The Year 2023 in Review

As we reach the end of 2023, we look back at some of the highlights we communicated with you during the last 12 months, looking ahead for 2024.

This year has witnessed the continuation of significant international conflicts, such as the Ukraine-Russia conflict, and the rise of new ones such as the Israeli-Palestinian war, with political, social, and economic impacts that extend across the globe.

In 2023, Portugal maintained diplomatic relations with other countries, as exemplified by the Portugal-UK driving licence agreement, demonstrating a commitment to fostering positive international relationships.

Despite the Portuguese passport regularly holding a top-ranking position in Henley’s Passport Index, the SEF agency was dissolved in October, with AIMA taking its position. Previously responsible for immigration and border services, SEF has now been succeeded by the Agency for Integration, Migration, and Asylum (AIMA). This reorganization aims to improve the agency's efficiency by delegating tasks and functions to other, more specialized, public entities. The outcomes of this restructuring will be monitored throughout 2024.

In early November, the Portuguese Prime Minister resigned after a criminal investigation for alleged corruption. This occurred after a succession of several resignations within the government since the beginning of the term, which was won by an absolute majority by the Socialist Party in January 2022.  Nevertheless, the dissolution of the government was scheduled for after the approval of the 2024 state budget, deemed essential to ensure economic stability and enable continued access to European funds for the Recovery and Resilience Plan (PRR - Plano de Recuperação e Resiliência).     

The year 2023 marks the end of new applications to the Non-Habitual Resident (NHR) tax regime, as approved in the 2024 state budget. Nevertheless, it will still be possible to apply in 2024 for all those who qualify under a valid residence visa, as described in this article. It is also important to note that this same budget initiate a new tax incentive, specially made for people who teach in higher education, do scientific investigations or come to work for Portuguese Startup companies.

In the wake of the housing crisis in Portugal, the government has introduced the 'Mais Habitação' (More Housing) Programme with the aim of improving access to housing conditions. One of the approved measures was the exclusion of real estate investment as a path to the Portugal’s Golden Visa, which came into force in October 2023. However, in comparison to previous announcements, the Portugal’s Golden Visa programme will remain available with alternative investment options, as described in this article.

In the tech field, artificial intelligence has become increasingly widespread, with many people and companies incorporating it into their daily lives and production processes. This trend is expected to continue as artificial intelligence (AI) becomes more prevalent in various industries.

Lisbon has been awarded the European Capital of Innovation prize by the European Commission. This achievement is the result of various factors. Firstly, the project that Lisbon submitted for the award utilized technology to promote knowledge and social equality, which was a significant win for all.

Secondly, Lisbon's successful bid to host the 2023 edition of Web Summit was another contributing factor. Though there were some challenges such as the CEO of the event resigning and many companies expressing their reluctance to participate due to uncertainties, Lisbon persevered and emerged victorious. A significant number of companies were present, and Artificial Intelligence (AI) was the primary theme of this edition.

Finally, Lisbon's digital transformation has made it an ideal location for startups and remote workers. The reasons are the thriving tech scene and abundance of co-working spaces make it a hub for remote workers seeking a vibrant and supportive community. it is an ideal location for those looking to launch it in the tech field.

Portugal has been consistently improving its standing as a sought-after destination for residency and is increasingly being recognized for its quality of life. Several locations in the country have garnered high rankings in various international indicators, making it a highly desirable place to live. At the same time, the nation maintains its distinguished status as a premier global destination for retirement, due to the great balance between quality of life and the cost of living.

Furthermore, in 2023, Portugal was acknowledged as one of the prime destinations for expats. This recognition is attributed to the pervasive "beauty of simplicity" atmosphere that Portugal exudes; in every corner of this coastal country, a piece of history is alive. Each locale boasts a unique and delectable culinary experience. Every region unveils a distinct landscape and environment. Moreover, the favourable climate and the amiable people contribute to Portugal's inclusion on this list.

Portugal continues to maintain an impressive track record in terms of safety, consistently ranking among the safest countries in the world. Whether it is in the security and social protection domain, or domestic and international conflict and militarisation realm, Portugal has built a reputation for prioritising the safety and well-being of its citizens and visitors alike.

As we approach the end of the year, we would like to express our gratitude for the opportunity to assist our clients and contribute positively to their lives. Looking forward to 2024, we remain dedicated to offering support within our field of expertise, ensuring a seamless experience for individuals planning to relocate and reside in Portugal.