Portugal broke the record for the number of foreign residents living in the country for the seventh consecutive year. Each year, the Statistics Portugal (Instituto Nacional de Estatística - INE) publishes a report on the number of residents and migrants in the country. The last report, published on June 18th, 2024, claimed that as of December 31, 2023, the foreign resident population in Portugal increased due to a positive migratory balance of 155,701 people. This is a higher number compared to 2022, which reported a migratory balance of 136,144 people.
Fifth consecutive year of population growth in Portugal
With pro-immigrant policies in recent years, Portugal has halted the decline of its population. It is now estimated that the resident population in the country is currently at 10,639,726 people, an increase of 123,105 people compared to 2022 (when the total number was fixed in 10,516,621), marking the fifth consecutive year of population growth. Portugal's expat population now exceeds 1 million foreign nationals, who have made Portugal their second home.
The increasing foreign population made the Portuguese government implement policy changes, such as the new Portuguese Immigration Plan, launched in May 2024. This plan aims to address long queues at the Migration Agency (Agência para a Integração, Migrações e Asilo - AIMA). The new Migration Plan also revisits the Portuguese Golden Visa program, allowing non-EU citizens an option to acquire residency through investment in the country. The revised Golden Visa option will focus on assisting immigrants in vulnerable situations, although further information or details have not yet been released.
According to INE’s latest statistics, foreign nationals make up more than 10% of the population and represent about 14,4% of taxpayers contributing to the country’s social security system. For instance, the Portuguese Press informed that in 2022, immigrants contributed 1.861 billion euros to Social Security, while receiving approximately 257 million euros in social benefits. This means their contributions were seven times higher than the benefits they received. Consequently, there was a positive balance of 1.6 billion euros from immigrant contributions last year.
Growth Portuguese Economy Explains Immigration Boost
The growing foreign population in Portugal can be easily explained by the positive economic trends the country is currently experiencing, making it one of Europe’s most attractive destinations for investment and living. INE’s 2024 report on immigration further highlights the importance of immigrants in Portuguese society, emphasizing that some sectors would collapse without their contributions.
Despite the increasing number of foreign residents, Portugal remains in 18th place out of the 27 EU countries in terms of the proportion of foreign-born residents. In comparison, Portugal’s percentage of foreign residents may look on the smaller side, but it is actually on a rising trend. According to a report produced by the Portuguese High Commission for Migration (ACM), the country’s immigrant population has steadily increased, especially since the last decade. In the last 6 to 7 years, Portugal climbed from the 21st to the 18th position, revealing healthier immigration movements.
Luxembourg leads this list, with 47.1% of its population being foreign-born residents. Interestingly, the largest foreign population in Luxembourg consists of Portuguese immigrants, according to the European Statistics Agency, Eurostat. In 2022, Portuguese citizens once again constituted the largest community to settle in Luxembourg, with 3,547 new arrivals.
Portugal has become an increasingly popular destination for people from diverse locations worldwide. Individuals and families are relocating to Portugal from countries such as Brazil and the UK. According to a 2022 report published by the Serviço de Estrangeiros e Fronteiras (SEF), now known as AIMA, British citizens are the second-most common foreign nationality living in Portugal, behind only the Brazilian community, which is the largest foreign group in the country. Additionally, immigrants from India, Nepal, the US, South Africa, and China are very common in Portugal, drawn by the nation's high quality of life, stunning landscapes, and welcoming culture.
The increase in foreign population reflects Portugal's growing attractiveness, whether for investment, residency, or both. The country's relatively low cost of living compared to other major European capitals attracts a larger number of expats, especially investors and digital nomads seeking an improved lifestyle. Over recent years, Portugal has become one of the favoured destinations within the European Union for obtaining residency, known for its streamlined processes and favourable conditions.
The Portuguese Golden Visa program, which offers residency through investment, has been particularly appealing. This initiative not only simplifies the path to residency but also grants access to the Schengen Area, facilitating mobility across Europe. Portugal's welcoming environment, robust infrastructure, and high quality of life continue to attract individuals looking to establish residency in a stable and culturally rich European nation.
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The Portuguese Quality of Life as a Factor for Population Growth
In addition to the welcoming Portuguese culture towards immigrants, the cost of living is another significant factor contributing to Portugal’s growing attractiveness. Living in Portugal provides a significant advantage in affordability compared to many other European countries. Essential expenses such as food, groceries, utilities, healthcare, childcare, and education are generally more budget-friendly, allowing residents to maintain a high quality of life without the financial strain often found in other parts of Europe. Despite its lower cost of living, Portugal upholds high standards across various aspects of quality of life for both residents and citizens, aligning with broader European norms. This combination of affordability and quality makes Portugal an attractive destination for those seeking a balanced and fulfilling lifestyle.
The country manages to maintain a harmonious balance between its local population and its increasing number of foreign-born residents, which is evident across various aspects. For instance, in 2024, Portugal was recognized as the 7th safest country in the world according to the Global Peace Index. Language is also rarely a barrier, as Portugal boasts one of Europe’s highest proportions of English-speaking populations among non-native English-speaking countries.
Residency by Investment programs such as the D2 Visa and the Golden Visa deserve special mention, as they offer residency through favourable investment conditions, further enticing international investors to choose Portugal as their destination. It is also important to acknowledge how much Portugal has become a great destination for expats, and digital and international investors looking for a stable and profitable environment to place their investments.
Portugal’s nickname “The California of Europe” paints the perfect picture: amazing warm weather, stunning pristine beaches, and a trendy cultural scene, with the addition of being one of the safest countries in the world. When one also considers the universal healthcare system, the friendly local population, and the excellent and affordable public and private schools, it is no wonder why Portugal is the ultimate hotspot for foreign investors looking for the best place to invest, settle down and grow roots.
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If you are considering getting Residency in Portugal, get familiar with the Portuguese Residency programmes that lead to EU Citizenship:
