Portugal Passes 1 Million Foreign Residents In 2023

expat network

Portugal Passes 1 Million Foreign Residents In 2023

2023 has been a landmark year for foreign residency permits and Portuguese Golden Visa applications. According to the recent report released by AIMA (Agency for Integration, Migration, and Asylum) in September 2024, Portugal remains a magnet for foreign residents and investors. Based on the numbers shared by the Portuguese government and Get Golden Visa’s inquiries throughout the year, this article provides insight into trends in Portugal’s growing foreign community and the investment environment.

Portugal Golden Visa Applications Surge in 2023, Driven by American Demand

The number of Portugal Golden Visa applicants as families surged to 2,901 in 2023 from 1588 family members in 2022. The individual Golden Visa investors, in the meantime, increased as well, from 1,281 to 1,554 in 2023.

Of course, there are several forces contributing to this growth. The increasing demand in the Portugal Golden Visa investment from the United States and the United Kingdom is one of the factors. This shows a significant uptick in Golden Visa investments.

The number of Golden Visa investors from the US increased from 216 in 2022 to 567 in 2023, marking a 162.5% increase in only one year.

When it comes to the UK, which actually was not one of top nationality in 2022, saw a surge of interest in Golden Visa in 2023, with 234 investors, making the UK the third-largest nationality investing in the Portugal Golden Visa program in 2023.

2023 Marks a Record Year for Foreign Residents in Portugal

Compared to 2022, we saw a record increase in the foreign resident population of Portugal, growing by an impressive percentage, which is 33.6%. To analyze in a more understandable way, we can go deeper into the total number of residence permit holders by the end of 2023, which is 1,044,606 foreign citizens. This is indeed the highest annual increase in Portugal’s recent history.

Another trend that comes out from the government’s data is that the Brazilian community continues to be the largest group of foreign residents in Portugal. Brazilians account for 35.3% of the total foreign residents in Portugal. We can define this as an ongoing dominance that highlights Portugal’s strong ties to Brazil, including its historical, cultural, and linguistic relatives. Besides Brazil, there has also been a rise in foreign residents from South American and African countries, which is understood as the global appeal of Portugal as a second destination by these countries.

Geographical Distribution of Foreign Residents

The foreign population of Portugal stays concentrated along the coast, especially in the districts of these cities:

Lisbon
Faro
Setúbal

The regions mentioned together account for 63.5% of the foreign population in Portugal, with 663,699 residents.

Continued Growth in Portugal’s Residency and Investment Trends

2023 was a significant year for Portugal, including increasing foreign resident numbers and Portugal Golden Visa applications. Get Golden Visa think that location fluidity will be one of the leading trends for the next decade, as seen in 2023. As geopolitical uncertainty lingers and economic challenges drive individuals to seek secure investment settings, Portugal emerges as a top choice. The increase in the US and the UK investments indicates a shift in global migration patterns, driven by the desire for security, lifestyle, and EU market access, particularly in the post-Brexit period.

It is no longer only a luxury for the ultra-wealthy to get an additional residency or citizenship by investment. It is now more of a trend that is and will be more accessible compared to a decade ago. Throughout the year Get Golden Visa have seen a corresponding rise in inquiries, which aligns with official data. According to that, we can easily comment on the result, indicating that Portugal remains an appealing destination for foreign investors, families, and individuals looking for residency in Portugal.

There has been interest in a wide array of programs to get residency by investment, including D7 and D8 Visas as well as the Golden Visa applications.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.