In the past nine years, immigrants taking advantage of the Non-habitual Resident scheme have boosted the Portuguese Treasury and economy by between €9 billion and €11 billion, according to a study published today by estate agents’ association, APEMIP.
The real estate association claims that the effect of immigrants buying properties in Portugal has been a “boost to city centres, employment has been created and tax revenues have increased at the same time.”
APEMIP does not give a figure for the theoretical total lost to the State in in tax exemptions taken up by this immigrant group.
In nine years Portugal has received 23,767 immigrants from 146 countries, under the Non-habitual Resident scheme, most of whom have purchased properties, although those renting also qualify for the scheme.
A report in Expresso shows that France leads with 6,448 NHR citizens, followed by Great Britain with 2,718, Italy with 2,513, Sweden with 2,042 and Brazil with 2,005.
The president of APEMIP, Luís Lima, insists that the programme has boosted foreign investment in Portugal, helped rehabilitate city centers, created jobs and generated wealth, while increasing revenue for the state.
He also said that "although there are more and more foreigners looking for Portugal without recourse to any investment programme, there is no doubt that its maintenance is essential to continue generating wealth."
"The credibility of real estate and its investment potential, allied to the natural characteristics of climate, gastronomy, security and quality of life, are the main factors which lead foreigners to choose our country in which to live," says Lima, adding that the Residence Permit for Investment Activities - also known as 'gold visas' – have been the main reason for the recovery of the real estate sector and the boosting of the national economy.
As for the criticism that the centres of Portugal’s main cities have become unaffordable tourist traps, Lima adds,
"In Portugal we are experts in destroying what is good and we use scapegoats to cover up what has been done wrong. Foreign investors have been the focus of the debate about the absence of housing in Lisbon and Porto, and the populism that this information generates makes people forget that it was these same investors who recovered and dynamised the main cities of the country. Today everyone wants to live in the city centres but five or six years ago they were empty, nobody wanted to live there," says Lima.
As for rumours and actions to halt the Non-habitual Residents tax breaks, where immigrants pay little or no tax on overseas income, Lima says that news travels fast and “anyone thinking about investing, ponders this decision deeply."
