Why British and American expats are choosing Portugal ?

There are several reasons behind Portugal's continued appeal, from its attractive cost of living to its tailored tax schemes and the resilience of its real estate sector

Economic recession: a global challenge

The global recession had a profound impact on countries such as the UK and the US, resulting in economic hardship and significant uncertainty In the previous year, inflation reached the highest level in four decades and gas prices soared.
Consumer confidence plummeted and markets fell by 20%. However, despite these challenges, both the United States and the United Kingdom have managed to avoid a major collapse, but the future remains uncertain.

The repercussions of a recession have been felt through job losses, falling wages and rising living expenses. On the other hand, Portugal managed to keep the damage under control, Portugal never exported as much as in the first three months of this year. In addition, tourism has seen significant growth, compared to pre-pandemic times.

Portugal's Call: A Resilient Haven for Expats

Portugal continues to be an attractive option for expats looking for a better quality of life. The country's upside can be attributed to several factors, including its stable economy, favorable climate, and impressive safety record being among the top 6 safest countries in the world. Additionally, Portugal has a reputation for its friendly locals and rich cultural history, making it an ideal destination for those looking for a more fulfilling lifestyle.

Factors that contribute to a high quality of life

Pleasant Climate & Nature: With its Mediterranean climate, Portugal offers expats warm summers and mild winters, creating an attractive environment for those looking for comfortable living conditions.

Welcoming places: The Portuguese people are known for their warmth and hospitality, making expats feel welcome and embraced by the local community.

Safety and Security: Portugal is consistently among the safest countries globally, ensuring a safe environment for expats to reside and work in peace.

Rich culture and history: Portugal's fascinating history and diverse cultural heritage provide expats with numerous opportunities to explore and appreciate the country's distinctive character.

Affordable life insurance: Expats in Portugal benefit from the availability of affordable life insurance options, offering them financial security and peace of mind with a reliable healthcare system.

Strategic location: Geographically, Portugal serves as a gateway to Europe and the US/Canada, facilitating travel and connectivity for expats looking to explore neighboring regions.

Cost of Living Comparison: Portugal vs. UK and USA

One of the most compelling reasons for expats to consider moving to Portugal is the country's lower cost of living when compared to the UK and the US. On average, the cost of living in Portugal is approximately 30% lower than in the UK and 20% lower than in the US.

This allows expats to enjoy a higher quality of life, with lower living expenses and potential savings on essential goods such as housing, food, transportation, and taxes.

Adapted tax regimes: attracting foreign residents

One of Portugal's most famous tax regimes is designed to attract foreign residents by offering significant financial benefits to qualified individuals.

Portuguese Real Estate Market: Opportunities and Trends

The Portuguese real estate market remained resilient, despite the recession, with continued growth, especially in the rental sector. Data from sources such as INE (Static Portugal) indicate that the Portuguese real estate market has maintained a steady upward trajectory, with demand for residential properties remaining strong and the supply of rental properties being low, driving high yields.

Households in Portugal continued to buy houses despite the current macroeconomic situation, so much so that the number of sales in 2022 was the highest ever.

The resilience demonstrated by the Portuguese real estate sector can be attributed to several important factors. Firstly, the country's stable economy has played a key role in sustaining the strength of the housing market over the past 5 years. In addition, favorable tax regimes have attracted domestic and international investors, stimulating further growth.

Are you considering moving to Portugal?
With its growing economy, affordable cost of living, and favorable tax policies, it's no wonder that British/American expats are flocking to Portugal in 2023/24. If you are interested in exploring the idea of living and investing in Portugal, please feel free to contact us