INVEST IN THE ALGARVE POWERED BY

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Paula Sullivan
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2 WHY THE ALGARVE? Where time feels right

3 INTERNACIONAL AWARDS IN SEVERAL AREAS: - LEADING EUROPEAN DESTINATION; - THE BEST BEACHES; - THE BEST GOLF COURSES; - TOP AWARDING MARINAS; - AMAZING WEATHER CONDITIONS; - EXTRAORDINARY FOOD; - FRIENDLY AND MULTILINGUAL PEOPLE; - FULL OF HISTORY AND HERITAGE; - INTERNACIONAL AIRPORT (FARO); - QUALIFIED AND HIGH QUALITY TOURISM INDUSTRY; - FISCAL BENEFITS FOR INTERNATIONAL INVESTORS; - QUALITY OF LIFE.

4 AFFORDABLE COST OF LIFE: - NORMAL MEAL (LUNCH) 7,00-15,00 - NORMAL MEAL (DINNER) 15,00 20,00 - MONTHLY GROCERY SHOPPING 150,00 200,00 - MONTHLY FUEL EXPENSES 100,00 200,00 - ELECTRICITY BILL 30,00-90,00 - WATER BILL 25,00-50,00

5 LIFESTYLE IN THE ALGARVE

6 EVENTS PARTIES YACHTS & SALING CULTURE

7 TRACKING WATER PARKS ADVENTURE GOLF

8 REAL ESTATE IN THE ALGARVE

9 MAIN TYPE OF PROPERTIES FOR SALE: - APARTMENTS; - VILLAS; - TOWNHOUSES; - PLOTS OF LAND;» RESIDENTIAL;» TOURISTIC.» DEVELOPMENT;» REHABILITATION RENOVATION REFURBISHMENT.

10 GA ,00 APARTMENTS Private condominiums close to the beach or the golf courses Price per sqm it may varies with the location For example in Vilamoura: from until price/sqm Depending on the area, facilities, finishings, etc

11 GA ,00 VILLAS Detached individual houses close to beach, golf or the hills Price per sqm it may varies with the location For example in Albufeira: from until price/sqm Depending on the area, facilities, finishings, etc

12 GA ,00 TOWNHOUSES Linked houses in private complexes close to beach, golf or the hills Price per sqm it may varies with the location For example in Albufeira: from 1.125,00 until 2.500,00 price/sqm Vilamoura would be: from 1.750,00 to 3.500,00 price/sqm

13 INVEST IN THE ALGARVE

14 WHO MAY APPLY? GOLDEN VISA Citizens involved in an investment activity, either individually or through a company conducting, at least, one of the following operations in the Portuguese territory, for a minimum period of 5 (five) years: 1) Acquisition of Real Estate with a value equal to or above 500 thousand euros; 2) Capital transfer with a value equal to or above 1 million euros; 3) Creation of, at least, 10 job positions. It covers shareholders of companies already set up in Portugal, or in another EU State, with a stable residence in Portugal and with tax obligations fulfilled.

15 REQUIREMENTS ON THE INVESTMENT ACTIVITY Performing an investment activity for a minimum period of 5 (five) years, attested by a bona fide declaration signed by the applicant. GOLDEN VISA a) PROPERTY INVESTMENTS: i. Acquisition of property above 500,000; ii. Acquisition of property above 350,000 - for properties more than 30 years old or located in areas of urban renovation. b) CAPITAL INVESTMENTS: i. Transfer of Funds above 1,000,000; ii. Transfer of Funds above 350,000 for research activities; iii. Transfer of Funds above 250,000 for artistic or cultural activities; iv. Transfer of Funds above 500,000 for capitalization of small and medium size companies. c) JOB CREATION: Creation of a minimum of 10 jobs.

16 SCOPE Based on a favorable tax regime, is intended to attract to Portugal non-resident citizens, professionals qualified for activities with high added value, as well as individuals with a high net worth or purchasing power. NON HABITUAL RESIDENT This attraction is based on the application of the exemption method as the preferred method of elimination of international juridical double taxation of foreign source and application of a special rate of 20% (mitigated and proportional taxation) to certain incomes.

17 CONCEPT In order to qualify as a non-regular resident, it is necessary: a) To be a tax resident in Portugal: It is a tax resident in Portugal, among others, who remains in Portuguese territory, in a given year, more than 183 days (consecutively or not), or who, having remained less time, on the 31st of December of that year, has the housing conditions that shows that the person might intend to maintain and occupy it as a residence. NON HABITUAL RESIDENT b) Not to have been deemed as a tax resident in Portugal in the last 5 years prior to the application of the regime: The person will have to state the non-fulfillment of the criteria necessary for being considered a resident on Portuguese territory during the previous five years. > This regime also applies to migrants who want to return to Portugal.

18 The taxable person deemed non-regular resident acquires the right to be taxed as such during a period of 10 consecutive years, from the year of its registration, as a resident in Portuguese territory, having to comply with the requirement of residence every year. NON HABITUAL RESIDENT The applicant must request to the Financial Services, adherence to the regime of Non- Regular Resident when applying to the statue of resident in Portugal or, later, through March 31, inclusive, of the following year.

19 Buying a house The acquisition of property in Portugal, because it is subject to the payment of taxes, requires that you register with the Tax Authorities to obtain the corresponding taxpayer identification number; BUYING A HOUSE IN PORTUGAL Residents abroad, as well as those who, although resident in Portuguese territory, leave for more than six months, should appoint a representative residing in Portuguese territory for tax purposes. If you are a resident or if you are leaving for a member state of the European Union or the European Economic Area, the designation of this representative is merely optional. The place of residence for tax purposes is the place of habitual residence or, in the case of citizens resident abroad, the place of residence for tax purposes corresponds to that of the tax representative.

20 Buying a house IMPORTANT DOCUMENTS OF THE PROPERTY: 1. Land Registry Certificate (Certidão do Registo Predial) BUYING A HOUSE IN PORTUGAL 2. Title Certificate (Caderneta Predial) 3. Usage Licence (Licença de Utilização) # properties before 1951 only need Council Letter # 4. Housing Technical Datasheet (Ficha Técnica de Habitação) # just for properties after 03/2014

21 TAXES: IMT BUYING A HOUSE IN PORTUGAL STAMP DUTY 0,8% of the higher value purchase price or patrimonial value Deeds around around 50 original copy

22 CAPITAL APPRECIATION De acordo com o setor, em 2016 o mercado imobiliário português revelou uma evolução positiva, tendo registado um aumento entre os 20% e 25% nas transações de alojamentos familiares, e entre 16 e 20% em todas as transações imobiliárias (urbanos, rústicos e mistos). BUYING A HOUSE IN PORTUGAL "According to the sector, in 2016 the Portuguese real estate market showed a positive evolution, having increased between 20% and 25% in family housing transactions, and between 16 and 20% in all real estate transactions (land and services). In APEMIP

23 POTENTIAL RENTAL INCOME EXAMPLE: Bedroom Apartment in Vilamoura or Albufeira OPTION 1 ) Long Term Rental BUYING A HOUSE IN PORTUGAL 850 X 12 months = YIELD 5,1% OPTION 2) Holiday Rentals 950 x 6 weeks (15 th July 31 st August) x 2 weeks (1 st to 15 th July) x 8 weeks (June and September) = = YIELD 6,25% (Only 4 months of Summer)

25 Why Portugal

PORTUGAL AS A PLATFORM OF INVESTMENT

PORTUGAL AS A PLATFORM OF INVESTMENT 10-05-2017 PORTUGAL AS A PLATFORM OF INVESTMENT 1 8 Wide Double Tax Convention Network Non Habitual Residents Golden Visa 2 Participation Exemption 7 Real Estate 3