May 10, 2018
Portugal: the new destination to invest
Portugal is one of Europe´s basket cases and the most risky of the allocation bets recommended in Heckman’s country model. Investors are now looking to Portugal as recent tax reforms and a stable economy make it an attractive country to live.
Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors.
Portugal joined the Economic and Monetary Union in 1999 and began circulating the euro in 2002 along with 11 other EU members. The economy grew more than the EU average in the 90s, however the rate of growth slowed in 2001-08.
In 2009, Portugal introduced a range of tax benefits for both EU and non-EU citizens. This made attaining residency quick, easy, and financially lucrative. A modest recovery gathered momentum in 2015 due to a strong export performance and a rebound in private consumption.
Growth slowed slightly in the first half of 2016, but rebounded in the last two quarters to register at 1.4%.