Rachel Reeves left red-faced as Portugal predicted to outperform UK economic system | UK | News | EUROtoday

In the wake of Rachel Reeves’ Budget, the UK is about to be outperformed economically by Portugal, in accordance with a report from the European Commission.

The tiny EU state, a well-liked vacation vacation spot, is quickly changing into a high spot for capital buyers, in search of to learn from the nation’s aggressive tax charges and ‘Golden Visa’ scheme.

Under the scheme, these investing £417,000 particularly funds or in a start-up using six or extra, can get a ‘Golden Visa’ that allows freedom of motion throughout the 29 Schengen states, a path to Portuguese citizenship after 5 years, household inclusion, and a minimal keep requirement of simply seven days per 12 months in Portugal.

As a outcome, the small nation on the Atlantic is projected to develop by 2.5 % subsequent 12 months – far outstripping the UK’s progress forecasted to be 2 % in 2025.

Meanwhile, a brand new report on Portugal’s attractiveness from Ernst & Young (EY), revealed 84 % of buyers, CEOs and entrepreneurs surveyed plan to determine or develop their operations in Portugal within the subsequent 12 months.

EY’s UK equal report discovered that simply 68 % intend to spend money on the UK and 72 % in the remainder of the Eurozone.

The EY report on Portugal provides that it “presents itself as an attractive, stable and safe investment destination within the European context”.

Paul Stannard, Chairman and Founder of Portugal Pathways, mentioned: “This is further fuelled by continued demand for the country’s popular Golden Visa residency-by-investment program.”

Mr Stannard provides: “Portugal is one of the safest and most secure places in the world. It welcomes inward investment, entrepreneurs and talent wishing to take advantage of the tax incentives, culture, cost of living, and lifestyle. With more than 300 days of sunshine, it obviously trumps the UK for weather and sardines.

“It also has a strong luxury property market, which is in high demand as the country continues to attract wealthy buyers and investors to Portugal. According to Property Market-Index, Portugal’s real estate market is set to grow by 5.8% in 2024, compared with a 2.5% decline in the UK.

“While other nations continue to struggle, economically and politically, Portugal is proving a haven of stability, investment and growth.”