5 Reasons to invest in Portugal
Portugal is one of the most promising countries of the European Union with ideal investment conditions. It has an effectively functioning democratic government which makes the investors feel politically safe and secure. It is also one of the fastest-growing tourist destinations in Europe with beautiful beaches and historic architecture. Portugal is sunny for almost 276-300 days in a year with a comfortable climate. It has been one of the top-ranking Best Tourist Destinations in the year 2020. Moreover, the crime rate in the country is very low and most crimes are non-violent. The country also has a robust healthcare system and high standard education facilities resulting in a young healthy and educated workforce. In ”Doing Business Rankings”, Portugal ranks 39 globally. Here are a few more reasons to appreciate Portugal for the beauty it is when it comes to an investment as well-
- Golden Visa for non-EU residents- Launched in 2012, this strategy has been the most successful in attracting investors across the globe. Golden Visa applicants have the right to live and work in Portugal. It also prevents any tax liability unless the individual spends more than 183 days in Portugal. It provides a wide array of affordable investment options such as Real Estate Acquisition, Fund Subscription, Capital Transfer, Company and Donation. The applicants can apply for citizenship and permanent residency in Portugal, leading to a passport after holding this Visa for five years. The passport mentioned will allow the user to work, study anywhere in Europe.
- Favourable Tax Regime– Portugal boasts of such an impressive tax regime that it got titled by PWC as ‘Europe’s best-kept secret’. Launched in 2009, the NHR tax regime allows the individuals relocating to Portugal a tax exemption on certain varieties of foreign income including pension. Before April 1, 2020, under the NHR regime, most of the foreign pension was considered tax-free. Those who qualified for the aforementioned exemption continue with the same for the remaining ten years under their ten year NHR period. However, those arriving after the given date would now have to incur a 10 % tax. This figure is still much lower than other countries. Under the NHR ruling, the foreign nationals in Portugal would have their income taxed at 20 %. This figure remains unchanged even in the current year.
- Friendly Legislative System– Portugal boasts of a very friendly legislative system for the protection of buyers and market regulation. The purchase costs on investments and the financial risks are low since rates such as inflation rates; interest rates etc. are controlled by the European Bank. It has also become much easier to invest here because of reforms in competition laws, employment market and tax laws. The legislation has been made in a manner to attract more and more foreign investors.
- A steadily growing real estate sector– The sandy blue beaches and contemporary constructions found here have led to a spurt in investment in the real-estate sector of the country. Lately, it has shown remarkable growth. The surge in this sector has also given a home to all multinationals that plan to expand and grow in Portugal. The process of acquiring a property is also very simple and swift as compared to other countries. Also, since the country attracts a huge number of tourists, the rental properties have reduced leading to a swell in rental prices much to the pleasure of investors. Lisbon is one of the destinations where the real estate sector is optimistic and is bound to stay so. Also, the attractive real estate prices in Porto, Lisbon and Cascais are so attractive that a large percentage of them have been sold to foreigners in the previous few years.
- Safety- Portugal is the safest country in the world with a very low crime rate. This climate of safety and security in the country is another reason for investors to come and invest here. According to the global peace index of the year 2021, Portugal is the third most peaceful country in the world.
Lately, more measures were taken to draw investors such as improving logistical support and warehousing facilities. The country’s economic revival has encouraged investors by boasting of factors such as skilled and cheap labour, various tourist attractions and tremendous infrastructure. Many multinational corporate giants such as Amazon and Google have also chosen Portugal as their technology centre. A country that has bounced back from economic crisis to an economic revival with such panache is sure to stay a loved destination for tourists as well as investors.
Feel free to contact me and learn more about the opportunities we have in Portugal.
Phone: +44 – 20 3575 1010