Portugal Country Profile

Passport
For more details visit Portugal Passport Ranking
  • Passport Grade
    A
  • Passport Ranking
    22/198
  • Passport Score
    176.8/198
  • Visa-free Countries
    158
  • Visa-required Countries
    40
  • Access to the World's GDP
    75%
  • Access to the World's Surface Area
    60%
  • Access to the World's Population
    46%
  • Access to the Unesco Sites
    80%
Citizenship and Naturalization
Birthright citizenship (Jus Soli)
  • Birthright citizenship (Jus Soli)
    Restricted
    Restricted: A child born in Portugal will become a citizen at birth in the following cases: 1) At least one of the parents have been a resident of Portugal for at least 1 year before the child's birth, OR 2) One of the parents was born in Portugal and is resident there during the birth. Also, a child born in Portugal can naturalize after only 1 years of legal residency, if a parent was a legal resident at the time of birth or if a child completed 1 year of local schooling.
Naturalization - Standard Conditions
  • Minimum residency period
    5 years
    Permanent residency is not a requirement for naturalization.
  • Physical presence requirement
    At least 6 months a year
  • Language test
    Yes, Portuguese
  • Need to renounce original citizenship?
    No
  • Can minor children naturalize?
    Yes, minor children naturalize along with parents
  • Can naturalized parents pass citizenship to a child born abroad?
    Yes
  • Can you lose naturalization due to prolonged absence/ naturalization elsewhere?
Naturalization - Your Spouse is a Citizen
  • Living IN the country: Residency/marriage requirement
    0 years / 3 years
    Must be married for 3 years. No in-country residency requirements.
  • Living ABROAD: Marriage requirement
    3 years
    Can reside abroad. If married for less than 5 years, must demonstrate "effective connection" to Portugal - frequent trips to Portugal, Portuguese real estate, participation in Portuguese cultural clubs abroad, establishing residency in Portugal, etc.
  • Language test
    Yes, Portuguese, unless have been married for 5 years or longer.
  • Need to renounce original citizenship?
    No
Naturalization - Other Beneficial Provisions
  • Your child is a citizen
    No provisions
  • Citizens of specific countries
    No provisions
"–": The provision has not been analysed.
Visas and Residencies
Visas and Residencies
Taxation
For more details visit Cost of Living
  • Taxation Type
    Residence-based
A tax resident of a country with a RESIDENCE-BASED tax system pays taxes on their WORLDWIDE income. However, if you lose tax residency status there (e.g., by moving out), the country will generally stop taxing you.

The Non-Habitual Residence (NHR) regime is available to new residents, under which, your worldwide income can be tax-free for 10 years.
Portugal is part of the European Economic Area (EEA), allowing its citizens to live and work in any other EEA country, plus Switzerland. (The EEA consists of 27 European Union countries plus Iceland, Norway and Liechtenstein.)
Schiff Sovereign's Take on Portugal
Portugal is one of Sovereign Man’s most favorite countries. 

For starters, bordering Spain and the Atlantic Ocean, Portugal is one of the continent’s touristic gems.

The country’s attractions include the vineyards of the North, the medieval villages of the Central region, and the glamorous southern Algarve region, famous for its resorts and golf courses. 

And the cost of living is more than reasonable, attracting scores of digital nomads and retirees alike.

In fact, we think Portugal is a great option even for American retirees, considering the relative proximity to the US. (A direct flight from New York to Lisbon takes about seven hours.)

And it doesn't hurt that Portugal constantly ranks as one of the safest countries in Europe.

But outside of these obvious drawcards, Portugal has many other selling points. 

First, you can obtain a flexible residency there through its world famous Golden Visa program. Investments start at only €250,000. 

However, the Golden Visa only makes sense if you don’t plan to live in Portugal – on average, Golden Visa holders need to spend only seven days per year in Portugal. 

Otherwise, the country’s D7 Visa for “people with means” should be a better choice – and it requires no investment at all.

Another reason to like Portugal – it currently does not tax crypto gains, making it a great option for folks sitting on unrealised crypto gains.  

Portugal is also a great place to become a citizen. It takes only five years of residency to become eligible for naturalization, and the process is straightforward. Plus, a Portuguese passport is a great travel document.

And if you have any Portuguese blood in you, the country also enables you to obtain Portuguese citizenship based on your ancestry

One thing to watch out for in Portugal is taxation. The personal tax rates there reach an astounding 48%. 

However, thanks to the Non-Habitual Resident (NHR) tax regime, for the first ten year of your life there, all of your worldwide income becomes tax-free, while any of your Portugal-based income is taxed at a flat 20%. You need to apply for the NHR separately.

(And if you spend less than six months per year in Portugal, you won't become a tax resident there – in which case you won’t have to worry about Portuguese taxation at all.)

Portugal is also a great country in which to have a baby. Your new child will become a Portuguese citizen at birth if born in the country. But unlike in most countries in the Americas, there is a condition you will need to fulfill for this to happen – one of the child’s parents needs to have been a Portuguese legal resident for at least one year before the birth.
Schiff Sovereign's Rolodex
Service Providers available in Portugal
  • Immigration (residency, citizenship)
  • Full relocation services (real estate search, bank account opening, driver's licence, etc.)
  • Tax advice (attorneys and/or accountants)
  • Corporate services (company formation, etc.)
  • Real Estate (agents, lawyers)
  • Banking contact
Obtain access to our Rolodex by signing up for Sovereign Confidential Join Sovereign Confidential Today

Sovereign Global Explorer

Benefiting from over a decade of our team’s boots-on-the-ground experience, Global Explorer is where your international journey begins.
Portugal Overview
  • Region
    Europe
  • Capital City
    Lisbon
  • Largest City
    Lisbon
  • Currency
    Euro
  • Languages
    Portuguese
  • Population
    10.3 million (90th)
  • Life Expectancy
    81.5 years (38th)
  • GDP (Nominal)
    $255.9 billion (50th)
  • GDP/Capita
    $24,733 (48th)
Useful Data
For more details visit Cost of Living
  • Cost of Living
    Moderate (4/7)
  • Climate
    Very comfortable (1/5)
  • Safety
    Very Safe (2/7)
  • Pollution
    Very clean (1/5)
  • English Proficiency
    Very High (1/5)

Sovereign Global Explorer

Benefiting from over a decade of our team’s boots-on-the-ground experience, Global Explorer is where your international journey begins.
PREMIUM REPORTS
Portugal inside Schiff Sovereign resources

Articles featuring Portugal

Second Citizenship

Getting Citizenship By Descent in Portugal in 2023

Got Portuguese parents, grandparents or earlier ancestors? In today’s episode, we unpack how you can get Citizenship By Descent in Portugal — for next to nothing… Join Sovereign Confidential to… Getting Portuguese Citizenship By Descent In a recent Knowledge Series episode, we looked at Greece as a Citizenship By Ancestry destination. In today’s installment, we […]

Second Residency

Deadline looms for current Portugal Golden Visa’s current investment options

SOVEREIGN MAN: ULTIMATE PLAN B SERIES Helping you secure a robust Plan B, one actionable email at a time… The Portuguese Golden Visa is a perennial favorite at Sovereign Man. But good deals have a tendency of not sticking around, and with the Golden Visa, it’s no different. Find out more about the incoming program […]

Portugal is planning to end its Golden Visa program
Second Residency

Some clarity regarding the future of Portugal’s Golden Visa. (Finally!)

Despite announcing the imminent closure of their Golden Visa Program on February 19, 2023, the Portuguese government has opted to keep the program open in a surprising – if very welcome – about-turn. Let’s get into the details below… Portugal’s Golden Visa program is here to stay (albeit with some major changes) In the words […]

Portugal is planning to end its Golden Visa program
Second Residency

Portugal is planning to end its famous Golden Visa program

We disrupt regular broadcasting to bring you a time-sensitive update regarding recently announced changes to the Portuguese Golden Visa program. And this time round, we’re afraid it’s not good news. Let’s get into the details below… The Portuguese Golden Visa program was launched in 2012 and quickly became a popular way for non-EU citizens to […]

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