A five-year residence-by-investment program, the Portugal Golden Visa is designed for non-EU nationals willing to relocate to Portugal. This program has become very popular amongst Americans seeking a second citizenship. This visa allows one the right to live, work, and study in Portugal and visa-free travel across all the EU countries. Many Americans are considering this as a strategic opportunity to diversify their wealth.
Why Is the Portugal Visa Considered a Strategic Opportunity for the Americans?
The year 2024 saw a record number of American citizens shifting to Portugal. High-net-worth individuals started opting for the Portugal Golden Visa for US citizens due to the following reasons:
• Freedom from Ever-Increasing Taxes
The continuous rise in state and federal taxes, especially in California and New York, has increased demand for this visa. As a holder of this visa, one is not liable to pay any kind of taxes in Portugal. Since one is required to reside in the country for a minimum of seven days, they do not qualify for taxation.
This means one can enjoy zero taxation on their worldwide income, inheritance, gifts, and capital gains in Portugal. They are not liable to file tax returns unless they are earning taxable Portuguese-sourced income.
Even capital gains from the investment fund do not come under taxation in Portugal. This means an American citizen does not need to pay the local taxes. This is a huge relief from the high taxes that they need to pay in their home country.
In fact, there is no wealth tax on global assets in Portugal. So, when one gets an inheritance, he does not have to bother about paying any kind of tax here. Moreover, the inheritance tax system is favorable for all, as one just needs to pay a 10% stamp duty on Portuguese assets. Spouses and direct descendants get to enjoy exemptions on this as well.
• Enjoy International Business Opportunities
American entrepreneurs and investors planning to relocate their business abroad will find Portugal full of better business opportunities. This country offers EU membership and benefits that are not available in the USA. The businessmen will be able to access the EU common market and enjoy different financial incentives, such as the NHR (Non-Habitual Resident) tax scheme, which offers significant tax advantages for nearly ten years. Through this program, foreign incomes like pensions, royalties, and dividends are all considered tax-free.
• Investors Get to Enjoy Additional Benefits
Investors who have opted for the Portugal Golden Visa enjoy benefits by creating ten new jobs within a Portuguese business. They can invest €500,000 to set up a commercial company registered in Portugal. It will have its headquarters in this country. This leads to the creation of five permanent jobs for the next three years.
Final Words
The Portugal Golden Visa is the perfect solution for all Americans looking for ways to diversify their wealth abroad. The numerous benefits associated with the visa, along with the safety, security, and better lifestyle offered by the country, have made this visa a reckoning one. One should apply for it at the earliest.
