Why entrepreneurs are relocating to Portugal
Portugal is one of the best countries in the world for expats due to safety, friendliness, English proficiency, and great weather. This is why entrepreneurs are relocating to Portugal.
Portugal consistently ranks amongst the best places to live for expats
Great quality of life on a budget is why most entrepreneurs relocate to Portugal, but political and economic factors are gaining importance
Key cities in Portugal, such as Porto and Lisbon, have long attracted foreign entrepreneurs and expats communities
The Portuguese government fully supports innovation and foreign investment and has introduced several Visa options that cater to a wide range of entrepreneurs looking to move
Last December, as the bulk of Europe, cringed beneath the cold and the pandemic, Lauren sat on her apartment’s terrace and gazed at the bright blue skies above. The temperature was a mild 16 degrees Celsius in Lisbon (61º F). As a self-employed marketing consultant living in Lisbon, Lauren contemplated the wisdom of relocating to Portugal from Taipei just a few weeks earlier with ease.
Sunbathing in the middle of winter confirmed her best expectations. And she is not alone. Portugal is fast becoming one of the best countries in the world for expats. Lisbon, in particular, grabbed a coveted 3rd place for the best city in the latest InterNations ranking.
So why are entrepreneurs relocating to Portugal?
Why relocating to Portugal is a top choice for entrepreneurs
Portugal’s exceptional quality of life and the ease of settling in have won over tech entrepreneurs from around the globe.
Massive expat surveys, such as the one conducted by InterNations to over 20 thousand expats in more than 180 nations, focus on the vital aspects of life abroad: quality of life, ease of settling in, working life, personal finance, cost of living, and family life. Analyzing the answers of expats provides some insights into what drives entrepreneurs to move.
Many expats are drawn to Portugal’s commitment to the environment. In fact, more than nine in ten expats in Portugal rate the air quality positively and an even higher share is happy with the country’s natural environment.
The local climate and weather are other key factors. This is hardly a surprise, considering Lisbon has close to 300 days of sunshine a year, with temperatures in the double digits even during the coldest months.
However, expats have more reasons to consider relocating to Portugal: personal safety and civil liberties are guaranteed. Most do not struggle with their personal finances, as even Portugal’s most expensive cities offer reasonable cost of living. And Portugal is one of the world’s best countries for leisure options.
This Portuguese welcoming spirit is a stark contrast with world events that are making other destinations less friendly.
People are relocating to Portugal from established tech hubs and emerging economies
Recent events in the UK, US, and in other parts of the world are fuelling a move to stable countries such as Portugal.
UK
As of 2018, the last year for which official statistics are available, over 26 thousand Britons lived in Portugal. That number is likely to be far greater now, once Brexit and the pandemic are factored in.
As many as 1.3 million expats living in the UK have left the country in just over a year, from July 2019 to September 2020. This unprecedented exodus, driven by the economic fallout from the coronavirus pandemic, was particularly pronounced in London.
Almost 700,000 people have left the capital during the same period. If accurate, that would mean the city had lost nearly eight percent of its population in just 14 months. COVID-19 has battered the UK, killing more than 86,000 people nationwide, threatening millions of people’s livelihoods, and plunging the country into its deepest recession for 300 years.
US
Just over 3 thousand US-born citizens live in Portugal. Many came looking for safety, rather than sunshine. After all, Trayvon Martin was shot and killed after buying a bag of Skittles and a can of iced tea. The death of George Floyd in Minneapolis provided fresh evidence that living outside the USA can be an exercise in self-preservation.
A study in 2019 by the National Academy of Sciences found Black men were about 2.5 times more likely than white men to be killed by police. An analysis this year by Nature Human Behavior of 100 million traffic stops conducted across the country determined that Black people were far more likely to be pulled over by police than whites, but that difference narrowed significantly at night when it is harder to see dark skin.
Racism and political unrest are major drivers for relocation. Americans are leaving the country or seeking foreign visas in record numbers, according to immigration lawyers and expatriate organizations, due to political fuelled violence, racial strife, and an uncontrolled pandemic throughout 2020 that has kept families locked in their homes for months.
The number of Americans who were recorded as having given up their U.S. citizenship soared to 5,816 in the first six months of 2020, compared with 2,072 in all of 2019, according to data from the Internal Revenue Service.
Civil unrest, racism, personal safety risks, and underperforming domestic economies were also major drivers for tech entrepreneurs to leave their homes in countries such as Brazil and Eastern Europe. Corruption, bureaucracy, taxes, poor infrastructure, and trade tariffs are just some of the challenges that still stifle business in these parts of the world.
The entrepreneurs looking for a place to fulfill their life’s mission will probably be glad to call Portugal home. These are some of the most attractive cities.
Top cities for expats in Portugal
Lisbon
Lisbon
Lisbon is a very diverse city. The Portuguese capital is a sound choice for anybody wanting the buzz you would expect from a capital city, while also having a beautiful historic center. Many people speak English and Lisbon is also a popular place to live for tech nomads. Lisbon is filled with co-working hubs, good internet connections, and job opportunities. Lisbon is Nomad List’s best place to live and work in the world and is also one of the best places to invest in real estate. Lisbon has several incubators and accelerators, like Startup Lisboa or Fabrica de Startups, and is one of the Scale cities, a network of startup ecosystems across Europe. Lisbon is also home to key offices of Pipedrive, Salsify, and Cloudflare.
Funchal, Madeira
Funchal, Madeira
Funchal is the main city of the autonomous region of Madeira, on the island of Madeira, bordered by the Atlantic Ocean. The city is the sixth-largest city in Portugal and a popular tourist attraction, being the leading Portuguese port on cruise liner dockings. Madeira has been growing in popularity for digital nomads and even has a Nomad Village with free working space. Startup Madeira business and innovation centre and the Madeira Free Trade Zone with special tax incentives are also key reasons for foreign investment and entrepreneurs to chose Madeira.
Porto
Porto
Located along the Douro River estuary in northern Portugal, Porto is the second-largest city in the country. The city is considered to be a hub of culture and entertainment that rivals Lisbon. Furthermore, its historic center was classified as a World Heritage Site by UNESCO in 1996. Like Lisbon, Porto is also a very safe city, making it perfect for families and is a cheaper option compared to Lisbon. Porto is famous for its famous port wine, incredible local gastronomy, and its colorful streets. Porto is also part of the Scale cities network has UPTEC as one of its more important incubators, promoting knowledge sharing between the Porto University and the market. Companies like Farfetch and Natixis have chosen Porto as a tech center.
Braga
Braga
Braga is one of Portugal’s oldest cities and a great option for those looking for a cheaper and smaller city beyond Porto and Lisbon. The city is known for its lively nightlife, as well as rich history. Braga has an ideal location, just 30 minutes from the beach, 15 minutes from the mountains. It is also family-friendly with well-known schools. Startup Braga runs incubation and acceleration programs with a focus on the digital economy, health, and nanotechnology. Bosch has an important Technology Center working on sensors and software for automated vehicles in Braga.
To call one of these places their home, expats require one of the following permits.
Relocating to Portugal with governmental support
The Portuguese government is fully committed to attracting foreign talent. This long-term investment touches every part of the political spectrum, from left to right, and is one of the government’s top priorities. One way this translates into practice is through Visas.
Golden Visa
Established in 2012, Portugal’s Golden Residence Permit Program enables non-EU/EEA citizens to obtain a special residence permit in exchange for a 5-year investment in Portugal. What’s unique about the permit is that the investor only has to spend about seven days per year in Portugal to maintain the residency, while still reaping all the benefits of being an EU resident—including visa-free travel in the entire Schengen area.
While the program has benefited more than 6,500 foreign investors so far, it has also been beneficial for the Portuguese economy. That’s great news for prospective investors, as the program has broad support from nearly all political parties in Portugal.
Tech Visa
Tech Visa aims to ensure that highly qualified staff, foreign to the European Union, can access jobs created by Portuguese companies in a simplified way.
The program is aimed at companies inserted in the global market, with headquarters or permanent establishment in the national territory, who intend to attract qualified and specialized technical staff to Portugal, coming from third states and residing outside the European Union.
Startup Visa
StartUP Visa is a residence visa for entrepreneurs, which aims to attract investment, talent, and innovation capacity to Portugal. Its purpose is to grant a residence visa or residence permit for entrepreneurial immigrants.
By investing and creating qualified employment, entrepreneurs can integrate a startup incubator in Portugal and benefit from all the incentives and support of the StartUP Portugal Program. This program aims to strengthen the innovation ecosystem and to affirm Portugal as an open country to entrepreneurship.
D7 Visa
Pensioners, retired foreign citizens, or other foreigners living off of a recognized stable income, such as movable property, real estate, intellectual property, or financial investments may apply for a D7 Portuguese Visa.
Every foreign citizen who wishes to live in Portugal, regardless of age, can come to Portugal in order to get a residence permit, provided that they can prove to have sufficient income to provide them with a means of livelihood.
Should entrepreneurs consider relocating to Portugal?
Many entrepreneurs list the sunshine, food, lifestyle, costs, and culture as key motivations to move to Portugal. In terms of safety and stability, Portugal has also been ranked third in the global peace index, just below New Zealand and Iceland, and 18th in liberal democracy index, notably ahead of countries like the US and Canada.
This welcoming spirit is of special comfort when events in the UK, US, and other parts of the world make Portugal stand out as a haven for stability.
A wide range of Visa options caters to the different needs of entrepreneurs who want to call Portugal home. If you are thinking of relocating or expanding your operations to Europe by moving and setting up a company in Portugal, we can help you through the whole process. Book a call today.
