Portugal – The Most Comfortable Country to Live In

Portugal is the country where the sea begins. It’s a place worth moving to for a life of comfort.

What do we, the average residents of post-Soviet countries, know about Portugal? About this small European country that is not as noticeable as, say, Germany or the UK? Many would say it has a warm and comfortable climate, some might mention football legend Cristiano Ronaldo, and others might fondly recall Portugal’s famous drinks – Madeira and Port wine.

In more niche circles, people will talk about how this country has long and successfully sold its Golden Visas to investors seeking quick residency in the European Union. And this fact completes our picture. After all, Portugal is a great place in Europe to live and run a business. In this regard, it outperforms many leading countries on the continent!

Where Geography Meets History

Meanwhile, it’s hard to find another European country that has played such a significant role in the fate of the "Old World" and humanity in general. Portugal, located on the edge of mainland Europe, is home to Cabo da Roca, the westernmost point of the continent.

Its high cliffs, dropping into the Atlantic, are almost always met with fierce winds, raising cool, high waves. This place is a reminder that the Portuguese were excellent sailors. Few know that, according to historians and geographers, about 70% of the world's land was discovered by fearless Portuguese explorers! Their golden age was in the 15th century when Portugal became the first European empire of the modern era, with territories spanning from Southeast Asia to South America and Oceania.

Those times are long gone. The country, with its small population, couldn’t hold onto its colonies, eventually ceding them to the Spaniards or the English. But even now, native Portuguese take pride in their glorious past. It is reflected in their character: open, cheerful, democratic, yet bold and adventurous. Living among the Portuguese is easy; they are sociable and friendly, a bit dreamy and melancholic, and readily embrace foreign cultures if reciprocated.

Climate and Nature

The epithet “mild” fits perfectly. The Mediterranean climate in Portugal knows neither extreme cold nor scorching heat. Cool Atlantic winds constantly temper the land, unlike the sweltering heat of neighboring Spain. Much of the country is covered with hilly plateaus and low mountains, which are the coolest regions, where a little snow may sometimes fall in winter. The flattest and warmest part of Portugal is the south, but even there, the climate is much cooler than southern Spain’s coast. Generally, people from Ukraine or southern Russia find Portugal's climate quite familiar.

History and Culture

Here, the differences are striking! Portugal is a country where it’s fascinating to live. Historically, these lands were at the crossroads of European and North African civilizations, with the long dominance of Arab conquerors leaving its mark. These factors created a remarkable blend of different cultures that foreigners never tire of observing and studying.

This cultural “cocktail,” created by various peoples, influences everything. It’s visible in daily life, reflected in clothing and songs, cuisine, and language. The architecture of Portuguese cities is magnificent and unique, each of which could be explored for years. No wonder that this tiny country, home to just over 10 million people, boasts 15 UNESCO World Heritage sites.

Thus, nature itself has ensured that immigrants in this country feel comfortable living here. Those who prefer warmer climates choose the southern plains, while those unwilling to part with familiar temperate landscapes head north and to the central part. There, among low mountains and hills, everything resembles southern Russia or Ukraine.

But let’s leave nature’s merits aside and ask the question: "What have the Portuguese done to make living here comfortable?"

Portugal: Clean and Safe

Various international, including European, organizations acknowledge Portugal's undeniable achievements in environmental protection and ecology. The country places great emphasis on the development of "clean energy" and has an extensive network of national parks. Its beaches, including those along rivers, have been awarded the Blue Flag, signifying adherence to the highest global environmental standards. In the Global Environmental Performance Index, Portugal competes with Canada and the USA, ranking 26th among all UN member states.

Another significant aspect is personal safety. According to the Global Peace Index, Portugal consistently ranks among the top three European countries for safety. We've already mentioned the traditional friendliness of the locals, their sociability, and their law-abiding nature. These qualities seem to influence foreign visitors, making immigrants feel comfortable and secure in Portugal.

What About the Economy?

Undoubtedly, Portugal has never been among the leading economic powerhouses of Europe. After the "Carnation Revolution" of 1974, which overthrew the long-standing dictator António Salazar, Portugal was an underdeveloped country with a predominantly agricultural economy.

However, over the last four decades, Portugal has made tremendous strides. Government policies have been aimed at liberalizing and modernizing the economy, transforming Portugal from an agricultural to an industrial-agricultural country. There have been deep, phased reforms in fiscal and monetary policies.

One path the Portuguese have taken is significant economic diversification. Leveraging its historical advantages, the country has developed a strong tourism industry. Before the pandemic, about 10 million tourists visited Portugal annually, nearly equivalent to the country's population. Tourism has become one of the most important sectors of the national economy.

Important Note: As part of its economic transformation, the Portuguese government launched the Golden Residence Permit Program in 2012, allowing investors from non-EU countries to quickly acquire the so-called Golden Visa of Portugal, granting temporary residency. This program has already brought nearly $4 billion in net revenue to the country.

The Golden Visa can be obtained in various ways, but the most popular is through real estate purchases. While housing prices are rising each year, they remain relatively affordable compared to the most developed EU countries.

For reference, the average cost per square meter in Lisbon is about €2,000, which is roughly a third higher than the national average.

Real estate in Portugal, especially in the capital and tourist regions, is highly liquid, and renting it out generates significant profit. One reason is the popularity of Portuguese property among buyers from northern Europe, such as Britons, Germans, and Scandinavians, who want a second home in warm southern Europe.

Cost of Living and Social Services

Since we’ve mentioned housing costs in Portugal, it's worth discussing other everyday expenses immigrants might face. Portugal is a convenient place to live, as the costs of food, utilities, and transportation are lower compared to the European average. Simply put, Portugal is one of the cheapest countries in Europe. Here are some basic figures as an example.

Portugal also boasts a well-developed healthcare system, even by European standards. Although healthcare is predominantly private, there are subsidies for low-income individuals, children, pregnant women, and others. A doctor's consultation, for example, costs around €20, but insurance can reduce this by almost two-thirds.

The country also has a high reputation for higher education. What's interesting for immigrants is that when applying to universities, they don’t need to pass a language exam; an interview is often sufficient. Lisbon and Porto have some of the oldest universities in Europe. The cost of a year of undergraduate study ranges from €1,000 to €8,000.

All these factors—mild climate, good ecology, low cost of living, high life expectancy, and quality of social services—led International Living magazine to rank Portugal as the world's top country for quality of life in 2020.

Starting a Business in Portugal: Convenient and Profitable

So far, we've discussed daily life in Portugal. But many immigrants, including investors, also seek to establish their businesses here. How profitable and convenient is it?

The answer is positive. In recent years, Portugal has consistently ranked among the top 30 countries globally where it's easy to start and run a business. A business-friendly tax policy, ease of registration, and a transparent financial system are some of the factors that have helped the country improve its economy.

Interesting Fact: Portugal is among the top ten countries worldwide for ease of starting a new business. You can register a company online by filling out just one form, and it takes about an hour.

Typically, immigrants from the CIS countries develop businesses in tourism, real estate sales, or rentals. However, other sectors, such as viticulture, horticulture (olive and citrus farming), furniture production, and tile manufacturing, are also growing in popularity.

Important to Know: Portugal has signed agreements with Russia and Ukraine to avoid double taxation.

Additionally, for investors who have obtained a Golden Visa and Portuguese residency, there are significant tax benefits. These include a fixed income tax rate of 20% and no taxes on income earned outside of Portugal.

Residence in Portugal: A European Education for Your Child

Education is a critical consideration for many families who have obtained a Golden Visa in Portugal. What opportunities are available for their children, and what should parents expect? Let’s discuss how children of Russian investors can pursue their education in Portugal.

Preschool Education

For families settling in Portugal with young children, choosing a preschool can be important. Like in Russia, parents can choose between public and private kindergartens. There are significant differences between them.

Public kindergartens are often free or charge symbolic fees, provided the child has Portuguese residency. However, two issues arise here. First, there are often waiting lists, so it’s advisable to apply well in advance (at least six months). Second, staff usually only speak Portuguese, which can be challenging for foreign children.

Private kindergartens charge fees ranging from €250 to €600 per month. In larger cities like Lisbon and Porto, finding a kindergarten with English- or even Russian-speaking staff is easier, although in smaller towns this could be a challenge.

Primary and Secondary Education

Starting at age six, children in Portugal begin compulsory primary and secondary education. As with kindergartens, schools can be public or private. Education in public schools is free, but since the language of instruction is Portuguese, many parents opt for private or international schools, where instruction is in both English and Portuguese. Some even offer French and German.

There are also several schools with Russian instruction, such as the school at the Russian Embassy in Lisbon and the "Oblaka" center in Porto.

Tuition in international schools is not cheap, starting at around €4,000 per year and reaching as much as €16,000 to €19,000 in the most prestigious institutions.

Higher Education

After completing their education at international schools, students can apply to universities in English-speaking countries without additional exams. Portuguese universities are also accessible, especially private ones, which are easier to enter and often more affordable, with tuition ranging from €1,000 to €8,000 annually.

Portugal's higher education system is highly regarded, and universities like those in Porto, Lisbon, and Braga are among the oldest in Europe.

Conclusion

By securing a Golden Visa in Portugal, you provide your children with excellent opportunities for quality European education. This opens doors to successful careers in the EU and beyond.