👋 Good morning, friends! It’s officially Christmas this coming week, and I’m taking a moment to reflect on 2024—the challenges we’ve faced and the triumphs we’ve celebrated as a family. Relocating to another country is one heck of a rollercoaster ride, especially when the local language feels like it's from another galaxy. But this Christmas, I’d like to take a moment to reflect—not on the hurdles we’ve jumped or the tough bones we’ve chewed—but on the incredible reasons we chose this new life in Portugal and the beauty we’ve discovered along the way.

For my family, there’s so much to be thankful for. My husband received life-saving surgery for less than €100 this past year; my daughter enjoys free, quality schooling, and she’s growing and thriving in ways I never imagined. And, let us not forget the charm of Portugal’s endless stream of homeless animals who somehow keep finding their way into our home and hearts (but, seriously, how do they know where we live?).

And I’m so grateful to you, my readers, for opening my newsletter each and every week and supporting this small, much-loved personal endeavor. Thank you! I’ll keep doing my best to deliver great content and strive to always be worth your time.

What you can expect to bite into today:

🎅 Record-Breaking Festive Facts about Portugal

🎁 Wrapping Your Way To Big Bucks with this cool side-hustle-turn-big-biz

🧒 And Tax Benefits That Make Me Wish I Was Younger…

Let’s dive in!

FOR YOUR INFORMATION 👇️ 

I want to share something important about the collaborators featured in this (and every) newsletter: none of them pay me in any way. Our partnerships are built on genuine, shared goals of providing helpful, high-quality content and advice for our audiences. I choose my collaborators with great care, being mindful of their mission, vision, and, yes, their reputation, and how it aligns with the values that are important to me. My priority is always your best interest, and I won’t team up with anyone just for my own benefit.

Right with that heavy stuff out the way, let’s see what our fabulous friends at Fresh Portugal have for us today with their expert-packed article down below!

IN THE HUSTLE

Wrapping Up The Year With a Heartwarming Side-Hustle Story

I read this inspiring story of Michelle Hensley, an amazing woman who turned life's challenges into a beautiful opportunity through the art of gift wrapping! Starting with a simple gift basket business, she created her company Nifty Package Co., which now brings smiles to everyone from her next-door neighbor to Kim Kardashian. Sound like a promising hustle?

Let’s wrap it up…

Michelle started out with nothing but her van and some wrapping paper, and started cashing in on the fact that not everyone enjoys wrapping presents! With a warm smile and skilled hands, she brought her gift-wrapping magic right to people's doorsteps. Her story has some funny moments too (once she had to redo all the gifts because they weren't labeled!), but Michelle kept her spirits high and hustled on.

Fast forward to today, and this gift-wrapping guru helps major brands, celebrities, and businesses make their presents look absolutely gorgeous, earning over $300,000 last year! Now that’s hustling!

I love how Michelle's story shows that sometimes the simplest ideas, wrapped in dedication and love, can turn into something truly special. Whether you dream of bringing smiles to your neighborhood or creating a gift-wrapping empire, this could be your perfect next adventure!

QUICK TIPS

Fun Christmas Facts: Portugal’s Records Edition 🎄

Did you know Portugal holds quite a few impressive Christmas-related world records?

1. Tallest Santa Claus: In 2016, the municipality of Águeda constructed a Santa Claus statue standing 21.08 meters (69.16 feet) tall, 9.18 meters (30.12 feet) wide, and 12.62 meters (41.4 feet) deep. This massive structure was illuminated with 110,000 low-voltage LED lights.

2. Smallest Santa Claus: Águeda is also home to the world's smallest Santa Claus, a nanostructure fitting within the eye of a needle. Created by British artist Willard Wigan, this microscopic Santa includes intricate details like a decorated Christmas tree and Santa carrying a gift sack.

3. Largest Santa Parade: In 2010, the city of Porto set a record with 14,963 participants dressed as Santa Claus, parading through th streets. This festive event aimed to support children in need, with organizers donating €1 for each Santa who completed the parade route.

4. Largest Gathering of People Dressed as Snowmen: In 2014, the Centro Social e Cultural da Atalhada in Lagoa, Azores, achieved a record with 489 people dressed as snowmen gathering in one place.

5. Moving Nativity Scene: Manuel Jacinto from Santa Maria da Feira set a record in 2013 by creating a nativity scene featuring 162 mechanical figures.

6. Largest Crocheted Christmas Tree: In 2022, a group of 70 women in Vila Real crafted a crocheted Christmas tree standing over 55 feet tall, potentially setting a new world record.

Have you seen any of these festive world records? We’d love to see your photos and share them with our Facebook community! 🎅📸 

ASK AN EXPERT

The Financial Future for Under 35s: Why Young Movers to Portugal Are Smiling

Welcome to the second edition of our “Ask an Expert” series, in collaboration with the tax pros at FRESH Portugal.

This week our experts gave us some juicy insights into the incredible tax benefits that Portugal is serving up to the under 35s. If you’re reading this thinking, “Well, my ship has sailed,” don’t give yourself grey hairs over it—we’ve got you covered with future topics like setting up a will and tips for registering as a freelancer or starting a company. So, stay tuned!

Know someone in the under-35 crowd who could benefit from this? Please go ahead and share the newsletter with them. You’re a star! ⭐️ 

Right, let’s hand things over to the experts, shall we?

By: FRESH Portugal

Portugal Offers Huge Benefits for Under 35s

General Benefits for Under 35s

1. What makes Portugal’s new policies stand out compared to other European countries for young professionals?

   Portugal’s new tax policies stand out in Europe due to their unprecedented duration and bounteousness, offering young professionals under 35 a decade of progressive tax exemptions—starting with a 100% tax break in the first year, gradually tapering to 25% in years 8 to 10. This is complemented by innovative housing incentives, such as state guarantees for property purchases, which aim to alleviate financial barriers for young buyers. Unlike other European countries, these measures are open to both domestic and international talent, making Portugal uniquely attractive as it combats brain drain and fosters a supportive environment for career and personal growth.

2. How do these policies enhance the quality of life for people under 35?

   These initiatives focus on creating opportunities for young talent by offering significant tax incentives, affordable housing options, and streamlined pathways for settling in the country. Young professionals and entrepreneurs benefit from improved job prospects, lower living costs, and the security of a game-changing real estate guarantee. By prioritizing affordability, stability, and professional growth, Portugal is empowering the next generation to thrive in a dynamic and welcoming environment.

Tax Benefits (IRS Jovem)

3. What is the IRS Jovem program, and who is eligible to participate?

   IRS Jovem is a tax incentive introduced by the Portuguese government in the State Budget for 2025, to reduce the tax burden on young taxpayers.

   The IRS Jovem tax program allows young people under 35, both Portuguese and foreign, whether they hold a degree or not, to exclude a part or the total income exposed to the personal income tax (IRS) on earnings up to €28,000 in their first years of employment. This threshold aligns with the lower limit of the sixth income tax bracket.

4. How does the tax exemption structure work over the 10 years?

   The benefit will only apply in years when the recipient has qualifying income from categories A and B (work and self-employment income); otherwise, it will pause and resume until reaching the 10-year maximum or the recipient turns 35 (important to note that the age limit of 35 is determined as of December 31st of the income year).

   The new structure of IRS Jovem will be progressively beneficial: the exemption is set at 100% in the first year, then gradually reduced - 75% for years two to four, 50% for years five to seven, and 25% for years eight to ten, limited to the €28,000 threshold. If the taxpayer’s income (after the percentage is applied) exceeds the €28,000 threshold, only the first €28,000 will qualify for the benefit.

5. Are there any income limits or restrictions for benefiting from IRS Jovem?

   The new structure of IRS Jovem will be limited to the €28,000 threshold, as explained above. If the taxpayer’s income (after the percentage is applied) exceeds the €28,000 threshold, only the first €28,000 will qualify for the benefit. Additionally, the benefits cannot be claimed if the taxpayer is considered a dependent for tax purposes.

6. If someone is benefiting from another tax incentive like the Non-Habitual Resident regime, can they also qualify for IRS Jovem?

   Those benefiting from the non-habitual resident regime or scientific research tax incentives (TISRI), or who owe tax debts, are excluded from this program.

Housing Benefits

7. What housing benefits does the Portuguese government offer young people? And what conditions apply?

   The Portuguese government is offering a state guarantee for young people seeking a mortgage. The government will cover up to 15% of the property’s purchase price as a guarantee to the bank. While this doesn’t mean the state will pay for the mortgage, it significantly reduces the financial risk for banks, making it easier for young buyers to secure a loan.

   This guarantee applies to homes worth €450,000 or less, so it’s a perfect option for young people looking to invest in affordable housing. And if you're in a couple, only one partner needs to be 35 or younger to qualify. 

8. Can expatriates or those with property abroad qualify for these housing benefits?

   If you own property abroad, you can still qualify for the guarantee, if this is your first permanent home in Portugal. 

9. What is the overall financial saving from combining tax exemptions like IMT and stamp duty with the state guarantee?

   This benefit can be combined with tax exemptions such as relief from IMT (Property Transfer Tax), stamp duty, and property registration exemptions - creating even more opportunities for savings.

Visa Options

10. What visa options are available for young professionals and remote workers looking to relocate to Portugal?

    Portugal offers various visa options tailored to different profiles of young professionals and remote workers, like the D7 visa for passive income earners, the D8 visa for remote workers, and the D3 visa for highly qualified professionals.

11. How do the income requirements differ between the D7, D8, and D3 visas?

    • The D7 visa is ideal for passive income earners with a minimum income of €850/month.

    • The D8 visa caters to remote workers, requiring proof of remote employment and an income of at least €3,400/month.

    • The D3 visa is designed for highly qualified professionals with a job offer from a Portuguese company, verified qualifications, and a minimum salary of €1,800/month.

12. What are the key steps for European citizens versus non-Europeans to settle in Portugal?

    European citizens can settle easily with a straightforward town hall registration. Non-Europeans have several targeted options, like the ones mentioned above.

Practical Considerations

13. What should young people prioritize when considering a move to Portugal under these policies?

    Young people considering a move to Portugal under these policies should prioritize understanding the financial and lifestyle benefits available to them. Key considerations include eligibility for the decade-long tax breaks—particularly for those earning up to €28,000 annually—and leveraging housing incentives, such as state-backed property guarantees and tax exemptions, to secure affordable living arrangements. Additionally, they should evaluate job opportunities in Portugal, aligning their career goals with the country’s industries, and consider the cost of living in urban areas like Lisbon and Porto. For international movers, understanding visa requirements and integrating into Portugal’s cultural and professional environment will also be essential.

14. Are there specific steps to take when combining housing benefits with visa applications?

    To access the under-35 property and tax benefits in Portugal, it is mandatory to be a tax resident in the country. This means you will first need to complete your immigration process before you can obtain tax residency.

    The initial steps are as follows:

    1. Obtain a NIF number as a non-resident.

    2. Complete the VISA/Residency process.

    3. Request tax residency status.

    4. Access the housing and tax benefits.

Your Future In Portugal

15. How can young expatriates maximize the benefits of living and working in Portugal?

    To maximize the benefits of living and working in Portugal, young expatriates should fully utilize the decade-long tax exemptions by ensuring their employment aligns with the policy’s income thresholds and timelines. They should also take advantage of the state-backed housing incentives, such as property purchase guarantees and tax exemptions, to reduce living costs and secure long-term stability. Building a professional network in Portugal’s growing sectors, like tech – which Fresh is highly connected –, can open career opportunities. Learning Portuguese can ease cultural integration and enhance workplace interactions. Additionally, expatriates should explore the country’s lower-cost regions outside Lisbon and Porto to escalate the efficiency and aim at a high quality of life. 

16. What role does Fresh Portugal play in assisting young people with relocation and settling in the country?

    Portugal is welcoming its younger generation with open arms, offering unmatched benefits that make it a top destination for those under 35. From tax savings and homeownership opportunities to streamlined visa options, there’s never been a better time to call Portugal home. FRESH Portugal is here to guide you every step of the way - helping you navigate the visa process, manage your taxes, and secure your dream home.

With thanks to our collaborators: Olga Neto, Head of Communication at Fresh Portugal, for her valuable insights and contributions to this article.

The tax team at Fresh Portugal is a highly skilled and experienced group, with deep expertise in both domestic and international tax law. Specializing in tax consulting, litigation, and planning, the team focuses on areas such as digital nomad taxation, crypto, and expat tax services. Additionally, the team has a strong background in private client services, tax compliance, delivering comprehensive and innovative solutions.

Email: [email protected]

LOST IN LINGO

Christmas Vocabulary for Beginners

Here it is—the final Christmas lingo video of the festive season! You’ve got this. After this week, you can confidently nail your Feliz Natal without breaking a sweat until next year. And who knows? If you’re good through this new year, Santa might bring you more than just a shoe full of gifts next Christmas!

Sentence of the week ✏️

Um sapatinho cheio de prendas.

Literal translation: A shoe full of gifts.

Explanation: As I mentioned, be on your best behavior and practice your Portuguese so Santa rewards you with more than just a sapatinho full of goodies.

He could learn a thing or two from the three wise women in the image below…

Thanks for reading! 💌 Merry Christmas!! 🎄

Hustle on!

Angelique🧞‍♀️

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PS, what’s your hustle story? Write to me and you could be in the next hustle spotlight!

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