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With beautiful landscapes, spectacular beaches, and some of the friendliest people in the world, there are many selling points to Portugal that make it attractive to both lifestyle buyers and investors. Perhaps not so well known, and which Portugal does not boast about so much, is the irresistible fact that Portugal is the fourth safest country in the world, according to the 2021 Global Peace Index 2020.

In this article, we’ll delve into what makes Portugal such a safe country to live in, including a rundown of its stable socio-economic climate, before providing you with some crucial reasons as to why Portugal is an outstanding country to live in – for investors, retirees, and families alike. 

 

How to measure a safe and peaceful country?

When it comes to measuring a safe and peaceful country, the 2021 Global Peace Index is a good place to start. This is created by the Institute for Economics and Peace, a non-governmental organization that produces this study on an annual basis. 

The Global Peace Index covers 99.7% of the world’s population, creating an almost conclusive set of data relating to the level of peace across the world. 23 qualitative and quantitative indicators are used from highly respected sources to measure the state of peace across three domains: (1) the level of societal safety and security, (2) the extent of ongoing domestic and international conflict, and (3) the degree of militarisation. 

 

What makes Portugal the fourth safest county in the world?Portugal as the fourth safest country in the world

Portugal is known to be a stable, safe, and extremely beautiful country. In the 2021 Global Peace Index, Portugal trailed only Iceland, New Zealand, and Denmark, showing it to be the second safest country in the European Union. 

It is also worth noting that in 2014, Portugal ranked in 18th position, highlighting the fact that in the past few years the country has significantly progressed on this front. Additionally, according to the annual internal security report, crime has dropped consecutively for the last seven years. 

There are many reasons why Portugal is one of the safest countries in the world. One of the key reasons is down to the political climate in the country, which has been stable for years. In addition to this, Portugal has some of the lowest crime rates in Europe. 

Portugal has shown the world how to attract international buyers and investors, not only due to safety reasons, but also because of its high quality of life, affordability, and tax-friendly incentives, creating continued interest from expats across the world.

 

Low crime rates

Portugal has one of the lowest crime rates in Europe. The autonomous Portuguese islands of Madeira and the Azores, in particular, experience very low crime rates. For example, in Madeira, news items have sometimes been regarded as slightly comical as crime-worthy items are somewhat lacking. In one case, a man tried to enter a hospital on the island accompanied by a swan – creating some puzzlement, given the lacking number of swans on the island. Although there are small amounts of theft, particularly in bigger cities, Portugal is a very safe country. 

 

Why invest or live in Portugal?

There are many reasons to invest or live in Portugal. Whether you are moving with a family, retiring here, or simply investing in the real estate market, there are many incentives to choose Portugal. Here, we’ll delve into some of the advantages of living in Portugal.

 

Portugal – the fourth safest country in the world

Homebuyers and investors can rest assured knowing that their homes and investments are in safe hands. Indeed, living in the fourth safest country in the world has its perks. As a safe country in terms of societal safety and security, this is evidently an attraction for expats and tourists that are looking to visit the country. Even international university students will be swayed by how safe a country is when determining which country to study in. 

For investors, this is beneficial as there are many options for short and long-term rentals, allowing you to make strong returns on investments on the real estate market here. 

 

A thriving real estate market

Buying a property in a safe, stable country is one thing. But to buy property in a thriving market that is going from strength to strength is another. Indeed, Portugal is often featured in publications such as Forbes and International Living to be one of the best countries to buy property. The average rental yield in Lisbon stands at 5.45%, significantly higher than for properties in London, Paris, and Madrid.

 

Moving with your family

As the fourth safest country in the world, Portugal also provides a very safe environment to move to with a family. With many international schools, an array of activities – beaches, national parks, city parks, and a strong education system, Portugal is a very good country to move to with your family. You can see more about the education system in Portugal here.

Family is very important to the Portuguese – indeed, family comes first. While many European countries value the importance of family, there is a particular sense of devotion to family in Portugal. Sundays are reserved to spend time and eat good food with family, and it is common for young adults to head over to their grandmothers for Sunday lunch. Relocating to Portugal could mean building deeper family traditions.

The weather also helps in Portugal, as it is possible every month to head outside and make the most of the good weather and mild climate. 

 

Portugal the fourth safest country in the worldMany locations to choose from

From the buzzing capital of Lisbon to the sublime beaches in the Algarve, there are a vast array of locations to buy property in Portugal. Indeed, for such a small country, the diversity in landscapes is very special. For those looking for a historic city in the North, you have Porto, Braga, and Guimaraes as excellent options. 

For the warmest climate in Portugal, opt for the Algarve, where the multitude of beaches will enable you to relax in style. Expats are also drawn to the Silver Coast, given its proximity to Lisbon and Porto, stunning landscapes, and more authentic Portuguese lifestyle.

 

The non-habitual residence (NHR)  scheme

The non-habitual residence (NHR) scheme was introduced by the Portuguese government in 2009. This was to make Portugal an attractive incentive for expats, by providing them with tax-friendly policies.

Any individual that has not been a Portuguese resident in the previous five years is able to apply for the NHR scheme. You can gain significant beneficial tax treatment for the initial ten years of residency in the country. Additionally, if you are employed or self-employed and deemed to have “high value-added activity within Portugal”, then you will be able to have a special tax rate of 20%. Note that in some special cases, there can even be a special tax exemption for certain foreign-sourced incomes. This can include pensions, employment income, self-employment income, rental income, specific capital gains, and some investment income.

The NHR scheme is particularly appealing for those looking to retire in Portugal and live off their pension income and dividends from investments. If structured correctly, it is possible to optimize your tax affairs for ten years. 

 

The Portugal Golden Visa

Introduced in 2012 by the Portuguese government, the Portugal Golden Visa allows investors to gain citizenship for a certain investment amount through various pathways. This provides investors with an entryway to the rest of Europe and has proved to be one of the most popular residency-by-investment programs in the world – you can see more about the Portugal Golden Visa here

 

Goldcrest: Your buyers’ agent in Portugal

Goldcrest is an independent buyer’s agent based in Lisbon. With years of experience in the Lisbon real estate market, we are ready to assist you – whether you are moving with a family, seeking to retire in Portugal, or would simply like to discuss investment opportunities in Portugal. 

You can book a call here

Using a buyer’s agent will help you discover a range of properties specific to your search criteria. In addition to this, they can assist you in determining whether you are making a sound investment, as they work solely for their clients.

Frequently asked questions about what is the safest country in the world:

1. What is the safest country in the world?

According to the Global Peace Index 2021, Iceland is the safest country in the world, followed by New Zealand, Denmark, and Portugal.

2. Why is Portugal such a safe country?

With a stable socio-political environment, low crime rate, and friendly people, Portugal is a safe and stable country. With a family-centered and relaxed vibe, the country is relatively safe although there may be some petty crimes and thefts in the bigger city. The autonomous islands of Madeira and the Azores are particularly safe.

3. Where is the best place to live in Portugal?

This will largely depend on what you are looking for, as it will vary depending on if you are moving with family or looking to retire in Portugal. The cosmopolitan city of Lisbon is an excellent option for investors and those that want to live in a bustling city. For a more historic city, opt for Porto in the North or various other cities such as Coimbra or Braga. For those that are looking for good weather and beaches, the Algarve should come top of your list. The Silver Coast is also an excellent location for expats.

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