The high cost of living in Israel forced many Israelis to recalculate their route, and some chose to try their luck overseas.
One of the popular destinations is Portugal, which attracts many Israelis thanks to the comfortable climate reminiscent of Israel, and the low prices - which are less reminiscent of the homeland.
While many choose to live in Lisbon, the capital city of Portugal, in recent times the popularity of Porto, the second largest city in the country, has also increased.
Amir Cohen, a tour guide who lives in Porto, says that "it's much cheaper in Porto than in Israel, funny how. An espresso in a cafe costs half a euro and a cappuccino costs one and a half euros. A meal in an expensive restaurant can amount to 15-20 euros per person, But in Poalim restaurants you can have a full meal for less than 10 euros."
"Espresso costs half a euro."
Amir Cohen, who lives in Porto,
"You also feel it in the supermarket, of course," adds Cohen.
"Milk costs barely 70 cents, bread a euro and a bit. In terms of clothing, unbranded jeans can be bought here for 20-35 euros. Expensive jeans from a reputable brand reach 50 euros. Unlike other cities in Portugal, Porto is a city With a young population and you can feel the nightlife here. It's unusual. If you want to go out to a pub, a beer will cost around 1.5-2.5 euros, and for other alcoholic drinks you pay 3-4 euros."
The rush to the foreign passport
The influx of Israelis to Portugal began a few years ago with the enactment of the citizenship law in the country, which made it possible to obtain citizenship for the descendants of the Jews who were expelled from Spain and Portugal.
A few months ago, the Portuguese authorities decided to stop the celebration and tightened the criteria for obtaining citizenship in the country, citing irregularities, but tens of thousands have already taken advantage of the momentum and received their passports.
offers good conditions for investments.
Portugal, photo: Vertical
The tightening of the requirements forced many Israelis to turn to a new channel for obtaining Portuguese citizenship - the "Golden Visa" program.
In this framework, those who choose to invest in Portugal receive various benefits from the country, including lifelong citizenship, not only for the investor himself but also for all members of his nuclear family.
Citizenship also includes a permanent passport of the country, which is included in the European Union.
This means that the family can live, reside, work and study in Portugal and in any of the other EU countries without restriction.
According to the report data of the research and consulting company Global Citizen Solutions, the number of golden visa applications doubled from September 2021 to September 2022. Another interesting figure published by the company is that the vast majority of golden visa investments, approximately 90%, are in the real estate sector.
However, there are no accurate data regarding the number of Israelis currently living in Portugal.
Apartment for 800 thousand NIS
"There is a combination of several conditions that make buying real estate in Porto very worthwhile.
First, you can get financing of up to 70% from the bank.
With an equity of about 80 thousand euros or 300 thousand shekels, you can purchase a new one-bedroom apartment in a city that is leading and developing at an accelerated pace.
Secondly, while the value of real estate is falling in many central cities, in Porto there is no change and the trend is on the rise. The reason is about 8 million tourists a year and new investors coming to the city," explains Itai Mor, an entrepreneur and lender of real estate transactions in Porto in a conversation with "Israel Hayom".
Porto real estate developer Itai Mor, photo: Alona Avistris
According to him, "Porto has been chosen as the leading tourist destination in Europe for the past five years. Real estate prices in the city increase by an average of 10-12% per year, and the average long-term rental yield is 6-8%, and short-term 11-16% for a year and sometimes even more."
And how are the prices?
According to Moore, for less than NIS 800,000 you can buy a new 53 square meter apartment in a modern building in Porto. A new 120 square meter 4-room apartment sells for 560,000 euros, which is about NIS 2 million.
Moore says that immediately after the elections, the interest in the golden visa increased several times.
"In the last month, many Israelis contacted us who expressed interest in purchasing real estate in Portugal through the Golden Visa program, and the wave is still not fading."
The conditions for a gold visa
We note that a gold visa is not accessible to every budget: the minimum investment required for a gold visa in Portugal is 280,000 euros.
In large and central cities, the visa can be obtained for the purchase of commercial real estate only, and those interested in buying apartments and obtaining the visa will be able to do so in areas with a low population density. The amount that needs to be invested includes the costs of renovating and improving the property.
Another track for a gold visa is venture capital investments, with tax exemption on profits (in Israel there is a 25% tax on investments in the capital market).
As part of the Golden Visa program, any profit accumulated as a result of investing in a route in Portugal remains entirely with the investor.
Other investment routes are establishing a company or investing in an active company in the country and investing in culture and art.
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