MANY BELGIANS MOVE TO PORTUGAL - IS THIS THE END OF THE ELDORADO?
More and more foreign pensioners have been living in Portugal since 2014. Why have these European pensioners moved there in droves? Why might this exodus soon come to an end?
To understand the phenomenon, we need to go back to 2014. At the time, the IMF had just left the country and the real estate market was in crisis. The government then took a fiscal measure that would boost the construction market: foreign pensioners are tax-exempt for ten years if they live in Portugal for more than six months.
System considered unfair
The success of this measure has exceeded all expectations. Belgians, French, Swiss, tens of thousands of retirees move in especially in the Lisbon region and in the southern Algarve. But today, demand is outstripping supply, and more and more Portuguese tenants are evicted from their homessold most often to more affluent foreigners.
While Belgian and French pensioners pay no tax, Portuguese pensioners remain subject to the general scheme.
One political party, the Bloc de gauche, has decided to make it its hobbyhorse and has decided to do away with the privileges reserved for foreigners. The debate is likely to divide MPs, as the equation is complex. On the one hand, there's the need to generate substantial revenue for the country's economy. On the other, an unfair system, especially for the Portuguese, who do not benefit from any of the privileges granted to foreigners. tax gift.