Real estate renovations for the Golden Visa
The 350k and 280k options for the Golden Visa were designed by the government to increase infrastructure renovations in the Portugal. To make these option more attractive the government reduced the total investment to 350k and 280k in low density areas. If the investment is well made, the 350k and 280 options are a very good option.
The two real estate investments imply the acquisition of a real estate asset with construction completed at least 30 years ago or located in an urban rehabilitation area, with the execution of rehabilitation works. The values 350k or 280k are the sum of the property acquisition costs and the renovation costs excluding taxes.
The investments for renovation works are not very high in Portugal. Substantial renovations with new bathrooms, windows, floor, plumbing, electricity paintings are
- for an apartment 60-70 TSD EUR with all the work included
- for a house 90-110 TSD EUR with all the work included
Important are the rehabilitation works. Many applications fail because the investors underestimate the importance of showing the SEF (Immigration and Borders Service) the necessary documents or attempt to just do minor renovations in the real estate. The SEF only accepts fundamental renovations. Here are same important points to consider:
- the SEF accepts only quotations from an official IMPIC construction company
- the internal SEF reference is 20% of the property value for the renovations
- substantial renovations with new bathrooms, windows, floor, plumbing, electricity etc. are required. Furniture does not count as renovation
- you need an official project, approved by the city hall or the renovation project was communicated to the city hall depending on the kind of works that will be done
- the real estate can not have experienced similar renovations in the recent past
- you can only apply for the visa if the real estate is purchased and registered in your name as well as the budget for the renovations are on a Portuguese bank account. The bank will supply your with a certificate for the SEF
- the transfers to purchase the real estate as well as to deposit money in Portugal have to come from accounts in your name. You can not transfer money or make purchases from other peoples or company accounts
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