Portugal

QUICK FACTS

Location : Southwestern Europe, bordering the North Atlantic Ocean, west of Spain

Capital : Lisbon

Total Area : 92,090 sq km

Population : 10,833,816 (July 2016 est.)

Population distribution: concentrations are primarily along or near the Atlantic coast; both Lisbon and the second largest city, Porto, are coastal cities

Languages : Portuguese (official), Mirandese (official, but locally used)

Religion : Roman Catholic 81%, other Christian 3.3%, other (includes Jewish, Muslim, other) 0.6%, none 6.8%, unspecified 8.3%

note: represents population 15 years of age and older (2011 est.)

Ethnic groups : homogeneous Mediterranean stock; citizens of black African descent who immigrated to mainland during decolonization number less than 100,000; since 1990 East Europeans have entered Portugal

Government type : semi-presidential republic

GDP – per capita : $28,500 (2016 est.)

Climate : maritime temperate; cool and rainy in north, warmer and drier in south

Legal system : civil law system; Constitutional Court review of legislative acts

Unemployment rate : 11.3% (2016 est.)

Visa free countries : 172 (2016)

Overview of the country – geographical Situation, accessibility

Flag of Portugal

Located in the west of the Iberian Peninsula, Portugal is a country with the highest maritime jurisdiction of the European Union. As a result, 53% of the EU’s external trade passes through Portugal.

The country includes the archipelagos of the Azores and Madeira. Lisbon is its capital.

Four international airports serve the country: Lisbon Portela, Faro, Porto and Joao Paulo II, in the Azores.

Rate of tax system on the physical persons living in the country

Portugal has recently introduced a special status called Non-Habitual Residents (NHR’s). This special status allows new residents to benefit from an attractive tax regime for 10 years.

It mainly concerns pensioners, since pension income from a foreign source is not taxed in Portugal for non-habitual residents under certain conditions linked to tax treaties between the different countries.

In addition, certain passive income may also be exempt from taxation under certain conditions of tax treaties between the different countries, such as interest, dividends, other capital income and real estate income, as well as capital gains from foreign sources.

There are no taxes on wealth in Portugal.

Physical and Legal Security of the Country

As a founding member of NATO, Portugal is closely linked politically and militarily with all other Western countries. It is a member of the OECD, the UN, the Council of Europe and the Schengen area. It is one of the founding countries of the euro area.

It is a politically and economically stable country. Despite three years of recession (2011-2013), the Portuguese economy has shown signs of recovery since the end of 2013. It benefits to a large extent from tourism, which reached a record level in 2014.

Programs of economic investments set up by the government of the country host, with new residents

Portugal is attractive to people who do not possess an European nationality and wish to become resident in Europe. The possibility for a non-European to become resident in Portugal can be achieved in the form of an investment in 3 different ways:

– Transfer of at least EURO 1 million to a Portuguese bank

–  The acquisition of a property in Portugal with a minimum value of 500,000 euros

–  The creation of a company in Portugal generating at least 10 jobs

The Golden Visa program has been in place since 2012. It is particularly suitable for non-European people who want to live in Portugal and travel freely in the Schengen area. The program is open to investors and their families wishing to reside in Portugal. The right of residence can be obtained even if the residents have another place of residence outside the border.

Quality of Life

As a country of warmth and sunshine, Portugal, once powerful conqueror, still bears traces of a glorious past. A marked architecture, a sea always present and dishes cooked with taste and finesse, not forgetting the excellent port, make this country a destination appreciated by a large number of people eager to live well.

Countries for which visas are not necessary any more

Residents of Portugal can travel freely in some 172 countries and territories. However, it is necessary to contact the authorities before traveling, as the list of countries may have to change according to the agreements between countries.