Have you ever heard the saying "no pressure, no diamonds"? That phrase perfectly frames the current situation in Portugal, a country that is a living lesson in economic recovery in the best European style.

After making the headlines in the world's leading economic newspapers for its terrible situation during the European financial crisis, Portugal is again stealing the spotlight from the international economic scene, but this time for entirely different reasons. 

Today, Portugal is an example of economic growth and improvement among the European Union countries, and frankly, in the whole world. 

The excellent performance of the Portuguese economy has surprised many institutions. The country has practically ended its deficit, has begun to reduce its public debt, and economic inequality is at a minimum in recent years. It has brought the unemployment rate to 2004 levels.

A combination of several factors (past and present, external and internal) has allowed this small country's economy to grow at a solid pace after being rescued in 2011 and suffering a severe crisis in 2012 and 2013. In addition, Portugal has complied with the International Monetary Fund by returning the bailout early, which has probably also contributed to the more intense praise from the IMF.

Of course, Portugal has the best Golden Visa program in Europe and one of the EU's best free zones in Madeira.

In fact, Portugal is simply one of the best destinations in Europe for family offices for varied reasons:

• Excellent life quality. Portuguese is the official language, but Spanish and English are widely spoken; the population is well-educated and is one of Europe's safest countries.
• The Madeira International Business Centre. Imagine having the possibility of establishing a trading or holding company with just a 4% corporate tax rate and exemption on dividends… In the EU. That is what the IBCM brings.
• Madeira trusts. Portugal is a civil law jurisdiction that allows you to register trusts. How? Simple: you can choose the trust law of your liking and incorporate it in Madeira.
• The Golden Visa program is widely considered the best in Europe. It is flexible, relatively affordable, and you can recover the investment thanks to our experts' plans.

A bit of history

Although Portugal is one of the most notorious faces of the European economic recovery today, this charming country's history still hides more charm.

This small country located on the edge of the Iberian Peninsula has not only reinvented itself on the occasion of the European economic crisis. Portugal has been experiencing a swing in civilizations since the last 3100 years.

Tartessians, Celts, Phoenicians, Carthaginians, Greeks, Romans, Germanic (Suevi and Visigoth), Muslims, Jews, and other peoples have left their mark on the culture, history, language, and ethnicity of Portugal. 

During the 15th and 16th centuries, Portugal was a world economic, social, and cultural power, as well as an empire that extended from Brazil to the East Indies. Later, especially after the Napoleonic Wars and Brazil's independence between the end of the 18th and beginning of the 19th century, Portugal began to experience turbulent periods.

With the 1910 Revolution, the monarchy ended, after having 34 monarchs from 1139 to 1910. The country lived under a dictatorship between 1933 and 1974, when it fell after a revolt known as the Carnation Revolution. In 1986 it joined the European Union and, since 2001, has been part of the Eurozone.

Portugal is one of Europe's gravitational centers in cultural and historical terms, making a perfect match with its stunning natural environment, its smiling inhabitants, and its world-acclaimed gastronomy.

Traditions and folklore are very rich in Portugal, giving rise to a calendar full of festivities throughout the year. Attending the Carnival, the rural fair of the Ovibeja in the Alentejo, the Queima das Fitas in Coimbra, the Pilgrimage to Fatima, the Albariño Fair or St. Anthony's in Lisbon all add to your visit to the neighboring country.

Portugal oozes nature on all sides, from the mountains of the northern interior to the gentle hills and plains of the Alentejo in the south. To get to know this diversity better, it is worth visiting one of its natural parks, such as Peneda-Gerês, Douro Internacional, Serra da Estrela or Tejo Internacional.

The Portuguese coast is extensive, covering most of the Atlantic coast of the Iberian Peninsula, as well as the islands of the Azores and Madeira. The cliffs and sands combine to create unique beaches of great beauty, and the most praised being those of the Algarve, in the area known as the Gold Coast.

Cosmopolitan cities, historical towns, natural parks, beaches, festivals, and gastronomy where the cod and cakes of Belém rule. Portugal is a country that exercises an almost mystical magnetism on any visitor searching for the perfect place to settle down or do business.

Political stability like you've never seen before

It is no secret that Portugal has traveled a bumpy road to get to where it is today, but that would not have been possible if it were not because the Portuguese bet heavily on political stability.

Portugal is one of those case studies where the government, institutions, and people worked in unison to overcome a crisis that threatened the whole country. It worked brilliantly for them.

The outlook for the future of the current government of Portugal is not much different. There is still a general consensus among the various political actors on the route the country should take to ensure its final economic recovery stages and start thinking about new frontiers to reach.

This is perhaps one of the reasons why Portugal has so suddenly become one of the centers of interest for many investors. Not many countries (even within the EU) offer you certainty and predictability, two issues that allow you to protect your assets and your business without headaches.

Economic opportunities in Portugal

Portugal is a country with great business possibilities for any company with the ambition to grow. 

The Portuguese society understands the importance of wealth management. That is why Portugal offers some of the best onshore asset protection and tax optimization opportunities in Europe. It is a perfect location for family offices that like to play safe and settle in a stable environment.

As a gateway to the Portuguese-speaking markets in Africa and Europe, Portugal is a business opportunity that many companies worldwide are already taking advantage of. In 2018, its purchases abroad accounted for 37.33% of its GDP, reaching 75,033.2 million euros. 

Many investors are taking advantage of the fact that some investment sectors in Portugal are classified as "strategic" by the government, so the Portuguese Agency for Investment and Foreign Trade has incentives or tax exemptions for foreign investors who open businesses in the following sectors:

• Aeronautics
• Agribusiness
• Automobiles
• Biotechnology
• Building Materials
• Eco-innovation
• Engineering and Architecture
• Furniture
• Health
• ICTs
• Metallurgy
• Mining
• Molds
• Shipbuilding
• Olive oil and wine
• Packaging
• Petrochemicals and chemicals
• Pulp, paper, and cork
• Renewable Energies
• Shared services
• Textiles

One of the economies least affected by the coronavirus

It seems that the Portuguese learned well how to handle a crisis. And this year, they continue to set an example not only in the economy for Europe but also in healthcare.

Portugal's GDP and stock market suffered very little from the coronavirus compared to other European Union countries. The country has avoided sanitary collapse and total paralysis.

With the world still affected by the global coronavirus pandemic, Portugal has a much lower number of deaths and infections than its European neighbors. The degree of confinement and paralysis of the Portuguese economy has also been less overwhelming than in other countries, resulting in positive macroeconomic figures when put into context in the context of the generalized global crisis.

The advantages of Europe's new favorite destination

Portugal's unstoppable progress has made it a new favorite destination for immigrants and investors. What used to be considered one of the poorest countries of Europe today is the center of attention for the following reasons:

Security: Portugal is ranked No. 3 in the safety index as one of the world's safest countries. Violent crimes are very rare and minor crimes, such as wallet theft, are very occasional. It is a peaceful country. In fact, you could say that you will find more security here than in any of the neighboring countries like England or France because there has been no terrorist attack on the territory so far, and no threat has been presented to it either so that you can be in total peace of mind! 

Many nations envy Portugal's security index, which is achieved thanks to its excellent police, Republican National Guard, and customs system.

Favorable tax system: tax agreements between countries have been abolishing unfair double taxation for the same income, and it is usually left to the resident's country to collect the taxes. Portuguese law allows income originating outside the country from self-employment or professional work, real estate, interest, and dividends to benefit from the exemption program. There is also no wealth, inheritance, or gift tax. Add the 5% corporate tax rate and the non-dom regime (more on that shortly), and Portugal will become one of your favorite places in Europe. 

Hospitality: Portuguese citizens have a reputation for being very hospitable and welcoming. It doesn't matter if you don't speak the language correctly, as most residents are bilingual and even polyglot, so it won't be difficult for you to make yourself understood in English, Spanish or French. Since language is not a barrier, the integration process is more straightforward. Besides, the Portuguese will make you feel like one of them as soon as they see you since racial discrimination is practically non-existent.

High standards of living with affordable prices: Portugal enjoys one of the highest quality of life rates, ranking 37th, ahead of cities like Madrid and Barcelona, Paris, London, Milan, New York, or Tokyo. And you can enjoy this quality of life at a fraction of the price.

Life in Portugal is much more affordable than in the rest of Europe. This small country often becomes even less expensive than Spain while at the same time maintaining European standards of quality of life, security, and infrastructure. This is why foreign communities in Portugal are flourishing.

For example, a retired couple could live comfortably and modestly with 1400 euros, including the apartment, food, and moderate leisure, depending on the area. Enjoying a much more elegant and comfortable life than in the UK, Germany, or Spain with the same amount of money

It is well connected with the rest of the world: Portugal is very well connected with other countries through different transport types, as you would expect from one of the leading European tourist destinations.

It is effortless to find a flight to Portugal from any major city. The national airline is Air Portugal, which has flights to and from more than fifty cities in Europe, Africa, the Middle East, and North and South America.

It is not surprising that the Portuguese country is becoming one of the main havens for businesspeople and investors who want to open their doors in Europe without paying exorbitant amounts of money. Today, Portugal is positioned as one of the most balanced options to open Europe's doors to investors, entrepreneurs, and retirees alike.

When you understand the disproportion between Portugal's offer and the prices at which you can access all its advantages, you realize that settling in Europe is not as tricky as commonly thought.

There is no better deal to start a life in Europe than in Portugal. Its breathtaking natural beauty combines with charming people and an attractive tax system to result in one of the most coveted sanctuaries for people seeking tax optimization and security in recent years.

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