June 2014
Volume 6 | Issue 9
The Algarve, Portugal
INSIDE
Get On A Plane...page 2
“We provide you with everything you
need…except one thing. At some point,
you’ve got to get on a plane…” writes
Publisher Kathleen Peddicord. “Here’s
how I suggest you organize your scouting
expeditions…”
Take charge of risk…don’t let
it take charge of your overseas
life…page 5
© Luis da Silva
Retirement planning expert Paul Terhorst
warns not to let insurance burdens and
worries paralyze you into staying at home...
find out how going without can save you
thousands of dollars.
Where To Find A Colonial,
Beach, Or Highland Property…
And Longevity Too (Maybe)...
page 31
Europe’s Best Kept Secret
By Luis da Silva
urope’s most famous secret. A safe region, with very little crime and
That’s how this part of the world a laid-back lifestyle for expatriates, this
is often described. Why? Because it destination caters equally to families
has Europe’s best beaches, Europe’s and retirees, due to the wide variety
best golf courses, one of Europe’s of cultural, nature-based, sporting,
friendliest folk, it’s the chosen retirement gastronomic, and other activities. Long
destination for over 100,000 resident a popular summer destination for sunexpatriates, and, added to all that, it’s seekers and a winter-stay retreat for
Europe’s newest tax haven.
those getting away from Northern
Europe’s colder months, the Algarve
Several
international
publications receives more than 5 million annual
have ranked Portugal as one of the visitors through its airport alone, swelling
best overseas retirement destinations, the local population of approximately
including the British broadsheet the 350,000. Add to this the fact that it is the
Telegraph, which rated the country as Portuguese people’s preferred holiday
the “2nd best place to retire abroad.”
destination and that the Spanish love to
E
This month Property Picks zooms in on the
small but perfectly formed South American
country of Ecuador, and five of its most
popular expat destinations….starting at
US$110,000 for a quirky, artsy, back-tobasics property in the Valley of Longevity.
Win Free Attendance To THE
Retire Overseas Conference…
page 32
Plus… Americans renouncing
citizenship at record pace; Spain tightens
up tourist rental market; where is the #1
city of opportunity?; who should retire
where?; utility costs in Europe; even easier
access to Panama; Thailand: land of the
coup but for who?; “Coming Next Month”;
upcoming LIO events…and much more
news for global aspiring expats.
...continued on page 7
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
1
Overseas Retirement Letter
From The Desk of Kathleen Peddicord
From The Desk of Kathleen Peddicord:
Get On A Plane
Dear Overseas Retirement Letter Subscriber,
After reading these Overseas Retirement Letter issues for a while, you
should begin to have ideas about where you’d like to go and what
you’d like to do once you get there. Likely, in time, your attention will be
caught by more than one destination, and you’ll find yourself deliberating
between two or three places.
Staff
Volume 6 | Issue 9
June 2014
The next step is to go to see each of them yourself.
In these monthly destination reports, we introduce you to the world’s
top retirement and lifestyle havens. We walk you through the thinking,
planning, and researching you’ll need to do to prepare to launch your new
life in whichever one of them ultimately calls your name. We try to provide
you with everything you need to know to realize your dream of adventure
and fun somewhere sunny, exotic, welcoming, and affordable…
We provide you with everything you need…except one thing. At some
point, you’ve got to get on a plane, and we can’t do that for you. That, the
on-the-ground scouting, you’ve got to do yourself. And you need now to
make a plan for it sooner rather than later.
How will you choose, ultimately, from among all the choices for where
you could reinvent your life? How will you know if any particular location
suits you...or not?
You’ll just know. As soon as you’re on the ground, sometimes within 24
hours of stepping off the plane, you’ll know. In your gut. A place will feel
right...or it won’t.
Pay attention to this instinctive reaction to anywhere you’re considering.
It’s as important (perhaps more so) than all the research you’re carrying
out. A place can make perfect sense on paper but appeal not at all in
person. And that’s ok. That’s why you need to take a trip to go see each
place you’ve identified as perhaps holding out the lifestyle you seek.
Here’s how I suggest you organize your scouting expeditions. In each
country that you visit, I recommend that you:
#1: Meet With...
• As many real estate agents as possible. Certainly you want to meet
with more than one. Remember that most of the world’s property
Kathleen Peddicord
Publisher
Lucy Culpepper
Managing Editor
Carlos R. López
Graphic Designer
Kaitlin Yent
Senior Editor
If you have queries relating to your subscription, get in
touch at: [email protected]
For editorial comments and contributions, reach us at:
[email protected]
© Copyright 2014 by Live and Invest Overseas.
All Rights Reserved.
Protected by copyright laws of the United States and
international treaties. This newsletter may be used
only pursuant to the subscription agreement and any
reproduction, copying, or redistribution (electronic or
otherwise, including on the World Wide Web), in whole or
in part, is strictly prohibited without the express written
permission of the publisher, Live and Invest Overseas,
Calle Dr. Alberto Navarro, Casa No. 45, El Cangrejo,
Panama, Republic of Panama.
Any investments recommended in this letter should
be made only after consulting with your investment
advisor and only after reviewing the prospectus or
financial statements of the company.
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
2
Overseas Retirement Letter
markets operate without the benefit of a Multiple Listing
Service. To get any real idea what’s available that might
suit you (for rent or for sale), you need to meet with more
than one agent.
When we arrived in Waterford, Ireland, years ago, luggage and
then 8-year-old daughter in tow, I had a very clear picture of
what I wanted our new Irish home to look like. I wanted a
big, old, Georgian-style house with land around it for chickens
and a garden, plus stables where Kaitlin could keep a pony.
We checked into the Granville Hotel in the center of town,
where we intended to stay while we carried out our property
search, and went around the corner to visit the estate agents
at O’Shea O’Toole. There, I described for Mr. O’Shea what we
were in the market to buy.
He responded to tell me about two houses that fit my
description. Neither interested me, so I asked what else was
available. Nothing, he told me. That was it. These were the
only two properties available in all of County Waterford that
might suit us.
How could that be, we wondered? Finally, it occurred to us to try
another agent. We got in touch with estate agent John Rohan,
who, likewise, told us of two houses available that might suit
us, but, we discovered, these were not the same two houses
as those Mr. O’Shea had shown us. Mr. Palmer, down the
street, showed us three houses, none the same as those we’d
seen with Mr. O’Shea or Mr. Rohan. Then Desmond Purcell
told us about three old Georgian-style houses for sale, one of
which was the same as one of the houses that Mr. O’Shea had
shown us weeks before—but, in Mr. Purcell’s listing book, the
price tag was 10,000 pounds greater. This is what it’s like to
shop in a market without an MLS, and it’s the reason you’ve
got to speak with as many real estate agents as possible. This
is true not only when you’re in the market to buy a piece of real
estate, but also (as I strongly recommend you do at first) when
you’re shopping for a place to rent.
You’re not going to commit to a rental (or, certainly, a
property purchase) during this initial scouting visit. Rather,
use it as an opportunity to begin to get the lay of the land.
What’s available for rent and for sale where at what price?
You want as much input from as many different sources
as possible.
From The Desk of Kathleen Peddicord
• At least one attorney experienced working with
non-locals. You’ll need an attorney’s help if and when you
eventually decide to invest in purchasing a home of your
own. I also recommend that you use an attorney to help
you with your residency visa application process (if you
intend to relocate full-time and, therefore, need a residency
visa). Use this initial scouting trip as an opportunity to
interview one or two attorneys you might eventually want
to rely on for counsel.
• As many expats already settled in the place you’re
considering as you can find. Again, this visit is about
reconnaissance. You want to speak with as many different
people and to listen to as many different real-life stories
and points of view as possible. What do the expats already
living in the place like about their new lives?
What frustrates them?
Are they happy with their choice?
Why....or why not?
• At least one banker. Even if you’re not ready to begin
the process of applying to open the local operating bank
account that you’ll need in your new home, take time
during your scouting expedition to visit at least one bank
and to speak with at least one banker. Ask for complete
details on what would be required from you to open an
account with that institution. Some banks will have a
formal list or even an information package for foreign
account applicants. Take this away with you for
future reference.
#2: Be A Tourist
Your initial scouting expedition to each place you’re considering
for your new life overseas should be part research and part fun.
Allow yourself time to enjoy and get to know the destination as
a tourist would. Choosing a new home overseas is something
like choosing a mate. You want somewhere that suits you
practically and realistically...that provides for every agenda
item and priority on your checklist.
But you also want someplace that gets your blood flowing
and sparks your imagination.
Someplace that’s both supportive and sexy.
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
3
Overseas Retirement Letter
To that end, you should...
• Take a city tour, a bus trip, or an overland adventure
(depending on the destination)...
• Dine out as often as possible, both in places where locals
eat and others where expats gather...
• Go to the museums, stroll in the parks, linger in the cafes,
golf, hike, fish, snorkel, dive, spelunk...watch the birds...
watch the people...
#3: Pretend You’re Already A Resident
During your scouting adventure in each location, spend time
acting like a tourist…and, as well, invest time pretending you’re
a local, doing the things you’d do if you lived there, such as...
• Go to at least one grocery store, see what’s on the
shelves, and compare pricing with back home...
• Spend an afternoon at the local shopping mall (if there is
one)....looking at things you’d normally shop for (clothing,
shoes, home furnishings, linens, kitchen utensils, etc.)...
• Take taxis to get places you’d ordinarily want to get—to
the grocery store, the bank, the movie theater...
• Read the local paper if you can, at least the
local advertising...
#4: Connect With The Existing Expat Community
Even if you know that your plan is to live a very local life (in a
local neighborhood, with locals for neighbors, shopping at the
local markets, eating in the local dives), you still should take
time to connect with the existing expat community if there is
one. This will be your primary support group following your
move, the folks you’ll turn to for answers to your questions to
do with finding household help, sourcing household goods,
shopping for furniture, planning your Friday nights...
• Attend a meeting of the expat social group (again, if there
is one). This is a great way to make English-speaking
friends and contacts...
Even if you’re not planning to launch your new life overseas for
some months (or longer), I recommend you take the step of
making a visit sooner rather than later. Again, this is the only
way to know if a place might really make sense for you or not.
You want to cross those places that don’t fit off your list as
quickly as you can so you can focus your attention, your time,
and your resources on the place that does.
I recommend two weeks for your initial visit. This should be
enough time to accomplish everything on the list I’ve provided
here. If you arrive and decide within 24 or 48 hours that
the place doesn’t work for you at all (who in his right mind
would choose to live here?...you might find yourself thinking),
change your return ticket. Chalk it up to an adventure and
move on to Destination #2.
One more thing: If possible, plan your scouting trip during the
least agreeable season. See the place at its worst. If you like it
then, you’ll love it when the sun shines.
Specifically...
• Read the local English-language paper (if there is one).
This will connect you with the activities and the interests
of the expat community...
Kathleen Peddicord
Publisher
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
4
Retirement Planning by Paul Terhorst
Overseas Retirement Letter
Retirement Planning by Paul Terhorst
Take Charge Of Risk…
Don’t Let It Take Charge Of Your Overseas Life
I
recently went online to book a trip on
Eurostar, the super-fast train under the
English Channel that connects Europe
with London. Since I was traveling from
Paris, I went to the France Eurostar
site. I chose my train, class of service,
and price, but before I could pay the
site offered an ‘add travel insurance’
option. To reject travel insurance I
had to click, “thanks, I already have
travel insurance.”
What a choice. We know that travel
insurance makes little sense. I’ve written
before that travel insurance amounts to
a minor fraud. A recent study into the
travel insurance industry by the National
Consumers League came to the same
conclusion. Yet France Eurostar seems
to be saying I have only two alternatives:
buy travel insurance from them, or check
that I’ve bought it from someone else.
An English friend, on a recent trip to
Paris, lost a scarf and other valuables,
probably stolen. Our friend shrugged
it off. “No matter, I’ll claim it on our
travel insurance.” Well, no. Insurance
companies can require, at a minimum,
a police report for stolen articles. Did
our friend or does anyone else really
want to spend a day, or part of a day,
of their three-day Paris vacation at the
police station? Within 24 hours of the
event? Later a certified translator would
probably have to prepare the French
police report in English. Our friend would
have to show a receipt for the scarf
(it was a gift) and perhaps a picture. After
submitting a claim she’d be subject to
deductibles, copay, and whatever else
the insurer could nail down.
As in so many cases our friend never filed
a claim. Travelers almost never file claims
on travel insurance. Yet France Eurostar
and so many others, for example, Lonely
Planet, take it for granted that we all
need travel insurance.
What’s going on here? I believe we
tend to confuse insurance with risk
management. We know travel involves
risk of loss. More broadly, we know life
involves risks. We can die in a crash
or get sick or have our documents
stolen. We need to deal with that risk;
we all want to minimize risk. Insurance
represents one way to deal with that
risk. But we have other options as well.
Take health insurance, for example. Vicki
and I decided 22 years ago that with
all our travel around the world, health
insurance amounted to more trouble
than it was worth. We worried somewhat
about travel in the U.S., where medical
costs can destroy lives. But in our case
we very seldom traveled to the U.S. NonU.S. medical costs generally seemed
quite reasonable, and we could pay out
of pocket, no sweat.
Our 22 years without health insurance
ended this year. We turned 65 and now
have Medicare in the U.S., our main
risk area. We’ll continue paying outof-pocket for health care as we need
it, around the world, where Medicare
doesn’t apply. When we’re in the U.S. at
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
least we know we have Medicare in case
of emergency; now we’re more likely to
remain solvent in the U.S. in the event of
a heart attack or stroke.
I did a back-of-the pocket calculation of
our health insurance numbers. I started
by assuming we saved perhaps $10,000
a year by not having insurance. Over
22 years that’s $220,000, less perhaps
$20,000 in out-of-pocket medical
costs we paid during that period. Add
whatever return we’ve been able to
get on that money, and we’re talking
$300,000 or so. Even if we saved only
half that—$150,000—that money went
to increase our net worth today rather
than to some far-away insurer. We have
that money in the bank to pay for health
care as we need it.
So, good decision. We were smart. We
were lucky. As the saying goes, we’d
rather be lucky than smart. We managed
our risk, and continue to do so, now with
Medicare in the U.S.
Does this mean you, too, can get along
without health insurance? That depends
on your situation. I’d never tell someone
not to buy health insurance. Rather,
I’m suggesting you consider unknown
medical costs as part of life’s risk. You
can insure or not, depending on your
lifestyle, your overall health, and your
feelings about risk.
Insurers want us to believe that going
without insurance means we’re reckless
somehow, or poor, or otherwise out
5
Overseas Retirement Letter
of sync. Consider the Obamacare
debate in the U.S. Obamacare started
with the government’s concern about
those without health insurance, the
“uninsured.” As long as the debate
was framed around the uninsured, the
solution had to be more insurance.
Obamacare amounts to an insurance
law. But the government could have
opted for alternatives. For example, the
government could have paid medical
costs directly, something many of us
would have preferred. But insurers
framed the debate, and lobbied the
government, and we ended up with
more insurance instead of direct pay.
Think Outside Of
The Insurance Box…It
Could Change Your Life
Years ago I was on a remote island, a
tropical paradise, in Indonesia. As I
boarded the boat to leave, a 55-yearold Danish man nearby seemed about
to cry. I asked him what the matter was.
“I have to return to Denmark and I don’t
want to go. I want to stay here. I have
my home here, my girlfriend here, my
life here. But I have to spend six months
a year in Denmark to be covered by
national health insurance.”
Retirement Planning by Paul Terhorst
Again, I think we need to consider
insurance as one way to deal with risk,
but by no means the only way.
As an aside I dislike the word “inequality”
even more than I dislike the word
“uninsured.” The U.S. media has
framed a debate over the “problem” of
“inequality,” as if inequality were bad
somehow. It’s not. Inequality exists
throughout nature, in all societies, at all
times. Thomas Jefferson erred when he
wrote that all men are created equal.
We’re never equal, either at creation or
afterward. Many Americans these days
struggle to make ends meet, the middle
class has been sliding downhill; the
median family income barely moves. The
country needs to deal with those issues.
But there’s no need to wring our hands
about inequality.
After all, we’d all be happy with more
inequality if in the process we all became
better off.
So how do we manage risk without
insurance? Planning, observation, study,
calculation, prudent decision-making,
and knowing our personal risk profile.
I said, “Why don’t you stay here? You
can afford to pay your own medical
costs out of pocket. And you’ll be able
to enjoy your life the way you want to
live it.”
He just stared at me, dumbfounded.
I got the impression the thought of
staying, and paying out of pocket, had
never occurred to him. He just got
on the boat, shaking and unsure of
himself, to make a voyage he never
wanted to make.
In Vicki’s and my case, for example,
we’ve slowed down our travel schedule.
We’re older, so travel takes a bigger
toll. We’re vulnerable if we’re overtired,
jet-lagged, or hungry. So we’ve slowed
down to deal with the increased
risk of being too tired. We also fly
Business Class, at least sometimes.
We try to avoid traveling to snowy
airports in winter, when airports are
more dangerous. We try to use smaller,
international airports like Seattle rather
than Los Angeles.
A friend believes all of us partly manage
risk without being aware of it. He claims,
for example, that seat belts make us
feel more secure. As a result we tend to
drive faster, to get back to a level of risk
we’re more used to. Apparently some
actuaries have tried to make the seatbelt calculation, and have come up with
the same conclusion.
Insurance: take it or leave it, within the
scope of overall risk management.
Conclusion: take charge of risk the
way you take charge of other parts of
your life.
Self-Insure…It’s A Contradiction
My friend Rickie is an actuary. Several years ago I told him Vicki and I self-insure for
medical. He objected to the word “self-insure.” By definition, he told me, insurance
involves a pool. Risk is shared by those in the pool, who each contribute a premium. The
word “self-insure” amounts to a contradiction in terms.
Good point. I avoid using the word above, although it seems we see it in the media from
time to time.
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
6
Europe’s Best Kept Secret
Overseas Retirement Letter
...continued from page 1
Expect to enjoy the lifestyle if you holiday, study, or retire here,
but count on some frustration if you move to the region to
work. Business bureaucracy and the shrinking of the economy
because of the financial crisis of 2008, mean that the region
is not the obvious choice for those looking for employment.
Entrepreneurs, on the other hand, will find that the region’s
excellent communications infrastructure, pleasant working
environment, and cheap and talented labor force, together
with a range of EU and national incentives to encourage
start-up activity, may well make this a preferred location for
launching new business ideas.
If you are looking for a mix between the Algarve’s historical roots
and the spectacular beaches for which it is famous, then look
no further than Silves and Lagoa. These two municipalities,
located slightly west of center in Portugal’s southernmost
province, allow residents to experience the best the area has
to offer.
The immaculate main square in Silves
River, which is navigable to where it meets the sea at
Portimão, offers a warm microclimate, and visitors here will feel
comfortable all year round…but perhaps just a little flustered
when temperatures soar in the summer!
Silves’ undulating hills are located inland in the region known
as the barrocal (pronounced “buh-rroh-kaal”) and are covered
with indigenous bush and scrubland interspersed with the
triad of regional trees: olive, carob, and fig. The barrocal and
its fauna contrasts sharply with the expanse of white sandy
beach of its only coastal town, Armação de Pêra.
Associação Turismo do Algarve
Silves, nestled in verdant valleys surrounded by the country’s
largest citrus-growing area, and on the banks of the Arade
© Luis da Silva
visits its wilder western coast, and you begin to understand
why, at peak times, several million more come here to
experience its beauty.
The Algarve‘s south-facing location protects it from climatic extremes
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
7
Europe’s Best Kept Secret
Overseas Retirement Letter
The Next Big Thing
For a variety of beaches, hop over to neighboring Lagoa, with
the capital town of the same name, which is a much smaller
municipality located close to the ocean. Most of its activity
is related to tourism around the coastal resorts towns of
Carvoeiro (pronounced “kuhr-voo-ey-roo”) and Ferragudo.
© Luis da Silva
Here’s my video tour of the area including the main towns
covered in this issue of the ORL.
© Luis da Silva
Just imagine taking a cooling dip in this crystal clear water
A quiet day at Silves market… Saturdays, stalls spill out onto the cobbled streets
With the Portuguese being the largest fish eaters per capita in
Europe, finding fresh fish at one of the many daily markets is
not difficult. Add to that a variety of fresh produce grown in the
region and available in the local markets of both towns, and
there is no excuse for unhealthy eating of any type! Wash your
meal down with one of several local wines and you have the
makings of a superb, yet healthy, gastronomic lifestyle.
It’s all about retirement. Portugal and the Algarve have been
through major infrastructural investment such as highways—
the country has Europe’s fifth best roads—and airports—
Faro has already receives over 5 million passengers a year,
equivalent to half the country’s population. The Algarve is
already a world-recognized tourist and golf destination…
at last count there were 42 courses in less than 100
miles. Healthcare is good and some public hospitals
have gained a reputation for excellence, as is the case of Faro
Hospital and its cardiology unit. Investment in public facilities
is visible in the modern sporting and pool complexes that
exist in many towns.
The Silves and Lagoa areas are positioning themselves as
leaders in the retirement sector within the Algarve, Portugal,
and Iberian Peninsula. Two of the region’s pioneering projects
in senior living will be launched in these two municipalities—
see “Making The Right Property Choice” for more information.
© Luis da Silva
Portugal has, according to a past Bloomberg report, the
lowest cost of living in Western Europe. A variety of competing
supermarkets in the Silves and Lagoa area make this area
on average 30% cheaper than most European countries
further north.
Add to these factors recent legislation that allows many foreign
residents to receive pensions tax-free in the country, and
you would be hard pressed to find many similarly attractive
retirement destinations in the heart of Europe.
Major recent changes have been made to the legal and tax
framework. The government has made it possible to earn
pensions tax-free and there’s no wealth or inheritance tax
(more on this below in “Tax And Financial Matter”). The region
Municipal facilities in the area are world-class
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
8
Europe’s Best Kept Secret
Overseas Retirement Letter
is moving away from a physical infrastructure and facilities
focus towards an ever-stronger services and lifestyle drive.
The next big thing is a move to senior living communities,
allowing residents to rent or buy, as well as a huge push
towards positioning the country as Europe’s most attractive
tax-free destination for retirees.
The Algarve, located at Europe’s westernmost tip, has an
area of 4,996 square kilometers (1,930 square miles) and a
resident population of 450,993 inhabitants. It has an average
population density of roughly 90.3 inhabitants per square
kilometer (or 233 inhabitants per square mile) and an entirely
Atlantic coastline that measures about 160 kilometers (100
miles) in length.
© Luis da Silva
The Lay Of The Land
Olive and carob trees after pruning, against a backdrop of an Algarve ruin
coast is very diversified, varying between an abrupt and
jagged coastline and extensive sandy beaches, inlets formed
by lagoons, marshland areas, and various formations of sand
dunes. The coastal area has a low altitude and consists mainly
of plains, divided into fields and meadows.
© Luis da Silva
The “Barrocal” area marks the transition between the coast
and the mountains, consisting of limestone and schist. This
area is also known as the “beira-serra” (literally the mountain
edge) and is where most of the agricultural produce of the
Algarve originates.
The hills occupy 50% of the territory and are formed from
schist and some granitic rocks.
Lagoa’s 23,000 inhabitants reside in an area of 88 square
kilometers (34 square miles)—the second smallest municipality
in the Algarve by area—with a population density of 261
people per square kilometer (or about 676 people per square
mile). In contrast, Silves’ population density is 54 inhabitants
per square kilometer (or 141 inhabitants per square mile),
with its 37,000 inhabitants scattered over an area of 680
square kilometers (262 square miles)—the largest municipality
by area.
The region is geographically subdivided into three main
areas, each of which contains some extraordinarily beautiful
landscapes, and all of which are represented within the
municipalities of Lagoa and Silves (* Source: www.visitalgarve.pt):
The coastal area is where most of the region’s economic
activity is concentrated. In terms of landscape, the Algarve
© Luis da Silva
Dive in at Caneiros—quintessentially Algarve
The great provider—the bountiful Atlantic
A Long, Nautical History
Lagoa’s history is linked to the sea. Despite the capital city
of the same name being inland, the fisherman’s villages
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
9
Europe’s Best Kept Secret
Overseas Retirement Letter
Modern Lagoa meshes well with its ancient history. Cobbled
streets, whitewashed houses with lace-patterned chimneys,
and an abundance of fig, olive, almond, and carob trees,
are all vivid memories of important aspects of what made this
area unique.
© Luis da Silva
of Carvoeiro and Ferragudo played an important part in
the fishing and fish-preserves industries. The villages of
Estômbar and Porches were important centers in the Islamic
and medieval periods; Porches became the leading center
for the design and manufacture of pottery and has become
synonymous with the center of the modern pottery industry in
the Algarve.
The Arade River Bridge near Portimao
© Luis da Silva
Silves owes its existence to the navigability of the Arade River
and to its strategic position atop a hill that dominates a broad
swathe of countryside. It was possibly founded during the
period of Roman rule, but it was with the Moorish invasion
that began around 714-716 that Silves became a prosperous
city. By the 11th century, it was the capital of the Algarve and
according to some authors surpassed Lisbon in size and
importance. At this time Silves was also a center of culture,
home to poets, chroniclers, and lawmakers.
The ancient and the modern sit side-by-side in Lagoa
Silves is also a municipality steeped in history. The presence
of man during the Paleolithic period is confirmed by
one archaeological site. The municipality was inhabited
during the Neolithic period and the Bronze and Iron
Ages, a fact borne out by numerous archaeological finds.
Impressive megalithic monuments—menhirs—carved out
of the region’s red sandstone and limestone, are scattered
across the municipality.
The Arade River was the route to the interior favored by the
vessels of the Mediterranean peoples—Phoenicians, Greeks,
and Carthaginians—who were drawn to the region by the
copper and iron mined in the western Algarve. This much
is evident from the archaeological site at Cerro da Rocha
Branca—unfortunately destroyed—about half a mile away
from Silves, which was inhabited from the end of The Bronze
Age onwards. In the 4th century B.C., Silves boasted a strong
defensive wall. In the ensuing centuries both the Romans and
the Moors occupied it.
The religious and political tremors that rocked the Moslem
world in the 11th and 12th centuries were felt in Silves too,
where they manifested themselves in clashes between rival
factions and frequent changes of ruler. King Sancho I took
advantage of this internal division to lay siege to the city in
1189. His army was aided by crusaders from Northern Europe
who were on their way to the Holy Land.
The fight for Silves was long and cruel and, according to
chronicles of the time, many of its inhabitants perished, killed
by hunger and thirst, or were slaughtered when the crusaders
sacked the town. Portuguese rule was short-lived and in 1191
the city was recaptured by the Moors.
Despite having lost many of its inhabitants and much of its
wealth, Silves was elevated to the status of Episcopal see and
headquarters of the military government after the definitive
conquest of the city in the context of the Christian occupation
of the Algarve—1242 to 1249—which was concluded in the
reign of King Afonso lll.
The centuries that followed were a difficult time for Silves. With
the severance of its former links with North Africa and the
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region in Portugal. Due to its central location, Silves also
plays an important role in the national transport infrastructure,
with Tunes the main rail entry and exit point from the Algarve
province, and the A2 and A22 highways, the most important
routes within and from the Algarve, passing through the
municipality. (* Source: www.visitalgarve.pt)
© Luis da Silva
The World’s Most-Stable Climate
Stunning blue skies offset the clean lines of Silves architecture
gradual silting up of the river, it found itself side-lined from the
lucrative maritime trade. Consequently, its economic, political,
and military influence dwindled, while places like Lagos,
Portimão, and Faro grew in importance. Natural catastrophes
like the plague, earthquakes, and fevers caused by the swamp
that formed where the Arade had once flowed also contributed
to the town’s decline.
© Luis da Silva
The coup de grace came after the Episcopal order in
1534 instructed the transfer of the Episcopal see to Faro.
Silves was never to recover its past splendor and for
almost three centuries it was a city inhabited by only a few
remaining citizens.
World Weather Online states that the “Algarve enjoys one
of the most stable climates in the world” with its moderate
weather influenced by both the Atlantic and Mediterranean
seas and its proximity to North Africa. Portugal has 3,300
hours of sunshine per year, one of the highest in Europe. The
Algarve has a temperate climate and although bathed by the
Atlantic, exhibits Mediterranean characteristics. Below are
statistics for the province of the Algarve. Silves temperatures
tend to be higher than the average for the region, given its
microclimate which is much appreciated by many foreign
visitors and residents.
Temperature
Mean Value
High Temp.
Mean Value
Low Temp.
Mean Value
Precipitation
Mean Monthly
Value
Relative
Humidity
Mean Value
Units
Fº|Cº
Fº|Cº
Fº|Cº
Inches|mm
%
Jan
53|12
61|16
46|7.7
3.2|78
77
Feb
55|13
62|17
47|8.4
3|72
77
Mar
57|14
65|18
48|8.9
1.6|39
71
Statistics
Apr
59|15
68|20
51|10
1.6|38
68
May
63.9|17.5
72.3|22.4
54.5|12.5
0.9|21
64
Jun
69|21
78|25
60|16
0.3|8
65
Jul
74|23
84|29
64|18
0|1
60
Aug
74|23
84|29
64|18
0.2|4
60
Sep
71|22
80|27
62|17
0.6|14
65
Oct
66|19
74|23
58|14
2.7|67
71
Nov
59|15
67|19
52|11
3.5|86
75
Dec
Average
Cobbled streets lined with traditional houses in Silves
In the second half of the 19th century dried fruit and, above
all, cork breathed new life into the city, which became one
of the main processing centers for those products. Today
Silves has Europe’s only cork museum as testament to the
importance of that product to its economy. It is orange farming
that today makes Silves the most important citrus producing
55|13
62|17
48|8.6
3.9|94
77
63|17.2
71.3|21.85
54.5|12.52
1.8|43.5
69.17
Sea temperatures vary from 14ºC|57 ºF in December, January,
and February to 21ºC|69 ºF in July and August.
Safety First
Portugal ranks as the 17th safest country in the world, of
a list of 153. Violent crime is very rare and petty crime is
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Beautiful Beaches
The OSAC report, produced by the US Bureau of Diplomatic
Security, confirms that Portugal has no indigenous terrorist
groups. Organized crime is not a major issue with the
exception of isolated Eastern European or other immigrant
groups. Foreigners, however, are well integrated into
Portugal’s multi-ethic society and while the country remains
predominantly Catholic, it is very tolerant of religious, ethnic,
and cultural diversity.
© Luis da Silva
limited mostly to opportunistic incidents during the busy
tourist season.
A spectacular beach at Marinha
© Luis da Silva
Where to begin!? Silves’ two beaches, Armação de Pera and
Praia Grande, have blue flags awarded by the European Blue
Flag association. Among Lagoa’s 17 spectacular beaches,
some require bathers to descend large flights of stairs into
wondrous cliff-enclosed coves bathed by azure waters. Others
allow you to pull up and stroll out onto the light-colored sand.
Most beaches have lifeguards during the summer season.
Many have restaurants or snack bars, some of which stay
open all year round.
Highways in Portugal are an excellent quality and the A22
highway is no exception. Portuguese drivers, although at
times prone to speeding and impatience (in common with
many southern Europeans) are nonetheless quite peaceful.
Incidences of road rage are uncommon. It is more likely that
visitors will become frustrated by an encounter with a 50 cc car
(called mata velhos or ‘killers of old people’ because the cars,
little more than a shell atop a motorbike engine, don’t have
the safety features of modern vehicles) or with the occasional
gypsy horse-drawn cart.
Lagoa, located on the busy EN125 road which also crosses
the Algarve, is not considered an accident hot spot on what is
otherwise one of the country’s busiest regional roads. The city
of Silves, situated further inland, is a driver’s haven, with calm
roads, respectful drivers, and no traffic jams.
112 is the national free number to call for most types of
emergencies (from a fixed line or cellphone).
© Luis da Silva
Old people ‘killer’
An easier access to the beach at Centeannes
World Renowned Golf
The Algarve has an enviable reputation as far as golf is
concerned. With Portugal voted Europe’s ‘Best golf destination
in Europe in 2014’ by the World Travel Awards, and the
Algarve the gem of the Portuguese collection, it is no wonder
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A great place to relax and play—Gramacho golf course
The Lagoa and Silves golfing landscape is dominated by
the Pestana Group, Portugal’s top hotel group. The Pinta
and Gramacho golf courses in Lagoa and the Silves Golf
course allow players of all abilities to test their skills against
a backdrop of some of the region’s indigenous species of
flora such as ancient carob and olive trees, combined with
natural stone walls and artistic use of water features. With
designs by famous US golf architect Ronald Fream, and South
Africa’s Nick Price, a round of golf here is an experience. The
5-star Amendoeira golf resort—with 36 championship holes
designed by Nick Faldo and Christy O’Connor Jr—is one of
the seven golf courses operated by Portugal’s largest golf
operator, Oceanico. For families or those who want to hone
their pitching and putting skills, there is the 9-hole Vale do
Milho course, with views to the Atlantic.
There are a number of specialist tour operators that not only
book group golfing holidays but also arrange preferential tee
times, discounts, and the all-important 19th hole arrangements!
Low-Cost, Universal-Access Healthcare
Portugal’s healthcare system is broadly based on a universal
franchise, which will not turn anyone away. Most hospitals will
put patient before price (one of the reasons that the health
system runs a deficit, but also the reason the country is
generally known for its personalized and humane treatment of
patients). With the tightening of financial controls, expect this
to be slightly different if you are not resident or don’t have a
European card. As in many European countries, state hospitals
such as the one located at Portimão, 5 miles from both Lagoa
and Silves, are normally better equipped for emergency
situations than private hospitals. However, two large private
hospital providers own and operate hospitals across the
Algarve, with the closest being the Hospital Particular in Alvor.
The hospital at Faro has an excellent reputation for cardiology
and for successfully treating tourist visitors who have suffered
heart attacks.
All residents are eligible to use the state’s national health
system, called the SNS (Sistema Nacional de Saúde).
European residents should ensure that they are in possession
of the European Health Card (EHIC), issued by their home
country, and which guarantees them access to the health
system in the country that they are visiting. Access should not
be confused with cost, and some services may cost more or
less than in one’s home country, depending on the national
policy in each of the 28 EU member states.
© Luis da Silva
© Luis da Silva
that hundreds of thousands of visitors are attracted every year
to the more than 40 golf courses dotted along a stretch of little
more than 75 miles.
The traditional façade belies the modern clinic and pharmacy within
For non-Europeans retiring to Portugal, permanent residence
authorization must first be issued by the SEF (borders agency)
after the completion of usual background checks (see the
“Residency” section below). The foreign resident must then
register with their local health center, a simple process involving
filling in some forms and having a local (owned or rented)
address. Residents are assigned a doctor or in some cases
go into a general pool, depending on the number of doctors
per inhabitant (which can fluctuate with population growth or
doctor retirements). Even without an assigned family doctor,
there are general slots available and Lagoa, for example, runs a
daily (including Saturday) local ‘emergency’ service, which can
attend to up to 40 people who need see a doctor without an
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Diagnostic exams are very affordable if ordered by a doctor
within the SNS. The Clínica de Lagoa, a private diagnostic
and complementary exam center, offers a range of exams
via its agreement with the national health system, and most
exams, such as ultrasound, X-ray, and mammography, will
cost between €3-10 when prescribed by a doctor on the SNS.
Several laboratories conduct blood tests at between 50 cents
and €2. A full barrage of tests, including cholesterol, urine,
and PSA (prostate tests for men) should cost between €15
and €20. A walk-in cholesterol test conducted at any local
pharmacy will cost between €4-5.
It is recommended that foreign arrivals in the process of
acquiring residence take out medical insurance for at least the
first year, to cover bureaucratic delays and other unforeseen
circumstances. Even thereafter, private medical insurance is
not expensive when compared to the US and there are several
private medical insurance providers available. IMG (including
a policy which can be taken out even after your departure)
and Bupa, for example, offer expat solutions and a range
of national providers such as Medis and Multicare provide
policies for those who are permanently in the country. There
are also a number of brokers focusing on obtaining car and
health insurance for foreign residents. Other foreign visitors not
included in one of the above categories should ensure they
carry adequate foreign insurance to allow them to use the
national health system, which is of good quality.
Maló Clinic, founded by a Portuguese immigrant, is now one of
the largest private dental clinics in the world, present in dozens
of countries in the world and whose founder is regularly flown
to the US to perform dental surgery on wealthy patients. A
Maló Clinic can be found about 10 miles from Lagoa and
Silves, but Silves has three dental clinics where a clean and
check-up costs around €40-50 (free on most dental plans),
and Lagoa has several foreign-language dentists. The climate
of the region means that convalescence is both quicker and
more pleasant than in many countries further north. Doctors
and specialists are largely multilingual.
Eye tests at local opticians are free if eye glasses are purchased
in-store. A number of promotions are available—a recent one
offered designer glasses with progressive lenses at €169.
Consultations with ophthalmologists on the SNS are generally
free but waiting times can be long.
One of our friends from the US needed to repair his $6,000
hearing aid, an imported Norwegian make. The estimated cost
to perform the repair in the US was $900. He posted us the
two hearing aids and €40-plus-postage later he had a fully
functioning hearing aid at his home in Miami.
© Hexagone
appointment, and who do not need the services of a hospital.
Co-payment (if the person is not exempt) is €5 (outpatient copayments are around €7.75), regardless of whether one has
an assigned family doctor or not.
Eat like a healthy king...Mediterranean-style
Health tourism is on the up in the region and the Algarve is
well known for its health & wellness industry, with a number
of spas in the region. A thalassotherapy center exists at
Vilalara resort in Lagoa. And medical tourism is on the rise
with several private hospital groups in the region investing
extensively in the marketing of their services, primarily around
discretionary (aesthetic) surgery, hip implants, and dental
surgery. Although the region does not yet compete with the
prices in more established medical tourism destinations,
it places great emphasis on the pre-op preparation and
post-op convalescence benefits that come with a warm,
essentially dry (not humid) climate. Complementing this are
the quality services and accommodation options, and a
location within Europe.
Education And Culture
Silves is the location of one of the region’s private universities.
The Jean Piaget University campus, opened in 2002,
focuses on health including undergraduate and Masters
programs in the areas of nursing, occupational therapy, and
pharmaceutics. It is in the area of physiotherapy, however,
where it has garnered an enviable reputation. Its graduates
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Europe’s Best Kept Secret
© Luis da Silva
Overseas Retirement Letter
are spread across Europe, poached by many countries that
have made the most of Portugal’s woes post-2008 crisis. The
trend is slowly reversing, with local projects providing a muchneeded source of employment for the qualified labor force.
Residing in this area guarantees a flow of well-qualified health
professionals, many of whom will, it’s hoped, eventually find
themselves supporting the region’s senior residents.
Lagoa is one of the region’s centers of international (foreign
language) primary and secondary schools. The International
School of the Algarve, which comprises two sections, one
teaching the British and the other the national (Portuguese)
curriculum, was established in 1972. Although it allows children
of English-speaking residents to attend school in their native
English tongue, residents with children of school-going age
should bear in mind that the range of subject options and in
some instances the quality of teaching may not be the same as
an equivalent private school in the UK or USA. In recent years,
a German school has opened and now shares its premises
with the Dutch school. The area is now a multi-lingual, multicultural hub with native teaching in four languages.
Lagoa is also an artistic hub housing a thriving musical
academy, a cultural academy, an art center, and some of the
region’s largest publications including Portugal’s principal
foreign newspaper, The Portugal News. The musical academy,
which forms part of a multi-city musical project, is headquartered
in Lagoa and has an active orchestra comprising of a strings,
woodwind, percussion, and brass sections, with musicians
aged from eight to 65!
© Luis da Silva
Silves city and castle from across the river
Cultural activities abound year-round
The orchestra plays frequently at public events, television
concerts, open air shows, and at the well-equipped auditorium
in the town. Lagoa’s cultural association, Ideas do Levante,
promotes activities ranging from dance to music.
Becoming A Resident
U.S. visitors to Portugal do not need a visa under an agreement
which allows for visits to Schengen countries of up to 90 days.
However, all foreign citizens intending to move to Portugal
must in the first instance request their long-stay (residency)
visa at the Portuguese consulate in their home country. This
will allow the Borders agency to issue a residency permit, valid
for one year, and renewable for two further two-year periods.
After five years of temporary residence, foreign citizens may
apply for permanent residence.
The main requirements for a residency visa application include
being able to prove sufficient income for subsistence,
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Recently, the Portuguese government has further improved
legislation to allow anyone who has not been resident
in Portugal for the previous five years to register for
Non-Habitual Resident Status, which allows people to
receive pensions and foreign income tax-free for 10 years.
Once an individual has an authorization to reside in Portugal,
such as via the Golden Visa program (see below), or has
obtained a visa to enter Portugal with a view to permanent
residence, then the process of applying for NHR status is
relatively simple. A qualifying individual should meet two main
criteria: they must not have been resident in Portugal in any of
the previous five years, and they must be retiring to Portugal or
fall into one of the approximately 30 occupations listed by the
government including architects, lawyers, engineers, senior
management, health professionals, and individuals who will be
fostering inward investment.
The applicant, probably accompanied by someone local who
speaks Portuguese, must go to the local tax office (Finanças)
and make a written statement that he-she meets all the criteria
of eligibility, and then present a tax identification number (or
request one), show their passport, indicate the residential
address in Portugal (which may be a rented property), and
show the residence permit. All applications must be received
no later than the 31st March of the year following the one in
which the applicant wishes to declare themselves resident
under the NHR law.
The legal requirements to obtain residency in Portugal is to stay
either 183 days in the country or a residential address on the
31st December of the corresponding tax year, which can be
considered one’s habitual residence. While the latter condition
may not appear at all stringent, it can be deceiving, for the
simple reason that it is often not Portugal, but the applicant’s
country of origin, that determines that they may not declare
themselves resident in Portugal because they have spent too
many days in their country of origin. As with all such matters,
people intending to take up residency should carefully analyze
the residency requirements of all the countries with which they
have or plan to have ties to.
© Luis da Silva
providing relevant identification documents, having no criminal
record, travel documents, and proof of address in which
the applicant will initially take up residency. Proof of medical
insurance may also be requested but as a precautionary
measure it is recommended that any non-EU citizens have
private medical insurance when traveling to Portugal. Some
companies such as IMG allow medical policies to be taken out
when the person is already in the destination. Documents are
normally submitted via the local consulate and they eventually
make their way to the Borders agency (called Serviços de
Estrangeiros e Fronteiras or SEF). I recommend traveling
with a copy of the full application process and any relevant
correspondence, to avoid any possible misunderstandings on
entry. Once the residency authorization has been issued by
SEF, applicants should register with the local finance office to
obtain their fiscal number.
The Algarve’s golden-sand beaches are but a small part
of the Golden Visa program’s attractions
The Golden Visa program has proved to be one of Europe’s
most popular resident visa-via-investment programs. Although
there are three types of applications possible, it is the real estate
option, involving the purchase of real estate with a value of at
least €500,000 without recourse to credit, which has proved to
be most popular. The Golden Visa is an excellent way for nonEU residents to obtain an authorization to visit or remain in the
26-country Schengen space for the duration of the visa, and
after five years to apply for permanent residence and thereafter
citizenship (after six years). The biggest advantage is that there
are minimal requirements for remaining in the country, namely
seven days in the first year and a total of 14 days in each of the
subsequent two-year periods. Further, the Golden Visa allows
the applicant and direct family members the right to enter,
live, and work in Portugal, even if not resident in the country.
Given that real estate values have suffered significant erosion
as a result of the 2008 economic crisis, the Golden Visa is an
attractive option for foreign investors.
When compared to comparable programs elsewhere in the
world, the Portuguese Golden visa does not appear to have
any disadvantages, even though a few other European states
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have implemented cheaper programs. The flexibility of the
scheme, allowing for multiple property purchases, and the use
of debt on values above €500,000, together with family-friendly
legislation allowing close family members to benefit from the
Golden Visa of the main applicant, have made Portugal’s
program very popular. Unlike the US’s equivalent $500,000
EB-5 program that targets predetermined areas and projects,
Portugal’s Golden Visa rules apply to any real estate in the
country. Normal U.S. investor visas are $1 million.
rental site bears out this observation, with long-term rentals of
a studio apartment in Carvoeiro at US$946 per month and a
2-bed apartment in Silves at a well overpriced US$2,330 per
month. The disadvantages of rentals negotiated directly with
private owners include isolation, a lack of support in the initial
phases and difficulties in dealing with the initial bureaucracy
involved with any new country move, often exacerbated by the
lack of knowledge of the local language.
Making The Right Property Choice
© Luis da Silva
The Algarve is a popular summer rental market. A range
of options exist in both municipalities. Long-term rentals
represent a small percentage of the total rental market and
private apartment and villa rentals, whose owners often only
place properties on the market as an afterthought following
a poor summer season, compete with long-stay hotel
accommodation that offers various guest services that are not
available in private property.
© Luis da Silva
Start With A Rental
An easy-access rental for the 50+ market
Historically, many visitors moving to the area, including firsttime visitors, have opted for purchasing real estate as a way
of securing their permanence in the area. While this remains
a popular option, the market is changing. The economic
crisis of 2008 and the knock-on effect on the liquidity of the
real estate market means that many people find themselves
locked into a permanent solution while their personal
circumstances demand ever-more flexibility. Many existing
expatriates and prospective new ones say that if they had the
choice they would not buy a retirement home or would at least
experience living overseas, if possible within a community,
before making a permanent move. Two groundbreaking rental
projects will launch in the Silves and Lagoa area, which will
Private rental is often a cost-effective and flexible way to have
time to make permanent decisions. However, most rental
properties are summer rentals—the most popular rental sites
continue to be large property portals such as Homeaway,
Holidaylettings, and Rightmove Overseas—and owners
attempting to advertise properties as winter rentals inflate
prices to hedge any loss of summer rentals. As a general rule,
the winter rental values of properties in popular tourist areas
are similar to the weekly values in the summer. A quick analysis
in the area of Lagoa and Silves using a specialist long-term
© Luis da Silva
Year-round quality living in Salicos, Carvoeiro
A villa in Presa da Moura provides first-class senior living
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Europe’s Best Kept Secret
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reinforce their reputation as leading expatriate retirement
destinations. The Algarve’s, and one of the Iberian Peninsula’s
first senior (50+) communities, with which I am involved, will
begin operating in the fall of 2014, in the town of Carvoeiro.
Aimed at the independent living market, it will offer a range
of 4-star accommodation, and guests and residents will be
able to choose from a 1-month try-before-you-move option,
a 3-6 month winter stay, or permanent residence (including
the possibility of opting out during the peak summer months).
You can read more about the project at Algarve Senior Living
(www.algarveseniorliving.com).
Expected to launch in 2017, a bespoke-developed senior
village backed by a major Scandinavian group, will be
developed less than 2 miles from the center of Silves on a 60
hectare (150 acre) site. A care home to cater for the increasing
health needs of residents, will be included in a future phase.
IMT (own, permanent, residence)
Value on which IMT applies (euros)
Tax (%)
Deduction (euros)
Up to 92,407
0
0
92,407 < value < 126,403
2
1,848.14
126,403 < value < 172,348
5
5,640.23
172,348 < value < 287,213
7
9,087.19
287,213 < value < 574,323
8
11,959.32
> 574,323
6%
IMT (secondary residence)
Value on which IMT applies (euros)
Tax (%)
Deduction (euros)
Up to 92,407
1
0
92,407 < value < 126,403
2
924.07
126,403 < value < 172,348
5
4,716.16
A list of short-term rental providers is in the Algarve “Rolodex.”
172,348 < value < 287,213
7
8,163.12
Buying Real Estate
287,213 < value < 550,836
8
11,035.25
> 550,836
6%
With the variety of options on offer, and direct flights from
dozens of global destinations, there is simply no excuse for
not trying out the Southern European lifestyle before taking
the plunge.
“Recent authoritative research by the OECD,” as reported by
the Telegraph, “highlights property markets in Portugal” as “a
bargain” and “undervalued.”
Portugal’s property market is well-established. There is no
restriction on the purchase of real estate and most land and
property is sold freehold. The country’s property registry
system is centralized and very reliable. The law protects
property, property rights, and the right to access and use
one’s own property.
Property buyers pay property purchase tax (Imposto Municipal
sobre as Transmissões - IMT) on a sliding scale based on the
property’s taxable value, which has historically been lower (and
often significantly lower) than actual values at which properties
are transacted. In recent years, this gap has reduced as the
government has revalued properties in order to capitalize on
an obvious source of tax income. The table below illustrates
the values payable for each price interval, depending on the
type of property.
Land is taxed at a flat rate of 6.5% when it is rural or has
nothing yet built on it.
Stamp duty is 0.8% of property purchase price. Annually,
municipal taxes (designated IMI or Imposto Municipal sobre
Imóveis) are charged on properties using a formula containing
variables which include the size of the property, and how many
luxury or entertainment items (such as pools, tennis court,
etc.) it contains. Each municipality has the right to charge a
slightly different IMI value, which range from 0.3-0.5% with
rustic buildings (whose taxable values are normally very low)
paying a value of 0.8%.
The Algarve was launched as a ‘Mediterranean destination’
in the 1960s and the town of Carvoeiro, located in the
municipality of Lagoa, is one of the most popular resorts for
foreign property buyers. Today, there is a range of real estate
available, both new and resale, mainly 2- and 3-bed apartments
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© Luis da Silva
© Luis da Silva
Mobile Home Paradise
Condos for sale in Presa da Moura, Carvoeiro
© Luis da Silva
and 3- and 4-bed villas. However, a studio apartment starts
at around €70,000, a 1-bed apartment from €90,000 and a
2-bed from around €100,000. One-bed cottages, which are
scarce, start at around €150,000, 2-bed resale townhouses
from around €190,000, sea view 2-bed townhouses from
around €225,000, and 3-bed villas from €275,000. A private
villa on an acre of land with private tennis court and pool,
and established gardens, can be purchased for €850,000.
Fractional real estate in the area starts at around €50,000 for
a quarter share of a 2-bedroom apartment on a golf course.
Southern Europe’s best motorhome destination
In a survey of motorhome owners, the Algarve was voted best
motorhome destination in Southern Europe and Northern Africa
(including Morocco). And Silves has gained the reputation of
being the motor home capital of Southern Europe. Hundreds
of motorhomes, from as far afield as Denmark, the UK, France,
and Germany mix with the occasional Portuguese traveler
to create a virtual community numbering as many as 350
vehicles. There have been some recent incidents of motorhome
users being ordered by local police to leave, due to what they
considered abuse of local health and safety rules, and parking in
unauthorized zones (there are local licensed sites which include
water and waste disposal facilities, as well as a Laundromat,
for as little as €6 per day. Nonetheless, the majority of this
community of people who spend up to five months in their
motorhomes in Southern Europe and some of whom have
visited the area as many as 11 times, are law abiding and respect
local rules and take care to exhibit good manners in sharing
space with other expatriate neighbors. They make a significant
contribution to the local economy during the quiet winter months,
frequenting local restaurants and shopping at local grocery
stores and the Silves market.
Tax And Financial Matters
Apartments for sale in Silves
In Silves, new or nearly new 1-, 2-, or 3-bed apartments
vary between €80,000 and €140,000. Villas start at around
€350,000, and most have at least half-acre plots. Rural
properties have large plots and even large urban plots with
ruins and planning permission to build can be found at
competitive prices. A 20,000-square-meter (five acre) plot with
some sea views, containing a ruin and permission to build a
house of up to 464 square meters (5,000 square feet) plus
terraces, costs less than €500,000.
Portugal has no inheritance tax; if you rent a property you will
also not be liable for any wealth taxes, which only exist in the
form of annual property taxes on real estate which you own.
Anyone who has not been resident in Portugal for the previous
five tax years is entitled to obtain residence under the NonHabitual Resident law, which entitles most people to receive
pensions and foreign income tax-free for 10 years. Under the
same law, for any professions included on a list published
by the government and which includes company directors,
accountants, IT professionals, engineers, architects, people in
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Europe’s Best Kept Secret
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the medical profession etc., the personal income tax rate for
any work conducted in or billed from Portugal is capped at 20%
(plus any surcharge due to the fiscal emergency measures,
totaling 3.5% in 2013). This is well below the maximum 46%
top tax bracket in the country. The procedure to register as a
NHR involves registering with a local tax office and providing
simple supporting information. (See above “Becoming A
Resident” for more details.)
Portugal has a double tax treaty with the US (signed in 1996)
and with Canada (signed in 2001).
The strength of the euro versus the U.S. dollar in recent months
has eroded some of the competitiveness of local prices from
the point of view of arriving US visitors, but as exchange rate
fluctuations are constant, anyone considering emigration
should plan their currency requirements well in advance.
Sales tax (Imposto sobre o Valor Acrescentado – IVA) is charged
nationally, based on the type of product or services. IVA rates
are high, ranging from some zero-rated services to 6% for
basic products and 23% at the highest tier. IVA is included
in all products and services. However, due to the high rates,
some service providers do not issue a formal IVA-compliant
receipt unless specifically requested to do so. In order to
combat this tax avoidance, the government has implemented
several innovative schemes to bring more transactions within
the system, including raffling off luxury cars. Anyone issued
an official IVA invoice is automatically eligible to win, but the
provider is automatically flagged in the system if they have
been avoiding tax. So the government has cleverly put the
taxpayer to work for them to collect taxes.
© Luis da Silva
Banking in Portugal is sophisticated and easy, and most
transactions can be done online with no need to ever enter
When finance becomes too much…remember, the good things in life are free
a branch other than to open an account. Deposits are
guaranteed up to €100,000 under European law.
Cash withdrawals from Portuguese bank accounts are free:
Portugal was one of the world’s first countries to implement
a shared banking platform to which all banks are linked and
so ATMs, which are easy to find in most locations, allow free
access to withdrawals, online payments, statements, and in
some cases deposits. Payments or withdrawals using foreign
cards and foreign accounts can also be done using the same
machines, but subject to usual costs charged by the issuing
bank. All major credit cards are accepted. Foreign exchange is
easy and all banks and most of the world’s Forex companies
operate in the country.
Anyone operating a business in Portugal after having
run one in the US or the UK, for example, will find it more
difficult here. Although the Algarve has a Citizen’s Store
(Loja do Cidadão) in Faro, which allows you to deal with all
government departments, from finance to social security and
even registering the name of the company, in a single day and
location, annual returns which must be validated by a TOC
(an ‘official’ accountant registered with a central professional
body), the complexity of IVA returns, and the social security
burden on the employer, make the country bureaucratic. The
government is working on methods of simplifying this and
automation has seen a huge improvement in service levels,
but the underlying procedures and multi-stage approvals are
still cumbersome.
Tax returns are reasonably easy to complete online, although
there are limitations on the state’s computer system and online
availability near the start or end of submission periods. It is
recommended that you seek assistance from a professional
tax adviser or accountant for your first tax return. Thereafter,
with some support from the Ministry of Finance’s informative
and multi-lingual online portal, you should be able to complete
the annual return.
As with most countries, it is advisable that advice is sought
from one of several specialist firms, several of which have
long-standing experience in the region. The cost of a residency
application under the Golden Visa program will cost in the
region of €6,000 (with each renewal around €3,000), while
dealing with an application under the Non Habitual Residency
program will cost between €1,500-3,000, depending on the
law firm involved.
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Many people also prepare a will or testament to ensure that no
confusion arises between countries as to their final wishes in
case of dying in Portugal.
Live Like A King For Less
© Luis da Silva
The cost of living in Portugal is generally among the lowest
in Western Europe. Some items, such as fuel (around €1.30/
liter or about US$5/gallon), electricity, second hand cars (Ford
Focus 2012 diesel between €12,000 and €20,000, Audi A4
Avant diesel starting at €40,000) and electronic items such as
appliances and technology, are much more expensive than in
the US, but basic items are very competitive, especially when
compared to Northern Europe. I have provided a list of items
(right) including discounted prices, which occur when one
of several large supermarkets or hypermarkets run specials.
These discounts typically run for a week, starting on Tuesdays.
The keen grocery bargain hunter should also remain alert to
extended weekend specials. With careful planning, residents
are able to find discounts on some essential items every week.
Piri-piri, freshly picked veg, and local honey at the indoor market
Most foreigners find the cost of eating out to be very
reasonable. In fact, for a retired couple, it is often as costeffective to eat out and warm up leftovers in the evening
(portions in Portugal are generous). Local supermarket chain
Pingo Doce operates a number of family friendly restaurants
where meals, all prepared daily, cost €3.99 plus the price of
a drink. Some even run a daily special including a drink and
bread roll for €3.50. Local restaurants, with which most new
arrivals quickly become familiar, value regular trade and it is
possible to negotiate a meal for two including soup, main
meal, soft drink (or glass of wine), and coffee for €10. Do not
expect a fancy ambience or service frills, but the quality of the
Here’s a sample of goods from a shopping cart of items from local
supermarkets and markets. My complete shopping cart can be
viewed at the online “Algarve Shopping Cart.” Remember: one
U.S. dollar is about 73 euro cents (June 2014).
Prices are per kilo (divide by 2.2 to obtain the price per pound).
Fish is weighed and priced before being cleaned. With few
exceptions, markets and supermarkets will clean fish on request
immediately after selection by the customer. Meat is cut according
to client needs (unless prepackaged) and minced once or twice,
depending on client wishes.
Grocery Item
Price (€)
Discounted
price (€)
Bread (loaf)
€1.10
€0.80
Bread (traditional loaf)
€0.59
€0.49
Milk, half-fat/semi-skimmed
(long-lasting, 1l)
€0.59
€0.30
Water (5l)
€0.52
n/a
Wine, table (750 ml)
€3.50
€1.99
Wine, good quality (750 ml)
€5.99
€3.99
Carrots (kg)
€0.79
€0.39
Potatoes (kg)
€0.50
€0.30
Onions (kg)
€0.64
€0.55
Lettuce (kg)
€1.29
€0.99
Rice (kg)
€0.68
€0.58
Apples
€1.69
€0.99
Bananas
€0.99
€0.69
Spaghetti (kg)
€0.34
€0.30
Fish (sea bass, sea bream, kg)
€4.99
€3.99
Cheese (kg)
€4.99
€4.19
Ham (150g)
€1.99
(220g pack) €0.99
Coffee (Nescafe 100g)
€2.79
€2.09
Beef, steak (kg)
€9.99
€5.68
Beef, lean mince (kg)
€5.99
€3.98
Chicken (kg)
€1.79
€1.49
Sugar (kg)
€0.99
€0.79
Salt (kg)
€0.20
n/a
Fuel/gas (unleaded) (l)
€1.55
€1.44
Fuel/gas (diesel) (l)
€1.35
€1.24
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© Luis da Silva
On the way between Silves and Lagoa is the Barradas
restaurant, pricey by Portuguese standards but with great
options and an impressive wine selection.
Some favorite expat meals: piri-piri chicken and bacalhau (cod)
When reaching Lagoa and especially the village of Carvoeiro,
you will be spoilt for choice. The town has a famous hill that
is packed both sides with commercial establishments, most
of which are restaurants of all types: traditional Portuguese,
Italian, Chinese, Thai, the odd English or Irish pub, and even
some vegetarian options. Ele & Ela is consistently ranked
highly by its diners for its excellent cuisine, and two stand-out
quality restaurants are located on the road between Carvoeiro
and Sesmarias: Hexagone and Bon Bon. If it’s cheap and filling
Portuguese fare you are after, try one of the many options
around the Fatacil fair grounds.
food is excellent for the price. Finding the preferred, low price
local restaurant is a favorite past-time of most expatriates.
Eating out in Carvoeiro and Silves are two different experiences.
Try Silves if you want authentic Portuguese eating. Strangely,
one of the region’s most famous seafood restaurants, Rui
Marisqueira, is located in the inland city! But a visit to Rui’s
is not complete without tasting their carob tart, freshly made
and delivered from a local pastry specialist. They don’t always
have it, but don’t miss it if it’s in the pastry display. Move
next door and try the suckling pig at Fernando dos Leitões.
Popular with many tourists are the chicken restaurants that
are located on the road next to the river. Arrive early and don’t
expect to see a menu. They do portions and half portions of
freshly grilled chicken (the chef does it under a plastic tarpaulin
where the temperature of his ‘kitchen’ is often hotter than the
grill!), freshly fried chips, and salted and seasoned lettuce
and tomato salad. Keep ordering portions until you are full…
you’ll be surprised when you are handed the very reasonable
final bill.
© Hexagone
Buyer beware: whenever you see a menu in multiple languages,
expect to pay more as the restaurant is targeting a foreign
tourist market. If you want authenticity at a low price, look out
for the “Pratos do dia” (dishes of the day) signs scribbled on a
blackboard or paper stuck to the entrance. Prepared in larger
quantities and with different fish and meat dishes every day,
this is the way to get a tasty local meal for around €5-6.50. Be
prepared to get by with sign language, basic English words,
a phrase book, and a friendly smile, and you will save yourself
money when eating out.
Outdoor, gourmet eating
A full meal in a cheap restaurant will cost you around €8
including drink and coffee. Expensive restaurants will cost
between €35-50 per head, including good wine. On average
expect to pay between €15-20 for dinner. Lunch is usually
cheaper as most people do not order wine, and menus often
have quicker and easier-to-prepare options.
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Algarve Monthly Budgets
These monthly Algarve budgets are per person, assuming a comfortable, quality lifestyle:
Item
Own property bought for cash
Quality private rental
Rental in 4* senior village
Accommodation
€0
€600 (per property)
€800 (per person)
Cleaning, washing (linen)
€120
€120
€0
Utilities
€100
€100
€0
Electricity (/kwH) ***
€0.18
$0.25
n/a***
Water (/m³) **
€0.24
$0.33
Groceries
€200
€200
€200
Entertainment (per person)
€250
€250
€225
Preventative medical (per person)
€150*
€150*
€0
Medical expenses (per person)
€250
€250
€250
Gardening
€75
€0
€0
Pool maintenance
€20
€0
€0
Cable TV, wireless
€35
€70
€0
TOTAL
€1,200
€1,740
€1,475
* May be partially covered by insurance
** Value based on lowest level, price increases as consumption increases.
*** The possibility of dual-rate (peak/off-peak is available, which is either late at night, early mornings or part of the weekend)
Conservative budget, per person, 1-bed apartment with a more frugal lifestyle:
Item
Own property bought for cash
Basic rental
Accommodation
€0
€450
Utilities
€100
€100
Electricity (/kwH) **
€0.18
$0.25
Water (/m³) *
€0.24
$0.33
Groceries (per person)
€200
€200
Entertainment (per person)
€50
€50
Medical expenses (per person)
€50
€50
Cable TV, wireless
€35
€35
TOTAL
€435
€885
* Value based on lowest level, price increases as consumption increases.
** The possibility of dual-rate (peak/off-peak is available, which is either late at night, early mornings or part of the weekend)
An eating out budget:
Meal out (3*) 2 courses, coffee, soft drink, per head
Meal out (5*) with bottle of wine, per head
€8.50
$11.79
€4.50
€30.00
$41.62
n/a
1 Assumes two weekly cleans and one linen change per week
2 Water and electricity; assumes no use of gas.
3 Assumes one meal out per week, 1 tourist visit per month, regular classes of 1 type of activity
4 Includes regular measurement of key indicators, periodic physiotherapy, monthly consultation with GP, and consultation with pharmacist
5 Assumes private medical insurance cost and co-payments for 1-2 doctor visits per month
6 Assumes use of public health system only with the occasional private medical expense
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No Language Worries In
The California Of Europe
The Portuguese, according to CNN’s Friendliest Countries
report, are the “7th most welcoming people in the world.” The
World Economic Forum ranked Portugal as 7th (among 140
survey nations) most-welcoming nation when receiving foreign
visitors. In the field of language the Portuguese go above
and beyond the reasonable to ensure that guests are made
to feel welcome in their own tongue. Portuguese is a difficult
language to master but some basic knowledge will accelerate
integration and make simple daily tasks easier. Some language
schools exist but there are well-qualified freelance language
teachers who teach Portuguese at each student’s pace.
The Association of Foreign Property Owners in Portugal, or
AFPOP, caters to the many foreign residents and property
owners in the country, and offers a range of services and
discounts to members. With membership at €40 per annum,
the benefits quickly outweigh the cost.
Due to Portugal’s strong cultural and historical links with
England and the fact that the Algarve is such a major tourist
destination, English is widely spoken. English is compulsory as
a second language in the schooling system and so the youngest
generation speaks it. French, which was the second school
language prior to being overtaken by English, is extensively
spoken by the older generations. Portugal’s largest expatriate
population lives in France, and many of those people, nearing
retirement and spurred on by adverse changes in French
pensions and positive changes in Portuguese laws affecting
pensions, have decided to return to the country.
Many establishments including restaurants, private and
public health centers, and hospitals, clinics, sports clubs, and
supermarkets, have people able to interact with the public in
a foreign language.
In Lagoa there is a well-established second-hand bookstore
with thousands of foreign titles and many genres. Hand in your
used books for a credit of between €1-3 and use your balance
to buy other titles from as little as €2.50.
In summary, the Algarve is very well-placed linguistically
to receive visitors and new residents from the USA
and Canada.
Year-Round Activities
Fatacil is the largest showground in the province and hosts
several large events during the year. The most popular for
expats is the International Algarve Fair held in June every year,
which unites the local and expatriate community around a
variety of activities, shows, services and food and beverage.
Larger still is the summer fair held in August, with daily live
concerts by top national (and often international) artists. At
a few euros a ticket per day, you won’t find better value for
money on a sultry summer night.
© Luis da Silva
The Medieval fair in Silves is a celebration of the city’s roots.
Dancers, jugglers, flame-throwers, fire-eaters, and snake
charmers, and snake charmers combine with a feast of regional
cuisine to offer a very authentic experience. Costumes can be
hired by those who want to dress the part!
Multilingual menus, but reasonable prices for all tongues
In Lagoa, the annual sweets festival is an exquisite display
of delicacies produced mainly from local ingredients,
including fig, orange and almond, and the lesser-known carob
with its cocoa-like powder—a staple ingredient in regional
pastry making.
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or to fish. Or the sailing schools at the river mouth which are,
by international standards, inexpensive.
© Luis da Silva
For the tennis enthusiast, join the many expats who gather for
social tennis at the Carvoeiro tennis club, or try the local club
at Silves, located between the schools of the city and next to a
park (to which you might have to retire to for shade if you dare
play in the summer afternoons!).
Carvoeiro also has a well-stocked book exchange that allows
expatriate residents and visitors alike to trade in books they
have read for new titles.
Music, parades, booths, restaurants…even a dog show
Around June every year, the smell of grilled sardines permeates
the air of the coastal towns, as the annual sardine season
peaks. Most traditional restaurants will keep them coming until
you say ‘basta!’ Pay by the half-dozen and you know you’re in
a tourist establishment.
The Arade Congress Centre, a white elephant financed by
several municipalities, private groups, and the regional tourist
body, is nonetheless one of the most impressive congress
centers in the country. With Europe’s fifth largest stage and
seating which, when retracted, increases the capacity from
1,000 to 4,000 or more, it sits quietly on the banks of the
Arade River near the town of Ferragudo. Once or twice a year
it springs to life with a motor car launch, a performance by the
Russian ballet, or the finals of the World Dance championships.
If it’s sporting action you’re after, try something different. The
daughter of the owner of one of the largest boat businesses is
a multi-world champion and the family is always happy to offer
adventure style practice sessions on the Arade. Kayaking,
paddling, and scenic boat trips are all on your doorstep. And
don’t forget the boat trips to visit the cave-encrusted coastline
© Luis da Silva
Throughout the year, but mainly from spring through fall,
to make the most of the great weather, open-air jazz and
classical concerts are held. Most are free. Experience jazz
at Lagoa’s Sitio das Fontes but make sure you take some
mosquito repellant because the idyllic location, on the Arade
River, becomes a haven for these pests at nightfall. The Lagoa
Auditorium is the place to take in a concert by the local youth
orchestra (or even attend students’ final auditions that are
open to the public) or to watch a film priced between €3-4
per ticket.
Hop on a pretty little sailboat for a trip up the river
Many retired expatriates become involved in local community
or charity work: from manning kitchens, which serve meals to
the homeless, to assisting with food distribution to the poor,
supporting the donkey sanctuary, or helping with the housing
of abandoned dogs, there is no shortage of opportunities to
contribute to society and make a real impact that will also
help you integrate faster into local culture. Although Portugal
is a highly religious country and many social actions are
coordinated by the church, there is an increasing trend for
people to organize volunteer organizations, often bringing
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© Luis da Silva
The Algarve is an excellent
place for bird watching. The
Salgados basin, located
immediately adjacent to
Praia Grande in Silves, is
great for observing species
such as ferruginous duck,
little bittern, swamp hen and
avocet. During the migratory
season
several
birds Perched atop an old chimney, a stork feeds its young
including the rare Squaco
heron can be spotted.
Look out for the nesting storks which have occupied many a traditional
brick chimney. They are easily located by the clucking sound made by
smacking their beaks together.
Silves and Lagoa offer superb walking trails, in totally different environments.
Silves’ hillier terrain means that a stroll in the citrus valleys and barrocal
countryside will be as much a soulful experience as a visual one. The way
in which Silves has maintained its originality, the pureness of air punctuated
by a citrus tang, the preservation of original architecture, culture, and trade,
makes a walk in the Silves countryside synonymous with a stroll through
the inland Algarve as it once was.
© Luis da Silva
Lagoa’s coastal walks are altogether very different. The emphasis here is
on the “wow factor.” There is probably not another stretch of the coast
anywhere in Portugal (perhaps anywhere on the Iberian Peninsula), which
brings together so many spectacular vistas in such a short distance.
Perched on the very edge of the cliffs (care must be taken when walking
or cycling as cliffs can be unstable—in fact, an increasing number of
protective barriers have been placed along the most popular stretches),
walkers are able to look down into gullies, out to the azure ocean, and
through the fantastical shapes created in the soft coastal rock. A walk
along the coast from Ferragudo to Armação de Pera (which is best done
over several days) is an unforgettable, eye-candy experience.
The view on an early-morning walk
A pioneering project in Silves
is the lynx reproduction
center, which is the leading
research facility for the
protection of the endangered
Iberian lynx, the world’s most
endangered feline species.
If you love nature then a visit
is a must.
Getting About…Drive, Walk, Sail,
Cycle, And Paddle
Driving is easy in this part of the world. Short drives
are often scenic. Leave Lagoa along the EN125 road
westward towards the large town of Portimão. The
approximately 5-mile drive involves crossing the Arade
River near its estuary. See flocks of migrating or nesting
birds, canoeists, and the occasional angler in galoshes
searching for cockles. Return via the picturesque
village of Ferragudo.
Local transport is reliable but the intervals between
departures out of peak times can be long, especially in
smaller village and inland locations. The municipality of
Silves contains the province’s main train station link, at
Tunes, to the country’s capital 180 miles away. Lagoa
has one of the region’s busiest bus stations, with
buses leaving for locations in the Algarve and direct to
Lisbon, a 3-hour trip away in luxury vehicles with Wi-Fi,
in-trip movies, toilet facilities, and reclining seats.
© Associação Turismo Algarve
Nature Talks
new and innovative ways of doing this from their
experiences abroad. See the “Rolodex” for contact
volunteer information.
Cycling off- and on-road is very popular here
Tackle the rugged coastal paths on a mountain bike
or on foot and get the benefit of spectacular sea and
coastal views. Both Silves and Lagoa are easy to visit
on foot and walking is much more popular in towns
and cities than cycling.
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Walk along the quay past the fishing baskets,
or boat and kayak on the Arade River
Giving Back To The Community
Castelo Dos Sonhos has been helping underprivileged
people in the Silves area for more than 10 years, and
welcomes donations, contributions or help. The Rotary
club has several chapters in the Algarve, including one in
Silves. (See the “Rolodex” for contact information.)
How Easy Is It For The Disabled?
The Portuguese attitude towards helping others is reflected
in a general openness towards minorities, in whatever sense.
The disabled are no exception, but they have been faced,
historically, with the challenge of inappropriate infrastructure,
such as traditional stone sidewalks that are difficult for
wheelchairs and for people with canes or walking aids, few
ramps into public transport, and poor signposting. Portugal’s
infrastructure is improving for disabled communities and it is
generally true that where specific conditions do not exist, local
people will go out of their way to help. Silves and Lagoa have
benefited from significant retrofits to existing or newer facilities.
Community swimming pools are fully equipped with ramps and
disabled pool access, public buildings such as libraries now
have disabled access, and even public parks make it easy for
the disabled to be dropped off and enter with reduced effort.
© Luis da Silva
© Luis da Silva
The Arade River flows through the center of Silves. At high
tide, small riverboats make their way downstream to the river
mouth at Ferragudo and Portimão, and then back upstream.
Kayak and canoe enthusiasts are often found paddling
up and downstream.
Even parks have well-signposted disabled access
The Gay And Lesbian Community
Historically Portugal is a deeply Catholic country. For this reason
many of the beliefs and religious traditions remain, although
change to this belief system has accelerated dramatically with
globalization, the free flow of people and ideas over country
borders, national debate around topics such as adoption by
couples of the same sex, and changes in the law. The GLBT
community is neither large nor very visible. Do not be surprised,
therefore, if you and your partner visit a remote area and get
inquisitive looks from the locals.
How To Get Here
Faro airport, located around 60 kilometers (38 miles) from
both Silves and Lagoa, is one of Portugal’s busiest airports
and its most important tourist hub, handling about 5.5 million
passengers a year. Direct flights arrive from 76 international
and three national airports. Airsat’s recent addition of a weekly
direct flight from Toronto’s Pearson Airport means that the
destination is now directly accessible to the Canadian market.
If you travel from the US, you would probably connect via a
major European capital.
Well in excess of 4 million visitors arrive in the busy JulyAugust period, which means that the remaining months are
remarkably tranquil for travelers.
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
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Europe’s Best Kept Secret
Overseas Retirement Letter
way to get involved if you are an animal lover. See the “Rolodex”
for contact information.
© Luis da Silva
Warts And All
Travel to Lisbon in 3 hours in air-conditioned comfort
The A22 highway links Silves/Lagoa to Spain, 112 kilometers
(70 miles) away. The cost of the one-way toll is approximately
€7.70. The A2 highway, with easy access from Silves via
Tunes, makes Lisbon, the country’s capital, approximately
a 3-hour drive. Taking the fast route to Lisbon via the toll
highway, where legal speed limits are 120 km/h (75 mph),
will cost around €20 for the 180-mile drive. Choose the more
leisurely route along the national road, which is mostly in
excellent condition, and where you can stop to eat at one of
the many traditional restaurants or have a picnic on one of the
route’s scenic vantage points, and spend only €4 on tolls (the
saving will pay for a meal for two!).
Bringing Pets To Portugal
The transportation and importation of pets is well regulated in
the EU and the rules applicable to Portugal are documented
on the relevant Ministry site, which is also available in
English, here.
Unfortunately, the economic crisis of 2008 resulted in a
significant increase in the abandonment of animals by people
who could no longer afford to keep them. Although there are
local municipal kennels, due to overcrowding they tend to
operate a strict policy of putting animals down after a week if
they have not been rehomed. There are several local charities,
including a few charity shops in Lagoa and at least one in
Silves, which raise money for initiatives such as the Donkey
Sanctuary and the Association for the Protection of Animals
in the Algarve (APAA). The Scruffts dog show held annually
at Fatacil is also a source of complementary income for the
work they do. These organizations are always looking for
volunteers to help in whatever way possible and it is a great
The biggest complaint of most people who arrive here is
Portuguese bureaucracy. Much of this is due to a language
barrier which makes matters such as finance, tax, and dealing
with banks and utility providers frustrating at times (especially
as the latter generally have poor records of customer service).
Nonetheless, renewing or getting a driver’s license is easier
than doing so in the US, for example, as Portugal has migrated
most of its public record system to electronic records over the
last decade or so.
My recommendation would be to stay away from any project
involving planning. If you are a keen builder, developer, or
would like to make substantial changes to existing historical
buildings (such as converting them into boutique hotels)…
choose another location. Planning is a lengthy process
requiring years, with major projects often taking more than a
decade to clear the upward of 30 entities who typically need to
give their opinion as to the merits of any endeavor.
Starting a business in Portugal, while not as complex as in
countries such as Brazil, is not as efficient as in countries such
as the US. Accounting requirements can be complex and
appropriate legal, tax, and accounting support is a must for
new arrivals wanting to work in or from Portugal.
Many people are concerned about the economic woes of the
country prior to and following its bailout post-2008. While this
is indeed a concern for existing residents who have seen the
tax burden increase, the NHR measure is aimed at attracting
new residents to the country and guaranteeing low tax.
New residents will benefit not only from this status but also
from Portugal’s need to become more competitive, which in
many instances has driven down prices. An excellent example
is real estate.
New residents should consider carefully where they live,
because the inland areas of municipalities such as Silves have
very few inhabitants, and the initial search for quiet and privacy
can quickly turn to isolation as foreigners find themselves far
from town and city centers and unable to communicate with
rural populations whose command of English is not as good
as that of people in towns and cities.
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
28
Europe’s Best Kept Secret
Overseas Retirement Letter
bustle of a range of tourist activities, then Silves and Lagoa are
excellent choices.
© Luis da Silva
The ability to save money, pay less tax, access quality
healthcare, enjoy a healthy lifestyle, be part of a community
where English is widely spoken, and get to most
European cities in less than three hours, are major attractions
for foreign residents.
Almost without exception those who have chosen Portugal
as their home, and have planned financially for their move, are
extremely positive about the country and its lifestyle.
Is This The Place For You?
If you want an excellent quality of life, with a low cost of living,
great tax benefits, in a location that within easy access of
all of Europe and equidistant from North America and Asia,
the Algarve is an obvious option. If you seek the tranquility of
country living while being minutes from the region’s awardwinning beaches and golf courses, and from the hustle and
© Luis da Silva
The River Arade glides through Silves town center
Sharpen your short game skills on this 9-par executive course
Most people who move here notice the change of pace from
large cities and towns. It takes time, like good wine, to mellow.
If you are moving here to work locally, be prepared for some
stress relating to bureaucracy and the difficulty in the language
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
29
Europe’s Best Kept Secret
Overseas Retirement Letter
if you don’t already speak it. If you are looking to work abroad
and want to leave your family in a safe, healthy environment,
then look no further. Hundreds of expats already do this, and
once the secret is out, many more will do so. If you wish to
retire, there is hardly a person who has visited who does not
think of staying for good. Making friends is easy, whether with
locals or expatriates. The fact that new residents will soon
have an option to reside in rental communities of like-minded
individuals, who share interests, means that purchasing
properties is not the only route for new arrivals.
substantial part of the year but never become officially resident.
Just over 4,500 of these residents live in the Silves municipality
and 3,700 in the Lagoa municipality*, with Carvoeiro being one
of the most popular multicultural expat towns in the Algarve,
catering to a range of nationalities. (* Source: www.sef.pt)
Overseas Retirement Letter
Online Resources
A video tour of Silves and Lagoa
Algarve Rolodex
Algarve Shopping Cart
About The Author
Forced to flee Mozambique
© Luis da Silva
during
Portugal’s
revolution,
grew
up
Luis
in
da
South
1974
Silva
Africa.
After completing an Electrical
Engineering degree and later
The busier coast or the quieter inland…both options are attractive and welcoming
a Master’s degree in African
With all this and a lot more, it is easy to see why the region has
attracted more than 63,000 official residents or about 15%
of the region’s population—although the number is several
times higher as many foreigners remain in the country for a
immigrated to Europe in the
Ask The Author
American
literature,
Luis
early 90s. A corporate career as
a management consultant and
CEO of several companies saw
him live and work in the UK (three times), Portugal, Brazil, and the
USA, and travel and work in more than 20 countries. In 2004, Luis
left corporate life to start his own management consulting business
which took him to, among other places, Cape Verde where he was
Later this month, Managing Editor Lucy Culpepper will be
talking with Luis da Silva about Silves and Carvoeiro during
the live, monthly ORL teleconference. She’ll be asking Luis
questions, sent in by ORC members, about any subject
to do with living in this part of Portugal. This monthly call
provides a great opportunity to really get under the skin of a
place and have any thoughts or uncertainties answered, live,
by an expert. However, this “Ask the Author” opportunity is
only available to Overseas Retirement Circle members. If
you’d like to send your questions in to Lucy and then join
her on the call with Luis please take a look here for details
on how to upgrade your ORL membership to become a
member of the Overseas Retirement Circle.
an early-stage contributor to the country’s tourism and investment
growth, working closely with companies such as TUI (Thomson) and
several private investors. He co-authored one of the island nation’s
first maps and guides. Luis is an entrepreneur and an expert in
internationalization, has supported companies that have expanded
abroad, and advised numerous professional people and retirees
relocating overseas. After many years of working and traveling
abroad, Luis moved to the Algarve region and is intensely involved
with the promotion of the region as Europe’s premier emigration and
retirement destination. He is the founder of Algarve Senior Living, one
of southern Europe’s first rental-based senior living communities.
Luis remains involved with entrepreneurial and start-up activity,
consulting and real estate, and acts as a NED or strategic consultant
to businesses and projects, often in an early stage of development.
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
30
Overseas Retirement Letter
Property Picks
Where To Find A Colonial, Beach,
Or Highland Property… And Longevity Too (Maybe)
Ecuador always features high on lists of potential overseas retirement locations, and for good reason. It is a stunningly beautiful
country with golden Pacific beaches, rainforest, cloud forest, the Andes, and colonial cities—all in an area just a tad smaller than
the U.S. State of Colorado. It offers great healthcare, affordable property, and a very low cost of living. So this month Property
Picks is focusing in on five expat-popular locations in this multi-faceted country. Read on…
Cuenca—The Benchmark For
Colonial Cities In The Americas
Vilcabamba—Ecuador’s Valley of
Longevity
Salinas—the crowning jewel of
Ecuador’s coast
This 3-bed/3-bath apartment has classic
views over Colonial rooftops; centrally
located in the historic district, so it’s an
easy walk to all amenities. Wooden or
tile floors; some modernizing required.
Price US$155,000. More details here.
In walking distance of Vilca center, this
2-bed, 1-bath, artsy, back-to-basics
property that can sleep nine, is in a
secluded quiet situation. All furnishings
included in the sale. Price: US$110,000.
More details here (property #VQ028).
Here’s a cute 3-bed/2.5-bath oceanfront
cottage in a gated community in Salinas
with garden, BBQ area, Jacuzzi, seating
area, 24-hour security, cable, Internet,
and carport. Sold partially furnished.
Price: US$150,000. More details here.
Cotacachi—Small Town Living,
In A Popular Highland Town
Canoa—The Sleepy Surfer Village
In a gated 15-home community, this
recently built 3-bed, 2.5-bath home
is sold fully furnished and with fully
landscaped front and back gardens; built
to U.S. specifications and handicapped
accessible. Price US$208,000. More
details here.
This 2-bed, 2-bath condo is located
an affinity-pool-away from the beach.
Fully furnished including appliances,
linens, towels, pot & pans, and TVs. The
property has a private terrace, shared
roof patio, Jacuzzi, and laundry room.
Price US$129,500. More details here.
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
Other expat-popular destinations on the
coast include Atacames on the north
coast and the quiet seaside town of
Súa. If this has whetted your appetite
about living and retiring to Ecuador, find
out much more about this multi-faceted
country here.
31
Overseas Retirement Letter
Global News
Global News For The Retiree Abroad
Win Free Attendance To THE
Retire Overseas Conference
people hanging their washing out
at the front of their homes, saying
that it makes the city look messy
and uninviting to tourists.
And…The health minister of France,
Marisol Touraine, will present a bill to
Parliament on June 17 that would,
if passed in the fall session, place
a ban on smoking e-cigarettes in
public and would introduce plain
packaging for all types of tobacco.
Win FREE attendance to our
upcoming Retire Overseas
Conference in Nashville, Tennessee!
Head over to this link to enter.
Also, one winner will be selected
from each of our social networks so
increase your chances of winning by
following our Twitter and Google+
accounts and entering through the
links provided on those pages:
Twitter: http://twitter.com/liveandinvest
Google+: http://google.
com/+liveandinvestoverseas
Americans Renouncing
Citizenship At Record Pace
The number of people who gave up
their U.S. citizenship or Green Cards
in the first quarter of 2014 came to
1,001…just short of the highest ever
recorded number of 1,130 in the third
quarter of 2013…and an almost 50%
increase over the same period last year.
Spain Tightens Up Tourist
Rental Market
The IRS says it does not link the
published list of ‘Individuals who
have chosen to expatriate’ with
FATCA or taxation, however, political
commentators say there is mostlikely a link between the increased
rate of numbers renouncing
and increased controls over
offshore interests and assets.
Click here for more information.
France Takes Aim At Washing,
Youth, And Tobacco
The new mayor of the city of Béziers
in the Hérault department of the
Languedoc region in ‘The Other
South of France’ has introduced
a curfew for unaccompanied
youngsters under the age of 13.
The government of Andalusia, the
most southerly province of Spain,
has announced a new decree, which,
if passed into law at the end of this
summer, will place new controls
over the private letting of property.
The government is under pressure from
hoteliers and tourist establishments
to place controls over people who
rent out rooms and private homes for
tourist use but who do not conform
to the same standards…or pay the
same tax on rental income. The
first stage will be the formation of a
registry of rental properties, which is
likely to turn into a vehicle for fiscal
control of property lettings. Watch
this space for news in the fall.
Where Is The #1 City
Of Opportunity?
Major Ménard, of the Front Nationale
(far right National Front party) has
also re-instated a law to prevent
PwC, the global consultancy company,
recently analysed 30 worldwide cities
using 10 indicators to find out which
one provided the most opportunities
and “embodies the energy, opportunity
and hope that draw people to city
life.” Overall, London came out top
of the crop, with New York in second
place, and Singapore in third.
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
32
A report in the Wall Street Journal
suggests that if the number of
renunciations continues at the same
pace to the end of the year, the total
will be over 4,000, a significant increase
over the total of 2,999 in 2013.
The curfew runs from 11pm to
6am during the weekends and
the school summer holidays
(June 15 to September 15) in
certain areas of the city.
Overseas Retirement Letter
The Cities of Opportunity key indicators
and top three cities within each are:
Intellectual capital and innovation:
Paris, London, San Francisco
Technology readiness: London
and Seoul tied for first place,
Stockholm, Hong Kong
City gateway: London,
Beijing, Singapore
Transportation and infrastructure:
Singapore, Toronto, Buenos Aires
and Seoul tied for third
Health, safety and security:
Stockholm, Sydney and Toronto
tied for second, Berlin
Sustainability and the natural
environment: Stockholm and
Sydney tied for first, Paris and Berlin
tied for second, San Francisco
Demographics and liveability:
Sydney, London, San Francisco
Economic clout: London,
Beijing, New York
Ease of doing business: Singapore,
Hong Kong, New York
Cost: Los Angeles, Chicago,
Johannesburg
Download the full ‘Cities of
Opportunity’ report here.
Who Should Retire To ‘X’
(insert destination)?
What type of retiree will do well
in a certain place is hard to figure
out. Will a person interested in
gardening be happy in Medellin?
Global News
Utility Costs
In Europe
High utility costs are a fact of life
in Europe and should be carefully
considered by anyone thinking of
living and retiring there. A recent
study by Eurostat, the statistical office
of the European Union, provides
an overview of the most and the
least expensive countries in terms
of electricity and gas prices.
Average household electricity prices
in the second half of 2013 were
lowest in Bulgaria (€8.8 per 100 kWh),
Romania (€12.8), and Hungary (€13.3)
and highest in Denmark (€29.4),
Germany (€29.2), Cyprus (€24.8), and
Ireland (€24.1).Average household
gas prices in the second half of 2013
were lowest in Romania (€3.1 per
100 kWh), Hungary (€4.2), Croatia
(€4.7), and Estonia (€4.8) and highest
in Sweden (€12.2), Denmark (€11.1),
Italy (€9.5), and Portugal (€9.3).
Even Easier Access
To Panama
LIO News reports:
Panama continues to be the “Hub
of the Americas” withsxs the newly
announced nonstop flight to Denver,
Colorado. The route will be operated
by United Airlines with a Boeing
737-700 aircraft that has space for
118 passengers. The service will
begin on December 3, 2014 and
flight time will be approximately
4.5 hours. Read more here.
Find out what the ‘6 Reasons’ are
right here.
Thailand: Land
Of The Coup
May 22, the Thai army declared martial
law after months of problems and
protests. The two arguing factions, the
pro-government “Red Shirts” and a
collective of anti-government groups,
finally pushed the military’s patience
too far, forcing Chief of the Royal Thai
Army General Prayuth to make a move.
So what does that mean to anyone
planning a visit to Thailand?
Writing for LIO News, Paul Terhorst
comments: “Over the years in Thailand
we’ve lived here under military rule,
appointed rule, democracy, caretaker
government, and now martial law
and another coup. In all cases our
lives go on pretty much as before. In
all cases we stay away from protest
sites and hope airports stay open.
“Ours is to enjoy rather than to fret
about the government of the day. I think
most expats feel the same way. We’re
guests, after all, and most of us just
try to enjoy the party.” Quite a party.
The British Foreign Office (FCO)
warns that it is illegal to criticize the
coup and that you should be wary of
making political statements in public.
“Uruguay qualifies as one of the
world’s top retirement havens,” writes
Kathleen Peddicord. “The country
boasts friendly people, pleasant
weather and an infrastructure that
includes reliable Internet access and
drinkable water. It’s also relatively
easy to establish residency.”
They also give details of the nationwide
curfew from midnight to 4am and
provide travel information; the curfew
does not apply to those traveling to
or from airports, but departing or
arriving travelers should have their
passports and tickets with them for
presentation. They also note that
insurance policies may be invalid as
many exclude cover following a military
coup or the imposition of military law.
See more FCO information here.
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
33
Perhaps a back-to-nature person
would have a successful expat life
in Belize’s Cayo region, or maybe a
beach lover into fine dining, golfing and
country clubs should look at Puerto
Vallarta on Mexico’s Pacific Coast. If the
choice of location is a conundrum yet
to be solved, take a read of Kathleen
Peddicord’s ‘Which Of These Five
Top Retirement Destinations Is Right
For You?’ to help solve the problem.
6 Reasons Uruguay Is A Great
Place To Retire
Overseas Retirement Letter
Coming Next Month…¡Viva Barcelona!…The City With Many Sides
Sixteen years ago I flew into sunny, cosmopolitan Barcelona, thinking what a great place this
would be to live, but not for a minute at the time believing it would ever be possible.
Just four years later I had moved to within 20 minutes of Barcelona’s pulsing heart, and my
daughter was born right there—a stone’s throw from La Pedrera, Guadi’s famous waved–
fronted Modernista building.
What immediately intrigued me about Barcelona back in 1998 was how quickly and easily
you could explore the city—Spain’s second biggest—because of its compact, well laid-out
design, yet there was so much to do and see. Today, it’s even easier to explore and there’s
just as much if not more on offer. Fantastic art and architecture from pre-Roman to Modernista
is everywhere. There are galleries, monuments, theaters, restaurants, shopping—all the usual
stuff of cities—yet there’s also the beach and easy access to the beautiful Costa Brava to the
north and the Costa Dorada to the south.
Barcelona is the economic, cultural, and administrative capital of Catalonia, situated in the northeast of Spain, on the shores of the Mediterranean Sea. The
city covers a small area but has a large population; 100 square kilometers with about 1.6 million people in the city center and another 4 million in the suburbs.
Back in 1998, what struck most about the city was its great vibe and energy, which continue today despite Spain’s economic woes. People live, work, and shop
in most of the city neighborhoods and districts so each has its own community spirit and most even have their own fiestas.
The city has 10 districts, but the areas in greatest demand among visitors, property investors, and expats is the oldest part: the Ciutat Vella, which is divided
into four areas: La Ribera, also known as El Borne (or, locally, Born), to the north; Barrio Gótico, which is in the central Gothic quarter; El Raval to the south;
and the seaside suburb of Barceloneta. Add to those four the Eixample (pronounced ‘eye-sham-pla’) and Gracia, each with its own character, advantages, and
disadvantages and a would-be expat has plenty of options to choose from.
In the August issue of the ORL Lucy Culpepper will guide you through the streets of Barcelona past the most (and some of the least) popular areas of this
incredible city.
Copyright © 2014 Live and Invest Overseas • www.liveandinvestoverseas.com
34
Overseas Retirement Letter
LIO events notice board
Aug. 29-31, 2014: Retire Overseas Conference
Location: Nashville, Tennessee
Click here to register
Sep. 17-19, 2014: Live And Invest In Ecuador
Location: Quito, Ecuador
Click here to register
Remember, as an ORL subscriber you’re entitled to a US$50 discount on all
Live and Invest Overseas Conferences.
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