The Shift from Spain to Portugal
Recent tax proposals in Spain have prompted a significant shift among Britons looking to relocate, with many now favoring Portugal over their traditional choice.
Key Factors Driving the Move
Experts suggest that language barriers, potential tax increases, and the uncertain fiscal environment in Spain are steering retirees, digital nomads, and families towards the relaxed lifestyle and English-friendly atmosphere in Portugal.
Record Migration Numbers
In 2023, a record increase of 130% in foreign citizens moving to Portugal was reported, with British nationals ranking as the third-largest group after Brazilians and French. Approximately 47,409 Britons relocated to Portugal between 2023-24, an increase from 45,265 in 2022.
Concerns Over Spanish Tax Policies
The Spanish government's tax proposals, including potential bans or tax hikes for non-EU residents, have raised concerns. Although Prime Minister Pedro Sánchez faces challenges in passing these measures in parliament, the uncertainty has already influenced decisions.
Real Estate Insights
According to Dylan Herholdt, a sales manager at Portugal Realty, many inquiries have come from individuals looking to transition from Spain to Portugal, not just for holiday homes but for permanent relocation. The cost of living and taxation are major considerations in this shift.
The Appeal of Portugal
Dave Williams, co-founder of NomadX, highlights that Portugal presents a more predictable tax regime, attractive to digital nomads and entrepreneurs. The remote work visa has also contributed to this trend. Many British expats are drawn to Portugal's strong communities and lower living costs.
Entrepreneurial Support
British entrepreneur Brian McClafferty found that Portugal offered better support for his start-up compared to Spain, citing Lisbon's recognition as a top tech hub in Europe.
Visa Options for New Residents
Although the Golden Visa program has been scrapped, several other visa options remain popular among Britons, including the Type D long-stay and D7 passive income/retirement visas. The D8 digital nomad visa is also gaining traction, alongside the D2 entrepreneur visa.
Portugal's previously attractive tax regime continues to be a significant draw, with no inheritance tax for close family, no wealth tax, and competitive rates on investment income and corporate tax.
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