MAKING THE MOVE TO PORTUGAL
Relocating to Portugal from a non-EU country (including the UK) could be the best decision you’ll ever make.
Your dream is still within reach
Whether it’s politics, a global pandemic or even European conflict, very little can stand in the way of people following their dreams and relocating overseas. Portugal remains one of the safest, most stable, and friendliest countries in the world to live or invest in, and still offers a wide range of tax and immigration incentives for individuals from 'third' countries such as the UK, US, Canada and South Africa.
While laws and regulations change frequently, we’ve pulled together a few threads below to answer a few of our clients’ most commonly asked questions during their property search.
Why spend more time in, or relocate to Portugal?
We’re a small country with a big heart! Portugal has always welcomed visitors and new residents from around the world.
A kind climate with fresh breezes from the Atlantic Ocean ensures warm summers and mild winters. Three hundred days of sunshine in the Algarve region allows myriad year-round outdoor activities, and for the days it does rain, Portugal’s thriving cultural scene is accessible to all. What’s better than enjoying a lunch comprising fresh fish, grilled meat and vegetables alfresco every day of the year? And did we mention the amazing cheeses and fabulous wine? You really will find it all in Portugal!
Is it easy to buy property and spend time in Portugal?
In short, yes. Buying a property via a licensed real estate agent and conveyancer/lawyer is a straightforward and largely online process. Your agent and lawyer are there to guide you through the transaction, with several key milestones along the way. At legal completion (deeds), you receive the keys and the property is yours to move in!
How long can I stay in Portugal?
Many third-country residents may stay up to 90 days within a six-month period, up to 180 days in one year. Individuals or families may stay longer, providing residence permits are applied. These include the D7 Visa (for those with incomes derived outside of Portugal) and the D1 if you wish to work in Portugal post relocation. For freelancers and ‘digital nomads’ with sufficient income and capability to offer services in Portugal, a D2 visa is another flexible option.
Are there fiscal advantages to relocation?
Non-Habitual Residency ended in December 2023, however the revised version called Incentivised Tax Status Program (ITS) was introduced in January 2024, reducing income tax to 20% for validated applicants who wish to spend more than 183 days in Portugal each year and have professional income earned in Portugal.
Most foreign income, such as capital gains and dividends, but not pensions, are exempt from tax for ten years. General living costs in Portugal remain up to 20% less than in the UK and northern Europe. Considerations will need to be made for state or private healthcare and the purchase of motor vehicles, which are often more expensive than at home; however, new residents can import one car without paying duties if it has been owned for at least one year.
Is a Residence Permit the same as Citizenship?
No. After five years of holding a Residency Permit, it is possible to apply for dual nationality citizenship that provides a Portuguese Citizens card entitling unrestricted travel within the Schengen area. Successful applications are dependent upon several prerequisites that should be explained by an immigration professional.
Gaining professional advice.
It is essential to gain expert advice from an accredited immigration agency, legal entity, or wealth manager before relocating to Portugal. Once a decision is made, time is of the essence and preparing documentation may take longer to gather, notarise, and process than expected.
Living here
It’s easy to feel at home in Portugal.
There’s a great feeling of safety, neighbourliness and community spirit, and almost all services are as you’ll find in your home country. If you purchase property with Cerro Novo, we’ll help you find the right experts to discuss your requirements - before making decisions.
We only refer to professionals we’ve used or have been recommended by previous Clients. Our excellent aftercare services are always available, as is the superb service of our Property Management sister company. Always remember that while Portugal is a multilingual country, feeling comfortable with advice provided in your language is important. Please ensure your chosen expert is proficient in both Portuguese and English as a minimum. Learning some simple words and phrases in Portuguese will help you integrate more quickly and developing simple language and grammar skills will enable you to take a citizenship exam after five years of residency.
All individual situations are different, and regulations change. Therefore, immigration advice should always be requested from the Agency of Integration, Migrations and Asylum (AIMA), an immigration service company or a specialised law firm. We are happy to recommend reputable companies.