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  • Portugal is the Hottest Destination for Expatriates

    Portugal stands out as an ideal destination for immigration, boasting safety, affordability, and a warm welcome. As we step into the new year filled with ambitious goals and dreams, we’ve compiled a comprehensive guide for those aspiring to live or invest abroad.

    Beyond the allure of custard pies and sun-kissed beaches, Portugal, a European gem, attracts expats with its affordability, safety, and year-round sunshine. The surge in remote work, coupled with new visa programs and enticing tax incentives, makes the prospect of international relocation more inviting than ever for digital nomads, investors, and families.

    While this opportunity is primarily available to those with the right passports, Portuguese citizens enjoy the privilege of holding one of the world’s most powerful passports. Selecting a new country as your home is a significant decision, necessitating thorough research and planning. Here are some tips to enhance your exploration:

    Key Resources for Potential Expatriates

    Expat Insider Survey by InterNations:

    Conducted annually for a decade, this survey reflects the perspectives of around 12,000 expatriates from 177 nationalities across 181 countries. It evaluates expatriate satisfaction based on factors such as quality of life, ease of settling in, working abroad, personal finances, housing, and language.

    Live and Invest Overseas:
    This resource, tailored for retirees, issues an annual index ranking the top retirement destinations abroad. The 2024 index highlights Valência, Spain, Braga, Portugal, and Mazatlán, Mexico.

    What Makes Portugal Truly Appealing?

    Portugal remains a top choice for its economic accessibility, quality of life, mild climate, and excellent healthcare system. The cost of living is notably lower than in most European countries, standing at 35.5% below that of the United States, according to Numbeo, the world’s largest quality of life database. Additionally, Portugal secures its position as the seventh safest country globally.

    As the world becomes more interconnected, the dream of settling in a welcoming country like Portugal is within reach for those embarking on this life-changing journey. Low living costs? Check. Top-notch healthcare? Yes! With historical charm and a vibrant expatriate community, Portugal offers the complete recipe for your new home away from home.

  • Modification to the Portuguese Citizenship Law

    We wish to notify you that, on January 26th, after the parliamentary approval of the decree amending the citizenship law, the President of the Republic requested a precautionary review of the constitutionality of said decree.

    The President’s request specifically pertains to Article 6 of the decree, which is associated with pending cases related to the acquisition of nationality by descendants of Portuguese Sephardic Jews. In light of this, it has been decided that a connection to the Portuguese community must be established in the application process for pending cases. Applicants are required to demonstrate proof of real estate in Portugal, frequent travels to Portugal, or possession of residence permits valid for at least one year.

    Considering the current situation involving Israel and Palestine, the President believes that introducing additional obstacles to the granting of Portuguese citizenship may be viewed as an infringement upon the principle of human dignity, as articulated in Article 1 of the Portuguese Constitution, and potentially as a violation of the right to life, safeguarded by Article 24 of the Portuguese Constitution.

    It’s crucial to note that this article is not directly or indirectly linked to the proposed amendments aiming to expedite the counting of the five-year deadline for legal residence periods, especially for Golden Visa holders. Consequently, the Constitutional Court’s analysis is not expected to impact that particular provision.

    The Constitutional Court now has a period of 25 days to determine the (un)constitutionality of the mentioned article in the decree. If the Constitutional Court deems the article to be in violation of the Portuguese Constitution, the President is obliged to veto it, and the decree will be returned to Parliament for revisions. Should the article be found to comply with the Constitution, the President can either issue a political veto (which is deemed unlikely) or proceed with the publication of the decree.

    We will ensure to keep you updated on any pertinent developments related to this matter.

  • Introducing Mercare: Mercan’s Premier Live-in Nanny and Caregiver Service

    Today, we are thrilled to announce the official launch of Mercare – a groundbreaking program aimed at revolutionizing live-in nanny and caregiver services in Canada.

    In the realm of immigration and support services, Mercan Group has long been recognized for its commitment to excellence and dedication to facilitating a seamless transition for individuals and families.

    Mercan Group, with its 34 years of expertise in immigration solutions, has become a trusted name for families seeking reliable support in their journey to Canada. Now, with Mercare, the company extends its dedication to providing top-notch services by introducing a tailored solution for Canadian families in need of professional and compassionate caregivers.

    Mercare is more than just a service; it’s a commitment to enhancing the quality of life for families across Canada. Our program connects families with qualified and experienced live-in nannies and caregivers, ensuring a harmonious match that meets both the family’s needs and the caregiver’s expertise.

    For Canadian families navigating the challenge of finding the right caregiver, Mercare stands out as the second-to-none choice. With Mercan Group’s reputation for excellence and the introduction of Mercare, families can now access a reliable and comprehensive solution for their live-in nanny and caregiver needs.

    Explore the possibilities today with Mercare – where compassionate care meets unmatched professionalism!

  • Mercan Group to Invest 450M Euros in 8 New Lisbon & Algarve Hotels

    In an anticipated move, Mercan Group disclosed plans to commence construction this year on multiple hotel projects, including Portugal’s inaugural Hard Rock Hotel, set to grace Vau Beach. The Canadian conglomerate will inaugurate three hotels this year, solidifying their commitment to the country.

    Miguel Gomes, Mercan Properties’ Construction and Development General Manager, indicated that construction for these hotels, constituting 1,400 rooms in total, will initiate in 2024. Acknowledging the challenges inherent in predicting the exact start date due to licensing procedures, Gomes affirmed the group’s leadership in Portugal’s real estate landscape.

    While exact locations for the eight upcoming hotels remain undisclosed, the Hard Rock Hotel at Vau Beach, Portimão, is one confirmed project. Expected to open in 2026, this flagship hotel will generate 400 job opportunities and showcase 452 luxurious rooms and suites. Boasting direct beach access, the hotel will offer an array of amenities, including a Kids Club, multiple restaurants and bars, outdoor pools, a Rock Spa, a gym, a Rock Shop, sports facilities, and a beach club. Additionally, the Hard Rock Hotel Algarve will provide a conference room.

    Before 2024 summer, Mercan Properties will inaugurate three hotels, representing an investment of around €54.6 million. These include Holiday Inn Express Porto-Boavista, featuring 91 rooms with a €21 million investment, Holiday Inn Express Évora – Mercan’s second unit in the city – with 76 rooms and an investment of €16.8 million, and Holiday Inn Beja, comprising 95 rooms with a similar investment of €16.8 million. These hotels will fall under the management of AHM – Ace Hospitality Management, a subsidiary of the Mercan Group.

    Upon completion of these projects, Mercan Properties, which has entered Portugal since 2015, will possess a portfolio of 30 hotels spread across various Portuguese locations. These encompass Porto, Vila Nova de Gaia, Matosinhos, Lisbon, Amarante, Santiago do Cacém, Évora, Beja, Algarve, and Madeira Island. Beyond Portugal, the Canadian Mercan Group maintains a global presence in China, India, the United Arab Emirates, and the United States of America.

  • Mercan Group Wishes You a Merry Christmas and Joyous Holidays

    As the year draws to a close, Mercan Group pauses to reflect on a truly remarkable journey throughout 2023. We extend our deepest gratitude to every client and every individual who has contributed to our growth and success. Your unwavering support and trust have been the cornerstone of our achievements.

    2023 has been a year of meaningful partnerships, breakthroughs, and significant milestones. We are profoundly thankful for the opportunities to collaborate, innovate, and create value together. Each experience has strengthened our resolve to continuously elevate the quality of service we provide.

    Looking ahead to 2024, we are excited about the prospects it holds. Our commitment to excellence remains steadfast, and we are devoted to exceeding expectations by delivering exceptional services and solutions. The beginning of the new year will mark the introduction of exciting new projects, showcasing our dedication to constant improvement and innovation.

    As the holiday season approaches, we extend our warmest wishes for a Merry Christmas and a joyous New Year. May this festive season be filled with moments of love, joy, and togetherness for you and your loved ones.

    We sincerely thank you for being a part of our journey and eagerly anticipate continuing to serve you with utmost dedication and sincerity in the upcoming year. Here’s to a prosperous and fulfilling 2024 filled with new opportunities and successes!

  • Fresh regulations aimed at modernizing and streamlining immigration procedures

    The Portuguese Government has set forth a plan for 2024 to expedite and streamline immigration proceedings in Portugal. This initiative is evident in the revised regulatory decree altering the legal framework for Foreign Law in Portugal (Law no. 23/2007).

    Recent amendments to the law, integrated within the “Mais Habitação” program, have notably led to the restructuring of SEF – Serviço de Estrangeiros e Fronteiras, culminating in the establishment of the new agency AIMA – Agência para a Integração, Migrações e Asilo, I. P. Consequently, it has become imperative to consolidate these recent changes in the legislation.

    The primary objective is to modernize and simplify the administrative processes currently overseen by immigration authorities. This overhaul aims to equip the new agency, AIMA, with the necessary tools to assess and expedite cases more efficiently, reducing bureaucratic hurdles while upholding heightened security standards.

    These measures align with the Government’s stated objective for the new agency to address the prevailing backlog and delays in application reviews.

  • Mercan Properties Invests Three Million in the “Last Urban Park” in the Center of Porto

    In August 2024, the development of “the final urban park within Porto’s city center” will encompass 1.7 hectares, representing a substantial investment of three million euros, spearheaded by the Canadian conglomerate Mercan Properties.

    During the commencement ceremony for the Lapa Urban Park, the Mayor of Porto emphasized the significance of this initiative, stating, “This marks the culmination of our efforts in establishing urban parks within the city center. There are no remaining spaces comparable to this expansive 1.7-hectare haven.” This project, facilitated by a three-million-euro investment from Mercan Properties, owners of the Renaissance Porto Lapa Hotel, is anticipated to be unveiled by August 2024, with Mayor Rui Moreira relinquishing one million euros in taxes to materialize this verdant space.

    This endeavor is the outcome of a collaborative venture between the municipal authorities and the Canadian group, intertwined with the licensing procedures for the new hotel. It encompasses the group’s involvement in the redevelopment of streets like Cervantes and Alves Redol, now accessible to traffic since March, without fee exemptions but through a land transfer as part of the Urban Development Plan, as elucidated by Urban Planning Councillor Pedro Baganha.

    Jordi Vilanova, President of Mercan Properties, envisions this as the group’s commitment to sustainable progress and city life enhancement, forging a green legacy for forthcoming generations in Porto.

    Over recent years, Porto’s municipality has seen an increase in green spaces, reaching 76 hectares through enhancements and expansions, with 22 hectares devoted to novel areas, such as Oriental Park, City Park’s western precinct, São Roque Park expansion, Asprela Park construction, and the verdant roof of the Campanhã Intermodal Terminal.

  • Non-Habitual Resident (NHR) regime

    On the most recent Tuesday, which was the 14th of the month, a significant debate took place regarding the State Budget for the year 2024. The discussion primarily focused on the non-habitual resident regime. During this debate, the government introduced a proposal outlining a transitional regime aimed at modifying the Non-Habitual Resident (NHR) regime.

    The proposed transitional regime extends beyond maintaining the existing regime for individuals already registered under the NHR system, as initially outlined in the 2024 State Budget. It encompasses the following provisions:

    i) Eligibility for the transitional regime extends to taxpayers who, by December 31st, 2023, could potentially qualify as tax residents in Portugal (along with their households).

    ii) The transitional regime also applies to taxable individuals who attain Portuguese tax residency status by December 31st, 2024. They must declare one of the following criteria for their registration under the NHR:

    a) Display a promise or formal contract of employment, or an agreement for a secondment, signed by December 31st, 2023, regarding professional activities in Portugal; or

    b) Present a lease agreement or an agreement conferring possession of property in Portugal, executed by October 10th, 2023; or

    c) Show evidence of a reservation or promissory contract for the acquisition of a real estate right in Portugal, signed by October 10th, 2023; or

    d) Provide proof of enrollment or registration of dependents in a Portuguese educational institution, completed by October 10th, 2023; or

    e) Hold a residence visa or a residence permit valid until December 31st, 2023; or

    f) Initiate the procedure for obtaining a visa or residence permit in compliance with applicable immigration laws by December 31st, 2023, through:

  • Casa das Lérias featured in the travel column of Le Figaro Newspaper

    Casa das Lérias was recently featured in the travel column of Le Figaro Newspaper, where it was highlighted as an excellent choice for a fall getaway in Porto. The article, titled “What to Visit in Porto? Our Top 5 Getaways in the North of Portugal,” recommends extending a weekend in Porto with an exploration of the surrounding areas accessible by train, car, or bus.

    Among the recommended destinations, Amarante stands out for its timeless charm and traditional pastries. Situated halfway between bustling Porto and the scenic Douro, Amarante remains relatively undiscovered by tourists. The city, nestled on both sides of the River Tâmega, invites leisurely exploration. Visitors are encouraged to begin their journey at Confeitaria da Ponte, the city’s oldest confectionery, renowned for its delectable convent sweets like “Brisas do Tâmega” or “Toucinhos do Céu.”

    The next stop on the itinerary is a museum dedicated to the acclaimed artist Amadeo de Souza-Cardoso, a native of Amarante and a trailblazer in modern art during the early 20th century. For those seeking outdoor activities, a hike in the Serra de Marão or a cycling adventure along the converted railway line (Ecopista do Tâmega, 40 km) from Amarante to Cabeceiras de Basto are recommended, offering picturesque views of villages, vineyards, forests, and natural parks.

    When planning a stay in Amarante, Casa das Lérias emerges as an ideal accommodation choice. Situated in the heart of the city, this charming hotel offers rooms with delightful views overlooking the River Tâmega. It captures hearts with its allure and provides exceptional value starting from €58 for a double room. Casa das Lérias, located at R. Cândido dos Reis 1, 4600-758 Amarante, serves as an excellent home base for exploring the wonders of Amarante.

  • Is the Era of the Portuguese NHR Regime Coming to a Close?

    How the taxation for new residents may look in 2024

    The Non-Habitual Resident (NHR) regime is a beneficial tax regime that offers people who were not tax residents in Portugal for the past 5 years a more favorable Personal Income Tax (PIT) for a period of 10 years. The benefits of the regime include:

    • A 20% flat rate taxation on the income obtained in Portugal and coming from employment and self-employment income. . However, the benefit is only applicable to income generated by high-value-added activities of a scientific, artistic, or technical nature performed in Portugal, as listed in a Ministerial Order (examples are Directors and Executives of production, industry, services and business companies, Doctors, Dentists, Engineering, IT, communication, scientific and related subjects’ Specialists and Technicians, University Teachers, Artists, among others);
    • Foreign-sourced pension income is taxed at a 10% flat rate; and
    • Foreign-sourced income may be exempt from tax[i];
    • Other types of domestic income received by NHRs are liable to PIT according to the rules applicable to ordinary tax residents.

    To qualify for the NHR regime the following requirements must be met:

    • Not having been taxed as a Portuguese resident in the 5 years prior to the application;
    • Having a residency in Portugal either by a rental contract or by owning a real state for housing purposes;
    • Becoming a tax resident in Portugal can be achieved by:
    • Staying in Portugal for more than 183 days (continuously or not) during a 12-month period, which begins or ends in that tax year (January 01st to December 31st); or
    • Having a residential accommodation in Portugal used as habitual housing on any day of the 12-month period.

    Recently, the Prime Minister of Portugal revealed that it was this Government’s intention to end the NHR regime, which has been officially included in the 2024 State Budget Proposal presented in Parliament last week (October 10th, 2023).

    According to the 2024 State Budget Proposal, the NHR regime will be revoked as of January 1st, 2024. Nevertheless, the Proposal includes a grandfather clause so that the regime is still applicable to the following individuals:

    • The ones already registered as NHRs at the time that the State Budget Law enters into force (until their 10-year period ends);
    • The ones that meet the conditions of access to the regime until December 31, 2023, as well as the holders of a residence visa valid at that time, provided that the registration process is submitted until March 31, 2024.

    While ending the regime in place since 2009, the 2024 State Budget Proposal does include a new tax incentive that resembles the NHR, targeted to attract scientific research and innovation.

    It proposes the same 20% tax flat rate for a 10-year period for new tax residents in Portugal who earn Employment and Self-Employment Portuguese Income derived from:

    • Higher education teaching careers and scientific research;
    • Qualified positions within the scope of contractual benefits for productive investment, as defined in Chapter II of the Fiscal Investment Code; and
    • Research and development jobs for employees with minimum qualifications equivalent to a doctorate degree, whose costs are eligible for the tax incentives system for research and business development, specifically provided in the Portuguese Tax Law.

    The new taxpayers may also benefit from a tax exemption on foreign-sourced income, including derived from employment or self-employment income, investment income, rental income or capital gains income, except if obtained in tax havens (that will be taxed at a 35% tax rate). Pension income is also excluded from this tax exemption.

    This regime can only be used once by the same taxpayer, and individuals who are benefiting or have already benefited from the NHR regime or have opted for the taxation of the income under the terms of “Programa Regressar” are not eligible for this new regime.

    Finally, and according to the 2024 State Budget Proposal, it is also proposed to extend the “Programa Regressar” (Return Program), nowadays directed to taxpayers who had prior residence in Portugal, to all taxpayers that become tax residents of Portugal until 2026 [and who have not been tax residents of Portugal in the past five years] which would allow for 50% tax exemption on employment and self-employment Portuguese income up to € 250.000,00 during the first 5 years.

    We will monitor closely the Parliament discussions on the 2024 State Budget Proposal, keeping all investors informed of any developments or amendments that may occur. Should it remain unchanged, it will enter into force on January 1st, 2024, meaning that the window to move to Portugal and acquire tax residency ends by December 31, 2023.

    We remain available for any clarifications needed.

    [i] Foreign Source income, such as employment income, certain types of self-employment income, investment income, rental income, and capital gains may be exempt from PIT in Portugal provided that such income is taxed in the origin source country according to the applicable Tax Treaty with Portugal or, if there is no Tax Treaty with Portugal, if the income is effectively taxed in the origin source country (not considered a tax haven) and not considered derived in Portugal, under Portuguese domestic tax law.