Portugal, a holiday destination but not only.

Why such a strong interest for Portugal?

This southern European country still not so popular not so long ago, has become unmissable. Portugal was well known as a holiday destination for Brits, Germans other Europeans and Scandinavians who were mostly going there to enjoy the sandy beaches of the Algarve or the Silver Coast that spreads between Lisbon and Porto.

The capital city of Lisbon and the city of Porto are anchor stops for many cruise liners who tour the European Shotres and the Mediterranean but aside from that were not visited as many other European cities.

This seems to have changed since Portugal introduced the Non Habitual Resident status widely known as NHR in 2010. This favourable tax status was created to attract European pensioners come and spend their retirement here while paying no taxes at all. They are now subject to a flat 10% tax on their retirement perceived from other European nations which is still much more beneficial than staying in their original countries.

The Portuguese Government has extended this NHR status to more profiles in order to attract highly skilled individuals as well as high-earners to attract skills and capital to the country. Since then, thousands of people with varied profiles from all over the world have been coming there and settled for mid or long-term.

Despite its location in the Southern-Western part of Europe, Portugal is easily accessible by air. The country boasts 3 major airports, Lisbon is the largest and the one offering more long-haul connections. Porto is a busy airport too and offers direct flights to many European cities. Faro, in the Algarve, is more seasonal than the other 2 airports considering that the Algarve remains a Summer destination.

It is home to several cultural events all year long and each major city or smaller town organises its own festivals. It can be linked to a religious event or the celebration of some Saints, a music festival, an art festival, or something related to its culinary delicacies. 

Whether they are retirees looking for a peaceful residence, young workers looking for a new challenge, entrepreneurs from various sectors and more particularly active in the textile industry and start-ups specializing in technologies and fin-tech or even students who wish to benefit from the quality of university education, Portugal seduces!

This enthusiasm for this country of nearly 10 million inhabitants creates some pressure on the real estate market, whether in terms of rental or purchase. Indeed, Portugal extends over 92,000 km², which is almost six times smaller than France and three times larger than Belgium. The urban areas where the majority of the population is concentrated are reduced to a few cities located in the north of the country such as Porto, Braga or Coimbra, in the center in the Lisbon region and the south in the Algarve mostly in Faro, Loulé, Albufeira, Portimão and Tavira.

What are Portugal main’s selling points?

The quality of life, the mild climate, the gastronomy, the superb beaches, the relatively low cost of living, the safety, and the breathtaking landscapes are the first assets of that those who plan to come and drop off their suitcases in Portugal think of.

The landscapes are varied from north to south: long stretches of beach as far as the eye can see, wild mountains, vineyards, historic cities, green countryside… It is impossible not to find an environment in which you will flourish.

The Portuguese are very welcoming, warm and benevolent. They are very open to other cultures and many of them master foreign languages such as French and English, which greatly facilitates the integration of our compatriots.

Portuguese gastronomy is very rich and diversified in the different regions of the country. Due to its culture and geographical position, the basis of gastronomy is healthy: olive oil, fish, fruits and vegetables are given pride of place in most dishes. Those with a sweet tooth also particularly appreciate the unmissable “Pastéis de Nata” whose original recipe is kept secret. Purists have their favorite supplier, but the best are available in Belém, near the Jeronimos Monastery where the recipe was invented.

Portugal has no less than 17 wine-producing regions which produce very different types of wine. Anchored in an ancestral tradition, wine culture is an integral part of Portuguese heritage in regions such as Douro, Dão, Bairrada, the Lisbon region and Alentejo where very fine wines are produced which have been awarded several medals. Let’s not forget the famous sweet wines of Port, the moscatels of the Setúbal region and the famous wines of Madeira, renowned for their exceptional flavors throughout the world.

Portugal is also a dazzling historical and architectural heritage throughout the country, with many ex-libris classified as World Heritage by UNESCO.

A surfers’ paradise

With more than 800 kilometers of coastline on the Atlantic Ocean, surfers from all over the world appreciate Portugal for the quality of its waves. In Portugal, it is possible to surf in summer and winter, you just have to choose the right spot. Places like Ericeira, Peniche, Caldas da Ranha, the Costa da Caparica, but also the beach of Carcavelos which is 20 minutes by train from Lisbon, are internationally renowned spots in the world of surfing. In Nazaré, only professional surfers and the most daring dare to rub shoulders with the giant waves over 20 meters high!

Play golf all year long

Portugal is also one of the most coveted destinations for playing golf all year round with an average outdoor temperature that allows you to enjoy playing golf even between April and November. This pioneering country has not hesitated to develop golf courses throughout its territory and thus attract passionate players from all over the world.

Tax exemptions

In addition to the wonderful living environment offered by Portugal, the Portuguese Government is very creative in offering total or partial tax exemptions to several categories of people, mainly thanks to the special status of Non-Habitual Resident, more commonly known by its acronym, NHR.

This advantageous tax status allows European retirees who choose Portugal as their main country of residence to pay only a fixed tax of 10% on their retirement income for a non-renewable period of 10 years. This status also extends

Visas – Golden Visa (GV), Digital Nomad Visa, D2, D3, D4 and D7
For non-Europeans, Portugal also facilitates entry into its territory by issuing specific long-term visas and the Golden Visa. Portugal has recently created a visa to attract digital nomads to come and work on its territory.

This is a first in Europe and proves that Portugal wishes to position itself as a privileged destination for these flexible workers who can work from anywhere in the world as long as they have a high-speed internet connection which is widely available throughout the country. In Lisbon and the surrounding region, fiber optic is the norm.

Golden Visa

The Golden Visa, created in 2012, allows individuals to obtain a multiple-entry visa on Portuguese territory – and therefore throughout the Schengen area – by investing a sum of 500,000 euros in real estate.

The growing popularity of the Golden Visa since its launch has been such that the Government introduced limitations in January 2022.

Due to soaring real estate prices and the popularity of the Golden Visa with nationals of countries such as the United States, Canada, Brazil, South Africa, Gulf countries and the Asian continent, the Portuguese government has decided to limit this visa to so-called “reduced density” areas. The regions of Lisbon, Porto, the Algarve and the entire coastline are unfortunately now not eligible for this visa.

Many people have already relocated to Portugal. Some of the new residents who came here on the NHR have left after 10 years when the favourable taxation stopped but some stayed for the quality of life. The diversity of the country, its unspoiled nature, vibrant Lisbon and Porto, chilled smaller towns like Leiria, Coimbra and Braga to name but a few attract different profiles. By looking at the demand for properties to rent long-term or buy, the attractiveness of Portugal remains strong.