Moving to Portugal? Here are some helpful tips from a fellow expat

Moving to Portugal? Here are some useful tips from an expat
Whether you're moving to Portugal for a certain lifestyle, to work, to join family, or to invest, an expat's advice can put your mind at ease.

1. Visit Portugal before making the permanent move
I moved to Portugal just over 7 years ago and, although it took me a while to settle in, I can confidently say that I love living here. The reality can often be different from what you see in brochures or in carefully curated Instagram feeds. Additionally, your experience can vary significantly from region to region. For this reason, I always recommend that friends and clients visit Portugal and explore different regions before moving here.

Portugal has several expat-friendly regions, including the Algarve, Lisbon, all with their own charm and lifestyle. Take a trip to Portugal to get acquainted. When exploring, consider your priorities, such as climate, cost of living, healthcare facilities, and proximity to amenities. There are many things that the internet simply can't capture.

2. Learn the language
While it's entirely possible to live with English, the general consensus among the expat community I spoke to is that knowing the language is a great advantage for settling down and living in Portugal. You also have to pass a language test if you want to become a naturalized citizen one day.

With patience and perseverance, it is possible to learn a new language like Portuguese, and it can even be fun. Get a head start before you leave by using a language learning tool like Duolingo or Babbel. The High Commission for Migration (ACM) offers online courses that can be used as a learning tool.

3. Be wary of facebook groups
While they are a great way to get to know the expat community in Portugal, share ideas, and build relationships with like-minded people, it can also be a recipe for disaster. Any information you find in these groups should be taken with a grain of salt, particularly when it comes to investment and tax planning.

Always seek professional advice whenever possible. As a qualified tri-regulated financial planner (EU/UK and SA), I have come across several instances where the advice of the right professional could have prevented problems from occurring or opportunities from being missed.

4. Familiarize yourself with the Portuguese tax system
Despite the many benefits of living in Portugal, understanding the Portuguese tax system is critical, especially when it comes to labor income and your social security obligations.

Non-Habitual Resident (NHR) Regime in Portugal
The Non-Habitual Residence in Portugal program is a tax regime established by the Government to attract residents and "high value" investors.

*Must be present in Portugal for more than 183 consecutive days or not, in any period of 12 months or less, but with the intention of maintaining and occupying, as permanent residence.

5. Don't forget about estate planning

Moving to another country means changing tax jurisdiction, and this can have an impact on your investments, goals, and future financial planning.

Once the decision to move has been made, it is important to consult with an international financial planning firm before moving abroad. Here are just a few of the key wealth considerations as an expat from South Africa, the UK, or the US.

Are you going to move from South Africa? Consider Your Life Annuities
If you have living annuities in South Africa or are close to retirement age to be able to qualify to buy one, they can be structured to make the most of maximizing offshore exposure.

Moving from the UK? Consider your pension
Legacy pensions may often maintain UK-centric portfolio strategies and are generally denominated in GBP.
As your circumstances change, the mismatch of responsibility becomes a factor and the need to align your investment strategy with your new circumstances would be a key discussion to have. QROPS are solutions that may be suitable for Portugal and there are several different solutions available.
The first step is to talk to a cross-border financial planner about whether your current investment structures will still work in Portugal or if there are more suitable solutions. Any necessary restructuring should be done before moving to Portugal.
These are just a few examples of the many ways in which moving to a new jurisdiction can impact your financial planning. We recommend that you speak to an advisor at least six months before you intend to leave to ensure that all of your financial structures are adapted to your new circumstances.

Note: This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations, or investment research. You should seek advice from a professional advisor before embarking on any financial planning activities.