Portugal courts international talent with Digital Nomad Visa
and tax benefits
Stock option tax delay and ‘favorable’ rate to entice younger entrepreneurs to Portugal while allowing digital nomads to earn globally.
Portugal is stepping up its efforts to attract young innovators to settle in the country, with a new tax initiative set to be introduced in 2023. Portuguese secretary of state for digitalization, Mario Campolargo, revealed the new tax concession at the end of 2022, stating: “Britain sees Portugal as a very nice place to visit, a very nice place to live, and there are lots of retired people who have homes in Portugal, but what we want to bring is a third dimension – come and work with us... [We are] launching a challenge to youngsters in the UK who would like to maintain a strong alliance with the European Union that Portugal is the place where they will find the talent and opportunity to thrive in the digital world.”
The tax concession, which is expected to be passed by the Portuguese parliament in 2023, will mean that investors or employees who are given stock options when start-ups issue them will not pay tax on them until they are used. Usually, stock options are taxable at the point of issue. Portugal also plans to tax the stock options at a “very favorable” rate compared to other European countries, though the rate itself is yet to be confirmed.
The introduction of tax benefits adds to the attractions of life in Portugal for young international talent. Many digital nomads have already been drawn to the country via its Digital Nomad Visa, which launched in October 2022. Now, Portugal is courting not just those who earn their income from around the world but those who want to start businesses in Portugal itself. This is likely to have an impact on both the Portuguese business environment and its real estate sector. Kronos Homes, which owns and operates the Algarve’s stunning Amendoeira Golf Resort, anticipates the move will drive demand for both rental properties and those for sale during 2023 and beyond.
“Between the pending tax concession and the one-year and five-year visa options for digital nomads, Portugal will likely see an influx of entrepreneurs with a wide range of plans over the coming years. Resorts that can accommodate both renters and those looking to put down longer term roots through buying a home will be well positioned to meet the varied needs of this group,” says Alda Filipe, Sales and Marketing Director, Kronos Homes.
Amendoeira Golf Resort showcases the lifestyle benefits available to entrepreneurs and innovators who choose to make Portugal their home. Those who live at the resort, whether as renters or owners, have a wealth of facilities available. They include two outdoor swimming pools, two five-a-side football pitches, six tennis courts, two paddle courts, a gym and a one-kilometer jogging track. There are also two prized 18-hole golf courses and a nine-hole course, along with a golf academy, a driving range and a putting green. The Algarve’s attractive climate means that such facilities can be used almost year-round, unlike similar amenities
in the UK.
In business terms, the fact that Portugal is on the same time zone as the UK and that English is widely spoken both add to the country’s attractions. With the Digital Nomad Visa laying out a path towards permanent residency and eventual citizenship, and the anticipated tax benefits being introduced in 2023, Portugal is certainly doing much to encourage younger talent from around the globe to settle down and thrive in the sunshine.