UGLOBAL . COM 13
For either option it is possible to start the Golden Visa application and be granted with the residency permit with a promissory agreement , instead of the definitive deed of acquisition , provided that the minimum amount of investment is fulfilled under such promise of acquisition , and this one is executed before the second renewal of the Golden Visa .
– however , without residency requirement of 183 days / year . The Government proposes the current special regime of 7 days / year as staying period .
• New applications for residence permits relating to investments or support for artistic production , recovery or maintenance of cultural heritage country are admitted ;
• The program is terminated as from the date on which this law comes into force - expectedly not before 45 days – end of June 2023 .
This means that investors are now running after this last train more than ever , but it is important to have in consideration the risks when deciding on the investment , particular in regards to real estate .
Although these projects can be great opportunities of investment - namely in terms of value , as the property is sold below the market value that a completed and licensed unit would have , and also allows the future owner to personalize the real estate according to his personal tastes - the truth is that Murphy ’ s Law says that “ Anything that can go wrong will go wrong .” When buying a development in progress , the level of risks often increase as a result of the nature of the business and the impact of the surrounding circumstances .
CHALLENGES WITH THE REAL ESTATE STREAM
One of the current challenges , perhaps the biggest one , is the shortage of materials and inflation . Given the current situation the world is in , some materials can not be delivered in time , meaning higher prices can be imposed by the providers if the contracts give them such leeway . As such , the constructions / rehabilitation works end up being postponed which then causes the agreed-upon delivery dates to not be met or prices to rise . Worst case scenario , the development as projected may no longer be viable due to the lack of materials or the exponential increase in development costs , leading to delays or even the definitive failure to comply with the contract .
CHANGES TO THE PORTUGUESE GOLDEN VISA
Recently the Portuguese Government announced the termination of the program . The proposal arrived to the Parliament this April 15 and it seems that this time is the true last call to apply for the Portuguese Golden Visa program . Although the proposal still needs to be discussed in the Parliament and approved by the President of the Republic , where some amendments can be introduced , we can expect the following :
• There is no retroactive effect ;
• New processes and renewal processes will continue until the new law is published ;
• Pending applications and future renewals will be converted into the D2 program – Entrepreneurs Permit
Even though there must be some flexibility on the investors ’ side , there are some measures that can be taken at the time of the negotiation of the contracts such as foreseeing a penalty for a potential delay or extension of the delivery
“ Pending applications and future renewals will be converted into the D2 program – Entrepreneurs Permit – however , without residency requirement of 183 days / year .
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