Portugal’s golden visa program is witnessing a steady increase in demand from an unlikely source – the US.
More and more Americans are exploring options to settle outside their country and golden visa programs are becoming the preferred route.
Investment Immigration and Americans: What Has Changed?
Unlike other countries that determine tax jurisdiction on the basis of residency, the US tax laws apply to all citizens irrespective of location. If you are a US citizen, then your global income will be taxed in the US irrespective of where you reside.
This was one big factor why there was tepid demand for investment immigration among wealthy Americans. The country’s status as the world’s strongest economy also contributed to the lack of interest.
But things have begun to change. With inflation hitting multi-decade highs, strong performance by the US economy can no longer be treated as a given. This means alternate destinations that help wealthy Americans increase or protect their wealth are becoming more popular.
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The high cost of living in the US is one-factor prompting people to consider countries with a lower cost of living for permanent residence.
Another factor that has become relevant over the past decade is the growing polarization in US politics. From harsh debates over vaccines during the pandemic to riots at the Capitol to the reversal of abortion rights by the Supreme Court, political differences are becoming more acute in the US, and this is prompting some to explore options abroad.
Advantage Portugal
Portugal is the ultimate beneficiary of this increasing demand, primarily because of the lack of good alternatives for American citizens.
Unlike the Caribbean, Europe offers access to similar living standards and economic, educational, and social facilities and amenities. Hence, Americans prefer settling in Europe over other destinations.
Within Europe, the UK has suspended its Tier-1 Investor visa. Cyprus was forced to terminate its Citizenship by Investment program. Malta’s CIP is also under constant scrutiny and its Residence by Investment program is not as popular as other EU programs.
All this has contributed to focusing on three or four popular and credible golden visa programs like those offered by Portugal, Greece, and Spain.
The Greek program is inexpensive, but the country has a weaker economy than other options. Further, Portugal scores over others because it has a good track record of running a successful and credible program.
Investors have the option of retaining their US passport and staying on as permanent residents of the EU. Or they can stay in Portugal for five years and apply for citizenship once they are eligible.
From a cheaper-yet-comfortable lifestyle for retired individuals, to access to more opportunities in the EU for young professionals or a less vicious political climate for others, the Portugal golden visa program offers it all.