Portugal welcomed over 1 million foreign residents in 2023, marking a significant 33.6 per cent increase from the previous year.
This sharp rise highlights Portugal’s growing appeal as a top destination for expatriates, particularly for those seeking residency through the coveted Golden Visa scheme.
Portugal’s Golden Visa surge: US citizens lead the pack
According to a recent report from the Agency for Integration, Migration, and Asylum (AIMA), Portugal’s Golden Visa scheme saw a remarkable increase in demand, driven by US citizens who submitted 567 applications, a whopping 162.5 per cent increase in just one year. The UK made 234 applications, making them the third largest group of applicants in Portugal’s Golden Visa programme. Other significant nations that applied were China, Brazil and India.
This sudden uptick in interest reflects global geopolitical uncertainties and economic factors, as expatriates from countries like the US and UK seek secure investments, European lifestyle perks, and access to the EU market, especially in the post-Brexit era.
Portugal’s expat boom: 1 million+ foreign residents
According to government data, Portugal’s foreign resident population surpassed 1,044,606 in 2023. Brazilians made up the largest share, accounting for 35.3 per cent of total foreign residents. Expatriates from across the globe, including African countries, were also drawn to Portugal for its attractive lifestyle, good weather, and economic opportunities.
The majority of foreign residents tend to settle along Portugal’s coastline, particularly in Lisbon, Faro, and Setúbal, which account for over 63 per cent of the expatriate population.
Pros and cons of living in Portugal as an expat
While Portugal remains a top choice for expatriates, it’s important to weigh up the pros and cons before moving there. Here are some topline pros and cons of living in Portugal:
Pros of living in Portugal
– Pleasant climate and beautiful scenery: The country’s Mediterranean climate, picturesque coastline, and rich cultural heritage make it a desirable place to live for those seeking a stress-free lifestyle.
– Affordable public transport: Portugal has recently introduced a new €20 unlimited rail pass, making travel across parts of the country cost-effective.
– Favourable tax policies for property investors: Portugal has scrapped the 15 per cent tax on holiday rentals, backdating to 2023.
Cons of living in Portugal
– Rising housing Costs: Many locals are concerned about Portugal’s surging house prices and rents. In fact, protests have taken place due to affordability issues in major cities.
– Growing expat communities: While the expatriate boom is a sign of Portugal’s attractiveness, it has also led to higher competition for prime properties. Celebrities like Prince Harry and Meghan Markle have reportedly expanded their property portfolio into Portugal, which will no doubt attract more high-profile investors.
The benefits of Portugal’s Golden Visa
The Portugal Golden Visa remains one of the most sought-after programmes in Europe, allowing non-EU citizens to invest in property or businesses in exchange for residency. Expatriates see this as an attractive pathway to enjoying the Portuguese lifestyle while gaining access to the entire Schengen Area. Read more about what the Schengen Area is here.
Additionally, with an investment threshold lower than what other European countries are offering, Portugal’s Golden Visa is accessible to a wider audience than ever before. Currently, to qualify for a Golden Visa in Portugal, you need to make a minimum €200,000 contribution to cultural heritage in low density areas. This is significantly lower compared to other countries such as Spain, where the minimum investment required is €500,000 in property across the board.
As noted by Get Golden Visa, it’s “no longer just the ultra-wealthy seeking additional residency”; more families and individuals are now exploring their options as it’s become more accessible in the last decade.
Portugal’s future residency trends
As political and economic uncertainty persists worldwide, the demand for secure residency through investment is expected to grow. Portugal’s position as a desirable destination is likely to remain strong, with its favourable climate, stable economy, and attractive investment opportunities, making it a top choice for expatriates seeking a new life abroad.
