Ever wonder of a second home in a foreign country? Then you should really start to consider having one in the European country of Portugal? You ask why, here we list the five best reasons why you should invest on a house in Portugal.
1) The Tax Rates Are Much Better
Resident of Portugal enjoy tax rates that have not gone up since 2018. There are seven income tax rates and they remain the same from four years ago, up until when we saw them in 2020. The tax rates range from 14.5% to 48%.
There is also this thing called Non-Habitual Residence (NHR) which is a scheme Portugal uses to offer newer residents very enticing tax advantages during their first ten years. If you moved today to Portugal, but have not been a resident for five years, you may apply to your local tax office for these benefits.
Under the NHR, foreign income, certain capital gains, interest and dividends can be applied to be tax-free. Sad news however for some as UK civil service pensions and rental income are excluded from the benefits.
Since last year, a 10% flat rate has been imposed on pension income and withdrawals abroad. However, those who gained the NHR before April 2020 will still enjoy their tax exemption for the remainder of the 10 years. Pretty good, that’s what they are.
Good news also for the cryptomaniacs because cryptocurriences like Bitcoin are only taxed in Portugal if the operations are done regularly and have been turned into “professional activity or business activity.”
2) You Gain Access To The Best Schools
Since 2020, Portugal landed in the list of OECD or Organization for Economic Cooperation and Development and the PISA or Program for International Student Assessment as the only country that was consistent in its improvement of student assessment scores in mathematics, science and literacy. It has been dubbed the “rising star of international education.”
Since 1970, at the end of the dictatorship in Portugal, the government has continually increased the budget for education to implement radical reforms in the educational system, investing heavily and public schools and even extending to mothers, children from 0 to 6 years old and teachers across all academic levels.
The reforms were carried out to improve the socioeconomic and cultural status of the Portuguese citizens, especially in poor communities. The school system administration was decentralized and made autonomous in order for the different municipalities to suit their school curriculum to what the people need.
Education was made available to all citizens, in an effort called democratization of education. The government greatly increased the number of day care centers and preschools and incentivized parents, including fathers, in caring for children during infancy and early childhood.
A Master’s Degree is also required to teach pre-school, primary or secondary levels in Portugal, making it highly encouraged to take up one.
All these reforms and budget increases has put Portugal’s higher education system on the 35th rank in the world’s best educational systems in the first edition of the QS Higher Education System Strength Rankings.
3) In and Out of Borders, Visa-Free
Invest on a house in Portugal can also give you the perks without having to reside in the territory. You can be in your home country, while enjoying the benefits that come with the Portuguese passport.
The EU citizenship comes with a lot of perks including the freedom to migrate, reside, and work in any of the 28 EU member nations. Mind you, they also have the most powerful passwords around the world. With a passport from any member-nation, you can freely cross borders in over two dozens of countries and visa-free travel to the best nations in the world. That general checkup you have been wanting will be at the tip of your fingers.
One of the ways to do that is to buy real estate for sale in Europe. First, we talk about how to buy a house in Portugal. Real estate is hard to come by these days, but could you resist not having a property in one of the most beautiful countries in the world and a passport with visa-free travel for 186 countries on your palms?
4) Investments 280,000 euros and above
Here are some ways on how your investment can get you the dream Portuguese passport:
- In Portugal you can invest €280,000 in properties located in low population density areas: inland areas, Madeira or the Azores.
- Invest €350,000 in properties located in inland areas, or Azores or Madeira Regions. The properties must be built more than 30 years ago and must be renovated. The sum of the property and the reconstruction must not be less than €350,000.
- For real estate investments in the Azores and Madeira regions, you only need €500,000
- You can also create 5 new full-time jobs with an investment of €500,000.
- A minimum investment of €500,000 in a qualifying private equity fund may qualify for a Golden Visa Portugal.
- Help in scientific research will gain you a passport. You can get it with an investment of 500,000€ in research carried out by accredited institutions that are part of the national scientific and technological system.
- An investment of at least €500,000 in an existing company registered in Portugal also qualifies you.
5) The European Dream House
Portugal is where Europe, Asia and Africa meet. A strategic international route, it has become a cosmopolitan country with connection to the main cities of the world through international airports in Lisbon, Porto and Faro.
Portugal offers excellent quality of life, ranking 4th in the World Peace Index 2021 and one of the best educational systems worldwide. It is also characterized by a very competent public health system and is considered one of the safest countries in the world.
Located in the southwest of the Iberian Peninsula, it enjoys a pleasant Mediterranean climate and a rich and extensive culture. This are the best reasons to invest on a house in Portugal.