Portugal, once a hotspot for digital nomads, is now facing backlash as the influx of remote workers has led to inflation, particularly in housing prices and rents. The government has taken steps to address the issue, such as ending the non-habitual tax residency scheme which attracted many digital nomads. However, some feel that these measures are driving talent away from the country. Gonçalo Hall, CEO of Nomadx, believes that Portugal needs to adopt a countrywide strategy to attract talent to other regions besides Lisbon.
In response to the housing crisis, the government has passed legislation to increase the availability of long-term rental units and protect renters against rent hikes. Short-term rental licences have also been suspended in certain areas to alleviate pressure on the housing market. Additionally, measures have been put in place to prevent rent increases for elderly or ill tenants.
For digital nomads looking for more affordable destinations, lesser-known cities in countries like Hungary, Estonia, and Romania are emerging as viable options. These locations offer lower costs of living and rents compared to Lisbon, making them attractive alternatives for those seeking a change of scenery. As Portugal reassesses its policies towards digital nomads, other European cities are poised to benefit from the shift in remote work trends.
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