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One of the most important issues an investor must consider when looking to pursue residency by investment is the political stability of their potential new home.
People want a place to feel safe and act as a safeguard if their home country does fall victim to internal turbulence or political disturbance.
This criteria for finding a new home is precisly what is driving Portugal's golden visa to the top of the list, especially for US nationals looking to secure a robust plan b.
The USA, once home to the fabled American Dream, has seen the vail of political invulnerability drop as the country becomes more divided than ever on crucial issues that affect the everyday lives of its inhabitants.
From the fallout of the 2016 election, the storming of the Capitol in 2021, and the recent overruling of Roe VS Wade in 2022, the country is witnessing a divide unprecedented in recent memory. The two-horse government seesaw in the US is aiding this segregation, as both the democratic and republican parties are quickly leaning to the far end of their spectrum.
This substantial breakdown in communication and collaboration is severely affecting the US population, as state law-making now has greater power, inflation is rapidly growing with each party blaming the other, and an overall unease falling upon the citizens of the world's leading nation.
More US citizens are now looking for alternatives in case matters worsen, and many are searching for an upgrade in terms of political stability and the effect it can have on their daily lives - enter Portugal.
Considered by many as one of the most politically stable countries on Earth, Portugal has succeeded in maintaining its overall stability longer than any other nation on the globe. The nation has maintained its same borders since the 13th century, longer than any other current country in the world, and continues to thrive within a safe, balanced environment.
Portugal ranks 4th for countries with five million inhabitants or more on the World Bank's Political Stability and Absence of Violence/Terrorism Index with a whopping score of 85.8%, outranking extremely safe places such as Denmark, Sweden, and many others. The US, on the other hand, has a dismal score of just 46.2% on the same index.
But the stability of a country's framework is just part of the equation; the government's structure is also a major point to consider. Few Americans - if any - would consider a non-democratic destination as their new home, and the Portuguese government checks this box.
A semi-Presidential Parliamentary Democracy, Portugal has perfected the distribution of governmental power within its political framework while simultaneously providing the population with an unhindered platform to voice their concerns and ideas, making the entire country a part of the decision-making process. Portugal got a score of 96% on the latest Freedom in The World Index, which calculates civic liberties and political rights offered within the country.
The Portuguese President, who is elected every five years, hold limited executive power, with the Parliament handling most of the executive duties.
The Parliament itself is diverse and represents the widest number of constituents it can, as a staggering eight political parties are represented in the Portuguese Parliament.
However, the most noteworthy fact in all of this structure is how these parties communicate with each other. While US political parties continue to grow the gap between them, their Portuguese counterparts do not have to deal with this issue.
The major political parties in Portugal are all centered, meaning they can be center-left or center-right, ensuring that the divide between the parties is as minimal as it can be. This results in an overall agreement on most major issues, such as those concerning human rights, political maneuvering, global relations, economic growth, and others.
This stability has also trinkled down unto the populous, as most of the country's inhabitants also find their political overviews highly similar in most areas, agreeing to disagree on minor, low-effect subjects.
While the pandemic highlighted the strain on the USA's political infrastructure, the Portuguese government handled it efficiently, maintaining course and allowing the country to bounce back once the calamity came to a halt. This could not have been achieved without an overall agreement on how to proceed, highlighting exactly why Portugal is becoming a preferred destination for Americans who have become highly disgruntled by the political turbulence they have been witnessing for the past decade.
To know more about Portugal's government, the country's vision for the future, and its golden visa, contact us today to speak with one of our Portuguese experts.
Optylon Krea is an investment management and real estate development company that caters to the needs of international Golden Visa investors, with €1.8 Billion managed to date from Portugal to Turkey.
We have been the first to explore the Golden Visa eligible fund route in 2018 and are currently leading that market segment with more than € 200M under our advisory.
We strongly believe that Portugal is shifting from a mass tourism destination to a luxury resort. That is why we are bringing momentum to the main cities by developing high street retail and prime serviced apartment projects.