Just five years ago, the beautiful blue azulejos facades in the heart of Paris seemed to have been completely abandoned. Lisbon. Even on the Praça da Figueira, near the old Confeitaria Nacional, two narrow tiled buildings showed flapping windows and desolate interiors. Today, you'd be hard pressed to find such ruins in the middle of the city. In a short space of time, Lisbon has become more polished, more attractive and more densely populated. From the 1980s until the early 2010s, its population had been steadily declining. "Long before it was hit by the full force of the 2008 crisis, Portugal had already been through some complicated times.says Géraldine Filippi, Iberian Peninsula Director at Business France. There is now talk of a 'Portuguese miracle', but the rescue package launched by the European Union and the austerity measures taken by the government are more akin to catching up, moderates the specialist. The country's GDP has only just returned to its 2008 level."In 2017, this GDP amounted to almost 195,000 billion euros, and 70,000 billion for its capital alone, i.e. 36 % of the national GDP.
Unemployment in Portugal is currently fairly low, at around 6.5 %, although it remains high among young people, with figures in excess of 17.5 %. Is this the spectre of unemployment which has led a number of young graduates to leave the country? "Prime Minister Antonio Costa, aware of the great potential of young Portuguese people, who are often multilingual and highly educated, is trying to attract them back by offering them tax breaks."says Géraldine Filippi.
Tax incentives
Among the incentives to return and investment, the non-habitual resident (RNH) tax regime provides a ten-year tax exemption on foreign rental income, dividends, interest and property capital gains, as well as on foreign private retirement pensions. "This scheme also allows you to benefit from a flat-rate tax of 20 % on income earned in Portugal from a high value-added activity."says Géraldine Filippi. To qualify, however, you need to be resident in the country for more than 183 days a year.
Today, there are more than 24,000 RNH beneficiaries, with a sharp year-on-year increase since 2013. However, Portuguese nationals returning to their country make up only 6 % of beneficiaries. "Young expatriates have built their lives elsewhere. Even though salaries are rising enormously in Portugal, they are still well below those in most European countries."says Géraldine Filippi. On the other hand, the French are numerous 6,000 in total, far more than the British, Italians or Brazilians.
Another significant measure aimed at attracting wealth to Portugal, introduced at the end of 2012, is the famous "golden visa authorising residences for investment purposes for nationals of countries outside the European Union. "You can only benefit from this scheme under certain conditions, relating in particular to the amount and nature of the investmentThese are the conditions that must be met," explains Stanislas Godefroy, Head of the Economic Department at the French Embassy in Portugal. One of the conditions is that the funds invested must come exclusively from foreign sources and must be earmarked for the acquisition of one or more real estate assets worth at least €500,000 or for the creation of a business with at least ten employees.
Portugal's current economic stability, linked to the resumption of growth (+2.8 1TP3Q in 2017), has generated strong interest from foreign investorsparticularly French. "The bilateral relationship with France creates a reassuring environment for tradePortugal is Portugal's second-largest customer and third-largest supplier, with exports worth €4.8 billion," explains Nasser El Mamoune, Deputy Director of Business France Iberian Peninsula. However, it is an external political factor that has strengthened the appeal of Portugal and Lisbon. "The Arab Spring has had a major impact, as many nearshoring companies, particularly call centres, based in the Maghreb countries, have relocated to Portugal."continues Nasser El Mamoune.
These geopolitical upheavals have also had a major impact on the tourism sector, with the Portuguese capital having experienced growth in excess of 10 %. The result has been an explosion in Airbnb rentals and gentrification of the city centre. This has led the people of Lisbon, although very welcoming, to sometimes feel dispossessed of their city, so visited is it. "Lisbon has changed. Until five years ago, housing was in a state of serious disrepair, due in part to legislation that, until 2012, protected tenants in the manner of the '48 law' in France, with rents so low that landlords could not afford to maintain their properties."says Stanislas Godefroy.
As a result of the liberalisation of the rental market and the boom in tourism, property prices have risen considerably. According to data from the Imovirtual portal, the average monthly cost of renting in Lisbon rose by 31 % in 2018 compared to the previous year. "French companies that moved to Lisbon a few years ago have been able to benefit from very competitive prices. But when we help new ones to set up, we run into difficulties because prices have risen so sharply."says Géraldine Filippi.
Having regained its prestige, Lisbon is now claiming the status of a capital that counts on a European scale, in particular by diversifying the sectors of its economy and, like all the world's metropolises, by focusing on innovation and innovation. new technologies. In terms of innovation, Portugal currently ranks second out of the 28 countries of the European Union, just behind Belgium. "What really anchored the technology sector in Lisbon was the arrival of the Web Summit in 2016, a major event attracting over 70,000 people"says Stanislas Godefroy. Launched in Dublin in 2009, the Web Summit will be held in Lisbon for the next ten years, ensuring the city's excellent reputation as a city of innovation.
Miguel Fontes, Executive Director of Startup Lisboa, an incubator launched in 2012 at the instigation of the city council, still marvels at the prodigious way with which the ecosystem has developed in just a few years: "With a view to regenerating the city centre, we set up in the Baixa district, which was economically dormant at the time and where start-ups were virtually non-existent. In seven years, thanks to an investment of 120 million euros, we have launched more than 350 start-ups, which in turn have created more than 2,000 direct jobs.". In his view, the presence of talent trained in the city's excellent schools and universities has been the determining factor in this digital revolution.
"Over the last twenty-five years, universities and research centres have followed a coherent policy.continues Miguel Fontes. This has given rise to a generation of highly qualified young professionals."Today, Lisbon has a extensive network of incubatorsThese include Village Underground - housed in containers - Second Home - housed under the rooftops of the Mercado da Ribeira - and Lisbon Challenge, the Startup Factory, Beta-i...
Digital innovation
One of these new innovation hubs is a former military site, soon to be transformed into a huge 36,000 m2 hub, the Criativo Beato. Already, American and German investors - Mercedes-Benz plans to set up its digital innovation hub - have taken an interest in the site, which is located in the former Beato warehouse district and which, under this impetus, will be given a new lease of life. There will also be crèches, restaurants, shops and luxury apartment blocks, one of which is being designed by Renzo Piano.
In Lisbon, what counts is a state of mind: reinventing the way we approach professional and urban life. This is demonstrated by the Outsite coliving space, recently opened in the Cais do Sodré district, formerly a bad neighbourhood, now renowned for its small cafés, boutiques and nightlife. Located in a historic building, Outsite is for artists and start-ups. "A whole host of highly innovative spaces are being created all over Lisbon, without being concentrated in one particular district"says Miguel Fontes. In just a few years, Lisbon has become Europe's fifth-largest start-up hub, after London, Berlin, Paris and Copenhagen.
As a result of this entrepreneurial drive, Lisbon is bursting with creativity. As further proof of its ability to adapt to the times, Lisbon has won the "Green capitalThe European Commission has awarded the city the "2020 Sustainable City Award", which recognises a city's environmental efforts and encourages its residents to keep up the good work. While some young Lisboans chose to move abroad during the crisis - because the Portuguese are and will remain adventurers at heart - others have managed to change the face of their city by rethinking the way they work and live. Quite simply, of living.
