Unique history and cultural heritage… You are probably aware of the reasons why Portugal is known as a tourist destination. 3000 hours of sun all year, mild climate, and almost 900 kilometeres of golden-sand beaches make this one of the best holiday destinations in Europe.
But as a European haven for tech hubs and thanks to its residency and citizenship programmes, the country is also attracting recognition as a top option for investment.
Back in April, the European Central Bank ranked Portugal as the second-best country in Europe for business innovation, a status that helps explain why there are already seven unicorns (startups valued at over 1 billion dollars) registered in the country. There is even a new tax incentive, the IFR, that allows companies an IRC tax deduction of up to 25% of their investments.
And for those with an eye on real estate investment, the market remains strong as the country bounces back from the pandemic. Banco de Portugal, the country’s central bank, projects 4.5% of growth in the real estate market for 2022. For nationals from the United Kingdom, that means that Portugal will remain as accessible as before and investments will be as easy as they were.
D7 Visa: an option for investment after Brexit?
Since 2022 started, high-density areas like Lisbon or Porto are no longer eligible for the Golden Visa programme. But you can still invest in less dense areas, where the cost of living is cheaper, and in commercial real estate in those more competitive areas.
On the other hand, British tourists and homeowners can still spend up to six months a year at their Portugal-based homes. If you’re favouring a longer stay, however, and have no desire to commit to the investment necessary for the Golden Visa, the D7 Visa is the option to think about. Expats granted the D7 Visa are allowed to reside in Portugal and travel within the Schengen Area. Naturally, this means the ability to study, kickstart your own business, or work, but it is also a shortcut to benefit from the Portuguese Non-Habitual Resident (NHR) status.
Even though the name suggests otherwise, this is a tax regime addressed to those who become residents of Portugal. Under the NHR scheme, foreign-source income and capital gains will be generally exempt from income tax.
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