I want to share a video that felt different from my usual style on YouTube. It was raw and unfiltered. In that video, I talked about the cancellation of Portugal’s non-habitual resident (NHR) tax regime. For many retirees and digital nomads, this tax break was a big draw to Portugal and made it a rare gem in the European Union. Now that it has been canceled, I suggested that those people might want to consider other options.
That video sparked controversy, something I had expected. I always see value in content that stirs conversation, even if it shows the less glamorous side of life. Life is not always perfect or simple. If you’ve followed my recent videos, you might have noticed that I do not sugarcoat what living in Portugal is really like. Many American creators paint a rosy picture, calling Portugal the best place to live or vacation. I find it important to present a fuller view that includes challenges too. That honesty reflects what I believe is a very Portuguese trait—the willingness to see the good, the bad, and the ugly.
If you don’t know me yet, my name is David Portugal. I’ve been living here and making videos for roughly two years now. During that time, my experience has surprised me in many ways. My reason for moving here wasn’t originally tied to the NHR tax scheme. Honestly, I didn’t know much about it at first. But as I settled in, I learned more about it and what its cancellation means for newcomers.
Why Do People Move to Portugal?
One question many viewers asked was if the tax breaks were the only reason foreigners come to Portugal. I can’t speak for everyone, but I believe it usually is a combination of factors. Safety, pleasant weather, and Portugal’s rich cultural heritage all play a role. The tax incentives simply make Portugal more accessible for people who want to live in Europe but can’t manage the high costs in many Western European countries.
The Portuguese government introduced these tax breaks mainly to attract foreign investors and businesses after the global financial crisis in 2009. In many ways, it worked too well. The influx of foreigners has contributed to rising living costs. Locals often struggle with gentrification and a lack of affordable housing. I’ve seen empty government-owned buildings in central Lisbon, which seems like a wasted resource. But this challenge isn’t unique to Lisbon. Cities around the world face similar issues tied to housing supply and wages.
I moved here partly because housing in my previous home was no longer affordable. Californians were moving into my old area, causing prices to rise beyond my reach. People tend to move where they can afford. It’s not the fault of foreigners who come seeking opportunity. Still, I notice a tendency for blame to fall on outsiders when cities change quickly. Globalization moves fast, and its effects reach almost everywhere.
A Silver Lining for NHR Followers
For those who still want to benefit from Portugal’s NHR tax incentives, there is a law firm in Lisbon called Fresh Portugal that offers last-minute tax residency packages. They know how to register people quickly before the regime disappears entirely. If you already have a Portuguese tax number (NIF), a bank account, and a long-term rental contract, you might still qualify. I learned a lot from their recent webinar about taxes in the US and Portugal, which I’ve linked below.
Will I Sell My House and Leave Portugal?
Many people ask me if I will sell my house and move away because of the NHR changes or the controversies around living here. The simple answer is no. For now, staying in Portugal is my plan. I feel lucky to live within an hour of Lisbon and just 20 minutes from some of Portugal’s best surfing beaches. I enjoy the privacy of my home. In Portugal, houses are often built close together, so neighbors can usually see into each other’s yards or windows. Privacy is a rare luxury here, which I appreciate.
That said, an opportunity has appeared that might require me to relocate sometime soon. Nothing is set in stone yet, so I can’t share details until it becomes official. If it happens, I’ll announce it in the coming months.
Why I Chose Portugal Despite the Tax Changes
When I first decided to come here, I didn’t research the NHR tax regime deeply. I had heard that cryptos weren’t taxed in the beginning, but that has since changed. I knew that Portugal had a D-series visa, which made the residency process easier than many other EU countries. It took me almost a year to fully understand the NHR tax benefit.
I expected that, like other EU countries, Portugal would have higher taxes than the US. I’m fine with that as long as the quality of life and public services make sense. Despite all the recent changes, I don’t intend to leave this wonderful country. I’ve tried to integrate into life here and learn the culture.
I’ve been working on a video about Lisbon, where I explore the city alongside some locals. It offers an authentic view of what it’s like to live here, which I hope you’ll enjoy. These insights come from many hours spent researching and filming, and I value the chance to share them.
Language and Adaptation
Adjusting to a new place involves more than just taxes or housing. It’s about culture, language, and community. I want to recommend a language app called Babel which has helped me and many others in learning Portuguese and other languages. The app focuses on real conversations you’d use in daily life, travel, or business, helping you start speaking within weeks. The lessons are practical and designed by professional teachers.
Knowing the local language builds confidence and deepens your connection to the country. It makes everyday tasks easier, and even a little humor easier to share. I remember my first trip to Spain when a friend asked if I was married. I mistakenly said yes using the wrong word, which led to a funny exchange. Moments like those remind me how important language learning is.
Reflecting on My Journey
My time in Portugal has taught me that no place is perfect. It has great weather and friendly people, but also challenges. The local housing market struggles, certain amenities are expensive, and the tax incentives that attracted many newcomers are now gone.
Still, I feel grounded here. I enjoy the relaxed pace of life and the many experiences that come with living near the coast and vibrant cities. Change is a part of life, and the best we can do is adapt and find opportunities within it. I am grateful for this chance to live in Portugal and share what I learn with you.
If you think about moving here, I encourage you to look beyond the tax benefits and really think about what matters most to you: community, language, lifestyle, and long-term plans. These elements will guide your decision far more than any short-term advantage.
Looking Ahead
For now, my heart is here in Portugal. I’m settled and happy with the small town charm combined with easy access to Lisbon. That balance means a lot to me. If new opportunities arise that require a change, I will consider them carefully.
I hope my story helps you see Portugal in a more nuanced way—from the beauty to the complexities—and inspires you to make the best choice for your own life.
Thank you for following my journey. I look forward to sharing more with you as I continue to live and explore this remarkable country.
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