Why are all the digital nomads in Portugal? Or is it just my perception?

Question

I was just wondering why a lot of digital nomads are based in Portugal? What drove you there, is it the sunshine, the vibes, taxes, the people, community?

Thanks 
Tom

Ben Katz · Accepted Answer

Think a lot of people ended up there during Covid

The government had huge incentives for golden visas where you could buy a relatively cheap property and get permanent residence or similar (don’t sue me, I don’t know the exact details on that)

It’s also a reasonable climate and centrally located for people living in America or Europe relative to taking a long flight to Southeast Asia with a good COL. I think it’s gotten more expensive recently though.

Ben Katz · Answer

Yes I tend to agree. I’ve been back in the US for a week now and the amount of money I’ve spent doing regular, everyday things is just insane. 

Just to get home from the airport I paid $35 for an Uber - in a low COL country the same distance covered would be ~$5 or less

I lived in the US my whole life up until this year and was used to the prices of everything, but now it feels like robbery when I’m used to the alternative.

Nathan Wailes · Answer

my understanding is that the #1 reason a lot of EU citizens changed their residency to Portugal is that it doesn't tax people nearly as heavily as their home country (some of which were like 50% taxes or something crazy high like that). IMO people/jobs moving to lower COL countries is going to be a major trend in our lifetimes, and the higher-tax / higher-COL countries are going to need to have some Argentina-style cost cutting and/or face Detroit/West-Virginia-style blight.

Hugo Hamel · Answer

From 2021 to 2023, Lisbon grew a lot and attracted a lot of people. I personally moved there from Canada because my wife is Portuguese, and we were looking to get closer to her family while also being in Europe, so Portugal was a good option (we considered Berlin, but it was too complex with the language barrier and all).

Screenshot from @levelsio: https://x.com/levelsio/status/1807822245202403340

Siavosh Zarrasvand · Answer

Personally, I am going there this summer because of the following reasons: 

1. Aircon - yes, Europe sucks in that you barely find air con in most places.
2. The sun.
3. Cheaper than Spain, France, Germany etc.
4. Better infrastructure than Greece, eastern Europe or the Balkans.
5. For me, it is more my crew. There are more Americans there with VC or software background compared to say Marbella, where there is a lot of maffia. 
6. Seems to be less touristy than many other top destinations.

Dmitrii Pashutskii · Answer

I think NHR has greatly contributed to the number of nomads who set their tax base there. 
Although it's no longer available for new residents, it still works for everyone who came before.

Plus, general conditions people mentioned: great climate, more/less developed infrastructure, it was cheap before, many great cities to live in, safe, good medicine, coast, and surf.

Tom Mikulin · Answer

now woder all the digital folks coming here in Europe, I would do them same if I wasn't living here....

Tom Mikulin · Answer

@ben that's what I figured, I'm based in Croatia, but it seems that a lot of digital nomad are based in Portugal, so the vibes are probably better there I think

Faahim · Answer

@hugohamelcom this is why I was asking you about the community, seems like lot of makers are there! :)

Tom Mikulin · Answer

I just checked the prices and living in Lisbon isn't that far off from Berlin, so it's not cheap anymore lol

Hugo Hamel · Answer

The "it was cheap before" break my heart because attracting foreigners actually created a bigger gap in the economy between native Portuguese and everyone else. I am a foreigner myself, and having an in-law portuguese family and being in the rural area of Portugal, I get to see a lot of people work very hard for little, and as the prices rise, their wage doesn't.

Dmitrii Pashutskii · Answer

That's terrible, and it's a huge question for the Portuguese government. But it's definitely not foreigners' fault.

Hugo Hamel · Answer

We definitively can't blame foreigners, because they are doing nothing wrong other than using their money, the issue is that the government has enticed people to come because the country needs it, but they somewhat forgot (or dismissed) the economical impact on native portuguese.

Siavosh Zarrasvand · Answer

If you go to touristy places you get touristy prices. 

According to Nomadlist Porto for example is 25% cheaper than Berlin, while Lisbon is only 10% cheaper. 

But in one you get sea views and in the other you live in dirt. Not really comparable.

Siavosh Zarrasvand · Answer

Good summery.

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Why are all the digital nomads in Portugal? Or is it just my perception?

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