Portugal's consistently pleasant weather is a major draw for those seeking a better quality of life abroad. From families to entrepreneurs, the country's climate plays a pivotal role in its appeal. Coupled with an array of lifestyle benefits and tax incentives, Portugal continues to cement its position as one of the world's most desirable places to live.
Climate and Lifestyle Benefits
Portugal enjoys an enviable 300 days of sunshine annually, creating a perfect environment for wellness and relaxation.
This abundance of sunny days fosters an active outdoor lifestyle, with opportunities for hiking, golfing, and attending local markets and festivals year-round. The warm and sunny climate plays a crucial role in the vibrant atmosphere that attracts so many to the region.
The country's climate is both mild and diverse, catering to a range of preferences. Portugal's average annual temperature hovers around 21°C (70°F), while the Algarve—a favourite among expats—boasts summer averages of 26°C (79°F), often peaking at 29°C (84°F). Even in the cooler months of December and January, the Algarve maintains a comfortable average of 16°C (61°F).
From the cooler, temperate north to the warm Mediterranean-like south, residents can choose a region that best suits their lifestyle and comfort.
Records show December 2024 was the driest month on record in Portugal. Braga saw Portugal’s highest rainfall at 65.5 millimetres, while Portimão, part of the Faro district, had just 1.7 millimetres.
The Algarve region tends to be one of the areas most affected by droughts in Portugal. The six main reservoirs currently hold 151 cubic hectometres of stored water, equating to 34% of their total capacity.
Despite this, the figure represents an increase of 39 cubic hectometres compared to the same period last year, indicating the Algarve is making good progress in combating droughts.
The Algarve is prepared for the country’s dry weather patterns with water reserves to last a year of urban consumption, states a source from the Portuguese Weather Agency (APA).
While the weather may be attractive to those from countries such as the UK, France, and Germany, climate change concerns must be addressed to protect the driest regions of Portugal.
Portugal’s Relocation Incentives
Portugal’s Golden Visa residency-by-investment programme continues to draw expats, families, investors, and entrepreneurs. The Golden Visa programme offers residency in return for investment in one or more government-approved regulated alternative investment funds. The minimum investment value is €500,000. Golden Visa has a minimum residency requirement of seven days per year, and holders can apply for citizenship and an EU passport after five years.
Portugal’s tax landscape is changing as the Tax Incentive for Scientific Research and Innovation (IFICI) tax regime comes into effect. The IFICI tax regime offers significant benefits for highly skilled professionals, entrepreneurs, researchers and innovation-driven businesses.
With 10 years of tax benefits, including a flat 20% rate on qualified income and 0% tax over non-Portuguese income, including capital gains and dividends (excluding pensions and some blacklisted sourced income), the regime is expected to attract global talent, boost innovation, and reduce regional disparities.
Portugal’s Culture and Cost of Living
Portugal boasts a significantly more affordable cost of living than much of Europe and North America. Costs can be around 42% lower than in the US without reducing the quality of goods and services.
Portugal’s real estate market also represents significant value for money, with luxury properties available for a fraction of the price you would expect to pay in the US or UK.
Coupled with a rich culture and history, it’s easy to see why Portugal is such a popular relocation destination. Portugal’s welcoming communities make integration into the country a simple task.
Contact Portugal Pathways' expert team today to learn more about Portugal's Golden Visa residency-by-investment programme and the IFICI (NHR 2.0) tax regime.
Related Content:
Portugal's NHR 2.0 Tax Regime Guide
Definitive Guide to Portugal's Golden Visa Residency-By-Investment Programme
Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice.
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