As Portugal has been creeping up the ranks to become the most popular destination in Europe for US expats, it has also been attracting a record amount of foreign investment, with the US leading the way as the main contributor.
2021 was a fantastic year for Portugal in terms of investment; there were over 200 projects initiated that were associated with Foreign Direct Investment (FDI), with €2.7 billion being generated by the Agency for Investment and Foreign Trade of Portugal (AICEP) from contracted investment, double the amount generated in 2019. Eurico Brilhante Dias, Deputy of the Assembly of the Portuguese Republic, asserted at the Cabinet meeting in Lisbon that these contracts would result in the creation of 7,274 new jobs and the maintenance of 41,538 jobs.
This investment has meant that Portugal has now climbed to 8th position in the ranking for FDI project destinations, compared to its 2021 ranking of 10th place.
America will remain as Portugal’s main investor in 2022, as it holds a 15% share of Portugal’s FDI projects (30 projects in total). However, Germany has also increased its investment in Portugal and is backing 30 projects in the country, doubling their involvement from 2021. France, the UK and Spain make up the rest of the top five foreign investors in 2022.
EY consultancy predicts that in the next 12 months, 62% of investors plan to initiate or increase operations in Portugal, forecasting a record year for foreign investment.
This communication is for informational purposes only, based on our understanding of current legislation and practices which is subject to change and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice form a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Portugal is an increasingly popular choice for South Africans who are looking to embrace the adventures and opportunities of expat life in the EU. Making the move can pay dividends as Portugal offers a favourable tax jurisdiction for financially prudent and high-net-worth expats. For example, by investing at least €350,000 in the country, and meeting other criteria, South Africans can secure residency on fairly straightforward terms, while also utilising the tax benefits offered by Portugal’s Non-Habitual Residency programme.
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