Non-Habitual resident program in Portugal – is it worth it? part 2 – Part one is here.

Non-habitual resident program

The Non-Habitual Resident (NHR) Portugal program is a tax regime that offers foreign residents and investors reduced tax rates and exemptions from certain taxes. This program was first introduced in 2009 and after updated in 2020.

The goal is to attract foreigners to Portugal. It turned out to be very successful: more than 10,000 unaccustomed residents of Portugal enjoy benefits.

Below you can find all the details of the Non-Habitual Residence (NHR) program; what it is, how you can benefit from it, and more.

So, Portugal’s special tax regime for non-permanent residents (NHR) allows qualified entrepreneurs, professionals, retirees, and high net worth individuals to enjoy preferential tax rates on Portuguese-sourced income, while most foreign-sourced income is exempt from Portuguese taxation for a decade.

Individuals of any nationality (including non-EU/EEA nationals) can potentially enjoy the benefits of the Portuguese NHR regime for 10 consecutive years if they qualify as a Portuguese tax resident and have not been taxed as a Portuguese tax resident in any from the previous five years. the year in which the place of residence was established.

You must also meet the criteria for being a tax resident in the year you apply – the easiest way to achieve this is to stay in Portugal for more than 183 days. Portuguese-sourced salaries or self-employed income derived from one of the qualifying professions (listed below) will be subject to a final flat rate of tax of 20%.

In addition, non-Portuguese income in most categories, including income from self-employment, income from real estate (rental), income from capital (interest and dividends), and capital gains from property, will be exempt from Portuguese personal income tax, provided that:

• The source country has the right to tax this income in accordance with the terms of the Double Taxation Agreement (DTA) signed between Portugal and this country; or
• Income is taxed in another country and is not considered to be received in Portugal; or
• Income is taxed in any other country in accordance with the OECD Model Tax Convention.

Until recently, the NHR regime also allowed for the majority of foreign pension income in Portugal to be tax-free, but Portugal’s 2020 budget introduced a flat tax rate of 10%. This new tax applies from April 1, 2020, although existing NHR holders are still eligible for the tax exemption for the remainder of their ten-year NHR period.

However, this 10% tax rate is still a very attractive option for NHR applicants as it will be lower than the rates that would apply in their home countries, as well below Portugal’s standard tax rate of 14. 5% to 48%. Portugal also has no inheritance tax, gift tax, or wealth tax for the NHR.

It should be noted that eligibility for NHR benefits in each financial year will only apply if the applicant was considered a resident of Portugal during that year. However, if an applicant fails this test within one or more years, he/she may still enjoy benefits in subsequent years up to the 10-year limit.

In addition, any income earned in countries listed by the Portuguese Finance Department as “favorable tax treatment” – the so-called “black list” – will not qualify for NHR treatment unless the country in question has a double tax treaty with Portugal.

Qualifying professional activities covered by the NHR regime include the following:

• General managers and executive managers of companies;
• Administrative managers and commercial managers;
• Production managers and specialized service managers;
• Hospitality, restaurant, retail and other service managers;
• Physicists-specialists, mathematicians, engineers and related technologists;
• doctors;
• Dentists and stomatologists;
• Teachers of universities and higher educational institutions;
• Information and Communication Technology (ICT) specialists;
• Authors, journalists and linguists:
• Creative and Performing Artists:
• Mid-level technicians and specialists in the field of science and technology;
• ICT specialists;
• Farmers and market-oriented skilled agricultural and livestock workers;
• Market-oriented skilled workers in forestry, fishing and hunting;
• Skilled workers in the industry, construction and crafts, including skilled workers in metalworking, food processing, woodworking, clothing, handicrafts, printing,
• production of precision instruments, jewelers, craftsmen, electricians and electronics specialists;
• machine and equipment operators and assembly line workers;
• Directors and managers of companies engaged in productive investment activities, to the extent that such personnel are involved in projects for which treaty tax benefits are provided in accordance with the Investment Tax Code.

Persons engaged in this professional activity must also meet one of the following criteria:

• Level 4 of the European Qualifications Framework;
• Level 35 of the International Standard Classification of Education (ISCED); or
• Five years of relevant work experience, duly proven.

Benefits of the NHR program in Portugal include:

• Income tax: special regime of individual taxation of income for a period of 10 years
• Tax exemption on almost every foreign sources of income
• Compared to other income tax rates in Portugal, up to 48%, this program offers a flat rate of 20% for certain sourced income in Portugal (from certain professions and from self-employment).
• Opportunity to have EU tax residency in a whitelisted country
• Exemption from tax on gifts or inheritance to family members
• No wealth tax
• Free money transfer to Portugal

Eligibility: Who Can Be a Non-Permanent Resident

• You must be eligible to be a resident of Portugal by being an EU/EEA/Swiss citizen or through the Portugal Golden Visa program, and
• You must not have been tax resident in Portugal within the previous five years.

In order to be a tax resident in Portugal, you must have a residence by December 31st of the same year to show your intention to make Portugal your permanent home.

Buying Portuguese property can be beneficial, but it doesn’t have to be. A Portuguese lease agreement for 12 months will be sufficient proof of residence. If you decide to buy a property, you can present the bill of sale as proof that you are a resident.

Once you have taken residence, you must apply for the Non-Habitual Resident Program in Portugal by March 31st of the following year.

Individuals who are eligible to be a resident of Portugal under the Golden Visa program can apply for the Non-Permanent Resident program.

Types of income from foreign sources

Labor income

Under the NHR regime, he is either exempt from tax or taxed at a flat rate of 20% unless he is in one of the eligible occupations.

Income from self-employment

If he is from a relevant profession and from a country with a DTA (Double Taxation Treaty), he is exempt from taxes. It may also be exempt from taxes if in the absence of an agreement under the OECD Model Tax Convention (unless the country is a tax haven). If he is not in one of the qualifying professions, he is taxed at the standard progressive rate, and this is also subject to other social security contributions.

This type of income may also be taxed at a flat rate of 20%; however, an individual may pay a regular progressive tax if it is less than the flat rate.

Royalty and income from financial assets

If the income comes from a country with a double tax treaty, it is not taxed. He is also exempt from taxes if he is from a country without a DTA, but which is not a blacklisted tax haven. If a country is on the black list of tax havens, then it is taxed at a rate of 28% or 35%.

Real estate income and capital gains

They are exempt from taxes if:

• they come from a country with a double tax treaty; or
• they come from a country without a DTA, but which is not blacklisted for tax havens.

Capital gain from the sale of securities (stocks, bonds, etc.)

If they are from a blacklisted tax haven, they will be taxed at an additional rate of 28%, 35%.

Retirement income

If it comes from a country with a double tax treaty, it is not taxable.

Tax on income from a Portuguese source

Labor income

If it is not on the list of eligible occupations, it is taxed at the standard progressive rate. However, if the job is on the list of eligible occupations, a 20 percent rate may apply, and if the regular progressive rate is lower, then a progressive rate may be used.

Income from self-employment

If she is not on the list of eligible occupations, she is taxed at the normal progressive rate. However, if the employment is in the list of eligible occupations, a 20 percent rate may apply, and if the regular progressive rate is lower, then a progressive rate may apply.

Real estate income and capital gains

• Rental income is taxed at a rate of 28% (additional rate) or at a regular progressive rate.
• Net capital gains are taxed at 50% at the normal progressive rate.

Retirement income

It is taxed at regular rates.

How to apply for the NHR regime in Portugal?

Here is the program application shown step by step:

Step 1: Proof of residence

The first step is to prove that you have a legal right to reside in Portugal.

EU/EEA/Switzerland citizens can check in without a visa. They can register at their place of residence at the mayor’s office of their region. They must bring their passport and EHIC card for the procedure. They will also be asked for their current address, but they don’t have to prove it.

Non-EU citizens must first obtain a residence permit in order to be allowed to settle in Portugal. They can get permission in a variety of ways, but the two most common methods are the Golden Visa program or passive income. They can do this online (on the SEF website) or at the Portuguese embassy in their country.

Step 2: Obtaining a NIF Number (Portuguese Taxpayer Identification Number)

The NIF number is a nine-digit taxpayer identification number that you must obtain, especially if you intend to conduct a business or other official or legal activity in Portugal. While non-residents can obtain it through their representative/lawyer in Portugal, residents of Portugal can do so directly from the finanças (local tax authorities). To do this, you will need an identity card/passport and proof of residence.

Step 3: Registration as a tax resident in Portugal

After receiving the NIF, you must register as a tax resident with finanças.

Step 4: Apply for NHR Status

First, you need to register on the relevant government website. To register, you will need a NIF number, email address, phone number, and fiscal address. After registering, you will receive your password by mail in about two weeks. You can then complete the application site. To do this, you need to provide the following documents:

• A document certifying that you have not been a tax resident in Portugal during the previous five years.
• Tax returns for the last five years
• Lease agreement or deed of ownership in Portugal

While you can apply for the NHR program on your own, it is a rather complicated process. Many people prefer to get help from a professional with their application.

Non-Habitual resident program in Portugal – is it worth it? part 1 – that will be the topic of today’s article.

Before introducing this article, if you are interested in our core services which are expat financial, insurance and mortgages, you can contact me here. 

The best time to consider your financial situation is when you are moving to a new country.

Introduction

The Portuguese Republic (Republica Portuguesa) is an economically developed European state. The country attracts tourists from all over the world with its warm climate, excellent service, and a variety of opportunities for a great holiday. Emigrants strive here for a decent standard of living, high wages, professional medicine.

How to become a citizen of the Republica Portuguesa? To appreciate life in Portugal, you need to become its resident or citizen. A visit to the country as a tourist will not reveal all the features and nuances. The local migration policy cannot be called rigid. There are several migration routes, but when choosing any foreigner, a foreigner will have to go through the following steps:

• Get a national visa.
• Get a residence permit.
• Request permanent residence.
• Apply for Portuguese citizenship.

To obtain a residence permit, there must be good reasons – the presence of Portuguese roots, marriage with a local citizen, employment in a local company, and more. Wealthy people can use an easier way – to get an investment residence permit. The so-called “golden visa” will allow you to move to the Republic and obtain citizenship in 6-7 years.

Pros of living in Portugal

Republica Portuguesa is an excellent solution for many Europeans who want to settle in a developed European state and obtain EU citizenship. There is a comfortable climate, high wages, excellent quality of life. The country ranks 21st in the world ranking in terms of life expectancy with an indicator of 81.9 years, which indicates the excellent quality of food, good ecology, and a high level of health care in Portugal.

Another indicator that speaks in favor of the Republic is the cost of living. According to the results of 2020, the Republic was in 1st place – it has the lowest cost of living among Western European countries. Although there are skeptics who will answer that the level of wages here is also lower than in other developed European countries.

The following advantages of living in the Iberian state can be distinguished:

• After obtaining the status of a resident or citizen, you can get access to the economic, social and other benefits of the Republic and the European Union as a whole.
• Free movement in 186 states (if you have a passport). The possibility of free movement within the Schengen area (it is enough to own a residence permit for this).
• Low cost of living compared to other Western European countries.
• Low crime rate.
• Benefits and financial assistance for the development of start-ups in the field of IT technologies. Here entrepreneurs are offered information and financial support by the Innovation Agency.

In addition, the special geographical location of the country makes it convenient for doing business. Location on the edge of Europe makes America and Asia more accessible, in addition, the entire European market will be at the disposal of the entrepreneur.

Opening and running a business on the territory of the Portuguese Republic with the creation of new jobs is one of the migration routes that make it possible to obtain a residence permit for an entrepreneur. This method is not used as often as, for example, buying real estate, but it is very promising and does not put forward requirements to the investor for a specific amount of investment in the development of the company.

Cons of living in Portugal

The negative aspects of life in the southern European state on the Iberian Peninsula include a low-dynamic labor market. It is difficult to change or find a job here. The unemployment index is 7.1% (among young people 22.5%).

Another negative side is high taxes. The personal income tax rate reaches 48%. Despite the present deductions and possible benefits, the tax burden is very noticeable.

Another problem can be called the so-called “boom” of real estate. Yes, the price for it is not as high as in other Western European countries. Nevertheless, the strengthening of the Portuguese Republic in the international arena, the growth of the welfare of the population, and the standard of living attract foreign investors here, who can obtain a residence permit for the purchase of the real estate. As a result – a constant rise in housing prices, especially in central areas. Significantly increased prices per square meter in Lisbon and Porto.

Where is the best place to live in Portugal?

The choice of region for foreigners depends on many circumstances. For example, investors who seek to obtain a residence permit in Portugal through the purchase of real estate may prefer the Azores – the smallest region in Portugal. In accordance with the terms of the program, you can get a 20% discount when buying an object located in sparsely populated regions.

But if the purpose of the purchase is not only obtaining a residence permit but also making a profit from renting out premises, then coastal areas should be considered, as well as real estate in large cities – Lisbon, Porto. Here objects are in demand both for short-term and long-term leases. At the same time, the homeowner does not need to issue a tourist license, without which it is impossible to rent out premises in the central part of some cities.

If a foreigner wants to live in Portugal and relax, then you should look at the coast of the Central and Lisbon regions. The northern region is not suitable for a beach holiday; yachting infrastructure is developed here. You can pay attention to Alenjo – the largest region. But beach holidays are not very popular here, tourists and locals prefer surfing.

In the near future, real estate in the two most sought-after cities of Lisbon and Porto will not be available to investors. The government thus seeks to redirect foreign investment to the development of less popular regions.

The changes were to come into force on July 1, 2021. But taking into account the impact of the pandemic on the overall economic situation in the world and in the country, it was decided to apply the new conditions of the Golden visa Portugal program from January 1, 2022. It is also possible to increase the value of the passing qualification. Now the passing amount is 350 thousand euros (with the use of special conditions of the program – 280 thousand euros).

Therefore, if wealthy people want to buy Portuguese real estate for living or obtaining a residence permit, it is better to do it now, before the new rules come into force, and the investor is not limited in choosing regions.

The standard of living in Portugal is high, while there are affordable prices for quality food, clothing, and rental housing. For a family of 2 people, it is enough to have a total monthly income of 2,500 euros. The most expensive city to live in is the capital of Lisbon, here the basic expenses will be about 60% more expensive than in many other countries, but by the standards of the European Union, living in Portugal is inexpensive.

Let’s now understand one of the programs of Portugal, especially for foreign residents and investors, and find out is it a good one to be offered to expats.

Before introducing this article, if you are interested in our core services which are expat financial, insurance and mortgages, you can contact me here. 

The best time to consider your financial situation is when you are moving to a new country.

Introduction

Just like any other country, Portugal has a lot of things to offer expatriates. With the warm weather, mountains, low cost of living, Atlantic oceans, the benefits of living in Portugal cannot be overemphasized. Also, Residents are offered tax exemptions with free education and a healthcare system.

Whenever you imagine the old Europe, medieval town halls, crenelated castles on hilltops, Portugal should be the first thing in your mind. Not in a touristy contrived way but as the standard day-to-day life in the country. Moreover, the locals are quite friendly, and the country itself is a magical destination.

Now, you’d be wondering why Portugal is a magical destination for expats, right. Well, we can tell you that the people of Portugal are what make the country a magical nation to retire. More so, its excellent infrastructures, education system, and healthcare are as advanced as what you’ll find anywhere in the world.

Like many other countries around the Mediterranean, Portugal produces good food, olive oil, and wine, at an affordable price. Not only that, but Portugal is arguably Western Europe’s most affordable country. Even with the capital city, the country is rightly famous. Of course, you may have an idea of what you’re looking for.

However, we extend our research by bringing you the best things you’d want to know about Portugal. In this article, we will walk you through the pros and cons of living in Portugal. Aside from this fact, you’ll understand the interesting facts about this country, the national public holidays, and many others, to mention a few.

Top 10 Interesting Facts about Living in Portugal

While the award of the oldest nation-state in Europe goes to Portugal, Lisbon is as well seen to be among the four centuries older than Rome. Due to its excellent trading location, the Portuguese were the first Europeans to reach Japan in the 16^th century. Without further ado, below are the fun facts about living in Portugal as of 2021.

1.    Longest Reigning Monarchs

Undoubtedly, Portugal holds the record for the shortest and the longest-reigning monarchs. From research and recommendation, we found out that Henrique of Portugal was the king of Portugal for more than 73 years. On the other hand, Luis Filipe was the king for only 20 minutes before he was dismissed.

2.    Home to the Oldest Bookstore

If you take a trip to Portugal’s capital, Lisbon, you’ll definitely see an abundance of independent bookstores crammed into its tiled streets. As a nation of book lovers, it comes as no surprise that the oldest bookstore in the world can be found in the country. On the flip side, the Bertrand brand has become the largest bookstore chain in Portugal, with more than 50 shops.

3.    Home to Oldest Countries in Europe

Portugal has had the same defined border as history revealed, making it the oldest nation-state in Europe. Afonso Henriques was proclaimed the first king in 1139. In addition to this fact, we discovered that the country has since then remained a kingdom for almost 800 years until a successful revolution.

4.    A Dead Queen ruled Portugal

According to research, Portugal used to be ruled by a dead queen. In fact, being a monarch for like eight centuries, you can safely bet that there were some weird rulers on the Portuguese throne. This monarchy often exercises its governing power through something that could affect the locals and expats. The problem was, the new queen was killed, and this didn’t stop her reigns as she remained coronated.

5.    Home Known as a Surfing Paradise

If you’ve been searching for the country with the best surfing experience, look no further. Portugal is one of the places in Europe to go surfing. Compared to other European countries, the country’s 800km coastline and mild climate have been drawing surfers from all over the world for many years.

To make Portugal extra special, we can say that it’s home to the Nazare resort town. While you may have never heard of it, we’re pretty sure there’s no surfer on the planet who’s not dreaming of hitting the mythical Nazare waves in Portugal. And pretty because it’s the place where McNamara set a record!

6.    Land of Affordable Port-Wine

If you’re a wine enthusiast, you probably already know that Portugal has an interesting thing that you’d likely enjoy. Since the country is known as the land of wines, you should expect more. in fact, the country’s national drink, the Port Wine, is made in a magical UNESCO recognized valley which can be found pretty much everywhere.

7.    Portuguese Love To Set Records

Portugal is known as the record beaters as they love to set records. Some of the records they’ve set in the past include; smallest newspaper in the world, the largest Aletria, the most espressos made in an hour, the largest human image, the largest Santa Claus parade, most piano hits in a minute, and many others.

8.    Most Sun-Kissed Country

Portugal, as of today, is one of the most sun-kissed countries in Europe. Aside from this fact, have it in mind that it’s only the tiny islands of Cyprus and Malta that get more sunshine hours than Portugal. Again, with more than 300 sunny days per year and countless beaches to explore, this country is definitely a prime contender for a summer beach vacation.

9.    Virgin Mary Visitation

History made it known that Virgin Mary once visited Portugal. From our research, the miracle happened in May 1917 in the town of Fatima. This visitation was witnessed by three shepherd children who reported a meeting with a lady more brilliant than the sun. Apparently, the crowd observed the sun dancing in an unusual zigzag while immediately drying their rain-soaked clothes.

10. Home to Oldest University in Europe

The University of Coimbra, established in 1920, was ranked as one of the oldest universities on the continent. Located in the historic city of Coimbra, this university is home to over 21,000 students, 10 percent of whom are international students. And this places the university among Portugal’s most international universities and lends the city a cosmopolitan feel with affordable school fees.

Pros and Cons of Living in Portugal

Expats moving abroad often lose themselves in the process of making the right decision about moving from their home country. While this can be a natural part of acclimatization, it’s better not to get too bogged down in what others perceive to be negative about visiting the country. To clear the doubt, we have compiled the pros and cons of living in this country. Now, check it out to know what works best.

Pros

Friendly Locals

People in Portugal are very friendly to locals and expatriates. With this in mind, you should know that visitors and expats alike will find a warm and welcoming culture during their first visitation to the country. Though many people in the country don’t speak English, but you’ll find them helpful to newbies.

Low Cost Of Living in Portugal

Just like other countries in Europe, the cost of living in the country is pretty much lower. Even in the city center of Lisbon, the capital and most bustling city in Portugal, rent is quite cheap compared to the amount of rent in New York City and London. That’s way; it’s easy to buy property as the country is suffering from a major economic downturn.

Portugal’s Attractive Tax Policy

Portugal’s attractive tax policy is another reason to relocate to the country. When compared to other countries, you’ll see that there are attracting investors, self-employed professionals, intellectual property owners, scientific researchers, and expatriates enjoying tax benefits for years.

High Standard of Living

Towards the end of 2019, the Social Progress Index placed Portugal in 18^th on the best countries ahead of other nations such as France, England, Spain, and Austria. Moreover, the country stood out because of its performance in terms of freedoms, guarantees, right, and being considered an inclusive nation.

However, Forbes Magazine ranked Portugal as one of the best places to live your retirement years. Not only that, but it’s also referred to as the easiest and safest country in the world.

Diverse Cultural Uniqueness

Portugal has a rich culture that makes it different from other countries in Europe. As expected, for a country with such a long history, their cultural life is extremely interesting and very intense. More so, theatre, shows, international exhibitions, and stage comedies entice expats to relocate to the country. And besides, the country imbibes the cultures of resident communities of Latin America, Africa, and Asia.

Great Weather Conditions

Portugal is a popular holiday destination among many expats in the world. With that being said, expatriates can enjoy one of the most stable climates in the world. However, in the south of Lisbon, there are over 300 days of sunshine per year, meaning more sunny days than anywhere in Europe. With this fact, Portugal has a longstanding reputation as a top summer destination among European sun-seekers.

Affordable and Spacious Properties

As an ex-pat, this is an important thing to consider when relocating to another country. While accommodation is an essential factor, you should be willing to buy a house in the long run. In Portugal, you can choose whatever kind of spacious apartment that you want. This is because; many charming properties are available, and there’s a growing trend towards heritage-style apartments.

Cons

Language Barrier

Language barrier seems to be of the major problems expat could face while relocating to Portugal. This is because; there are few native English speakers in the country, and Portuguese is quite difficult to understand and learn for a foreigner. And more so, alternative language makes the language even harder to master.

Low Wages/Salaries (Labour Market)

As of today, Portuguese salaries have been ranked low compared to other European countries. With advances in distance working and online resources, it’s easier to keep living in one country and working in another, which helps to overcome the salary gap. The truth is that there are a number of new opportunities arising in Portugal, but the problem still remains low wages and salaries are given to expats.

Essential Travel Tips to Portugal

If you’ve never been to Portugal, the essential tips could be among the things you’ve been looking for. While you might even fall in love with several outdoor activities in the country, it is better to prepare and make your first trip go as smoothly as possible. Without much talk, below are some of the travel tips.

• Before you travel to Portugal, try and avoid the busiest, hottest, and most expensive months of July and August if possible. Moreover, you’ll likely find great deals and good weather with fewer crowds if you travel to the country off-season.
• If you’re making your own travel arrangements, ensure you have your accommodation booked before time. And if you’re planning to use public transport for transfers, there’s a need to get there on time.
• More and more destinations in Portugal offer a tourist cards for discounts. With that being said, cities such as Lisbon could give you discounted public transport and discount on all manner of typical holiday expenditures.
• Double-check that your document is complete. In fact, ensure that your passport is valid for at least 6 months beyond the date of travel if coming from outside the EU.
• If you’re planning to rent a car to get around in Portugal, don’t forget that your driving license is essential. Meanwhile, you may need an International Driver’s Permit to check with the rental company and confirm your trip.
• Ensure you have some local currency on you when you arrive in the country. But if you do land in Portugal without Euros, there are ATMs in all international airports and towns to withdraw Euros directly from your bank account
• If possible you might have to exchange your money before traveling to Portugal, try to avoid bringing large bills of more than 50 Euros.

Cost of Living in Portugal

Since Portugal remains one of the most reasonably priced countries in Western Europe, you should know that it offers a comfortable lifestyle to many expats. However, this guide provides an in-depth overview of what you’ll likely expect in Portugal.

With an enviable climate, affordable cost of living, and stunning landscapes, this country is a growing reputation amongst expats. Although living in some parts of Western Europe can be very expensive for expats unless you earn a good salary. But Portugal breaks the mold and offers affordable living.

Additionally, you can see that busses are the most widely-used public transportation if you’re living in Portugal. With this in mind, you should keep in mind that the cost of bus tickets ranges from €1 to €6 respectively. Besides, most location in urban areas could even offer a cheaper cost. And when it comes to education in Portugal, you’ll pay an average of €400-500 per month from primary to high school.

Furthermore, public universities are quite cheaper compared to private universities in the country. For public universities, there’s a fee limit that changes every year, and you’ll need to be aware of that. And when it comes to healthcare in this country, the fee is usually between €5-20 if not free.

Suitable Places to Live in Portugal

Portugal is an expat-friendly country with spectacular beaches, historic fishing villages, and safe cities. Now, the question is; where is the best place to live in the country? Many people have taken to the internet to express their opinion. But, guess what! We’ve got you covered by revealing the places here.

Lisbon

Our explanation doesn’t imply the best places for expats to live, but we’re considering the best city in the country. Lisbon is the first on our list because it’s a diverse city with thriving cultural heritage, beautiful historical centers, and it has an excellent choice for anybody wanting the buzz of a big city. Some of the pros of living in Lisbon include high-quality education, safety, and being family-friendly.

Porto

Porto has also made it to the top five on our list. This place is often overlooked by expats moving to Portugal because it’s located in the north. However, this beautiful city should not be ruled out because it is perfect for families and it’s also a cheaper option compared to Lisbon. Also, Porto is famous for its port wine, colorful streets, and incredible local gastronomy. Some of the pros of living in Porto include; great healthcare system, safety, and affordability.

Braga

Braga is also one of Portugal’s oldest cities and a great option for cheaper and smaller cities, unlike Lisbon and Porto. In fact, it’s more and more becoming a popular destination for expats. Aside from this fact, Braga is known for its lively nightlife, rich history, and home to the oldest cathedrals in Portugal. Some of the pros of living in Braga include; great healthcare, less tourist, and affordability.

Funchal (Madeira)

Funchal isn’t a destination that expats would think of. But, this city is becoming increasingly popular, especially with remote workers who have chosen island life as their choice of destination. As the island’s biggest city, Funchal is an up-and-coming city that offers a beautiful setting with warm weather all year around. Again, this island is not overrun with tourists, and it suffered less in the coronavirus pandemic. Some of the pros of living in this city include; beautiful environment, family-friendly, and more.

Ponta Delgada (the Azores)

From one Portuguese island to another, the Azores seem to be one of the best places to live in the world. The island’s beauty makes this city one of the best places to live in Portugal. Like Funchal, the Azores is not too touristy, but it’s more expensive in terms of the cost of living and sustainable tourism initiatives. Some of the pros of living in this city include; good air quality and beautiful surroundings.

Tradition and Cultures in Portugal

Undoubtedly, Portugal is a predominantly Roman Catholic country with a close-knit family ethic and religious background. The country is rich in culture, resulting from many influences, including Celtic, Visigoth, Moorish, and Germanic. In recent decades, Portugal has also undergone a renaissance in the arts, and the cities have all been designated as the European capitals of culture.

Meanwhile, the Portuguese have a deep-seated appreciation of arts. And this is why cities like Lisbon, Braga, Porto, and the university town of Coimbra feature many museums. This means, if you’re looking for a trendy art gallery, look no further because Arte AFK, located in the north of Lisbon, is the best.

However, when it comes to music, Fado and folk music with dancing are Portugal’s most important forms of musical expression. In fact, we can tell you that Fado is on the UNESCO Intangible Cultural Heritage List. Besides, Lisbon’s style is more popular in Western Europe and other countries.

Festivals and Holidays in Portugal

In towns and villages, year-round cultural activities is a popular thing in the country, and it often revolves around food. Meanwhile, there are festivals of oil, garlic, bread, cheese, wine, and many others, to mention a few. Also, carnivals are widely celebrated, not just on Fat Tuesday before the Roman Catholic but for several days. In June, festivals dedicated to Saints Anthony and Peter take place.

Additionally, Saint Martin’s Day is celebrated on November 11, part of three days called Saint Martin’s summer, usually a period with lovely weather. However, Christmas, Natal, is a family affair that’s celebrated with traditional Portuguese food.

Conclusion

Of course, everyone is certainly different as the Portuguese like to talk. Well, as an expat, this could be an opportunity to make new friends. As one of the oldest nations in Europe, there is more to explore in this country. In summary, read this guide carefully to get a glimpse of what living in Portugal entails.

Before introducing this article, if you are interested in our core services which are expat financial, insurance and mortgages, you can contact me here. 

The best time to consider your financial situation is when you are moving to a new country.

Introduction

Not only are there life-changing decisions to make about selecting the best countries. The question is will you be safe? And while there are countless logistic problems to solve, other things should be put into consideration. One thing to remember is to take a bold step in choosing the safest countries in 2021.

With more than 4.1 million members in 420 cities worldwide, InterNations seem to be the largest community. And it’s a source of information for people who live and work abroad. Now, in today’s 21^st century, the annual survey has made it known that there are many countries suitable for expat to live in.

After more than a year of lockdowns, many people are looking for a change in their environment. Whether it’s a temporary move to become a digital nomad or a more permanent change to become an expatriate in a new country, you can change your location for the better. Does that sound interesting?

Based on our research and information from more than 12,000 respondents, the survey is one of the most extensive pieces of research in the world regarding expat lifestyles. This study covers expat’s satisfaction with the quality of life, personal finance, working life, and living costs in their respective countries of residence.

However, in this article, we have compiled the safest countries in the world in 2021 for expats. Not only that, but we will walk you through the reasons why we’ve selected these countries as the safest ones for expat. Would you like to know more about the safest countries today? Read further to get the details.

Factors to Consider in Choosing a Safe Country

There are many factors to consider when it comes to choosing the safest countries. Moreover, if you live in a safe country, you’re more likely to enjoy spending time outside gardening or watching your kids play around. However, if the country is unsafe, you’re likely to keep the doors and windows shut all the time. Without further ado, let’s quickly take a look at the factors to consider in choosing the country.

Low Crime Rate in the Country

Crime rates are often a great option to consider when choosing the safest countries. Meanwhile, it’s not always easy to spot the crime, but there are crime-spotting tools that could give you an idea of what’s going on in your area. Aside from this fact, you can also check out the city’s website for police engagement activities in the country.

As an extra safety measure, you can also contact the police station to know more information about the country’s security measures. And if you’re planning to move to a new location, you need to check out resources like America’s safest cities to see if the country made a list.

Thriving local Businesses in the Country

Businesses prosperity is another thing to consider when you’re choosing the safest country. If you notice a variety of shops around your country, like family-friendly restaurants, coffee shops, bookstores, and many others, it could be a good sign that the country is safe.

When people are financially secure, they’re more likely to spend money beyond necessities and splurge from time to hang out with family and friends. With that being said, it’s worth noticing the types of businesses in your area and the people who frequent them.

Do your Personal Research

Before you travel to any country of your choice, you must research the particular culture’s customs before you step across their border. Understanding what might be offensive or insulting can help keep you safe in a country. In Asia, for instance, feet are considered unclean, and you should not direct the soles of your feet at anyone else.

However, you’ll need to recognize in advance how your own culture differs from the one you’re visiting. So, to choose a safe country, do your research, and make findings of the country’s culture, rank, and the benefits of relocating to the country.

Check Government Travel Advisories

Government advisories are as well important when trying to know whether a country is safe or not. While the government is legally required to tell you everything bad that’s happening in their country, you should make your findings as stated earlier. This means; you should be aware and be informed, but don’t let a government-issued statement scare you from visiting or entering a particular country.

10 Safest Countries in the World Today

As we all know, safety is one of the top priorities for nations worldwide. Be it better protecting its citizens on the streets, guarding them against wrongdoing, or even safeguarding them against crime. Besides, safety has taken on special meaning in the age of the global pandemic and traveling process.

Again, it’s only a handful of countries have no reported COVID-19 cases, according to the World Health Organization. Additionally, European countries dominate this category in the 2021 Best Countries report. However, Canada, Australia, and the Netherlands perform better in the category. Read further!

1.    Switzerland

From our research and endless survey, we found out that Switzerland has made it to the top. There’s much more to this country than just fine chocolate and picturesque snow-capped mountains. This is because; the country is a hub for foreigners from all over the world. And its central European location makes it ideal as a home base for exploring neighboring countries while living in the country.

Switzerland Livability

There are both pros and cons to living or relocating to Switzerland in today’s world. Some of the positive aspects include the ease of finding a community to fit into, excellent healthcare system, proximity to other European countries, and bustling outdoor activity, including some of the best skiing conditions.

In Switzerland, education and ease of starting a business are also simple, even for expats. Moreover, any emigrants can start a business if they can meet certain conditions, including establishing a local office and hiring a Swiss director. On the flip side, some of the downsides include; a slight bias towards emigrants and the high cost of living, which rivals New York and London.

Switzerland Crime and Violence

It’s undoubtedly ironic that Switzerland ranks very high among the world’s safest countries, yet it is seen as the highest weapons export industry. Nonetheless, Numbeo rates of crime in the country are considered as low to very low. On the other hand, the safest city starts at Lausanne, followed by Geneva, Basel, Bern, and many others, to mention a few.

Switzerland Economic Reliance

Switzerland’s economy is renowned for boasting one of the most advanced ones in the world. Making up a majority of this is the services, and tourism as well as the banking industry. Aside from this fact, Switzerland is the leading exporter of high-end watches and clocks around the world. More so, its industrial sector includes major companies such as Nestle and robot manufacturers such as ABB.

Switzerland Food and Natural Resources

Switzerland is highly protective when it comes to the domestic food production industry, which accounts for 60 percent of the food consumed in the country. With that being said, you should know that domestic production in this country is highly encouraged. Besides, the region grows its own vegetables and veal.

2.    Denmark

Denmark is the second safest country on our list. As of 2021, the country ranks third in the world for the Global Peace Index. Not only that but it has long been considered one of the safest and happiest countries to live in. Thanks to the country’s robust sense of community, life balance, and welfare support for the citizens.

Denmark Livability

As of today, Denmark has carried all the hallmarks of a highly progressive and successful nation. The country’s real drawbacks include; learning Danish even though English is a second language, higher expenses, higher tax, and the predominantly grey weather that runs throughout the year. Beyond these factors, there are strong reasons to live in Denmark, and it includes; affordable healthcare and free education.

Denmark Crime and Violence

The crime rates in Denmark are extremely low, according to the Numbeo statistics. More so, corruption in business and politics is extremely low as honesty and trust are a high priority in the country. Moreover, the capital of Copenhagen has also been ranked as the country’s safest city.

Denmark economic Reliance

Denmark boasts a mixed economy of government services alongside a high reliance on international trade. Meanwhile, the services sector makes up 80 percent of the country’s jobs, with the rest in engineering, manufacturing, as well as agriculture.

Denmark Food and Natural Resources

Denmark is no doubt a small agriculture industry, which includes animal and organic food production. While not expansive, Denmark has some oil and natural gas reserves in the North Sea. On the other hand, food prices can be a challenging factor because the country is ranked the most expensive when it comes to food and drink across the European Union.

3.    Canada

It’s no surprise to see Canada among the world’s safest countries in 2021.  In fact, the country has continued to be ranked as one of the world’s most peaceful countries, coming in at sixth on the Global Peace Index. We have compiled a good reason why this country was ranked as the safest. Check it out.

Canada Livability

The country’s livability and the benefits of living in Canada in today’s digital world cannot be overemphasized.  With everything from low violence and crime to the world’s friendliest citizens to job opportunities and political stability, Canada remains one of the safest countries for expat in 2021. However, the country’s access to universal healthcare is also a win over the neighboring US. When further compared to the United States, Canada can be cheaper or more expensive to live for expat, depending on your location and the service you crave for.

Canada Crime and Violence

Research has revealed that the country’s crime rate stands at about one-third of the US, with the majority of Canadian residence feeling safe in their country. While the past three years have seen an increase in crime, Numbeo still finds its crime levels between low to moderate.

Canada Economic Reliance

Canada boasts a highly diverse and developed mixed economy. With that being said, the country also has a huge portion of an economy driven by the services sector that employs three-quarters of Canadians. Some of the country’s main key industries include real estate, manufacturing, oil and gas, finance, and construction.

Canada Food and Natural Resources

As of 2021, Canada still holds the third-highest total estimated value of the world’s natural resources, which is valued at USD33.2 trillion. Aside from this fact, the country also boasts the world’s third-largest petroleum reserves and ranks as the fourth largest exporter of petroleum and natural gas. Moreover, the country’s significant agriculture industry is bolstered with wheat and grain production, which is exported to the US and Asia.

4.    New Zealand

New Zealand has also made it to the top five safest countries on the list. It has a low crime rate, stunning natural scenery, and a thriving tourism scene.  More so, friendly locals make New Zealand a special place to live, and there’s more to it. Let’s quickly walk you through the facts.

New Zealand Livability

This country is generally seen as a peaceful place to live. Contributing to this is its multicultural population of roughly five million, temperature climate, stunning hidden beaches, and generally progressive society that’s set against the backdrop of major developed cities. New Zealand has also been held in terms of its high standard of living, home affordability, and stable employment opportunity.

New Zealand Crime and Violence

New Zealand is known to have a low crime rate. Besides, its main crime statistics usually revolve around theft, while Numbeo rates its overall crime as low to moderate in recent years. However, the locals are mostly open-minded and have laws protecting citizens’ freedom of speech and expression. Surprisingly, the standard police in this country do not carry firearms around.

New Zealand Economic Reliance

New Zealand’s economy is propped up by a sizeable services sector. This sector accounts for a large part of the country’s gross domestic product activity. Other large industries in New Zealand include; metal fabrication, aluminum production, and many others. Meanwhile, food processing also forms the economy and segments of manufacturing, gas, water waste services, and export.

New Zealand Food and Natural Resources

The Country’s robust farming sector delivers a range of food produce from high-quality dairy to meat, and they are being exported and consumed locally. In addition to this, natural resources such as coal, iron ore, limestone, and gold are all in abundance, making New Zealand ranks in the top 30 countries for iron ore and gold production.

5.    Portugal

Aside from the countries we’ve been mentioning, Portugal has also made it to the list. They are considered the world’s third most peaceful country to live in, but it’s not just the rabid football culture that’s a highlight. In recent years, Portugal has been ranking moving closer to the top. And thanks to an increased police presence that keeps the crime rate low in the country. Below is what makes Portugal unique.

Portugal Livability

According to international living terms, Portugal offers arguably the lowest cost of living in Western Europe. This is due to the fact that everything is affordable, from groceries to temporary accommodation to rent, and others. In fact, eating out can be an affordable option if you choose to forego the more premium options. Also, in 2020, Portugal has ranked the best country for retirement.

Portugal Crime and Violence

Portugal’s police are armed, but their wide presence has resulted in its low crime rate. All the violent crimes remain low, with bribery and corruption rating the highest while Lisbon ranks the country’s safest city, followed by Amadora and Porto.

Portugal Economic Reliance

Before the pandemic hit globally, Portugal’s economy was ranked 34^th in the World Economic Forum’s Global Competitiveness Report. However, the country features a diverse range of industries propping it up, including the largest tertiary sector, followed by agriculture, fisheries, energy, and many more.

Portugal Food and Natural Resources

You’ll definitely be amazed to see the wonderful food and natural resources in this country.  The foods and wines are affordable, and the natural resources also include an abundance of forest, which supplies half of the world’s cork. Other mined natural resources include lithium, tin, uranium, and others.7

6.    Singapore

Singapore and its 5.7 million citizens enjoy some of the highest levels of personal security in the world. While the general quality of living is high, it’s no doubt that living in Singapore falls on the more expensive side. Now, let’s quickly walk you through the things that made Singapore a great nation.

Singapore Livability

Singapore as a nation has been known to be a technology hub. If you follow the rules in this country, you won’t have any issues with the law enforcement in the country. While the country’s rigidity might deter some of the more adventurous, it’s the reason why Singapore has been able to flourish to become the most open free market economy in the world today.

Moreover, it’s a hub for professional expats meaning a diverse cultural mix of people can be found from all corners of the world. With that being said, expats can, however, opt for simple lifestyle changes like living more like the locals to save money in a country with world-class amenities.

Singapore Crime and Violence

Singapore has benefited from some of the lowest crime rates in the world. Also, the government and the country’s police have strict gun control laws, making violence rare in the country. Aside from that, the country is also ranked first for infrastructures security and personal security. And digital security is ranked second in the world and eighth for health security.

Singapore’s Economic Reliance

When it comes to economic reliance, Singapore’s reputable economy is made up of several state-owned enterprises. Beyond this option, Singapore is a major foreign direct investment outflow financier and attracts inward international investors. Not only that, but Singapore also exports goods in the form of electronics, wealth management, electronics, and other services.

Singapore Food and Natural Resources

The food in Singapore is extremely wonderful and delicious. Also, natural water resources are scarce, with the country getting most of its supply from a mix of local catchments, high-grade reclaimed water, and desalinated water.

7.    Japan

Japan has long been an appeal for the home of wonders. The convenience stores in this country are awesome. And you can even find almost anything there because they’re clean, well serviced, and safe. Their foods are great, and getting a job could be the easiest thing for expats in the country. Take a look at the things that made Japan a great nation.

Japan Livability

The 2019 Global Peace Index ranked Japan as the world’s ninth safest country in the world. Since then, the country has been emerging top 10, and thanks to the low crime rate, that makes Japan one of the best destinations for expat. Although Japan’s immigration policy is quite difficult for foreigners and one must have lived in the country for 10 years before getting the permanent residency.

Japan Crime and Violence

As said earlier, the crime rates in Japan are relatively low. This ranking includes ranking first place in cyber security, second place in health security, and fourth place in personal security and infrastructure. Again, gun ownership in Japan is extremely low compared to other European countries.

Japan Economic Reliance

As a highly developed nation, Japan stands as the world’s second-largest developed economy. Japan’s main sectors of the economy include finance, diverse industrial sector, and several airline services. Moreover, Japan’s mountainous and volcanic landscape has minimal natural resources to support an expanding population and economy. Again, it is also the largest single national importer of fish and fishery-based products.

Conclusion

Safety is one of the first things to consider when traveling to a new country. As an expat, it’s quite essential to research well about the country before planning your relocation. If you’re looking to travel to the safest countries in the world, refer to this guide. Nonetheless, follow our platform to get more information about the countries mentioned above.