The Algarve region in Portugal is globally known for attracting retirees. According to data from the USA Social Security Administration, over 700 thousand US retirees collect Social Security payments abroad. Out of this number, a total of 13.537 American retirees collected Social Security checks in Portugal in April 2021.
This data shows us that Portugal is excellent at welcoming retirees in the countries. It is a perfect place for retirees. The pace of life is quite slow in Portugal. No need to rush for anything. Not to mention that it is the 3rd safest country in the world, according to the 2020 Global Peace Index.
What Does Portugal Offer to Retirees?
There are various reasons to choose Portugal including, for example, the mortgage rates. The report of Deloitte Property Index 2020 shows that Portugal has the lowest mortgage rate in Europe. So, it has the best affordability rate for buying a house. Furthermore, Forbes also selected Alentejo, Portugal as one of the top 10 safest places to visit after Covid-19.
The country offers great tax treatments to its non-residents. For example, the Non-Habitual Residency (NHR) program. This program has been in effect since 2009. Thanks to the NHR program, you can be exempt from taxation on most of your foreign income. Furthermore, you will only be subject to a 10% taxation rate on your foreign pension. This is a great incentive for foreigners because normally, the rate can reach up to 48% for residents.
Finally, this tax application is valid for ten years. You can apply for NHR if you
- Have not been a tax resident in Portugal within the previous five years, and
- Have the right to residency in Portugal.
Normally, you must be a citizen of EU/EEA/Switzerland to obtain residency in Portugal. However the Golden Visa Portugal offers you residency in return for an investment in the country.
Yet another attractive quality in Portugal is the low cost of living. Almost everything is cheaper in Portugal compared to its equals in Western Europe, and the US. In fact, the average cost of living in Portugal is 30% lower than it is in the US, according to statistical analysis from numbeo.com.
Portugal Golden Visa Provides You An Easier Retirement
We cannot deny the effect of the Portugal Golden Visa program for its attractiveness on foreign investors. It is one of the most popular Golden Visa programs in the world. Being a residency by investment program, Portugal Golden Visa offers residency in the country. It also offers you citizenship of the EU when you fulfill the requirements after a certain period. This means that after you invest in the country, you will have a right to stay there.
The Portugal Golden Visa program allows you to include your spouse and dependant family members. You can benefit from tax incentives if you qualify and apply for NHR status thanks to the arrangements mentioned above.
Finally, you can choose from a variety of investment options. You can buy a Portugal property, or you can make a fund investment in a qualified option. Other investment options include R&D investments, capital transfer and the establishment of an enterprise.