Why do Brazilians Invest in Portugal Golden Visa?
There are many reasons why Brazilians choose this country in the Iberian Peninsula for their investments. Through real estate investments, many Brazilians carry their businesses, dreams and families to Portugal. They usually look for buildings in Lisbon which is the capital and the most expensive destination. Historical aura of the environment and buildings is an important attraction for foreigners. So, Brazilians, too, choose to have the authenticity of Portugal included in their apartments.
“The area where we invest is Alfama, Lisbon’s oldest neighborhood and cradle of fado (traditional Portuguese music) .The castle of São Jorge is above and Praça do Comércio is a 15 minute walk away.” Paulo Bottora, a Brazilian investor who is a former financial consultant residing in Rio de Janeiro says. He also adds that “The financial market in Brazil was not giving the income it already gave, so we chose to take a part of our equity and put in Portugal as diversification.”
Portugal’s stable and reliable economy allows more manoeuvres in business world. So, Brazilians –much like the rest of the world- aim to carry out their business related activities in Portugal. For instance, in Portugal there are the so-called sale and leaseback operations and opportunities for investors who in practice buy commercial buildings, such as a supermarket, and rent them to the same network that owns the property. It might be thought of as an immediate renting of a purchased real estate.
“The investor buys and in the act already signs a lease agreement,” says Gustavo Morais of Direct Imóveis. He argues that in long term, large contracts with big companies can be made and significant revenue can be generated through the rental process.
“People saw Portugal as a backward country, without infrastructure and today it is not. It has infrastructure, teaching quality and public safety, with a lower cost of living,” says Guilherme Grossman.
More advantageous taxation, interest rates of up to 2% a year – more than four times lower than those practiced by the main banks that finance housing in Brazil – is another factor that lures Brazilian investors into Portugal.
“I knew Portugal 20 years ago on my honeymoon and I hated it, I was back there five years ago at a stop in Marrakech, and what I saw was a vibrant, rebuilding city that completely undid the first impression I had.” says Patrícia Oliveira, who lives in Barra da Tijuca, Rio.
“There are a lot of people who are going to Lisbon to seek professional or financial opportunities in the city, what I want to look for is peace, security and quality of life, to be able to walk, not be afraid of shooting, of armed robbery and of whatever negative thing that could happen to my son. That’s what worries me the most. “, says Patricia Oliveira. Since that visit (20 years ago), she says that the idea of moving to the Portuguese capital, “to escape violence in Brazil,” was growing.
Having the peace and calmness in their lives is another important cause for Brazilian investors to go for the Portugal’s Golden Visa. Climbing the ladders of success in safety rankings, Portugal offers many opportunities to Brazilians who cannot find what they seek in their own country.