High-Skilled Immigration ‘Crucial’ to Portugal’s Economic Growth, Claims Bank of Portugal Governor

As discussions around new immigration legislation in Portugal intensify, the Governor of the Bank of Portugal (BdP), Mário Centeno, unequivocally stated that Portugal’s future relies on the flow of people and skills.

Speaking at the 46th-anniversary celebration of the Polytechnic Institute of Coimbra, the Governor highlighted the critical role of human and labour mobility in the success of modern economies.

"The powerful concept behind this enormous success of our economies and societies is the phenomenon of labour and human mobility. Without it, Europe has no future; without it, Portugal has no future," Centeno asserted. 

He further revealed the profound impact of this mobility on recent growth, stating, "Almost two-thirds of the increase in production in the last five years in Portugal is associated with the increase in human and labour mobility in Portugal."

Without this crucial element, he added, "we would have lost two-thirds of economic growth."

The significance of immigrant labour extends beyond Portugal's borders. Centeno noted that within the eurozone, 12 million jobs were created over the last five years, with a staggering 7.2 million (60%) of these filled by individuals working outside their country of birth.

Turning to the domestic labour market, the BdP's head official pointed out a remarkable surge in Portuguese wages over the past decade.

"It's almost statistically dizzying to see that in ten years we've achieved what we've achieved in 900 years of history," Centeno observed. 

This impressive growth, he explained, is largely due to increased employment and a rise in average wages.

"A large part of this is increased employment; employment grew almost 40%; the rest is increases in the average wage.

“Why has the average wage in Portugal risen so dramatically? Yes, the minimum wage has increased, but because we've increased our qualifications like never before in our history." 

Centeno also clarified that the most dynamic sectors contributing to these positive figures are those offering above-average wages.

“It's scientific activities, information, and communication; the most dynamic industrial sectors in terms of qualifications have contributed most to this evolution," he explained.

Centeno also provided historical context, noting the severe downturn in housing construction investment in Portugal between 2008 and 2014, a period marked by the global financial crisis and the 'troika' intervention.

During this five-year span, investment plummeted by 83%, and the sector's production decreased by approximately 60%.

Paul Stannard, Chairman and Founder of Portugal Pathways and the Portugal Investment Owners Club, said: “Portugal’s welcoming approach to immigration through the likes of the Golden Visa residency-by-investment programme and Tax Incentive for Scientific Research and Innovation (IFICI/NHR 2.0) tax regime has had a hugely positive impact.

“We’re seeing more and more businesses moving to Portugal or opening up new offices. This is creating high-value employment and benefiting the entire country."

Portugal’s Golden Visa programme has brought in over €7.5 billion since its inception and continues to be a significant driver of Foreign Direct Investment (FDI).

By investing €500,000 in one or more eligible alternative investment funds, investors can secure residency and a pathway to permanent dual citizenship for themselves and their eligible family members. 

“Portugal’s Golden Visa programme continues to drive growth in key sectors of Portugal’s economy, such as tech, tourism and hospitality, healthcare, media and international events, and renewable energy.” Added Stannard.

“Meanwhile, Golden Visa investors enjoy Portuguese residency for themselves and qualifying family members, visa-free travel across much of Europe, and the possibility of citizenship after five years.

“Investors are only required to spend seven days per year in Portugal, while gaining access to a range of lucrative investment opportunities across the country’s key sectors. The programme offers a genuine win-win situation for both investors and Portugal.”

Discover how you can invest in Portugal and arrange a Golden Visa no-obligation discovery call with Portugal Pathways.

Meanwhile, Portugal’s IFICI (NHR 2.0) tax regime is attracting high-skilled individuals such as researchers, innovators, and high-value workers to the country with a flat 20% tax rate on qualifying income derived in Portugal and 0% tax on certain foreign-sourced income, such as capital gains and dividends. 

Contact Portugal Pathways to learn more about Portugal’s IFICI (NHR 2.0) tax regime.

The Bank of Portugal’s Mário Centeno concluded on a note of optimism: "It's a huge challenge we face, but being at a university and also having some academic spirit, I have to say it's a good challenge."

His remarks underscore a clear message: for Portugal to thrive, embracing skilled immigration is an absolute necessity.

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