Portugal’s ‘Golden Visa’ has successfully tempted buyers from Asia to invest in residential and commercial assets of up to €100 billion by 2014. The new residency package, brought in by the government last year to boost the country’s economy, has been particularly attractive to the Chinese market, measuring the opportunity to obtain Portuguese nationality for the immediate family as superior to other visa packages in the EU.
Portuguese real estate agent Fine & Country Cascais has seen Chinese buyers generate €25 million in just 2.5 months that would otherwise not have existed. Following this trend, they will collaborate with leading Portuguese schools, banks and industry giants to promote moving to Portugal by exhibiting their luxury property portfolio at The 798 Art Zone, Beijing, in August.
Charles Roberts, managing partner of Fine & Country Cascais, said: “Investors are flocking to buy Portuguese property as an insurance policy for any future political instability in China. Property here has been a safe way to store equity, a great international hub for foreign education and is now an ideal time to invest in business and industry while capital is low.”
Opening residency laws is not a new thing, with 43 European countries already having similar schemes with varying conditions. One of the reasons why the Portuguese ‘Golden Visa’ has been such a success is the flexibility of its conditions. By investing €500,000, foreign nationals outside the EU are able to live in Portugal under a five-year temporary residency permit, which after that time, allows the application for permanent residency along with their immediate family. Having a Portuguese passport means being able to travel freely across the Schengen countries, something which places Portugal as a top investment destination around the world.
The trend has already begun in China, a country that has invested 21% more in Europe during 2012 than in 2011. China’s Private Wealth Report indicates that 40% of Chinese billionaires are already involved in emigration investment. The promise of visa-free EU travel will only see this threshold rise.
As the move by Cyprus proved last year, securing permanent residency in an EU country is a major attraction for Chinese buyers, so far investing €1.6 billion into residential property. Recent estimates back this up, showing that around €144 billion has been pouring out of China each year since worries spread about slower economic growth and falls in the value of stock and property.
“The Chinese already owns 40% of the National Grid and are likely to snap up other privatised industries, such as airlines, agriculture and ship yards. External investment like this has been well received. Not just financially, but as a community, Portugal has historically welcomed foreigners and consequently has a great cosmopolitan atmosphere. Entrepreneurs are received as a great contribution to the tourist economy,” noted Charles Roberts.
The Art Zone event is hoping to attract large crowds of interested investors and business executives as the most important overseas exhibition events for the Portugal property market is Asia. By collaborating with other sectors like education and finance, Fine & Country Cascais expects to be better placed to attract high net worth buyers.
Charles Roberts said: “By cutting the red tape on foreign investment, the Portuguese government will reap the rewards of prioritising foreign direct investment. With all measures recognised by the European Commission, United Nations and the World Bank, Portugal is in a perfect position to open up more opportunities for sellers and buyers and increase international confidence in the economy.”
Visas are not the only drive for continental investment. Portugal was recently voted one the best places to invest, work and live. Charles continued: “The Portuguese Riviera around Estoril and Cascais has always been popular with international residents, sitting right next to the capital, near NATO bases and diplomatic communities. The area has five international schools each with over 1,000 pupils. Property prices are at a low, but the gains are still high.”
It is clear that confidence in Portugal is returning and opportunity exists; a major turning point for the country’s economic outlook. Investment in Portuguese real estate rose 68 % in 2012 and is likely to continue growing.
