Portugal’s economy has been steadily growing and expanding for the past 5 years which has resulted in a continuous fall in the unemployment rate, this boom is accredited and fueled by the growth of many industries such as the tourism, real estate, tech, and exports, and it is also accredited to having a world-class infrastructure, along with highly qualified young workforce and high standards of investment protection.
The Tourism sector in Portugal has been growing rapidly in the past few years due to the government’s strategy and vision which is backed by strategies that are directed towards making Portugal a year-round tourism destination, which will create a lot of jobs for its population, an example of such initiatives is “Tourism 2027”, and the REVIVE project which is intended to revive the state heritage property in order to make it suitable for tourism-oriented activities.
The real estate and housing market in Portugal and especially in Lisbon is ranked as one of the highest and best property investments destinations in Europe, and unlike other countries, the Portuguese government has not tightened the rules on foreign ownership or increased property taxes, it implemented many incentives which have made Portugal an increasingly desirable destination.
The government of Portugal offers many incentives to individual and businesses that is located on its jurisdiction, one of these incentives which the Portuguese government offers to individuals is the non-habitual resident program which was introduced to build the country’s competitiveness, it allows international business people to benefit from several tax breaks such as, the personal income tax treatment for a period of 10 years, the possibility of tax exemption on all foreign-sourced income, and they can enjoy a flat 20% flat tax rate on Portuguese sourced income which is a considerably lower rate than the normal Portuguese tax rates which can reach up to 48%, by obtaining the Golden Visa in Portugal, you can maintain your right of residency and be a non-habitual resident and enjoy the further exemptions on wealth, gifts and capital gains taxes.
The Portuguese government also offers investment incentives to promote new investments through different programs such as “Portugal 2020” which was established through a partnership between the EU and Portugal which covers the period from 2014-2020, and through the Investment Tax code which offers tax incentives for businesses, where investments of at least 3,000,000 Euros can benefit from tax credits, exemptions and reductions of Municipal property taxes, and stamp duty exemptions for the purpose of growing the Portuguese economy, and through focusing on certain industries by implementing a system for monitoring and facilitating projects of “Potential National Interest” which is called “Projectos de interesse Nacional”.