Americans are rushing to Portugal to get ahead of changes in tax policy that will eliminate financial benefits for expats who relocate there. An end to tax breaks for so-called “non-habitual residents” is part of a broader push to address the country’s housing crisis. Portugal attracted a flood of transplants during the pandemic, thanks to cheaper property prices, a warm climate and beneficial tax and visa programs. But political pressure tied to rising housing prices has fueled a recent crackdown on perks for foreigners. The looming elimination of the tax breaks has many scrambling to file paperwork to make sure they qualify for the program, which can save people hundreds of thousands of euros.
Portugal Home Prices Defy Rate Hikes on Strong Foreign Demand
- Real estate developer says about 65% of buyers are foreigners
- High property prices caused by foreign demand, housing crunch
A "For Sale" sign on the exterior of a building in Lisbon, Portugal.
Photographer: Goncalo Fonseca/BloombergHousing prices in Portugal continued to rise as demand from international buyers helps the runaway market defy pressure from higher interest rates.
More than half of new developments listed for sale in the first half of the year have been sold out, Confidencial Imobiliario, which collects data on the property market, said in a statement on Wednesday.
Portugal to End Golden Visa Program After Surge in Home Prices
- Golden visas were set up in Portugal about a decade ago
- Government held a cabinet meeting on Thursday about housing
Traditional residential buildings in Lisbon.
Photographer: Goncalo Fonseca/BloombergPortugal will end its so-called golden visa program for new foreign property buyers as it tries to address the lack of affordable housing in one of Western Europe’s poorest economies.
To fight real estate speculation, Portugal will “eliminate the issuance of new golden visas,” Prime Minister Antonio Costa said at a press conference in Lisbon on Thursday following a cabinet meeting. Foreign real estate buyers who wish to renew their existing golden visas will only be eligible if their properties are used as their own home, or if these units are placed in the long-term rental market, he said.
Americans Rush to Portugal Ahead of Changes to Expat Tax Breaks
A program that can save foreigners hundreds of thousands of euros is being phased out and people are scrambling to make sure they qualify.
Tourists pass diners on Pink Street in the Cais do Sodre district of Lisbon, Portugal.
Photographer: Goncalo Fonseca/BloombergAmericans are rushing to Portugal to get ahead of changes in tax policy that will eliminate financial benefits for expats who relocate to the country.
An end to tax breaks for so-called “non-habitual residents” in Portugal, announced by the prime minister in October as part of a broader push to address the country’s housing crisis, has led to a surge of Americans filing for tax residency.
Americans Who Can’t Afford Homes Are Moving to Europe Instead
Prohibitive housing prices, a strong dollar and political rancor have contributed to a wave of Americans relocating to Europe.
More Americans are relocating to Europe, driven across the Atlantic by the rising cost of living, inflated house prices, a surging dollar and political rancor at home.
Italy, Portugal, Spain, Greece and France are among the most popular destinations. Sotheby’s International Realty said requests from Americans looking to move to Greece rose 40% in the April-to-June period compared to a year earlier. In France and Italy, US demand is the highest it’s been in at least three years, according to Knight Frank real estate specialist Jack Harris. And Americans made up 12% of Sotheby’s Italian revenue in the first quarter, compared to just 5% in the same period a year ago.
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