If you’re thinking of moving to Portugal, here we’ll talk about the benefits of residency in Portugal. Many people who consider living for five years in Lisbon or other Portuguese cities, might wonder if permanent residency in the country is a great choice. Portugal offers a wealth of advantages for those seeking residency. This article dives into the many benefits of residency in Portugal, from tax breaks to a thriving healthcare system.
Quick Facts: Why Move to Portugal
Portugal is a beautiful country in the southwestern part of Europe on the Iberian Peninsula. It is known for its spectacular history, especially if you’re looking to explore historic cities like Lisbon. Places, like the sun-kissed Algarve, are popular in summer. There, you will enjoy a pure scene of nature as gorgeous beaches interact with astonishing coastal towns.
Portugal is also known for its mild climate all year round. It’s no wonder, tourists, retirees and families love moving to Portugal. Even, so amazing seafood and local cuisine are waiting to be explored.
Looking at these amazing reasons you might consider moving to Portugal. Let’s dig deeper to find out more.
Benefits of Residency in Portugal
Now let’s talk about the benefits of residency in Portugal. These benefits are suitable for everyone, whether you want to attend school in Portugal, train your kids, retire, or work in Portugal.
1) Tax Haven Status
Residency in Portugal allows you to benefit from the Non-Habitual Resident (NHR) program or newer tax programs guaranteeing lesser taxes on your foreign-sourced income. These reduced taxes go as low as 20% or even zero taxes in some instances. For instance, buying property in Portugal has a low property transfer tax of about 0 – 8%. There’s also no inheritance tax, but a stamp duty of 10% may apply if a distant relative or non-relative enters into an inheritance.
Also, small and medium-sized businesses enjoy reduced corporate taxes, especially for their first 50,000 Euros:
- As low as 17% in the mainland Portugal
- As low as 1.9% in the Azores and Madeira
- 12.5 in inland areas and for startups.
Taxable income exceeding 50,000 Euros is subject to a standard CIT rate of 211% in mainland Portugal, and 14.7% in Madeira and the Azores.
2) Affordable Lifestyle
By having residency in Portugal, you can live a quality lifestyle. Because, things are more affordable in Portugal, when compared to other European countries. For instance, housing costs are low, utility costs are less expensive, groceries, and transportation are cheap, and lots more.
A family of four can live on nearly $3000 (or 3,000 Euros) without rent, whereas a single person needs only $700 (or 700 Euros). Rents also range from $700 to $2000 depending on whether your apartment is located in popular areas or not.
3) Economic Stability
Another advantage you stand by having Portuguese residency is economic stability. Portugal has a very strong economy, and coupled with the Eurozone currency you will have little or nothing to fear. This can motivate you to invest confidently, because there is low financial risk, as the inflation rate is low.
Besides, you will find Portugal to be peaceful and conducive to business, with some tax incentives for some activities.
4) Free Trade Zone in Madeira
Another of the benefits of residency in Portugal is the Madeira Free Trade Zone. Here you can host businesses in sectors like telecommunications, trading, and manufacturing.
Companies registered with a Free Trade Zone license enjoy up to a 5% corporate tax rate on transactions licensed or foreign entities. However, Portuguese companies have a 14.7% standard tax rate.
5) Thriving Well-being
As a resident of Portugal, you will enjoy peace of mind since you will have access to an excellent healthcare system. And irrespective of your age, you will have access to quality education.
You will also find Portugal to be very safe since the crime rate is low. Another interesting thing is that the people of Portugal are very welcoming and friendly.
So, you can build powerful social networks easily. All these put together will certainly lift your spirit and boost your overall well-being.
6) Sunshine and Serenity
If you are a lover of sunshine and serenity then you will enjoy a lot as a resident in Portugal. Because its Mediterranean climate offers abundant warm weather, with all-year sunshine.
Besides, there are beautiful beaches and several peaceful places where you can chill and relax. Allowing you to enjoy a tranquil lifestyle and a smooth living.
7) Affordable Education
All citizens and foreigners enjoy free public schools. However, these schools teach primarily in Portuguese. There are also no queues in paid kindergartens, and study groups are usually up to 10 kids per group.
Plus, if you choose any of Portugal’s international schools, you’ll enjoy a variety of curriculum selections. Some private schools in Portugal also offer English, German, and French lessons, as well as lessons in other languages.
8) An Architectural Exploration
As a resident of Portugal, you will be soaked in its affluent cultural tapestry. Portugal was influenced by the Romans, Celts, and Moors. So you’ll enjoy amazing museums and historical places. These influences also show up in Portuguese seafood recipes and mouth-watering pastries. Plus, Portugal hosts multiple festivals and celebrations all year long.
How to get residency in Portugal
Step 1: Pick your visa option
Portugal has a variety of visa options that can open the pathway to residency, this includes:
- Portuguese work visa
- Portuguese long-term digital nomad visa
- Portugal D7 Passive income visa
- The Portuguese Golden Visa program
Step 2: Stay in Portugal for 5 Uninterrupted years
The majority of Portuguese visas require that you remain in the country for 5 years for most of the days of the year to be eligible for permanent residency. You’ll also need to pass the Portuguese proficiency test at the elementary level (A2). And that you were not convicted of crimes with a prison term of 3 years or more.
Newborn children of residents can also become Portuguese citizens, provided one of the parents has been in the country for at least one year. That said, residency for individuals married to citizens of Portugal is 3 years. This is also subject to some conditions.
Step 3: Start with the temporary residence permit
After arriving in Portugal, you need to make sure you pick up your temporary residency card within the first 60 days. Your temporary residency permit validity would be valid for 1 or 2 years depending on the visa program you came to Portugal with. After this time, you’ll need to renew subsequently until you’ve started for 5 years to qualify for permanent residency.
Step 4: Meet all the document requirements for temporary/permanent residency
When you’re in Portugal registering for your temporary permanent residency, ensure you have all the required documents. There are slight differences depending on your visa program but basically, these are the documents such as:
- Passport
- Recent photographs
- Evidence of means of subsistence
- Proof of adequate accommodation
- Certified criminal records
- Proof of healthcare and social security
- Proof of uninterrupted Portuguese residency
- Proof of investment, employment, or study acceptance letter.
Step 5: Mandatory registration with state authorities
Once you arrive in Portugal, make sure you register with the population or municipality register. This is one of the steps to getting a Portuguese phone number, paying your utility bills, and more.
Concluding Thoughts
There are many amazing benefits of residency in Portugal. You’ll find tax breaks, high-quality healthcare, and a relaxed affordable lifestyle. Whether you’re a retiree seeking a peaceful haven or a young professional yearning for adventure, Portugal could be your perfect match. If you’re ready to explore the possibilities of living in Portugal, check this article on the most important steps of moving to Portugal.
Frequently Asked Questions About The Benefits Of Residency In Portugal
What are the benefits of having a resident card in Portugal?
A Portuguese residency card allows you to freely live and work anywhere in Portugal. You’ll also enjoy visa-free travel within the Schengen Area, which includes 26 European countries, access to Portugal’s high-quality healthcare system, and access to excellent educational institutions. And after residing in Portugal for a specific period, you can apply for permanent residency or Portuguese citizenship.
How do you qualify for residency in Portugal?
Golden visa program, D7 passive income visa, and D2 startup visa are some long-term visas that can make you eligible for Portuguese permanent residency and citizenship.
Do you need to speak Portuguese to get residency?
While Portuguese language skills are not always mandatory for residency programs, basic proficiency can demonstrate integration and ease of communication.
Is dual citizenship permitted in Portugal?
Yes, Portugal allows dual citizenship. So you don’t need to give up your original citizenship. However, you’ll get the Police clearance certificate, and bank statements that show you can support yourself alongside health insurance to be eligible for Portuguese citizenship.
Are there tax benefits for moving to Portugal?
Favorable tax regimes as an employed, self-employed, or even freelancer in Portugal. Portugal offers potentially lower tax rates compared to other European countries.
How much does a Portugal residence permit cost?
The cost of a Portuguese residence permit depends on the program you pick. You’ll need to pay the government processing fees, and fees for your Portuguese tax number, as well as consider hiring a legal or immigration professional to help.
What countries can I travel to with a Portugal residence card?
A Portugal residence card allows visa-free travel within the Schengen Area, which includes 26 European countries like France, Spain, Italy, and Germany.
