Last Updated on April 24, 2024 by Prince
From economic growth to social welfare, expats have helped Portugal become one of the favorite countries worldwide. We’re blessed to have a growing community of expats that uplifts us exponentially. If you’re thinking of moving to Portugal, keep reading to know how Portugal benefits from expats. In the end, it’s all about making this a better place for you!
While it has been an unarguable tourist attraction, Portugal has become increasingly popular for reasons other than sightseeing. During the last few decades, Portugal has improved its infrastructure, education, and health facilities to provide more benefits to expats. This article covers all the benefits that the country receives and invests back in the community.
5 ways Portugal benefits from expats living in the country
Portugal has worked on attracting tourism and expats 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, expats 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. And expats are often highly entrepreneurial and bring a can-do attitude to their business ventures. This results in job creation and employment which in turn increases financial sustainability.
New expats help initiate business innovation, strengthen the middle class, fill workforce requirements, and create unity within communities.
When immigrants become a part of the labor 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”.
A very good example of Portugal benefiting from expats is Lisbon – the country’s entrepreneurial hub. Lisbon is full of booming businesses, coworking spaces, and startups that are ready to expand.
Most of these startups and businesses are a result of the D2 Business Visa, which has helped bring investment into the country. This development is now spreading all across Portugal, with Porto, Algarve, and Madeira following Lisbon’s lead.
In addition to that, with more and more people retiring, there’s 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 helping Portugal benefit from expats and move 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 expats in Portugal, a big one that’s immediately identified is the enthusiastic youth.
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 expats who have added colors to our radiant country.
The beauty of Portugal attracts many retirees and old couples looking to settle in a place full of tranquility. Thanks to tourists and expats like you, Portugal’s southern coasts are predominantly full of energy and recreational opportunities.
One of the biggest benefits of this rejuvenation is the cultural exchange that takes place. Portugal has a rich history and a unique culture, and by interacting with people from different backgrounds and nationalities, locals are exposed to new ideas, customs, and perspectives.
Over time, we get to see an increase in different cultural activities, food festivals, and concerts, which the locals thoroughly enjoy. Expats really help to boost the community’s diversity.
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 in birth rates and more working-age expats 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, thousand of expats invested in Portugal. This encouraged the execution of small-to-medium enterprises owned by expats from Brazil, China, Bangladesh, Africa, and many more.
Whether it’s a small restaurant, a hairdresser, or a grocery store, expats 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 of the European Union, immigration contributes nearly €253 million to the Portuguese Social System.
The government has also been increasingly accommodating to immigrants for this reason. 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 labor 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. 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. We don’t just mean urban areas. Many less affluent neighborhoods offer affordable housing options, which attracts expats looking for a second home or even a primary residence.
Revitalization of these neighborhoods through investment in properties and businesses in the area helps Portugal develop areas that don’t get enough attention. Expats also help improve these neighborhoods’ quality of life through new ideas and problem-solving.
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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 ranked Portugal 39 out of 190 countries. Expats love residing here because of safety, great weather, English proficiency, and the community’s goodwill.
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 expats 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 expats in all relocation procedures. Since tourism trips are a decision-maker for expats to relocate, re-investing in the country’s infrastructure has been a top priority. The country’s beauty and culture genuinely speak for themselves.
The high quality of life at a low cost of living is a big motivating factor for expats looking for a safe and stable environment. So the only thing Portuguese people really do is welcome expats with open arms and offer help (and occasional dinner invites).
Portugal’s government has started attracting more tourist activity in winter by leasing abandoned locations and turning them into leisure centers. 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 Resident (NHR) scheme allows tax benefits to new residents for their first ten years in the country. Expats also benefit from tax-free foreign income and a lower income tax if employed in a ‘high-value activity’.
Collectively, there are dozens of ways how Portugal helps attract and encourage foreigners to relocate here. To be fair, expats don’t need much encouragement; most of them have already made up their minds!
What are the benefits of moving to Portugal?
We would love to spend hours talking about this. But for you, let’s simplify things.
Besides having a life that feels fulfilling and refreshing, here are a few other benefits:
- Standard of living;
- Cost of living;
- High-quality education;
- Amazing weather;
- Low language barrier;
- Huge expat community;
- Numerous tourist destinations;
- Healthcare;
- Real estate investment opportunities.
Portugal’s beauty is the reason why tourists come in, and it’s a reason why they continue to see that every day. Relocating is not an easy decision by any means. It takes a lot of effort, dedication, and logical reasoning. Which means you really have got to be sure about this!
You’ve likely got a bunch of questions regarding the quality of life or why you’ll love Portugal. We have some articles that might interest you in that regard.
Want to be part of our growing community?
Now that you’ve read how Portugal benefits from expats, it’s time to know more about how you can benefit from Portugal. Hear personal stories of expats who leaped and are having the time of their lives via our Facebook Group – All About Portugal For Expats.
It doesn’t matter which part of the world you’re from; a huge expat community is waiting for you! Ask us questions, discuss opportunities, form online connections, and start creating your plan step-by-step.
We’re always happy to assist expats in turning their dream lives into reality. Book a consultation and clear out concerns, plan your relocation with a professional, and learn how to get a Visa easily!
