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Cost of Living
Climate
Safety
Pollution
English Proficiency
Inexpensive (3/7)
Very comfortable (1/5)
Very Safe (2/7)
Very clean (1/5)
Very High (1/5)
Taxation Type: Residence-based
The Non-Habitual Residence (NHR) regime is available to new residents, under which, your worldwide income can be tax-free for 10 years.Sovereign Man's take:
Portugal is part of the European Economic Area (EEA), allowing its citizens to live and work in any other EEA country, plus Switzerland. (The EEA consists of 27 European Union countries plus Iceland, Norway and Liechtenstein.)
Portugal is one of Sovereign Man’s most favorite countries.
For starters, bordering Spain and the Pacific Ocean, Portugal is one of the continent’s touristic gems.
The country’s attractions include the vineyards of the North, the medieval villages of the Central region, and the glamorous southern Algarve region, famous for its resorts and golf courses.
And the cost of living is more than reasonable, attracting scores of digital nomads and retirees alike.
In fact, we think Portugal is a great option even for American retirees, considering the relative proximity to the US. (A direct flight from New York to Lisbon takes about seven hours.)
And it doesn't hurt that Portugal constantly ranks as one of the safest countries in Europe.
But outside of these obvious drawcards, Portugal has many other selling points.
First, you can obtain a flexible residency there through its world famous Golden Visa program. Investments start at only €250,000.
However, the Golden Visa only makes sense if you don’t plan to live in Portugal – on average, Golden Visa holders need to spend only seven days per year in Portugal.
Otherwise, the country’s D7 Visa for “people with means” should be a better choice – and it requires no investment at all.
Another reason to like Portugal – it currently does not tax crypto gains, making it a great option for folks sitting on unrealised crypto gains.
Portugal is also a great place to become a citizen. It takes only five years of residency to become eligible for naturalization, and the process is straightforward. Plus, a Portuguese passport is a great travel document.
And if you have any Portuguese blood in you, the country also enables you to obtain Portuguese citizenship based on your ancestry.
One thing to watch out for in Portugal is taxation. The personal tax rates there reach an astounding 48%.
However, thanks to the Non-Habitual Resident (NHR) tax regime, for the first ten year of your life there, all of your worldwide income becomes tax-free, while any of your Portugal-based income is taxed at a flat 20%. You need to apply for the NHR separately.
(And if you spend less than six months per year in Portugal, you won't become a tax resident there – in which case you won’t have to worry about Portuguese taxation at all.)
Portugal is also a great country in which to have a baby. Your new child will become a Portuguese citizen at birth if born in the country. But unlike in most countries in the Americas, there is a condition you will need to fulfill for this to happen – one of the child’s parents needs to have been a Portuguese legal resident for at least one year before the birth.
For starters, bordering Spain and the Pacific Ocean, Portugal is one of the continent’s touristic gems.
The country’s attractions include the vineyards of the North, the medieval villages of the Central region, and the glamorous southern Algarve region, famous for its resorts and golf courses.
And the cost of living is more than reasonable, attracting scores of digital nomads and retirees alike.
In fact, we think Portugal is a great option even for American retirees, considering the relative proximity to the US. (A direct flight from New York to Lisbon takes about seven hours.)
And it doesn't hurt that Portugal constantly ranks as one of the safest countries in Europe.
But outside of these obvious drawcards, Portugal has many other selling points.
First, you can obtain a flexible residency there through its world famous Golden Visa program. Investments start at only €250,000.
However, the Golden Visa only makes sense if you don’t plan to live in Portugal – on average, Golden Visa holders need to spend only seven days per year in Portugal.
Otherwise, the country’s D7 Visa for “people with means” should be a better choice – and it requires no investment at all.
Another reason to like Portugal – it currently does not tax crypto gains, making it a great option for folks sitting on unrealised crypto gains.
Portugal is also a great place to become a citizen. It takes only five years of residency to become eligible for naturalization, and the process is straightforward. Plus, a Portuguese passport is a great travel document.
And if you have any Portuguese blood in you, the country also enables you to obtain Portuguese citizenship based on your ancestry.
One thing to watch out for in Portugal is taxation. The personal tax rates there reach an astounding 48%.
However, thanks to the Non-Habitual Resident (NHR) tax regime, for the first ten year of your life there, all of your worldwide income becomes tax-free, while any of your Portugal-based income is taxed at a flat 20%. You need to apply for the NHR separately.
(And if you spend less than six months per year in Portugal, you won't become a tax resident there – in which case you won’t have to worry about Portuguese taxation at all.)
Portugal is also a great country in which to have a baby. Your new child will become a Portuguese citizen at birth if born in the country. But unlike in most countries in the Americas, there is a condition you will need to fulfill for this to happen – one of the child’s parents needs to have been a Portuguese legal resident for at least one year before the birth.
Service Providers available in Portugal in Sovereign Man's Rolodex:
- Immigration (residency, citizenship)
- Full relocation services (real estate search, bank account opening, driver's licence, etc.)
- Tax advice (attorneys and/or accountants)
- Corporate services (company formation, etc.)
- Real Estate (agents, lawyers)
- Banking contact