Europe is comprised of 51 countries, and the EU includes 27.
Among these, Portugal is one of the best options for anyone looking for a place to live, to invest, or to formulate a Plan B in Europe.
Last year the country made headlines for enacting policy changes that impacted its desirability as a retirement haven.
First, it removed the real estate option (the most popular and affordable) from the list of investment classes you could choose from to qualify for residency via its Golden Visa program.
Next, the government declared an end to the country’s Non-Habitual Resident (NHR) regime. The NHR provided tax exemptions to foreign residents for up to 10 years, and applied special tax rates to certain types of income—pensions, for example, were taxed at a flat rate of 10%.
As a result, Portugal is now slightly less advantageous in terms of its residency policies, and is less tax-friendly for foreigners. But the country still has a lot to offer anyone considering an overseas move…
While the real estate option is gone, the Golden Visa remains for those looking to invest in venture capital funds, make donations to the arts or scientific research, or create jobs.
Portugal also offers the D7 or Passive Income Earner visa, which you can qualify for quickly and easily with about 1,500 euros of monthly income. It grants holders the right to live and work in Portugal and the opportunity to qualify for permanent residency or citizenship in Portugal after five years.
A move to Portugal is also a lifestyle play…
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The country’s sunshine has been attracting Northern Europeans for decades. The Algarve enjoys more than 3,000 hours of sun a year, more than most any other destination in Europe. While summers can be warm, even hot by some standards, reaching into the 90s F, most of the year is comfortable, with lows in the 40s F during December and January.
Granted, prices are higher than when Kathleen and I began spending time in this country a decade ago… but, still today, when we return, we continue to be struck by what a great bargain this place can be. You can take a friend out for a nice dinner in a nice restaurant for 25 euros a person, even in the heart of the tourist zones. Venture off the tourist path in the Algarve, and you can enjoy an excellent meal for less than 15 euros a person. You’ll have more fun, too.
Another significant benefit for anyone shopping for a Plan B destination is that you don’t have to learn to speak Portuguese if you don’t want to. Many locals speak English. While some may not be able to debate global economics with you in English, I’ve met few Portuguese who couldn’t get by in English, and in my experience many are fluent.
This is Continental Europe with all the cultural trappings you associate with that status. Portugal is also one of the most historically rich points on the planet, and Lisbon is the second-oldest European capital (after Athens), four centuries older than Rome.
Old maps of Europe show the southwest corner of Portugal as the end of the world. This country is surrounded by water and Spain, meaning limited access. As a result, Portugal has largely been spared the refugee crisis that other European countries have recently struggled with.
Portugal enjoys low violent crime rates and is ranked as one of the safest countries in the world. The only real safety concern is petty crime in the tourist areas.
You have good options for daily flights from the United States to Lisbon. From there you can connect or drive easily to anywhere else in the country. From Lisbon, Faro, and Porto, you have many direct flight options to destinations across Europe.
All things considered, Portugal is one of the very best options for living or investing in Europe.
Maybe even in the world.
Stay diversified,
Lief Simon
Editor, Offshore Living Letter