Why People are Moving to Portugal?
The pursuit of a sustainable life will continue to draw people to the generous, beautiful (and still affordable) Portuguese terrains...When searching for places where people can live a healthy and sustainable lifestyle, Portugal is always on top of the list.
Portugal Offers Great Work-Life Balance
The majority of investors say that their main motivation is to escape the rush of metropolitan life and to find refuge in Portugal. This is especially the case with the British people. They fall in love with the Portuguese countryside, yet they are still close to the city that they can rush to their surfing community once done with their meetings. It’s a great place where they can find the right work-life balance.
Property Prices Still Affordable
Although Portugal has been on the radar of international real estate investors for so long, it’s still possible to find properties that are affordable. Many investors are rushing to get farmland and town houses close to the cities, while the prices are still attainable.
Getting Residency Is Another Motivation
The long-awaited changes to Portugal Golden Visa finally came into effect at the beginning of this year. It might take time for some investors to digest the new rules — such as the end to residential property acquisition in Lisbon, Porto, or along the coast.
Although, there is another group that believes in the growth potential of interior and low-density areas, they’re still interested in the real estate route and have already started their search.
A Perfect Base for Young Expats
The thriving digital migrant community in the country has started a buzz among millennials who are looking for more freedom along with many opportunities. Portugal, especially Lisbon, offers many coworking spaces where they can meet fellow nomads. I believe the rising interest from these young professionals has made a positive impact on Portugal’s popularity as a newly emerging hub. The crypto investors who want to enjoy the country’s tax-free crypto regulations are other contributors to this growing ecosystem.
Portugal has a competitive taxation system. Portuguese tax system is one of the most generous in Europe and quickly becoming a popular destination for expats from the UK and other countries.
For high-net worth individuals, the Portuguese tax system is particularly favorable and combined with other factors, including being one of the leading countries for R&D into new technologies.
For a example, the flat rate on personal income for non-habitual residents is 20%, regardless of the level of income. The current highest income tax band in Portugal charges 48% tax on income, which is a massive difference.
Aside from the flat rate 20% income tax, there is a reduced or deferred tax rate on dividends or other income from investments – and in some cases the income may be exempt from tax.
Also there is also no inheritance tax, gift tax or wealth tax in Portugal for non-habitual residents. For people with pensions there is beneficial tax treatment for income received from pensions and other life insurance products.
Know how to become Non-Habitual Residents in Portugal.
Portugal Has It All
Apart from the above reasons, Portugal has everything people look for: good weather, delicious food, nice beaches, and rich culture. It’s the fourth safest country in the world and the third one in Europe. It also has proven itself as a safe harbor against the current war against Covid-19, without the tension that has troubled other parts of the world. This also explains the increasing demand from Australians, Canadians, and Americans who are looking for tranquility in Portugal.
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