Many countries are facing challenges and uncertainty due to the global recession. However, Portugal has remained strong and stable amidst the turmoil. As a result, it has become a popular destination for expats seeking refuge from the recession, while countries like the UK and the US struggle to maintain their stability and growth.
Portugal continues to captivate those in pursuit of an enriched lifestyle. Its allure stems from a multitude of factors, including a robust economy, a delightful climate, and an impeccable track record of safety, ranking amongst the top 7 safest nations in the world. Moreover, Portugal's endearing population and vibrant cultural heritage add to its charm, making it an idyllic destination for those yearning for a more fulfilling lifestyle.
Unveiling the Keys to an Exquisite Life:
Among the myriad of reasons enticing expats to consider Portugal, its competitive cost of living stands tall when compared to the UK and the US. This promises expatriates a life of elevated quality, where living costs are within reach, leaving room for potential savings on essentials such as housing, sustenance, transportation, and taxation.
One of Portugal's most renowned tax regimes has been ingeniously crafted to entice foreign residents, offering remarkable fiscal advantages to eligible individuals.
The Non Habitual Resident (NHR) tax regime, which grants qualified individuals reduced tax rates on specific income types for a decade, has enticed an array of expatriates to embrace Portugal's allure.
Even in the face of economic downturn, the Portuguese property market has exhibited superb fortitude, experiencing a steadfast surge, especially within the rental sector. Data from the esteemed National Statistics Institute (INE) illustrates the market's unwavering upward trajectory, with residential property demand remaining vigorous and the availability of rental properties scarce, thus propelling exceptional yields.
In 2022, as reported by the INE, the Portuguese real estate market witnessed an unparalleled surge in house prices when compared to the preceding year. Even amidst the prevailing macroeconomic climate, Portuguese families have tenaciously pursued homeownership, leading to record-breaking sales in 2022.
The unwavering strength of the Portuguese property sector can be ascribed to several prominent factors. Firstly, the country's robust economy has commendably contributed to anchoring the property market's resilience over the past five years. Additionally, the alluring tax regimes have magnetised both domestic and international investors, fostering further prosperity.
Simultaneously, Portugal has captivated substantial foreign investments, thanks in part to its vibrant tourism sector and the immense popularity of initiatives such as Portugal's esteemed Golden Visa program, which has consistently fostered a robust demand for residential and commercial properties. However, direct real estate investment option for the Golden Visa is currently being discussed in the Portuguese Parliament and is expected to come to an end soon.
Portugal continues to be a popular destination for British and American expatriates due to its thriving economy, low cost of living, and attractive tax benefits. The country's charming allure is also a contributing factor to the influx of expats.
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