Lisbon is one of the most important investment destinations in the world as of 2020. Thanks to Portugal’s Golden Visa program, the capital enjoys a huge investor interest since 2012. In fact, the interest is so much that the government is taking precautions against imbalance in investment throughout the country. As a step towards that goal, Lisbon and Porto will be excluded from the program.
Why is Portugal So Popular?
Not just Lisbon and Porto, but Portugal in general is very popular among investors and expats. There are many reasons for the popularity of the country. First of all, Portugal has an amazing climate that showers the capital almost throughout the entire year. With more than 300 sunny days per year, Lisbon is a heaven within Europe. Also, the country benefits from Atlantic ocean breezes that cools the air during summer. There are amazing natural and architectural landscapes throughout the country. There are countless beaches for all tests. There is an extensive art, music, cuisine culture with some of the best wine in the world. Finally, of course, Portugal is a member state of the European Union. For many people, this quality alone is enough for persuasion. EU membership grants Portuguese citizens and residents to right to travel freely within the EU and Schengen area in addition to the right to work, study, and live in any of these countries.
Being a Non-Habitual Resident in Portugal
Portugal’s Non-Habitual Resident Program is actually different from the Golden Visa program. However, these two distinct programs often work out great deals when combined. For instance, the Golden Visa does not offer a lot to the EU citizens, because they already have the right to work, study, and live in Portugal. Being a Non-Habitual Resident (NHR), on the other hand, is another story.
If the applicant is not a tax resident in another country and has real estate in Portugal, it is possible to become a Portuguese tax resident, and that is when the NHR Program comes forward. If the applicant takes advantage of the NHR status with intricate planning with the help of a professional, they will enjoy countless tax benefits. For instance, with an accurate structuring, an NHR may not have to pay taxes on anything except for their Portuguese income for a 10-year period. Similar to the case of Lisbon and Porto in the Golden Visa Program, however, NHR is under threat of modification or even cancellation. Already under the pressure of the EU Commission, because of its unparalleled tax advantages, NHR will not probably around for long. Therefore, it is a good idea to hurry up and apply before it is too late.