to attract foreign investment in real estate, while also granting a series of tax benefits for all investors. Income through SIGI, which is obtained in the scope of its activity, is exempt of payment of 23% of IRC (corporate income tax).
With respect to dividends, 28% tax will be deducted at source by way of IRC if the investor is a tax resident in Portugal or 25% by way of IRC if the company is resident in Portugal. Lastly, only 10% will be deducted at source if the investor is a non-resident in Portugal.
With these three schemes working together, foreign investment in real estate in Portugal does indeed boast many advantages that can and should be taken advantage of by investors, thus boosting the real estate market.