Portugal never ceases to seduce foreigners with its sun-drenched beaches and quaint Iberian towns.
According to the specialized Portuguese real estate agency APEMIP, the French represent 26% of investors in Portugal, followed by the British (18%), and then the Chinese (13%). Celebrity artist Madonna has been a regular resident in Lisbon.
Portugal is an ideal destination – it ranks high in the global index for quality of life, with year-round sunshine, stunning landscapes and world-renowned food and wine. The Portuguese are extremely gracious and friendly. Foreign residents can also enjoy some excellent tax benefits.
Average journey times:
- Paris – Lisbon: 2 hours 08 mins
- London – Lisbon: 2 hours 17 mins
- New York – Lisbon: 6 hours 52 mins
- Los Angeles – Lisbon: 11 hours 17 mins
- Sydney – Lisbon: 22 hours 03 mins
Property price per sqm: 1000 € to 3500 €
HDI ranking: 41 / 196 countries
HDI: 0.847 High human development index based on 3 criteria healthcare, education and longevity.
Big Mac Index: 3,67 USD
1 EUR = 1,13 USD
How can you live in Portugal
- Residency requirements:
EU nationals can stay indefinitely in Portugal. However, for stays exceeding 3 months, you will be required to register for a residence document. A temporary residence permit is valid for up to one year – and once you’ve held it for 5 years you will be eligible for permanent residence.
- Housing in Portugal:
The real estate market in Portugal is one of the most reasonable in Western Europe. Upon arrival, it will be easy to find a short term rental, as these are widely advertised and in abundance. Finding a long term rental will take a little bit more local research. When buying property, there are local agencies that can help facilitate the process. Though you may face a language problem, there are many foreigners purchasing in Portugal and it won’t be too difficult to get help.
Taxation:
You would be considered a tax resident of Portugal if you have spent more than 183 days in Portugal in one calendar year. These days do not need to be one consecutive stay, but are cumulative days. If you own and maintain a permanent home in Portugal, you may also be considered a tax resident regardless of your length of stay.
Normally, If you become a tax resident in Portugal, you will be liable for income tax on worldwide income earned. Your income tax rate is based on a sliding scale depending on annual income.
If you don’t meet the requirements above and are considered non-resident, you will be taxed only on income earned in Portugal.
However, it should be noted that in 2009, Portugal introduced a “Non-Habitual Resident (NHR)” tax regime to encourage foreign relocation. This regime applies to any foreign national living in Portugal. Under the NHR regime, foreigners who relocate to work in “high value” industries are subject to a flat income tax rate of only 20%. Other types of income which come from a foreign source are exempt from Portuguese taxation for 10 years. In order to qualify for the regime, you cannot have been resident in Portugal for the last 5 years. You must also be a tax resident of Portugal by meeting the requirements as previously stated.
Safety :
In terms of crime, Portugal consistently ranks as one of the top ten safest countries in the world. Aside from the random pickpocket and bag snatcher in tourist areas, violent crime is not a big problem. Due to the hot and dry climate, some areas of Portugal are prone to wildfires in the summer.
