Henley & Partners Portugal manages turn-key services for the Portugal Golden Residence Permit program, including legal assistance, real estate selection and management, and tax advisory services. The presentation overviewed the GRP program requirements of a minimum €500,000 real estate purchase or €1 million investment, which provides a residence permit and potential citizenship after 6 years. It also compared residence programs in Portugal, Spain, and Latvia. Real estate opportunities discussed included apartments in central Lisbon and the Pine Cliffs resort in the Algarve, highlighting guarantees returns of 5% for 5 years. In conclusion, the GRP provides a simple path to Portuguese residency and lifestyle with visa-free European travel.

1. Portugal Golden Residence
Permit Program
Andrew Coutts
Managing Partner
Henley & Partners Portugal
The Henley & Partners Forum 2014
29th May 2014

2. Presentation Contents
Welcome and Introduction
Henley & Partners Portugal
Portugal Overview
GRP – Golden Residence Permit program overview
Tax Considerations
Residence Program Comparison
The Real Estate Market
Conclusions
3
2
1
4
5
6
7
8

3. Welcome and Introduction

4. Henley & Partners Portugal
Based in central Lisbon - Team of 15+ in-
house and out-sourced professionals
Management of turn-key services:
• Legal
• Investment option selection
• Real-estate procurement
• Bank account opening
• Tax advisory
• Educational advisory
• Financial & accounting management
• Property management

5. • In-house team of specialists –
accountants, valuers’, surveyors, building
consultants
• Investment portfolio – three geographies
• Development & investment mind-set
• Due diligence
• Bespoke procurement service
• €100.000 to €10 million range
• Assets with gross returns 4-6%
• Property management service
Henley Real Estate Services

6. Portugal Overview

7. 7
Portugal Overview – The Economy Q1, 2014
• 1.6 % growth in GDP in Q4’ 13 - 2nd
highest in the Euro Zone. Shrank back
to 0.7% in Q1 2014.
• Portugal successfully completed the 3
year TROIKA program on May 17, 2014
• 10 year bond yields - c.3.87%. 5 year
borrowing costs - < 2.757%
• Financing needs covered until Q2 2015
• 11th “best country” to do business
within the EU - World Bank
• 20th “best country” to do business in the
world (Forbes).
• Ease of doing business - ranked 20th
out of 145 countries – Forbes 2013

8. 8
Portugal Overview

9. Golden Residence Permit (GRP)

10. • For non-EU citizens desiring a residence permit within a 5 year program vision
• Provides Schengen Area circulation – 26 European countries
• Minimum mandatory stay in Portugal or circulation in the Schengen Area via
Portugal - an average of 7 days per year over the 5-year period of GRP
• Swift (<1 month) and simple
• Provides eligibility for citizenship after 6 years of GRP related residence
• There are three qualifying investment options:
1. Minimum capital investment of €1 million;
2. Acquisition of real estate with a minimum (debt-free) value of €500,000;
3. Creation of at least 10 new jobs.
GRP - Proposition
10

11. The key qualifying documents required for the GRP process are:
• Passport stamp and/valid (Schengen) visa if applicable
• International health insurance valid in Portugal
• Criminal record certificate from the applicant’s home or country of residence
• Proof of investment of any of the three investment options
• Signed Affidavit guaranteeing compliance with the investment conditions
GRP - Key Qualifying Documents

12. 12
Tax Considerations
• GRP investors are non-resident for tax purposes assuming < 183 days/year
• GRP investors are liable to tax only on income (IRS, IMT, IMI, IS) arising in Portugal
A 10 year tax holiday is available for “new residents” (>183 days) as Non Habitual
Residents (NHR):
• Foreign source dividends, interest, royalties and pensions – majority* tax exempt
• Foreign employment income and earnings from certain professions tax exempt
• Income from employment in designated activities is taxable at 20 percent
• There is no inheritance or wealth tax in Portugal
• Gifts between immediate family members are not taxable

13. 13
Residence Program Comparison
Country Portugal Spain Latvia
Program Name Golden Residence Permit Program Residence by Investment Program Golden Visa Latvia
Requirements
Capital €1M financial investment €2M Spanish Govt. bonds, or €300k Term deposit or Bonds
€1M bank deposit
Real Estate €500k €500k €143k (in Riga) or €72k (others)
Other Creating 10 new jobs €1M in company shares
Investment Term 5 years Indefinite 5 years for Capital investment
Duration 5 Year, renewable Initial 1 year visa 5 Years, renewable
Extendable for 2-year periods thereafter
Subsequent Residence Permit
extendable for 2-year periods
Stay periods Average 7 days/year
No minimum stay in 1st. (visa) Year, but
required visit to renew permit.
None
Family Unification Husband, wife & dependant children Husband, wife & dependant children
Husband, wife & dependant children
(max. 10 people)
Bureaucracy Rapid < 8 weeks
Citizenship
Eligible to apply after 6 years as
resident
Can be eligible after 10 years as
resident
Can be eligible after 10 years as
resident
Visa Free travel countries 170 170
Volume restrictions None known 800 in 2014 - reducing after
Taxation The personal tax rates range from
14.5% (for income under €7,000) to
48% (for income over €80,000).
Dividends, rentals etc 28%
Corporation Tax
Inheritance Tax None
Wealth Tax None
Other Favourable Non-Habitual Tax Regime
Observations Changes in 2014
€36k or €150k in a local company - tax
and employee thresholds apply

14. 14
Residence Program Comparison

15. 15
Residence Program Comparison
Portugal
• A well designed and efficient program
• A highly competitive tax environment
• Politically stable, culturally welcoming, neutral and passive;
• A gateway, trading and investment platform for Africa and South America
• Lisbon - international air transportation hub
• A real estate market with tangible and diverse investment opportunities
• Citizenship eligibility
• An innovation based economy emerging from the global recession
• Climate & lifestyle

16. Photo credits to Pine Cliffs
The Real Estate Market

17. The Real Estate Market

18. • Restructuring of asset ownership: “turn
around”, vulture and debt funds 2010 -
2012
• Market beginning to turn-up after 6
years of falling capital values
• BRIC consumers appetite for Lisbon –
luxury brands enter the market
• 2013 international investment funds
began to acquire commercial real estate
investments
• Opportunities in urban regeneration ,
student accommodation, rural properties,
wine estates, prime Algarve assets and
leading resorts
The Real Estate Market

19. 19
The Real Estate Market
Example: Central Lisbon Apartments
• Renovation and urban regeneration
opportunities
• 100 m2 – 500 m2
• 2 to 5 bedrooms
• Capital values: € 370.000 €1.150.000
• Average price per/m2 - € 3.400
• Gross rental returns – 2,5 % to 4,5%

20. The Real Estate Market
Algarve
• 3 hours – 300 kms from Lisbon. Faro
international airport
• The most popular tourist destination
in Portugal and one of the most
popular in Europe
• A cosmopolitan international
community
• A mild temperate climate and
kilometers of undeveloped coastline
and beaches
• A safe and secure environment

21. United Investments Portugal
Established Brand
Pine Cliffs & Sheraton Algarve is owned by United Investments Portugal (U.I.P.)
An established brand for over 22 years, extending five-star hotel service to residential and holiday resort
ownership.
UIP is part of the IFA hotels and Resort consortium with IFA headquarters based in Kuwait and Dubai.
Starwood has been the Management Company responsible for Pine Cliffs resort under the umbrella of
“The Luxury Collection” since the beginning 22 years ago.

22. The Resort
215 Bedrooms
Sheraton Hotel
68 Unique
townhouses
154 Luxurious
Residence Apartments
Pine Cliffs Resort 72 acres
Pine Cliffs is an all integrated resort, managed by Starwood Hotels through its Luxury Collection brand, with
different options of accommodation, investment opportunities and a luxurious lifestyle for the whole family –
awarded in 2012 the Portugal’s Leading Family Resort.
25 worthy of
royalty Deluxe
Villas
Award
Portugal’s Leading Family
Resort
© Pine Cliffs Resort, 2014. All Rights Reserved
© 2014 IFA Hotels & Resorts - All rights reserved
20 Modern &
Contemporary Terraces
26 Luxurious
Suites Apartments

23. Properties of Pine Cliffs Resort
Five types of properties are available as freehold at Pine Cliffs Resort, two of which include a guaranteed
annual rental return of 5% within the first 5 years (The Suites & The Residences).
SUITES TOWNHOUSE
S
TERRACES DELUXE
VILLAS
RESIDENCES

24. Pine Cliffs Resort
• Premium 5* Resort – Golf & Ocean
• Sheraton Algarve, a Luxury
Collection Hotel, part of Starwood
Hotels & Resorts
• 2/3 bedroom Apartments
• Guaranteed Rental returns of 5% for
5 years (for freehold apartments)
• 3/4 bedroom Townhouses and
Deluxe Villas
• Prices ranging from 780.000 € to
4.5 mio €

26. Visa Free
Schengen
Access
A Safe and
Peaceful
Country
Real Estate
Investment
Potential
Advantageous
Non Habitual
Tax Regime
Portuguese
Culture and
Lifestyle
International
Standards of
Education
A Path to
Portuguese
Citizenship
7 Days per
Year
Average
Stay
Simple, Swift
Process
< 8 weeks
Conclusion

27. Contact Information
Andrew Coutts
Managing Partner
Henley & Partners Portugal. Ltd.
Palácio Alagoas
Rua da Escola Politécnica 183 Bloco A, 1º
1250 -101 Lisbon
Portugal
T +351 213 970 977
andrew.coutts@henleyglobal.com