Recently, Forbes has added the Algarve region in Portugal to the list of must-travel after Covid-19. Expat City Ranking 2020 also selected Lisbon as the third best city to live in for expats out of a total of 66 cities worldwide. The report indicated that “No respondent has anything negative to say about their personal safety in Lisbon”. The 2020 Global Peace Index supports this argument as well. It shows that Portugal ranks the 3rd safest country in the world, with several parameters taken into account.
A number of investors have been aware of such safety in Portugal in many respects. Therefore, many of them obtained a second residency in Portugal through the Golden Visa program. Wonder how many? A total of 9,444 investors. Including their family members, the total number amounts to more than 16,000. This is what the Portuguese Immigration and Borders Service (SEF) indicates for the dates between October 2012 and January 2021.
In addition to these numbers, SEF statistics also reveal the British interest in Portugal. According to its data, around 35,000 UK residents were living in Portugal in 2019.
Why so many?
You may wonder why many of these high net worth individuals are attracted to Portugal as an investment destination. Let’s discover the reason behind this huge attraction.
Potential to EU citizenship
Being a residency by investment program, Golden Visa program in Portugal also provides EU citizenship following successful fulfillment of the stay requirement. This means that after you complete your investment, you need to stay in Portugal for a minimum of seven days per year. When you’ve completed five years residency, you can apply for permanent residency and citizenship. That’s why the program became so popular as the Portuguese citizenship by investment.
Portugal Golden Visa offers a wide range of investment options as well. It can range from a purchase of a real estate minimum of €280,000 to a capital transfer of €1,000,000.
Extension of mobility and business
Obtaining second citizenship and residency brings the opportunity of an expansion of business and extension of mobility. So, not only can you live and work in any EU country but you can also establish a business there. No doubt Portugal is a very convenient option regarding this, with its developing tech and startup areas.
The 2020 EY Attractiveness Survey suggests that a record-breaking number of 158 FDI (foreign direct investment) projects were realized only in 2019. Furthermore, Porto was chosen as the “Best Startup-Friendly City of Europe” by the World Business Angels Investment Forum in 2018. The survey also indicates that it was “Europe’s third fastest-growing tech hub, in Atomico’s State of European Tech report for that year.” In addition: “The country displays digital adoption rates above the EU average for all sectors except manufacturing and above the US average for the services sector…”
Tax incentives such as NHR
Another determining factor for investors while applying for Golden Visa Portugal is the NHR program. Meaning the “Non-Habitual Resident” program, NHR allows investors to be exempt from most of their foreign income for a duration of ten years. If you wonder how it works, check the list below to be suitable for it:
- You need to have the right to be a resident in Portugal by being an EU/EEA/Swiss citizen or via a Portugal Golden Visa Program, and
- You cannot be a Portuguese tax resident in the preceding five years.
Great holiday destinations and activities
If you plan to settle in Portugal through investing, you are lucky because the country is home to many pristine beaches and holiday destinations. Furthermore, the country is known for its famous surfing destinations thanks to its wind and high swell sizes. Nazaré, Algarve Coast, and Ericeira are some of the well-known surfing spots among many others.
Retirees are also attracted to Portugal due to the stability and the slow pace of life in the country. Furthermore, the country offers them several communities to get in touch with other foreign retirees as well as many golf courses.
Promising real estate market after Covid-19
Covid-19 has affected the real estate market in Portugal positively, says the Cushman & Wakefield’s Marketbeat Portugal report. It emphasizes the way Portugal handled the virus and how it maintained international buyers’ interest.
PwC also released a report regarding the real estate market in Europe. Emerging Trends in Europe 2019 listed the major European cities according to their overall investment and development prospects. Accordingly, Lisbon takes place on the top. The report shows that “Portugal’s economy is growing healthily and its capital is now an international destination for companies, investors and tourists.” Furthermore, “Interviewees cite the city’s “quality of life” and “positive” leadership. Plus, it’s seen as a late-cycle play.”
