The term “digital nomad” has gained popularity as society becomes more interconnected and remote employment becomes more prevalent. A digital nomad is someone who works virtually and from any location in the world using technology. This way of living has gained popularity, particularly since the COVID-19 pandemic forced many businesses to adopt remote work.
As a result, a lot of investors and digital nomads are searching for countries that provide a good fiscal climate, a high standard of living, and a friendly local population. We’ll look at why Portugal has developed into one of the most alluring locations for investors and digital nomads in this piece.
Hospitable People
Portugal is renowned for its friendly people. Portuguese people are distinguished for their warmth, and the nation has a sizable migrant population. Investors and digital nomads can easily fit into Portuguese culture and get assistance from other ex-pats.
Portugal also offers non-EU citizens a visa scheme known as the Golden Visa program. By making an investment in real estate or a business, participants in this scheme can become permanent residents of Portugal. Digital travelers and investors seeking a long-term commitment have begun to favor this program.
Taxes in Portugal
In addition to the pleasant standard of living, the country has grown in attractiveness in recent years, thanks in particular to the development of special programs, economically advantageous for those who decide to settle there.
We note, for example, the non-habitual residence program (NHR) and the Visa d’Or (GV). The former grants preferential tax treatment to immigrants with certain types of foreign income (investments, pensions, etc.) while the latter is a means for non-EU citizens to acquire residency and possibly citizenship without having to spend a lot of time in the country in exchange for an investment. There are many other visa possibilities for those wishing to settle in Portugal.
Today, the country is facing some challenges related to the massive increase in the number of tourists and immigrants. For example, the popularity of certain cities has led to an increase in the cost of housing. This trend has inherent a major social stake that the Portuguese government seeks to limit. Indeed, if the cost of living is lower than in other European countries, the basic salaries are also lower. This disparity between immigrants with substantial incomes and local citizens has led to the mass departure of the latter from the cities that used to be theirs, but which are now inaccessible to them due to the increase in land prices.
Getting to Portugal
Immigration to Portugal for EU/EEA citizens is very easy. On the other hand, for applicants from the rest of the world, the procedures are slower and vary from one country to another. Indeed, the difficulties can be more or less important if Portugal has an agreement with your country of origin.
Once installed, the difficulties disappear. Indeed, online administrative services are effective. It is possible to carry out a large number of common procedures, such as accessing your medical file, updating your address, or even filling out your tax return.
Portugal is a popular destination for both digital nomads and investors due to its mild climate, affordable cost of living, and friendly business environment. Here are some of the top reasons why Portugal is a great choice for nomads and investors:
For Nomads:
- Cost of Living: Portugal has a relatively low cost of living compared to other Western European countries. Nomads can enjoy a high standard of living on a lower budget.
- Quality of Life: Portugal is known for its relaxed lifestyle and beautiful scenery, making it a great place to live and work.
- Digital Nomad Visas: Portugal has a special visa for digital nomads, which allows them to live and work in the country for up to one year.
- Connectivity: Portugal has excellent internet infrastructure, making it easy for digital nomads to work remotely.
- Community: Portugal has a growing community of digital nomads, with coworking spaces and meetups throughout the country.
For Investors:
- Golden Visa Program: Portugal’s Golden Visa program offers residency to investors who make a minimum investment in real estate, business, or capital transfer.
- Tax Benefits: Portugal offers favorable tax rates for non-habitual residents, which can be very attractive to investors.
- Real Estate: Portugal’s real estate market is growing, and property prices are still relatively low compared to other European countries.
- Strategic Location: Portugal is well-connected to Europe, Africa, and the Americas, making it a strategic location for businesses.
- Business Environment: Portugal has a friendly business environment, with low bureaucracy and a growing startup scene.
Portugal offers a great balance of lifestyle and business opportunities, making it a top choice for both digital nomads and investors.
Banking services for individuals in Portugal
How to Open a Bank Account for Individuals in Portugal
If you want to know how to open a bank account in Portugal as a non-resident, this section covers all the requirements and processes of getting your finances in order in Portugal.
We explain what documents you will need, and what the process is like, and show you some of your options for banks, be it international banks, no-fee bank accounts, or online banking.
Opening a bank account in Portugal is a pretty straightforward process. Here are the steps you must follow:
- Choose a bank: Research different banks in Portugal and find one that meets your needs.
- Visit the bank: Once you have chosen a bank, visit the bank in person or online to find out what documents you need to open an account.
- Provide identification: You will need to provide your passport or national identity card as proof of your identity.
- Proof of address: You will need to provide proof of your address in Portugal. This can be a utility bill or a rental agreement.
- Tax Identification Number (TIN): You will need to obtain a TIN, which is a unique identification number for tax purposes.
- Choose the type of account: There are different types of accounts available, such as a current account, savings account, or debit card account.
- Deposit funds: To activate your account, you may be required to make a minimum deposit.
- Sign the contract: Once you have completed all the paperwork and deposited the required funds, you will need to sign a contract.
- Activate your account: Your account will be activated once the bank verifies your information and documents.
It is important to note that the specific requirements may vary from bank to bank, so it is always best to check with the bank you choose.
Best Banks in Portugal
Portugal has a range of banks that cater to investors and nomads. Here are some of the best options:
- Millennium BCP – This is one of the largest banks in Portugal and offers a wide range of financial products and services. Millennium BCP has a dedicated International Desk that offers services to non-residents, including investors and nomads.
- Banco Santander Totta – This bank is part of the Santander Group, one of the largest banking groups in the world. It has a strong presence in Portugal and offers a range of financial services, including banking and investment solutions.
- Caixa Geral de Depósitos – This is the largest bank in Portugal and is owned by the Portuguese government. It offers a range of financial services, including banking, investment, and insurance products.
- Novo Banco – This is a relatively new bank in Portugal, having been established in 2014. It offers a range of financial products and services, including banking, investment, and insurance solutions.
- Banco BPI – This bank is part of the CaixaBank Group and offers a range of financial services, including banking and investment solutions. It has a dedicated International Desk that caters to non-residents, including investors and nomads.
The best online banking service for you will depend on your personal preferences and needs. It is important to compare the different options and choose a bank that meets your requirements.
Conclusion
Portugal is becoming an increasingly attractive destination for nomads and investors due to its warm climate, low cost of living, high quality of life, and friendly business environment. In recent years, the country has implemented several policies to encourage foreign investment and entrepreneurship, such as the Non-Habitual Resident (NHR) tax regime and the Golden Visa program, which offer significant tax incentives and residency benefits to foreign investors and entrepreneurs.
The banking system in Portugal is generally considered to be stable and efficient, with a range of both traditional and online banking options available.
Portugal presents a compelling opportunity for nomads and investors looking for a new base or an attractive investment destination. However, as with any investment or lifestyle choice, it’s essential to conduct thorough research and seek professional advice before making any significant financial or life decisions.
If you’d like to explore your options based on your unique circumstances, Schedule a free consultation with our team today!
Disclaimer
Widelia and its affiliates do not provide tax, investment, legal or accounting advice. Material on this page has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, investment, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Please consult https://widelia.com/disclaimer/ for more information.
