movetolist
Home

Portugal

Portugal, located on the Iberian Peninsula in Southwestern Europe, is a country with a rich historical tapestry and a vibrant culture. Known for pioneering the Age of Discovery, Portugal's explorers like Vasco da Gama and Ferdinand Magellan opened up maritime routes to the East and around the world. Lisbon, its capital, is a city of colorful tiled façades, historical landmarks like Belém Tower, and a burgeoning culinary scene. The country is famous for its fado music, a soulful genre expressing saudade, a deep sense of longing. Portugal boasts diverse landscapes, from the Douro Valley's wine regions to the Algarve's beaches. Its language, Portuguese, is one of the most spoken globally. Today, Portugal is part of the European Union, known for its affordability, welcoming expat community, and initiatives in renewable energy. However, it faces challenges like an aging population and economic recovery post-recession.

last updated on Jan 01, 2025



Taxes

Individual tax rate: Moderate to High

Portugal employs a progressive tax system for individuals where the tax rate increases with income. For 2024, resident taxpayers are taxed on worldwide income with rates ranging from 13.25% to 48%. Non-residents are taxed at a flat 25% on Portuguese-sourced income. There's also an additional solidarity tax for high earners, adding 2.5% to 5% on incomes above certain thresholds. Portugal offers tax benefits like the Non-Habitual Resident (NHR) regime for new residents, potentially reducing tax on foreign income. Navigating the complexities of tax deductions, credits, and eligibility for special regimes can be challenging.
  • Challenges: Moderate to Hard, due to the complexity of tax laws, understanding eligibility for tax benefits, and the need for professional advice for optimization.
  • Source: Portuguese Tax and Customs Authority

Corporate tax rate: Low to Moderate

The standard corporate tax rate in Portugal for 2024 is 21% for mainland companies, with lower rates in the Autonomous Regions of Madeira and the Azores at 14.7%. Small and medium-sized enterprises can benefit from a reduced rate on the first portion of their taxable income. Portugal offers various incentives for businesses, including tax deductions for R&D and patent box regimes. However, understanding the full spectrum of corporate tax obligations, including VAT and local taxes, requires navigating through detailed regulations.
  • Challenges: Moderate, due to the need for understanding regional variations in tax rates and the complexity of tax incentives.
  • Source: Portuguese Tax and Customs Authority

Crypto friendly: Moderate

Portugal has become increasingly welcoming towards cryptocurrencies, with no capital gains tax on crypto transactions for individuals if profits are not considered part of business income. This has attracted crypto enthusiasts and investors. However, the regulatory framework is still evolving, with potential changes on the horizon as the EU moves towards harmonizing crypto regulations. Businesses dealing in crypto might face more scrutiny, especially regarding VAT and anti-money laundering (AML) compliance. The lack of a comprehensive legal framework might pose risks or uncertainties for some investors.

  • Challenges: Easy to Moderate, with the main concerns being the evolving regulatory landscape and potential future tax implications.
  • Source: Bank of Portugal

Bank account friendly: Easy

Portugal's banking sector is generally open to foreigners, with banks accustomed to serving international clients, particularly in areas with high expat populations. Opening a bank account can be straightforward if you have the necessary documentation like proof of residency or a NIF (tax number). However, language barriers can complicate processes, and some banks might require additional steps like in-person visits or minimum deposits. Non-residents might find it slightly more challenging, and wire transfers or international banking can come with fees and complexities.

  • Challenges: Easy to Moderate, with challenges mainly related to language, documentation, and occasionally stringent bank policies for non-residents.
  • Source: Bank of Portugal

Visas

Investor Visa: Hard

Portugal's Golden Visa or D2 Investor Visa requires a significant investment, such as €500,000 in real estate, €1 million in a Portuguese bank, or creating at least 10 jobs. It grants residency with minimal time spent in the country, offering a pathway to citizenship. This visa is attractive for its benefits like visa-free travel in the Schengen Area.
  • Challenges: Hard, due to the high financial threshold, investment restrictions (especially in real estate after recent changes), and the need for thorough due diligence.
  • Source: Portuguese Immigration and Borders Service (SEF)

Digital Nomad Visa: Moderate to Hard

Introduced in 2022, the D8 visa is for remote workers earning at least €3,040 monthly. It allows stays up to one year, renewable, without the need for local employment. Health insurance and proof of income are mandatory.
  • Challenges: Moderate to Hard, primarily because of the high income requirement and ensuring compliance with tax laws as a non-resident worker.
  • Source: Portuguese Immigration and Borders Service (SEF)

Marriage Visa: Moderate to Hard

For foreigners married to Portuguese citizens or residents. Requires proof of marriage, sometimes evidence of cohabitation, and financial means. This visa leads to residency and citizenship eligibility.
  • Challenges: Moderate, due to the need for proving the legitimacy of the marriage and sometimes navigating family law nuances.
  • Source: Portuguese Immigration and Borders Service (SEF)

Visitor Visa: Easy to Moderate

A Schengen visa for short stays up to 90 days for tourism, visiting family, or business. No work is allowed. Many nationalities are exempt for short stays, but others must apply, providing proof of return travel and financial means.
  • Challenges: Easy to Moderate, primarily for those from visa-required countries, involving paperwork and potential wait times.
  • Source: Portuguese Ministry of Foreign Affairs

Student Visa: Easy to Moderate

Issued for educational pursuits, requiring acceptance into a Portuguese institution, proof of financial means, and sometimes health insurance. Allows part-time work under specific conditions.
  • Challenges: Low to Moderate, mainly due to securing admission and proving financial support.
  • Source: Portuguese Immigration and Borders Service (SEF)

Work Visa: Moderate to Hard

For those with job offers in Portugal, ranging from the D1 for general employment to specialized visas like D3 for highly skilled workers. Requires a contract, qualifications, and often a salary threshold.
  • Challenges: Moderate, as obtaining a job offer in Portugal can be competitive, and the visa application requires detailed documentation and compliance with labor laws.
  • Source: Portuguese Immigration and Borders Service (SEF)

Economy and Business

Property Ownership: Easy to Moderate

In Portugal, foreigners can buy property with the same rights as nationals, with no restrictions on ownership based on nationality. The process involves getting a NIF (tax number), opening a bank account, and navigating legalities like property transfer tax (IMT) and stamp duty. Freehold ownership is common, giving full rights over the property. There's also the option for corporate ownership, which can offer tax benefits but involves more complexity.

  • Challenges: Easy to Moderate, primarily due to understanding the legal system and managing taxes and fees.
  • Source: Portuguese Real Estate Association

Payment friendly: Moderate

Portugal has embraced modern payment methods, with widespread acceptance of credit/debit cards and increasing use of digital wallets like MB Way and Revolut. Cash is still common, especially in smaller towns. Foreigners might face issues with language barriers in transactions, and some services might require a Portuguese bank account or specific local payment methods.

  • Challenges: Easy to Moderate, with the main difficulties being language barriers and adapting to local payment preferences.
  • Source: Bank of Portugal

Economy: Moderate

Portugal's economy is diverse, with tourism, agriculture, and manufacturing (particularly textiles and footwear) being significant. It has recovered from the 2010s financial crisis but faces challenges like public debt and an aging population. Foreign investment is encouraged, particularly in real estate and tech sectors, through incentives like the Golden Visa program. However, economic volatility and slow growth rates can be concerns.

  • Challenges: Moderate to Hard, due to economic stability issues, understanding local market dynamics, and navigating through potential bureaucratic hurdles for investment.
  • Source: Portuguese National Statistics Institute

Business friendly: Moderate

Portugal has made efforts to become more business-friendly with tax incentives, startup incubators, and simplified business registration processes. The country offers benefits for R&D and innovation, but challenges include bureaucracy, language barriers, and sometimes a slower pace of business compared to more aggressive markets. Corporate tax rates are competitive, but compliance with local regulations can be complex.

  • Challenges: Moderate, due to the need for understanding local business culture, navigating bureaucracy, and language issues.
  • Source: AICEP Portugal Global - Trade & Investment Agency


Affordability: Moderate

Portugal is relatively affordable compared to other Western European countries, particularly in terms of cost of living outside major cities like Lisbon and Porto. Housing, however, can be less affordable in urban areas due to increased demand from tourism and foreign investment. Rural areas offer more budget-friendly options. For foreigners, the cost of adapting to Portuguese life, including language courses and healthcare, might add to expenses.

  • Challenges: Easy to Moderate, with the primary challenge being the cost variation between urban and rural areas and understanding the real estate market for long-term affordability.
  • Source: Numbeo Portugal Cost of Living Index

Communications and Technology

Internet: High speed

Portugal has made significant strides in internet infrastructure, with high-speed broadband widely available, especially in urban areas. Fiber-optic connections are common, offering speeds that rank among the best in Europe. Public Wi-Fi spots are increasingly prevalent, particularly in cities like Lisbon and Porto, where initiatives like "Lisboa Aberta" provide free internet in public spaces. However, rural areas might still lag behind in terms of speed and reliability. For foreigners, the language barrier in accessing customer support or understanding service plans can pose a challenge.
  • Challenges: Easy to Moderate, primarily due to language issues and potential connectivity disparities in rural areas.
  • Source: ANACOM - Portuguese National Communications Authority

Communication: Moderate

Communication in Portugal benefits from a high literacy rate and a good education system, which includes learning English in schools. However, proficiency in English can vary, being higher in urban centers and among the younger population. Business communication often involves a formal tone, reflecting cultural norms of politeness and respect. Digital communication is robust with platforms like WhatsApp and social media widely used, but traditional means like face-to-face meetings still hold significant value. Foreigners might struggle with cultural nuances in communication styles and the language barrier, especially outside major cities.

  • Challenges: Moderate, due to cultural communication differences and language barriers for non-Portuguese speakers.
  • Source: Portuguese Ministry of Education

Phone friendly: High

Portugal's mobile network coverage is extensive, with 4G and emerging 5G services across the country. Major providers like MEO, NOS, and Vodafone offer competitive plans, including options for tourists or expatriates. SIM cards are readily available, even at airports, but understanding which plan suits one's needs can be challenging due to language issues. Most foreign phones are compatible, but there might be a need for unlocking if the phone is locked to another carrier. Payment for phone services might require a local bank account or credit card, which could complicate matters for short-term visitors or new residents.

  • Challenges: Easy to Moderate, with hurdles mainly related to choosing the right plan, language barriers in service selection, and initial setup for non-residents.
  • Source: Portuguese Association of Telecommunication Operators (APRITEL)

Social, Safety and Politics

Progressive: Moderate

Portugal has shown progressive tendencies in social policies, notably with the legalization of same-sex marriage in 2010 and being one of the first countries to decriminalize all drugs for personal use in 2001. It has also moved towards renewable energy sources, aiming for carbon neutrality by 2050. However, there's still work to be done in areas like gender equality, with women's participation in the workforce and politics not yet at parity with men. Rural areas might be less progressive than urban centers like Lisbon and Porto. The pace of legislative change can be slow, and cultural conservatism persists in some sectors.

  • Challenges: Moderate to Hard, due to the cultural and historical context that can slow down progressive changes.
  • Source: Portuguese Parliament

Religions: Less than 5

Predominantly, Portugal is Roman Catholic, with the influence of the Church still visible in public life, although attendance and observance have declined. Other Christian denominations exist, and there's a growing Muslim community, particularly in Lisbon. Freedom of religion is constitutionally guaranteed, and while the Catholic Church holds a cultural significance, Portugal is generally tolerant of other religions. However, integrating into religious communities might be more challenging for non-Catholics due to the Catholic majority.

  • Challenges: Easy, given the freedom of religion, but social integration into the dominant Catholic culture might take effort for those of other faiths.
  • Source: Secretariat of State for Religious Freedom


Safety: Very safe

Portugal is considered one of the safest countries in Europe, with low crime rates, particularly for violent crime. The police are well-regarded, and cities are generally safe to walk at night. However, petty crimes like pickpocketing in tourist areas can be an issue. Natural disasters, like wildfires in summer or occasional flooding, pose more significant safety concerns than crime.

  • Challenges: Easy to Moderate, with the primary challenges being awareness of petty theft in tourist spots and preparedness for natural disasters.
  • Source: Portuguese Public Security Police

Political Stability: Moderate

Portugal has a stable democratic system, with regular elections and peaceful transitions of power. Post-1974, after the Carnation Revolution, the country has maintained a stable political environment, though there are occasional political scandals. Economic policies have been contentious, especially regarding austerity measures and recovery from economic crises. While the political landscape is stable, the influence of coalition governments can sometimes lead to policy stagnation.

  • Challenges: Moderate, primarily due to economic policy debates and governmental efficiency.
  • Source: Portuguese National Election Commission

Corruption: Moderate

Portugal has made strides in combating corruption, but it remains a challenge. Transparency International's Corruption Perceptions Index shows Portugal scoring moderately, indicating some level of corruption in public sectors, especially in procurement and construction. Efforts to increase transparency are ongoing, but public trust in government can be affected by high-profile corruption cases.

  • Challenges: Moderate to Hard, due to entrenched practices and the need for ongoing reform and public trust-building.
  • Source: Transparency International Portugal

Friendliness: High

Portuguese people are generally known for their warmth and hospitality, making it relatively easy for foreigners to feel welcomed. The culture values politeness and social interaction, and there's a strong community spirit. However, like any culture, there can be initial barriers due to language and customs. Urban areas, with more tourism and expatriates, are particularly welcoming, but rural areas might require more effort to integrate socially.
  • Challenges: Easy to Moderate, mainly due to language barriers and cultural differences, but offset by the inherent friendliness of the populace.
  • Source: Portuguese Tourism Board

Education

Average education: High literacy

Portugal's education system is structured into basic (9 years), secondary (3 years), and higher education. The literacy rate is high, around 99%, and education is compulsory from ages 6 to 18. The system has improved significantly, with PISA scores showing above-average performance in reading and science, although there's been a noted decline in recent years. Challenges include educational disparities between urban and rural areas, the aging of the teaching workforce, and the need for reform in teaching methods to foster more critical thinking and creativity. The system also struggles with integrating immigrant children and addressing socio-economic educational gaps.

  • Challenges: Moderate to High, due to the need for systemic reform, bridging educational disparities, and adapting to a changing demographic.
  • Source: Portuguese Ministry of Education

International Schools: Hard

Portugal offers several international schools, primarily in urban areas like Lisbon and Porto, which follow various curricula (British, American, IB, etc.). These schools cater to expatriate families and locals seeking a global education. Tuition can be high, often ranging from 5,000 to 20,000 euros per year, making it a significant financial commitment. Admission might require interviews, previous academic records, and sometimes language proficiency tests. Availability can be limited, especially for popular institutions, leading to long waiting lists. The language barrier for non-English speaking international schools can be an issue for some families.

  • Challenges: Moderate to High, due to high costs, limited spots, and the need for specific admissions criteria.
  • Source: Association of Schools Offering the International Baccalaureate in Portugal

Technological expertise: Highly developed

Portugal has been making strides in technology, particularly in software development, cybersecurity, and renewable energy tech. The country hosts several tech hubs like Lisbon's Web Summit, which has elevated its status in the tech world. Universities produce skilled graduates, and there's government support for tech entrepreneurship. However, challenges include attracting and retaining top talent due to competition from larger tech hubs, the need for more investment in R&D, and sometimes bureaucratic hurdles in starting tech businesses. English proficiency in tech sectors is generally good but can vary, impacting international collaboration.

  • Challenges: Moderate, due to the necessity for ongoing skill development, investment attraction, and overcoming some bureaucratic inefficiencies in business practices.
  • Source: Portuguese Agency for Investment and Foreign Trade

Health

Seasons: 4 seasons

Portugal experiences a Mediterranean climate in the south and a more temperate maritime climate in the north. Spring (March to May) brings mild weather, perfect for outdoor activities. Summer (June to August) is hot and dry, especially in the Algarve, ideal for beach vacations but can be uncomfortably warm inland. Autumn (September to November) offers comfortable temperatures and is known for its wine harvests, while winter (December to February) can be cold and wet, with snow in higher altitudes. Adapting to these seasons involves preparing for temperature swings, especially in the north, where winters are colder and wetter than in the south.

  • Challenges: Easy to Moderate, mainly involving adjusting clothing and activities to the seasonal weather changes.
  • Source: Portuguese Institute for Sea and Atmosphere

Fitness: Moderate

Portugal promotes an active lifestyle with its beautiful landscapes offering various outdoor sports like hiking, cycling, and water activities. Urban areas have gyms, but they can be costly, and the fitness industry isn't as saturated as in some countries. The cultural emphasis on food, particularly rich in carbs and sugars, can challenge fitness goals. There's increasing awareness of health and wellness, with yoga and fitness classes gaining popularity. However, cultural attitudes towards body image might differ, potentially impacting one's fitness journey, especially for those used to different body standards.

  • Challenges: Moderate, due to cultural food habits, cost of facilities, and adapting to local fitness culture.
  • Source: Portuguese Sports Confederation

Pollution: Moderate

Portugal has made progress in reducing pollution, particularly in air quality in major cities, thanks to EU regulations and public transport improvements. However, air quality can still be an issue near industrial areas or during wildfires in summer. Water pollution is managed, but agricultural runoff and untreated sewage in some rural areas remain concerns. Noise pollution in cities like Lisbon can be high. The main challenge for foreigners might be understanding local environmental policies and participating in sustainability initiatives, especially if language is a barrier.

  • Challenges: Moderate, due to regional variations in pollution levels and the need for ongoing environmental awareness and action.
  • Source: Portuguese Environment Agency

Healthcare: High quality

Portugal provides universal healthcare through the National Health Service (SNS), which is free at the point of use for residents. Private healthcare offers quicker access to specialists and better amenities, though at a cost. The system is generally of high quality, but waiting times for non-emergency procedures can be long. Language can be a barrier for non-Portuguese speakers, especially in less urban areas. The aging population and budget constraints pose challenges to the healthcare system's sustainability. For foreigners, navigating the system, understanding insurance options, and accessing services in English can be challenging.

  • Challenges: Moderate to High, due to language barriers, waiting times, and the complexities of the dual public-private healthcare system.
  • Source: Portuguese Ministry of Health

Diversity

Food diversity: Highly diverse

Portugal's culinary scene is rich with traditional dishes like bacalhau (cod), pastéis de nata (custard tarts), and various seafood offerings, showcasing its maritime heritage. However, the country has embraced global cuisines, especially in cities like Lisbon and Porto, where you can find everything from sushi to Ethiopian food. Efforts are being made to cater to dietary restrictions, with an increase in vegetarian, vegan, and halal options, though these might be more prevalent in urban areas. The challenge lies in the depth of traditional cuisine overshadowing new culinary trends in some regions, and the availability of specialized diets can vary. Also, the language barrier might make it difficult for foreigners to explore beyond tourist menus.

  • Challenges: Easy to Moderate, with the main challenges being the exploration beyond traditional cuisine and finding diverse dietary options outside of major cities.
  • Source: Portuguese Tourism Board

Ethnics diversity: Moderate

Portugal is predominantly ethnically homogeneous, with the majority being of Portuguese descent. However, due to historical ties and more recent immigration, there are significant Brazilian, African (from former colonies like Angola and Cape Verde), and Eastern European communities. Urban centers like Lisbon and Porto are more ethnically diverse, with cultural festivals and neighborhoods reflecting this mix. Integration and acceptance of ethnic minorities can be mixed; there's a welcoming attitude in cosmopolitan areas, but challenges like racism and discrimination still exist. For foreigners, especially those from non-European backgrounds, social integration can be complex due to cultural differences, language barriers, and the societal emphasis on Portuguese identity. Legal frameworks for immigration and citizenship have been evolving but can still present hurdles for long-term integration.

  • Challenges: Moderate to High, due to cultural adaptation, potential discrimination, and navigating the immigration system for long-term stay or citizenship.
  • Source: Portuguese High Commission for Migration