Top Residency and Visa Options for Investors and Expats

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1 Top Residency and Visa Options for Investors and Expats Carvoeiro, Portugal July 2017

2 Topics Short Stays vs Residency vs Investment Residency Permits & Golden Visa Portuguese Citizenship 2

3 Reasons to relocate Cost of living, Weather & Well-being Health & Personal Safety Tax & Asset protection Backup plan 3 Alternative citizenship

4 Country highlights Portugal 4

5 Population 10.4 million Porto Gateway to Portuguese speaking jurisdictions and the E.U. Strategic location to do business worldwide Excellent infrastructures 5 Modern banking & financial sectors

6 Lisboa One of the safest countries Old world glamour Tax incentives Big nearshoring operations in Portugal 6 Whitelisted jurisdiction

7 Subtropical - Mediterranean climate Algarve Short winters & warm summers Above average sunshine hours in South Europe Real estate market revival 7

8 Overview Porto Lisboa 8 Algarve

9 Relocating to Portugal Why and how? 9

10 Portugal for the investor Real estate market revival Highest volume and number of transactions 6.3% increase in 2 nd Q 2016 High ROI Tax incentives for short term rentals Corporation tax exemption: dividends and capital gains on shares Highly skilled and educated workforce 10 Competitive labour cost

11 Portugal for the expatriate Low cost of living Diverse landscape Excellent climate Historic cities, culture and excellent infrastructures Free Healthcare System 11 Direct flights to America, Africa and Asia

12 Rankings 1 st place in the Trading Across Borders Rank th place in the Global Peace Index rd place in the Ease of Doing Business Index World Heritage Sites 2016 LUGNA

13 Alternative perspectives Targets and routes 13

14 TAX VISA or PR ASSETS 14 Each case is worthy of a bespoke solution.

15 Two perspectives Investor Non resident Real estate investments Visa with low stay requirements Expat Resident Low cost of living and low to nil tax Visa with high stay requirements 15 Second passport Second passport

16 Reasons to apply for PT residency Free travel in the Schengen area Tax residency under a special income tax regime Possibility to apply for citizenship 16 No inheritance tax in Portugal

17 Choosing the type of residency Eligible Investment Long term stay required Golden Visa Temporary Residency Permanent Residency Citizenship 17

18 Short stay Toe in the water 18

19 Short stay visa Visa free scheme Valid Passport at least 3 months after the end of stay Minors Visiting other EU countries Travel insurance 19 Renewals

20 Residency in the E.U. a) Investing in Portugal b) Full time residency 20

21 A. Golden Visa Investment residency permit for non E.U. citizens Access to Schengen Area Low stay periods 21 Residency Permit & Citizenship

22 GV Real Estate Investments Standard minimum investment Euro 500,000 Lower thresholds: Euro 350,000 > 30 years or in an urban rehabilitation area % discount for property in low density areas.

23 GV Business Investments Capital investment or transfer - Euro 1,000,000 Creation of at least 10 jobs Investment or venture capital funds Euro 500,000 Capitalization of SMEs 23

24 GV Other Investments Funding scientific research Euro 350,000 Sponsorship Euro 250,000 Art production or restoration of national cultural heritage 24

25 GV Possible future alternatives? Investment in small and medium-sized companies Euro 200,000 into companies under a Plan of Recovery or Revitalization Euro 350,000 into Portuguese companies Euro 350,000 into new Portuguese companies with 5 employees 25

26 GV Structuring the investment Initial steps depend on the: Type of investment real estate or financial assets; Type of investment vehicle Corporate vehicle or individual. 26 International tax planning considerations.

27 The process Obtain professional advice and legal representation; Trigger the investment process; File documentation and apply; 27 Minimum Stay + Apply for Renewals.

28 B. Temporary Residency Permit Employees College Professors and Researchers Self-employed individuals Students Family regrouping 28 Passive earner / Retired individuals with occupational pensions*

29 The process Need to start application before travelling to Portugal Two stage process Minimum stay requirements 29 Minimum income per month

30 The process Timings, dos and don ts 30

31 Timetable Y1 Investment Y2 Renewal Y4 Renewal Y5 Permanent Residency Y6 Citizenship Application Free access Free access Free access 31

Prohibitions Being an EU, EEA or Swiss citizen Criminal convictions of a crime punishable with imprisonment for more than one year, or on grounds of terrorism, violent crime or

32 Prohibitions Being an EU, EEA or Swiss citizen Criminal convictions of a crime punishable with imprisonment for more than one year, or on grounds of terrorism, violent crime or organized crime Ban from entering the Portuguese territory Alerts in the Schengen Information System or the Portuguese Customs and Borders Authorities Integrated Information System 32

33 Portuguese citizenship Second passport and a backup plan 33

34 Overview Dual Citizenship? Typical routes Special regimes 34

35 Eligibility Typical routes Naturalization Individuals of Portuguese descent (1 st, 2 nd degree) Residence: Legal Six years Illegal Ten years Born in Portugal* or full adoption; 35 Marriage and civil partnership.

36 Eligibility Special cases Communities of Portuguese ancestry; Sephardic Jewish Ancestry. 36

37 Sephardic Jewish Ancestry Adults and minors; Criminal Record; Evidence of Portuguese Sephardic ancestry. 37

38 Benefits Multiple citizenship allowed No citizenship or wealth tax E.U. member Schengen area Access to 155 countries visa free 38 Whitelisted jurisdiction

39 Summary Short Stay Visa Stays up to 90 days Temporary Residency Permit + Permanent residency permit Golden Visa + Permanent residency permit 39

40 Timings 40

41 Three months prior to departure Seek professional coordinated advice Establish your plan Collect all the necessary documents 41 Apply for a Visa / Residency Permit

42 Two weeks prior to departure Obtain a Portuguese Taxpayer Number Appoint a fiscal representative Ship your personal belongings Find lodging in Portugal Rental or Ownership 42 File an exit tax return

43 Arrival Collect your Visa / Residency Permit Open a Portuguese bank account Implement your tax plan Utility contracts and shipped personal belongings 43 Register at the local Town Hall

44 Remember TAX VISA ASSETS 44 Each case is worthy of a tailored solution.

45 Conclusions Plan ahead Full time residency vs Investing Minimum stay requirements Path to citizenship Second passport 45 In a safe harbor.

46 Questions? And answers 46

47 Lisbon Office Rua Rodrigo da Fonseca nº 9 3º B Lisboa Portugal Tel.: Fax.: lisbon@lugna.pt Web:

How to buy a property in Portugal The dos and don ts

How to buy a property in Portugal The dos and don ts Carvoeiro, Portugal July 2017 Topics to consider Why Portugal? Acquisition process Other Topics Case study 2 Questions & Answers Why Portugal? 3 Advantages