Why are many real estate investors, new generation of working professionals, retirees & empty nesters moving to Portugal? A land of vibrant culture, music, art, sports, culinary, architecture and more, Spain is globally recognized as one of the best countries to settle in and experience a happy and content standard of living. Known for its agricultural and touristic sectors, Spain is aiming to diversify its economy across various sectors and transform into a technological and dynamic hub. Take a deep dive into the 10 reasons why Portugal is the new destination to live, work and play:
#1 Affordable residential properties and homes
Portugal offers a favourable cost-return ratio for real estate investment when compared to other European countries and cities in North America. Portugal is a desirable location for homebuyers and investors searching for value and return-on-investment due to its relatively lower prices per square feet.
Portugal offers a diversified portfolio to fit a variety of preferences and lifestyles, catering to a wide spectrum of real estate investors, first time home buyers, empty-nesters, and retirees. Portugal has a wide range of property types from stunning seaside houses, historic downtown flats, or rural getaways, different regions have various types to suit everyone’s needs.
Economic growth is projected 2.6 percent in 2023 for Portugal (Source: IMF), with an allocation of factors including private & public consumption, GFCF, exports, imports, hospitality, tourism, etc. 2023 marks a record year for Portuguese tourism as the three primary metrics for the Portuguese tourist industry are visits, overnight stays, and income. In the real estate section, Portugal continues to see rising demand with stable prices. The demand for housing continues to be strong despite the increase in prices. 2022 was also a record-breaking year for the Portuguese real estate market in terms of the total volume of transactions, in both residential and commercial real estate. (Source: Portugal – Chambers Global Practice Guides)
#2 Golden Visa Program for Immigration/EXPATs
The Golden Visa Program is going to be retained and restructured instead of its original cancellation direction. The new direction remains the core components, while striking a balance between real estate investment, foreign investors, and housing concerns. The program opens doors for investors interested in job creation, research and development, and cultural preservation.
The new investment opportunities, such job creation and investment in R&D, may draw a different kind of investor who wants to make a more significant contribution to the Portuguese economy.
Portugal offers a flat tax rate on income derived from foreign sources, making it a tax-friendly country for non-residents. The Non-Habitual Resident (NHR) program helps foreign nationals who intend to settle here or purchase real estate.
#3 Quality of Life
Spain has known to be one of the countries to have quality of life due to its weather, culture, work-life balance, health, social components, environmental quality, safety and more. Portugal is rated the best country to move to in 2023, according to Global Retirement Index List.
In 2022, Portugal was ranked as the sixth-safest country in the world in Vision of Humanity’s Global Peace Index. Its healthcare is 12th in the world for affordability and quality, ranked by the World Health Organization.
Spain was also voted the best country in Europe and the second in the world for expats, according to 2023 Expat Insider survey.
The Mediterranean diet, and mild climate are the top factors contributing to the quality. The cultural, sports & leisure offerings alone are enticing to local and expats.
#4 Lower cost of living
Properties in Portugal and other cities in Spain are generally affordable compared to other cities in Europe. Homes for sale in the Spain offer more homes at relatively lower prices and may usually include land.
Grocery costs are significantly lower in Portugal, as produce is grown locally, fish is caught from the vast coastline, and delicious wine is available for just a few euros a bottle. Public transport is also relatively cheap, making it easy to get around the country.
Spain has universal access to healthcare, offering relocated workers and foreigners practically the same healthcare services as Spanish nationals.
The education system is efficient and accessible. Public and private schools in Spain offer special programs such as English courses and bilingual education. With Spanish being the second most widely used language in the world, it attracts visitors from various Spanish speaking countries.
#5 Family-friendly, dynamic culture for retirees, working professionals
Portugal has a diverse range of lifestyle options and property styles. Depending on your preferences and tastes, Portugal provides various options from gorgeous cities apartments, quaint villages or cottage homes surrounded by stunning landscapes, coastal retreats, and vibrant waterfront communities.
If you are a working professional with a busy lifestyle, the metropolitan area is perfect for nightlight and entertainment. For retirees and empty nesters seeking peace, tranquility and/or a beachy lifestyle, the villas or cottages by the islands will be perfect location with the Atlantic as the backdrop for your lavish and naturistic sceneries.
#6 Digital Nomads
Digital Nomad visa has been announced earlier in 2023 to attract young professionals and digital creators that are able to work remotely. According to Flatio, Portugal is the number one on the list of the top ten favourite destinations to be a digital nomad. Coworking spaces are becoming higher in demand and accessible. The welcoming locals, relaxed lifestyle, and new styles of digital content in demand are embracing global trends.
#7 Rich and beautiful history
Portugal is one of the oldest countries in Europe. Its history is the combination of the story of Iberian tribes, Celtic peoples, the Roman Empire, Germanic kingdoms, and so much more. The history of Portugal, the mentality and way of thinking can be seen in the historic architecture throughout the city. It is to understand the stories told in the “azulejos” of the streets, the beautiful monuments, churches, and houses that you will see on every corner. This beautiful ‘Garden by the Sea’ is an enchanting and rich land full of stories and many traditions told in every small town.
#8 Sustainable living
There is a strong demand and need for developments to lower operating costs that drives the requirements for more environmentally friendly assets with greater potential for energy-savings. The regulatory limitations on the construction of logistics hubs have partly contributed to the scarcity of available space and the subsequent rise in rent. The same lack of supply has, however, motivated investors to concentrate on remodeling existing homes and starting brand-new projects from the ground up.
With efficient and stimulating workspaces becoming an increasingly important factor in talent retention for potential tenants, when it comes to hiring, high-quality, sustainable real estate (with BREEAM and LEED certification) It has become one of the top priorities.
#9 Cuisine & Lifestyle
Portuguese cuisine of mainland Europe’s westernmost country is deeply rooted in fresh, local ingredients. The finest seafood, sun-ripened fruits, lambs in flower-strewn meadows, free-range pigs munching acorns under oak forests. It doesn’t taste the same without them. Portuguese cuisine is influenced by Mediterranean cuisine and uses mostly seafood. From crispy whole sardines to dried and salted cod, these are must-try dishes in Portugal, Lisbon and beyond.
There are many lifestyle options in Portugal, whether you are looking for sports, water sports; crowded or relaxed environments, or anything in-between. Throughout the year, Portugal is home to numerous arts, music, cultural, and other festivals, and holidays worth celebrating.
The long coastline, green waves and laid-back attitude is ideal for healthy and active lifestyle enthusiasts. Ericeira, Portugal, famous being the surf capital of Europe, has seven world-class surf breaks along the coastline.
#10 Business Operations and investments
Doing business in Portugal just got a whole lot easier. The reason is not only that it is possible to set up a company in less than an hour (through the “Empresa na Hora” (local enterprise) mechanism), but also that tax procedures are simplified, some labor regulations are improved and It is also because measures are being promoted to encourage improvement and to increase workplace flexibility.
Portugal is characterized by significant improvements in various services such as banking services, telecommunications and renewable energy. Spain is a leader in her ATM network operations and is very open to innovation and investment in renewable energy. The country also boosts its new Startup Act as part of the policies to attract new entrepreneurs or investors.