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The minimum you should expect to pay for property which could give you such above-average returns is $US50,000 to $US60,000.
Costs...
We're now in a position to total up all the costs involved in your search for a second passport:
The property, assuming a prime vacation-rental property, say .
Legal fees (contract of sale)
·
Legal fees (residency application).
•
Travel to Portugal (initial residency application--family of four, estimated $HK10,000 per person, including hotel).
Two further trips to Lisbon (renewal of residency--head of family only).
Legal fees (power of attorney for those years you cannot personally visit Lisbon--four at $US200 each).
Portuguese lessons (Linguaphone-type course plus 10-15 hours tuition) say.
TOTAL
•
. $US55,000
.500
.750
.5,200
•
.2,600
. .800
.300
$US65,150
There's one more cost: a tax on transfers of land (10%) and buildings (15%) Agricultural land is taxed at 8%. On the kind of property we're discussing the combined land and building tax would be about 9.5%--an additional $US5,225.
I did not list this tax above as it is not levied on build- ings in development (then, only the land is taxed). If you buy "off-plan" you would lose 12 to 18 months' rental, but you'd also avoid the 15% tax on the building.
You could bring the cost down to $US40,700 by purchasing a property worth $US30,000 (save $25,000); employing an attorney for all renewals of residency (save $2,200) and to represent other family members at the initial application (head of house- hold must attend in person--save $3,400); and depend solely on the Lingaphone-type set (save $200). But you'd probably have to buy an established property (add tax: $2,850) and find it on
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