5 ways Portugal benefits from ex-pats living in the country
5 ways Portugal benefits from ex-pats living in the country
Article by Viv Europe - Official Legal and Relocation partner to KipperTree.
07 01 2023
We know how our life can be better in Portugal. But that's not all, Portugal benefits from ex-pats as well. Want to know how?
From economic growth to social welfare, ex-pats have helped Portugal to be one of the favourite countries for people worldwide. We’re blessed to have a growing community of ex-pats that uplifts us exponentially. If you’re thinking of moving to Portugal, keep reading to know how Portugal benefits from ex-pats. In the end, it’s all about making this a better place for you!
While it has been an unarguable tourist attraction, Portugal has gotten increasingly popular for multiple reasons other than sightseeing. During the last few decades, Portugal has improved its infrastructure, education, and health facilities, to provide more benefits to ex-pats. This article covers all the benefits that the country receives and invests back in the community.
Portugal has worked on attracting tourism and ex-pats from all over the world. There is so much to love about Portugal; we’re not surprised by the recent increase in immigrants. Of course, ex-pats benefit significantly from living in the country, but so does Portugal. Here’s a summary of what this article includes:
Economic Growth;
Energetic Youth;
Social Security Welfare;
Real Estate Market;
Employment Opportunities.
Keep reading till the end to learn more about how you can benefit from living in this country.
1. Expats in Portugal move the economy
Countries need immigrants to remain competitive and drive economic development. Since economies have started to re-open after COVID-19, job creation and employment are essential for financial sustainability. New ex-pats help initiate business innovation, strengthen the middle class, fill workforce requirements, and create unity within communities.
When immigrants become a part of the labour force, productivity and GDP rise, which also helps increase per capita income. This results in increased income for immigrants and also natives – a concept often referred to as “immigration surplus”. With more and more people retiring, there is a growing need for empowered and enthusiastic youth to contribute economically. Expats also help move the economy using their purchasing power to consume additional goods and pay taxes. These taxes are then used in government spending to improve healthcare facilities and educational institutes.
Higher levels of immigration also bring in more skilled workers. So, for example, it would take years to train nurses and doctors; but the immigration of skilled workers reduces dependability. Young people are also less likely to use healthcare services compared to older people. All these factors contribute immensely to moving the economy towards positive change.
2. They help to rejuvenate the population in Portugal
Remember how your grandparents lit up every time you’d visit them? That’s precisely how senior residents feel when the youth participates actively around them. When we think of the contributions of ex-pats in Portugal, a big one that’s immediately identified is the enthusiastic youth.
Ex-pats and immigrants contribute to Portugal's economy
With different skills and educational degrees, people from all over the world have helped rejuvenate our population. We don’t mean increasing job opportunities and assisting the socio-economic classes in growing. We’re referring to ex-pats who have added colours to our radiant country.
The beauty of Portugal attracts many retirees and old couples looking to settle in a place full of tranquillity. Thanks to tourists and ex-pats like you, Portugal’s southern coasts are predominantly full of energy and recreational opportunities.
Furthermore, young people have helped initiate activities on educational events, camping trips, carnivals, and beach-related training. Digital nomads have taken over Portugal since the pandemic, working remotely from amazing regions. Additionally, the fertility effects of immigration are felt over eras. Immigration is a proven way to rebalance a country’s population-age distribution naturally. Growth birth rates and more working-age ex-pats have massively helped rejuvenate Portugal’s population.
3. Immigrants bring benefits to the Portuguese social security system
In addition to rejuvenating the population and helping boost the economy, immigrants have contributed to the Portuguese social security system. Thanks to the Golden Visa, it has become easier for ex-pats to invest in Portugal. This has encouraged the execution of small-to-medium enterprises owned by ex-pats from Brazil, China, Bangladesh, Africa, and many more.
Whether it’s a small restaurant, a hairdresser, or a grocery store, ex-pats create more opportunities for natives in Portugal. Creating such opportunities leads to less spending on social benefits and more contribution to taxes. According to the official website for the European Union, immigration contributes nearly €253 million to the Portuguese Social System.
The government has been increasingly accommodating to immigrants due to this reason as well. Social Security Systems fund benefits to retirees, people with disabilities, and their dependents through collecting taxes paid by current workers. From Portugal’s context, immigration adds more people to the labour force, allowing direct support to the demographic’s beneficiaries.
4. Foreign investors boost the real estate market in Portugal
Real estate markets have been a game-changer for emerging economies and developing nations. Due to the recent uprise in entrepreneurial entities, demand has escalated for better quality housing and infrastructure within the city. Portugal’s hospitality and popularity have welcomed people from many different regions, expanding its real estate market. People often look for six conditions before investing in a country’s real estate. The six things are good tax policy, low cost of living, security, pleasant weather, hospitality, and tourism.
During the last decade, real estate turnover in Portugal has almost doubled, with an almost insignificant effect of COVID-19. Nearly each property listing gets a deal the day it is advertised. Enormous credit goes to the foreign investors that have helped Portugal reach this far. Direct foreign investments have increased the demand for housing and have also provided new employment opportunities. The overall result of this boost is expanded development within Portugal.
5. Many create companies and generate employment
If you’ve taken a look at our article on the different Visas, you know what we mean by generating employment. In recent years, individuals and multinational companies have had great success setting up an office in the country. Lisbon, in particular, has a thriving startup community and outstanding infrastructure. This community, in turn, acts as venture capitalists for new entrepreneurs who want to upscale their businesses.
The World Bank’s Ease of Doing Business Index of 2020 ranked Portugal 39 out of 190 countries. Safety, great weather, English proficiency, and the goodwill of the community are some of the reasons why ex-pats love residing here. With increasing access to innovation and technology, young entrepreneurs have found it profitable to launch their start-ups here.
New ventures and coalitions, and upscaling of existing businesses, lead to an increase in employment opportunities. Diverse entrepreneurship and new corporations take the economy forward by offering jobs without degree specifications but instead based on skills. Portugal benefits from ex-pats through the various opportunities that help reduce the dependency ratio, among other things.
How does Portugal encourage foreigners to move to the country?
Quite candidly, most foreigners voluntarily move here after experiencing the serenity of Portugal. However, agencies like Viv Europe are regulated by the state and aid potential ex-pats in all relocation procedures. Since tourism trips are a decision-maker for ex-pats to relocate, re-investing in the country’s infrastructure has been a top priority. The country’s beauty and culture genuinely speak for themselves.
Portugal’s government has started attracting more tourist activity in winter by leasing abandoned monasteries and turning them into leisure centres. When planning your family’s relocation, you’d probably consider education, career growth, and recreational activities for all ages. This is what Portugal focuses on. It encourages foreigners to move to the country by adding more value to their lives within set budgets. No fake incentives, just pure value addition.
More importantly, Portugal’s Non-Habitual Residents (NHR) scheme allows tax benefits to new residents for their first ten years in the country. Expats also benefit from receiving some tax-free foreign income and a lower income tax if they’re employed in a ‘high-value activity’.
What are the benefits of moving to Portugal?
We would love to spend hours talking about this.
Besides having a life that feels like its an excerpt from a commercial, here are a few other benefits:
Standard of living;
Cost of living;
High-quality education;
Amazing weather;
Hardly any language barrier;
Huge ex-pat community;
Numerous tourist destinations;
Healthcare;
Real estate investment opportunities.
You're likely to have a bunch of questions regarding the quality of life or why you’ll love Portugal so stay tuned for more interesting articles.
Article by Viv Europe - Official Legal and Relocation partner to KipperTree
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