Relocating to Portugal

Relocating to Portugal

Move to Europe’s expatriate paradise

There are many reasons someone may want to leave their home country. Advantages like lower taxes, lower cost of living, and accepting cultures are just the tip of the iceberg in the world of expatriation. Many financially-minded individuals are finding that by investing in countries around the world, they are diversifying their portfolios tapping into sectors not offered in their home economies, and gaining residency. Investors looking to quickly and easily earn residence in a new country look to countries that offer residence by investment options. These destinations grant high-earning investors the ability to come and go as they please, conduct business and work, and travel with ease in exchange for making a qualified investment. In 2012, Portugal paved the way for countries everywhere by establishing the Golden Visa. This specialized program was created to entice global investors by making it easy to earn residence. In this article, we look at what makes Portugal the expatriate hotspot that it is and how our clients can take advantage of the Golden Visa.

The benefits of relocating to Portugal

While the easy route to European residency is reason enough, Portugal has many qualities to entice our clients. The country is located in southern Europe on the Atlantic Ocean. This coastal destination attracts travelers and ex-pats from around the world. The cost of living is relatively low compared to some of its neighbors, so it’s a great place to retire or raise a family. Major cities are quite safe, and Lisbon has the lowest homicide rate of any European capital city. Ultimately, a significant fraction of ex-pats chooses because of the life they can achieve. Other clients are attracted to Portugal because of the climate, beautiful coastline, and great people. In the cultural hotspot, Lisbon, residents bask in nearly 300 days of sunshine throughout the year and comfortable temperatures. Portugal also has some of the best European beaches, urban forests, recreation facilities, and more.

Another attractive quality of Portugal is that when you earn your residency, you aren’t only granted easy access in and out of Portugal, but also visa-free travel in the entire Schengen region. So, even if you don’t want to live in Portugal permanently, you can still benefit from earning the residence. This can even simplify diversifying your portfolio by opening access to international markets and top-tier banks.

How to move to Portugal

It’s hard to argue the environmental beauty of Portugal, as well as its residency by investment program. The Portuguese Golden Visa is easily the best route to Portuguese residence. If you want the advantages above, it can be as easy as a single investment and with few regulations. Below we outline some of the requirements for the Golden Visa. They have a few options for investors, depending on the type of investment they would like to make. This is just a summary so if you are interested in the program, connect with Alpen Partners to act now and earn the Golden Visa.

On October 6th, 2023, Portugal’s government enacted the “Mais Habitação Law,” significantly reforming the Golden Visa program by eliminating real estate investments as a pathway to obtaining a Golden Visa. Despite these changes, the program remains active with revised investment options, such as venture capital funds, job creation, and support for artistic production or cultural heritage. These shifts aim to address housing affordability issues and redirect investments towards broader economic and cultural benefits.

Existing Golden Visa holders’ rights remain intact, including renewals, family reunification, and applications for permanent residency. New investment pathways include capital transfers of €500,000 or more in qualifying non-real estate venture capital funds, creating at least ten jobs, and investing in research activities. Additionally, investors can support artistic and cultural development through capital transfers of €250,000 or more, or by forming commercial companies with significant capital and job creation. These changes reflect the government’s intention to diversify investments into areas that can drive broader economic and cultural benefits.

The Portuguese government also plans to reintroduce the “Non-Habitual Resident” scheme to attract skilled workers, offering tax breaks on Portuguese-sourced income and foreign income. This scheme, originally launched in 2009, was extended until the end of 2024 for those prepared to move to Portugal in 2023. While the “Mais Habitação Law” has altered the Golden Visa program by removing real estate options, it continues to offer viable investment pathways. Prospective applicants must navigate this new landscape with careful consideration of the revised investment criteria, as Portugal aims to balance attracting foreign investment with addressing housing market concerns.

The visa needs to be renewed every two years and only requires holders to stay in the country for two weeks every two years. If you don’t spend more than 183 days in the country, you aren’t responsible for any Portuguese taxes. If you spend more than 183 days in the country in a year, you are considered a tax resident. Tax residents take advantage of a favorable tax regime that applies to foreigners. After a Golden Visa resident lives in Portugal for five years, they can apply for permanent residency, or after six years, they can apply for citizenship if they choose to do so. Many of our clients enjoy dual citizenship for easy access to see family or do business, while others want to renounce their home citizenship completely. This takes tax pressures off from unfavorable tax systems. Individuals never even have to live in the country to be granted a passport. There aren’t many requirements to qualify for the program. First, you must keep the investment during the term of your residency. Second, the money you are placing into the investment needs to come from a source outside of Portugal. You must also enter Portugal legally.

Relocate to Portugal with Alpen Partners

For years the Portuguese Golden Visa has been the perfect way for investors worldwide to earn permanent residence in Europe easily and diversify their portfolios, and you can too. This program set an example for other countries and influenced surrounding countries to create similar programs. Our experts can help you with not only this but all relocation services. Connect with Alpen Partners today if you want to explore all of your global investing and residence options.