The Portugal Golden Visa program has been attracting investors since its inception. And despite the recent 2022 changes, it continues to see new investors willing to combine the possibility of applying for a residence permit, while also diversifying their portfolio of investments.
In addition, the Portuguese economy continues to grow, even with all the recent uncertainty scenarios across the world’s economy.
Real GDP growth is forecasted to increase by 5.4 percent in 2022 and 1.8 percent in 2023. Public investments, supported by European Union funding, and the return of tourist exports are expected to boost economic activity. However, the ongoing conflict in Ukraine, supply chain disruption, and higher oil and gas prices will dampen business sentiment and consumer spending. Inflation is anticipated to rise to 6.3 percent in 2022 and 4 percent in 2023.
But investors are still flocking to Portugal even with all those recent factors being priced in. And its golden visa program seems to continue to be the most attractive these days in Europe, with more foreign investors choosing Portugal over other similar programs.
There are some more obvious reasons, that are generally pointed as the main attractive factors for investors to consider the Golden Visa Portuguese program, specially the following:
- Starting from €250,000, there are affordable investment options available. This has been the main factor when comparing to other golden visas. The Portuguese program has one of the lowest barriers in terms of investment needed.
- Tax benefits: visa holder residents don’t need to pay additional tax on their earnings made abroad. A great option as it allows investors to directly benefit from Portugal’s Non-Habitual Tax Regime or NHR.
- Access to the Schengen Area giving permanent free entry and movement throughout 26 nations in the EU & visa-free travel to 183 nations. For non-EU investors, this has served as a first entry to the EU zone and something which has been attracting citizens from all other continents and countries.
- Short stay requirement: when compared to other golden visa schemes, you are only obliged to reside in the country some days every year, during your 5 years golden visa timeline.
- Portuguese citizenship: even though investors don’t have a direct path to citizenship like in Caribbean citizenship by investment programs, once an investor becomes a resident, they can apply for citizenship after 5 years. This is another reason why many people choose the Portugal Golden Visa Program. It gives them the opportunity to become a citizen of Portugal, and therefore gain access to all the rights and privileges associated with it.
The 5 Not So Obvious Reasons Why Golden Visa Portugal Continues to Attract Investors
#1. Low Cost of Living
According to the World Bank, the average monthly salary in Portugal is $2,000. This makes it easier for foreigners to live comfortably in Portugal.
With such a low cost of living, it is possible for foreigners to save money and invest in real estate or other projects at the same time.
#2. Attractive Investment Opportunities
There are plenty of investment opportunities available in Portugal. This makes it easier for foreigners to invest in real estate, agriculture, manufacturing, and tourism.
For instance, property prices in Lisbon have increased by nearly 50% in recent years. As a result, many investors are starting to buy properties outside of the main cities, attracted as well by the recent changes to the program that have been settled to attract more investment to interior and low-density areas of the country. Other popular investments include vineyards, olive groves or cork production.
#3. Highly Skilled Workers
Portuguese workers are highly skilled. They speak English fluently and are willing to learn other languages.
This means that it is much easier for foreigners to find jobs in Portugal than in other countries as well as to move the company’s headquarters to Portugal. Start-up and entrepreneurship scenes in the biggest cities like Lisbon and Porto, also help founders to launch their businesses easily while enjoying a cosmopolitan environment.
Lisbon has been a hot spot for global entrepreneurs, by providing them with an international atmosphere, while having access to a large pool of talent.
#4. Access to High Quality Education and Healthcare Systems
Portugal has one of the highest quality health and education systems in the world. As a result, it attracts families within different age ranges.
While parents have different international school options, once they get a residence permit they are allowed to access the national education system, with a network of quality public schools for different ages.
As for the Portuguese health system, and while its also true that you have different private hospitals in the country, many opt to go to the national health system which has been praised as one of the best in Europe.
The fact that it’s almost free, as you just need to pay for some small fees depending on the health issue you are dealing with, it’s something quite surprising for many citizens of other countries in the world. This makes it one important factor, from citizens that live in other countries like the US, and has been attracting elderly persons willing to live their retirement days in a warm climate while having access to a good public health system.
Students come to study abroad in Portugal because of its excellent educational system.
#5. Safe Environment
Portugal is known for its safe environment. There are no major criminal concerns in the vast majority of the territory, even though in larger cities there are occurrences of some types of crimes typical to big cities, but mostly concerned to some areas.
In general, crime rates are lower than in other European countries. The main concern is theft and pickpocketing, especially in touristy places like beaches and the city centres of Lisbon and Porto.
But for the vast majority of places you visit or live in Portugal, you will feel comfortable while moving to Portugal.
