They are barely 30. They got married only about two years ago. One works in high-tech and the other in digital marketing. Omer had just finished almost 6 months of reserve duty, and now they are sitting across from me telling me about their trip to Portugal to unwind right after the reserve duty.
They found themselves wandering the picturesque alleys of Alfama, a historic district in Lisbon. Every corner in Alfama tells a story, every alley takes you on a journey through time. You are not just a tourist here, you are part of the picture, part of the magic. They could not resist the temptation and fell in love with the relaxed atmosphere, the little cafes and the stunning view. On the second evening they sat on a rooftop terrace overlooking the city, ate a delicious salt-cod pie and drank fine Portuguese wine, and watched the sunset. Omer shows me a photo of a magnificent sunset over the Tagus River in Lisbon. “This could be our home.”
On the last day of the trip, they met with a local real estate agent. He showed them beautiful, modern apartments in the city center, at prices that were accessible and within their reach, and they were pleasantly surprised. The real estate agent told them about the possibility of obtaining a “golden visa,” which would allow them to move to Portugal, live there and even work there (or from there, as they planned). They realized that the golden visa was not the only thing drawing them to Portugal. They had fallen in love with the country, the people and the possibilities it offers.
“An apartment in Portugal, with a sea view... that's our dream,” Omer said enthusiastically, looking at Yael, who sat beside him in my office. “And a golden visa? That sounds like the cherry on top.”
Yael smiled, but it was clear she was also a little worried. “It's true that it sounds tempting, but we want to be sure it's the right decision. There are so many things to take into account.”
I nodded in understanding. “You are right. Buying real estate abroad, especially when you add a golden visa to the equation, is not a step to be taken lightly. As the famous investor Warren Buffett said, ‘Risk comes from not knowing what you're doing’. Let's start from the beginning. What are you looking for in an apartment in Portugal?”
Omer and Yael began to describe their dream: a spacious, bright apartment, close to the city center but not too noisy, with a balcony overlooking a beautiful view. They spoke about their budget, about the yield they expect to get from renting, and about the importance of a safe and pleasant environment.
I listened patiently, taking notes. “These are important parameters,” I said. “But there are a few more things to take into account when buying an apartment in Portugal, especially when it comes to a golden visa.”
I began to elaborate: “First, it is important to check the condition of the property. Does it need renovation? Are there legal or planning problems? It is worth getting the opinion of a local appraiser to assess the property's value and its potential. Second, you need to understand the taxation of real estate in Portugal, both for residents and for foreigners. Third, it is important to choose a location that suits your needs - do you want to live in the apartment yourselves, rent it out long term or short term, or perhaps combine the two? It is true that Lisbon and Porto are popular cities for investment, but other regions of Portugal also have interesting opportunities, such as the Algarve or the Azores islands. If you intend to be ‘digital nomads,’ there is no point in living specifically in Lisbon.”
“The international consulting firm Knight Frank noted in its latest report that Portugal was one of the leading countries in Europe in terms of attractiveness for real estate investment, partly thanks to the golden visa program.”
My heart sank. The young couple had spun a dream, and at this point I had to shatter it. “Whoever accompanied you probably has not kept up with the details lately. At the end of 2023 the Portuguese government removed the purchase of real estate in the country from the golden visa program. There are other ways to invest in Portugal in order to receive a golden visa, but buying real estate is not one of them.” I went on to explain the process of obtaining a golden visa, the various requirements and the timelines. I stressed the importance of working with experienced professionals, such as a lawyer and a real estate agent, to ensure that everything goes smoothly and lawfully.
Omer and Yael listened with interest, their eyes full of questions, Yael jotting down notes in a notebook she had brought. I saw that they were beginning to understand the complexity of the process, but also the enormous potential in it.
“I'm stunned. I already saw us living in Lisbon. We have a lot to think about,” Omer said at the end of the meeting.
Yael added, “We will keep researching and checking, but we are optimistic. Maybe our dream of an apartment in Portugal really can come true.”
And for those of our readers who are not familiar with it, here are a few facts about the possibility of obtaining a golden visa in Portugal:
Until the end of 2023, a significant investment in Portugal was required, including buying real estate worth at least 500,000 euros, or other investments such as venture capital funds or creating jobs. As noted, buying real estate was removed from the list, and from 2024 a golden visa can be obtained in other ways with an investment of 500,000 euros. The visa is for a period of 5 years.
Do you, too, dream of an apartment in Portugal, or abroad in general? Don't let dreams remain just dreams, only don't rush to invest before you have examined all the details thoroughly through professionals.
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית