China to invest €100bn in portuguese property
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.
Opening residency laws is not a new thing. Indeed, 43 countries already have similar schemes in a move to encourage cautious investors. But Portugal’s Golden Visa has flexibility in its favour.
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.
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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, investing 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 €144billion has been pouring out of China each year since worries spread about slower economic growth and falls in the value of stock and property.
Charles Roberts, Managing Partner of Fine & Country Cascias, says, "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. 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.
"By cutting the red tape on foreign investment, the Portuguese government will reap the rewards of prioritising FDI. 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.
"The Portuguese Riviera around Estoril & Cascais has always been popular for international residents, sitting right next to the capital, near NATO bases and diplomatic communities. The area has 5 international schools each with over 1,000 pupils. Property prices are at a low, but the gains are still high."
With investment in Portuguese real estate rising 68 per cent in 2012, according to new figures, is the Golden Visa just the ticket to the Portuguese market turning the corner?