The list of the most popular destinations for British expats has barely changed over the past two decades, but expats are forecasting a shift.
According to the Wealthy Expat, a content creator who volunteers advice about the best destinations for financial prosperity, one destination slowly losing its allure for expats is Portugal.
"Portugal is pushing away the wealthy with their new changes," The content creator said in a YouTube clip that offers "three better options".
"I’m going to tell you about three other options that you can take advantage of if you wanna pay less taxes in Europe and you want to work an amazing second passport."
The Wealthy Expat recommends Malta as a destination for expats
The Wealthy Expat / YouTube
According to Forbes, Portugal’s Non-Habituals Resident tax program offers a flat tax of 20 per cent on employment income for 10 years for those who move to the country.
The country recently issued a significant change to its Golden Visa program, meaning that property no longer counts as a qualifying investment to gain residency.
The three following countries, on the other hand, have emerged as favourable destinations to expats since introducing tax incentives to foreigners.
Italy
With their 100,000 Euro per year lump sum tax program, you can "enjoy this beautiful country that is usually an extremely high tax county", according to the Wealthy Expat, who points out that foreigners can also easily acquire a residency permit.
"You have a lot of different climates if you want the North, a little bit more chilly," the content creator said. "You’ve got Milan, you have the South, Sicily, Sardinia. You have Lampedusa if you want to hang out with African migrants.
"Italy in my opinion also provides a lot better of a luxury lifestyle than Portugal [...] if you’re used to really high-level service, Italy has that.
"Specifically Rome and Milan, you can find amazing hotels, amazing service, great drivers and overall a better luxurious experience than Portugal."
Spain
Spain has always lured in expats with its idyllic climate, but there may be more benefits to reap from the country as a foreigner.
"The second option right next to Portugal is Spain. If you’ve never been a tax resident of Spain and you apply for the Spanish Golden Visa you could then apply for the Beckham Law," explained the YouTuber, referring to Spain’s special expat tax regime.
This means expats do not have to pay individual income tax on income made outside of Spain.
"You can enjoy a massive country with many different climates, many different natural places as well as beautiful cities like Madrid and Barcelona, Tenerife, you have Majorca," added the Wealthy Expat. "Overall [it’s] a beautiful country."
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Spain is emerging as a popular country for expats
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The content creator’s optimism for Malta as a popular expat destination comes despite an International Expat Insider survey that ranks Malta 50th out of 59 countries for the best places to settle.
"I’ve personally been to Malata and I am in love with the country," declared the YouTuber. "I absolutely love the beaches, I love the people, I love the food. Malta overall [is] one of the best places in the world.
"You can easily get permanent residency. By donating around 150,000 euros you get permanent residency, and you can live the rest of your life in Malta.
"They also have extremely low taxes. You’re paying around 10 per cent full income tax."