With the revision of the Horizontal Property regime by means of Law 8/2022 it is even more important to speak about the way property is organised under the Portuguese legal system. Horizontal property is the name given to the organisation of a building into units and common parts, by means of a constitutive title.
The constitutive deed essentially defines: the permilage of each unit in the building; the composition of the autonomous unit and finally its use, i.e., what it is to be used for (e.g. housing; services; commerce).
Along these lines, the year 2022 will also bring novelties. With the entry into force of the new regime for granting Residence Permits for Investment, the so-called “Golden Visas”, through the acquisition of property.
The innovation in this field has to do with the narrowing of the possibilities of real estate with eligibility to obtain the Golden Visa. This is because in the areas most sought after by investors for real estate acquisition, the coastline in general, the acquisition of real estate for housing purposes is no longer eligible, so that, those wishing to invest in these areas should seek real estate for services or commerce, for example. However, there is always the possibility of changing the allocation of the property from residential to another purpose, at the Condominium Assembly. For this purpose, the consent of all condominium members present is required, which, in turn, must correspond to at least two thirds of the votes.
Alternatively, investors may choose to invest in residential real estate in the areas specified by Ministerial Order no. 208/2017 and better illustrated in the map below, covering inland areas and the Azores and Madeira archipelagos.
In this case, the minimum values for the acquisition of real estate vary between EUR 350,000 and EUR 500,000, depending on whether it is a case of acquisition for rehabilitation or acquisition of real estate, pure and simple. These values are reduced by 20% if the property is located in a low density area.