Considering PLAN B? The Portuguese Golden Visa program is it!

Considering PLAN B? The Portuguese Golden Visa program is it!

by | Nov 19, 2024

Portugal, where English is widely spoken, boasts safety, sunny weather, quality of life, friendly locals, tasty food, fantastic fibre internet coverage and direct flights to several US cities and several other destinations in Europe, America and Africa.

If you are not ready to relocate in the short-term, either, for instance, for professional reasons or because you do not wish to uproot your young children at this stage, the Portuguese Golden Visa program may be an interesting solution.

The Golden Visa program offers 5 routes with these minimum investment options: Job Creation (10 jobs), R&D (€ 500K), Arts (€ 250K), Investment Funds (€ 500K) and Companies (€ 500k). The job creation, Arts and R&D investment routes can be reduced by 20% in low-density areas.

Moreover, spouses/partners and minor children can apply simultaneously with the Investor. Children of age, parents and in-laws can also apply under certain conditions.

Golden Visa applicants receive a Temporary Residence Permit valid for 2 years, currently renewable every 3 years. Once the residence cards are issued, minimum mandatory stays are, on average, 7 days a year.

The Portuguese passport is one of the most powerful in the world and is ranked 4th overall in the Passport Index 2024 and 5th in the Henley Passport Index 2024, allowing for visa-free entry into about 191 countries.

Well, five years from the date the application was submitted, holders can apply for Portuguese Citizenship, provided they evidence an A2 level of the Portuguese language and meet some other requirements (e.g. non-criminal record). Obtaining Portuguese Citizenship does not require renouncing other nationalities, unless the country of origin demands it.

If you wish to set your plan B in motion and get the clock ticking, contact us at geral@sbpslegal.com. SBPS legal offers a streamlined process managed by a team of Experienced, Client Centric, Available, Responsive, Proactive and Trustworthy Professionals.

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Minors travelling out of Portugal

Minors travelling out of Portugal

by | Oct 31, 2024

Article 44 of the Portuguese Constitution enshrines the right to move and emigrate:

‘1. All citizens are guaranteed the right to move and settle freely in any part of the national territory.
2. Everyone is guaranteed the right to emigrate or leave national territory and the right to return.’

However, the situation regarding minors (under the age of 18) deserves special protection when it comes to leaving Portugal. Indeed, they cannot travel unaccompanied and without specific authorisation.

Here are some brief guidelines on what you need when travelling abroad with a minor and note that these rules apply to both Portuguese and foreign minors.

Minor children of married or in a de facto relationship parents
The authorisation to leave the country only needs to be signed by one of the parents.

Minor children of single or divorced parents
The authorisation to leave the country must be signed by the parent who has custody of the child.

Minor children of divorced parents with joint custody
In the case of joint custody, there is no need for a written authorisation, as the child can leave the country with either of the parents. However, there cannot be opposition from one of the parents. If this is the case, the opposing parent has the right and duty to report the situation to AIMA (Immigration) and to the Police.

For more information on the documentation and formalities of this procedure, please contact us at geral@sbpslegal.com.

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NHR 2.0

NHR 2.0

by | Oct 30, 2024

The 2024 State Budget Law ended the NHR regime as was. However, it is still possible to access a new NHR scheme (also known as Scientific Research and Innovation Regime, but often referred to as NHR 2.0) under special conditions foreseen in the Tax Benefits Code.

Who is eligible to apply for the new NHR regime?

The “new NHR” regime has a narrower scope and applies to the professionals listed briefly below:

  • Teachers in higher education institutions, Researchers, and other professional or board members of technology and innovation hubs;
  • Qualified job positions and board members within the scope of the Contractual Incentives Tax Regime;
  • Highly skilled job roles in entities that benefit or benefited from the Tax Regime for Investment Promotion;
  • Highly skilled job roles in entities that export at least 50% of their turnover;
  • Highly skilled job positions and board members of entities considered relevant for the national economy by AICEP and IAPMEI;
  • R&D personnel deemed eligible within the Business Research and Development Tax Incentive System;
  • Job roles and board members of entities certified as startups;
  • Jobs roles and activities performed by tax residents of Madeira or Azores, to be established by regional decree.

Note: eligibility needs to be duly proven according to the rules in place.

Similarly to the “old NHR”, this regime applies to the abovementioned professionals who:

  • Become tax residents in Portugal: reside in Portugal for more than 183 days in a 12- month period or have residence in Portugal with the intent of maintaining it as habitual residence;
  • Were not considered tax residents in Portugal for the five years prior to their arrival.

What is a startup for NHR purposes?

A startup is considered to be a legal person that cumulatively:

  • Has been operating for less than 10 years;
  • Employs less than 250 workers;
  • Has an annual turnover not exceeding 50 million euros;
  • Has not resulted from the transformation or split of a large company and does not have any majority direct or indirect participation from a large company in its share capital;
  • Has its headquarters or permanent representation in Portugal or at least 25 workers in Portugal; and
  • Meets one of the following conditions:

(i) Is an innovative company with high growth potential, featuring an innovative business model, products, or services, or has been recognized for its practice of research and development activities or for the certification of its process of recognizing technology companies;

(ii) Has completed at least one round of venture capital financing by a legally qualified entity or through the contribution of capital or quasi-equity instruments by investors who are not founding partners of the company, namely by business angels, certified by IAPMEI;

(iii) Has received investment from Banco Português de Fomento, S.A., or from funds managed by it, or by its participated companies.

What are the benefits of the “new NHR”?

There are two main advantages, as follows:

  • Employment/self-employment income related with the abovementioned activities is liable to a 20% flat tax rate;
  • As a rule, foreign sourced income is exempt from tax in Portugal, as long as it does not originate from tax havens/blacklisted countries.

The regime is valid for a 10-year period.

What are the downsides of this new regime compared to the “old NHR”?

For example, foreign pension income will be liable to progressive tax rates up to 48%, plus surcharges, instead of the 10% flat tax rate available under the “old NHR”.

Moreover, individuals earning only passive income cannot claim exemptions on foreign sourced income in Portugal, being liable to the general rules of taxation, typically a 28% flat tax rate.

We would like to stress that one cannot benefit from this new regime if the “old NHR” was previously granted. The same applies for anyone who benefited from the “former residents” regime.

If you wish to understand if you meet the requirements for NHR 2.0, please contact us at geral@sbpslegal.com.

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Knowledge of the Portuguese Language for Applying for Portuguese Citizenship

Knowledge of the Portuguese Language for Applying for Portuguese Citizenship

by | Oct 30, 2024

Language is an essential tool for ensuring that citizens can communicate and integrate fully into Portuguese society. Therefore, for various types of nationality processes, one of the fundamental requirements is to demonstrate a basic level of proficiency in the Portuguese language.

1 – What level is required to prove knowledge of the Portuguese language?

The required level of knowledge of Portuguese corresponds to level A2 of the Common European Framework of Reference for Languages (CEFR). This level of proficiency guarantees that the applicant has a basic understanding of Portuguese and is able to communicate in simple, everyday situations.

2 – How can I prove my knowledge of the Portuguese language?

Currently, within this context, knowledge of the Portuguese language can be proven in one of the following ways:

  • Through a Certificate issued by a duly accredited public or private school/university, provided that the holder has successfully attended the curricular unit/discipline of Portuguese or Portuguese as a Non-Mother Tongue for at least two school years;
  • Through a certificate of approval in a Portuguese language test carried out in public schools in Portugal, or in remises accredited by Camões – Instituto da Cooperação e da Língua, I. P., when taken abroad;
  • Through a certificate in Portuguese as a foreign language, after taking a test at an assessment centre for Portuguese as a foreign language under an agreement with the Ministry of Education, Science and Innovation;
  • A certificate attesting to the completion of level A2 or higher of the CEFR, issued by a public school, employment and training centre or by external centres under an agreement with the Portuguese Institute of Employment and Vocational Training (IEFP);
  • By means of a Certificate of Portuguese as a Host Language attesting to the completion of level A2 or higher of the CEFR, issued by a public school or by entities under IEFP’s direct management or by a Qualifica Centre;
  • By means of a Certificate of Qualifications attesting to the completion of units of competence/training units in Portuguese which are a part of the curriculum of a qualification from the National Qualifications Catalogue, obtained through dual certification training modalities from the National Qualifications System.

In any case, to be valid before the Portuguese authorities, it is necessary to ensure that the entity responsible for issuing the certificate/diploma is duly accredited for this purpose.

3 – Is proof of knowledge of the Portuguese language compulsory for all types of nationality applications?

No, proof of knowledge of the Portuguese language is not required for some types of applications, namely:

  • If you were born in and national of a Portuguese-speaking country (e.g. Brazil, Angola, Mozambique and others);
  • If you have been married or in a de facto relationship with a Portuguese citizen for at least 6 years or if you have Portuguese children – in all other situations, you will need to provide proof of an effective connection to the Portuguese community, which can be proven by different means, knowledge of the Portuguese language being just one;
  • If you are a direct descendant (child) of a Portuguese citizen.

If you are over 60 years old and cannot read or write, or if you are suffering from serious health issues or have a disability duly proven by a medical certificate, this test must be suit your ability to demonstrate knowledge of the language.

4 – What does the process of assessing knowledge of the Portuguese language consist of?

The assessment process, whether a test or a course, involves oral and written comprehension. Foreign nationals will have to demonstrate that they can understand and use common everyday expressions and phrases.

5 – If I decide to take the Portuguese language exam, what should I expect?

As mentioned above, the exam will include both oral and written comprehension components. There are tests from previous years that you can use to prepare, and you only need a pass rate of 55 per cent. You can repeat the exam as many times as necessary.

If you choose to go ahead with the exam, you should register as soon as possible, as the monthly editions often fill up quickly.

Generally, the results are available to you in about two (2) weeks, after which time you can collect your certificate/diploma.

If you are looking to apply for Portuguese citizenship, please reach out to us at geral@sbpslegal.com.

 

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Have you entered into a contract that you no longer want, or do you feel cheated with your purchase?

Have you entered into a contract that you no longer want, or do you feel cheated with your purchase?

by | Oct 30, 2024

Lack of information and misleading advertising are two of the main reasons that lead people to enter contracts that they later regret.

Family members, particularly those who are older or lack instruction, can often be manipulated to enter into contracts without fully understanding the obligations they are undertaking.

The most common examples are sales (by mail order, door-to-door or telephone) of mattresses, various appliances or travel cards. If you are, or know someone who is, in this situation, know that the law protects you through the right of repentance or free termination, which works as follows:

Contracts concluded remotely (online/telephone/mail/outside the commercial establishment)

  • The law provides a period of 14 consecutive (non-working) days for consumers to cancel the contract, if they regret having signed it. Please note that the word ‘contract’ does not refer to a formal multi-page agreement signed by the seller and buyer – it can simply be a signed order form or offer or another means of written consent.
  • The cooling-off period starts from the date on which the goods are received and not when the contract is concluded/signed.
  • Consumers must return the goods to receive their money back.

Service provision contracts

  • The deadline to cancel the contract is 14 consecutive (non-working) days from the date of conclusion.

The exercise of this right to withdrawal does not need to be justified and there is no need to pay any amount or charge to terminate the contract. If this legal deadline has passed, but it is a case of fraud, forged documents or signatures (among other scenarios), consumers can and should immediately contact a lawyer to help them assert their rights.

If you find yourself in a similar predicament, please contact us at geral@sbpslegal.com.

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