More than 2,200 French national bought house in Portugal last year and 20,000 will live in the country by the end of 2015.
This is the estimate from the Franco-Portuguese Chamber of Commerce & Industry which has organised the third Real Estate and Portuguese Tourism Exhibition in Paris.
French retirees are moving to Portugal attracted by the golden retirement package offered by the Portuguese tax man, "there are many migrants who live eight or nine months in Portugal and the rest of the time in France. They already can benefit from new laws and not pay taxes on retirement income or on capital gains or dividends."
The event runs from 16 to 18 May and aims mainly at attracting French retirees who can have tax-free incomes if they are resident in Portugal for 183 days a year.
The status of non-habitual resident in Portugal, in force since January 2013, allows any retired EU citizen tax exemption for ten years, provided he or she has not been a tax resident in Portugal in the last five. The laws also cover professionals pursuing a high added value job, which may benefit from an income tax reduction to an attractive 20%, somewhat more attractive than France's top rate of 75%.
In the first Real Estate and Portuguese Tourism fair, between 70% and 75% of visitors were French, mostly retired, but the tax benefits can also be taken full advantage of by Portuguese immigrants who want to return to the country.
Yet the president of the Chamber claimed that Portugal is a not a "tax haven," as "this law does not only benefit people who have means, but also pensioners who do not have a high pension. The average French pension is €1,400 per month and in Portugal with €1,400, pensioners will live better than in France."
Exhibition organisers expect between 8,000 and 10,000 visitors and 135 exhibitors this year, double the number that came in 2013.
