For several years we explored different countries with a very clear idea: to find a tax residency more favorable than Spain, but that at the same time offered a good quality of life.
What began as simple curiosity eventually became a long process of travel, tax research and personal experiences in different countries. Along the way we visited destinations in Latin America, Europe and the Middle East, analyzing both their tax systems and what daily life there would actually look like.
This is the story of that search.
The first idea: moving to Latin America
Between 2018 and 2020, our first idea was to move to a country in Latin America. The language, cultural proximity and lower cost of living made it seem like a good alternative.
The country that initially interested us the most was Mexico.
Our idea was clear: to live in a coastal destination with a good quality of life — places like Sayulita — while working for international companies with competitive salaries.
In theory, the idea was perfect: living in a paradise-like environment, with a lower cost of living, while maintaining international income. However, the reality was different.
For a month we travelled through the country, visited places such as Playa del Carmen, and attended numerous job interviews. None of the companies we spoke with were able to offer the salaries we were looking for, nor were they willing to manage work residency permits.
In addition, we discovered several factors that we had not initially considered:
- Paid vacation time is much more limited than in Europe
- The healthcare system works mainly through private services
- Taxation is not necessarily as low as people often assume
After also visiting countries such as Colombia and Ecuador, we concluded that Latin America was not the place where we wanted to establish our life in the long term.
After having lived in Europe, we came to a clear conclusion: even though European countries are not perfect, they still tend to offer a higher quality of life than most countries in Latin America. One of the key factors is security — in many parts of Latin America there is a high level of crime and insecurity, which directly impacts daily life and peace of mind. In contrast, Europe generally provides a safer environment, along with more reliable healthcare systems, infrastructure, and overall stability, all of which make a significant difference when considering a long-term move rather than a temporary experience.
The change of strategy: remote work
Starting in 2020, our situation changed completely.
Diego and I began working remotely for an American company, which eliminated one of the biggest obstacles we had previously faced: depending on the local job market of the country where we wanted to live. That completely changed our strategy.
We no longer needed to find a job in the country we moved to. Now we could choose a country based on its taxation, quality of life, and its facilities for international residents.
Panama: the first country we analysed from a tax perspective
One of the first destinations we analysed was Panama.
For many years Panama had an international reputation as a country with significant tax advantages, especially because it uses a territorial taxation system.
This means that:
- Taxes are only paid on income generated within the country
- Income obtained abroad generally does not pay taxes there
For someone working remotely with international income, this can be very attractive.
However, in practice we discovered that the banking system has become much stricter than in the past and that legally establishing yourself there involves several administrative processes that are not always as simple as they appear on the internet.
Turkey: a brief exploration
In 2020 we also travelled to Turkey, partly because Diego had a friend living there.
Turkey is a culturally fascinating country, but after visiting we understood that it was not a place where we wanted to live in the long term.
Discovering Portugal
In 2021 we began exploring Portugal. Our first destination was Madeira, which at that time was positioning itself as one of the European hubs for digital nomads.
The island offered many facilities:
- Free coworking spaces
- Accommodation discounts
- An international remote worker community
- Public policies designed to attract digital talent
Even during COVID restrictions, they were offering free tests at the airport for travelers.
Despite all these initiatives, after two weeks we decided to leave.
The island is spectacular, but for us it had several disadvantages for everyday life:
- You depend on a car for almost everything
- Public transport is limited in Funchal and nonexistent outside it
- Streets have extremely steep slopes
- Housing is expensive
- There is very little to do or places to walk
- Because everything is connected through tunnels, it is not pleasant for cycling
- Limited public healthcare
- Poorly stocked supermarkets
Algarve: natural beauty outside the tourist season
After that we visited the Algarve.
We were lucky with the timing of our trip: it was low season just after COVID, so the beaches were almost empty, and accommodation prices were reasonable.
The Algarve is a spectacular region, but it is also heavily marked by seasonal tourism. We did not like it as a place to live.
Porto: a city we fell in love with
After the Algarve we travelled to Porto. At that moment we visited it simply as tourists and the city seemed beautiful to us: historic architecture, neighborhoods with character and the Douro River crossing the city.
Porto immediately entered our list of possible places to live.
The Portuguese tax regime
One of the reasons Portugal seemed attractive was its tax regime for new residents, the Non-Habitual Resident (NHR).
This system allows certain professionals to pay approximately 20% tax on certain income for a period of up to 10 years.
On the internet many people talked about paying 0% taxes, which in reality depends on many factors and does not always apply. Even so, the system seemed quite competitive compared to Spain.
Malta: another option on paper
In 2021 we also visited Malta, a country that at the time frequently appeared in lists of tax-friendly destinations.
However, the Maltese tax system is quite complex and usually requires intermediaries and specific tax structures.
After visiting the island, we also did not like Malta as a place to live: high urbanization, very few sandy beaches, polluted waters, non-existent public transportation, a harsh climate, corruption, a lot of dirt, and an overall feeling that simply did not match what we were looking for.
Andorra: nature and low taxes
We also explored Andorra.
The country has one of the lowest tax systems in Europe:
- Maximum 10% income tax
- 10% corporate tax
- Approximately 4.5% VAT
However, establishing tax residency (as independent worker) often requires meeting certain financial requirements, such as deposits or investments, and the country has a very harsh winter climate.
Although we did not dislike it, it did not fully convince us either.
Finally moving to Porto
After all this process, in September 2022 we decided to move to Porto.
At that time housing prices were still lower than in many Spanish cities. We also wanted to start a new stage after several years living in Valencia.
An extremely traumatic experience living in Portugal
As soon as we arrived, we were scammed in the purchase of a house that was illegally sold to us. From that moment on, a chain of problems began that completely marked our experience living in the country.
Over the years we repeatedly encountered situations in which individuals or companies acted fraudulently: scams, abuse and clearly illegal practices. The worst part is not only that these situations happen, but that when you try to defend yourself, the system ends up working in favor of criminals.
In our experience, the problem was not an isolated case. Many times, those who commit fraud end up harassing or even suing the victims themselves, and criminals end up winning in court.
This creates a constant feeling of insecurity and lack of protection.
After living through all this, our perception of the country completely changed. That is why, despite having arrived with the intention of establishing ourselves here long term, we have seriously begun to consider changing our tax residency as soon as possible.
United Arab Emirates: the tax destination of the moment
In recent years one of the most popular countries for changing tax residency has been the United Arab Emirates, especially cities like Dubai.
The tax advantages are obvious:
- 0% personal income tax
- 5% VAT
- Facilities for international businesses
However, after visiting the country and analysing what life there would actually be like, we concluded that it does not fit our lifestyle. In addition, the money we would save in taxes would likely be spent on a much higher cost of living than what we currently have in Portugal.
The impatriate tax regime in Spain
Interestingly, one option we are now considering is returning to Spain using the tax regime known as the Beckham Law.
This system allows individuals to pay a flat tax rate of 24% for six years if they move their tax residency to Spain after having lived abroad. It can apply both to foreigners and to Spaniards returning after several years abroad.
A possible home in Galicia
Today we are also considering another possibility: moving permanently to our house in Galicia. It is a quiet place, with a great quality of life, and very different from the rhythm of large cities.
If we did it, it would probably be using that special tax regime during the first years.
The conclusion of this entire process
After exploring so many countries, we have learned something important: choosing a tax residency is not only about taxes.
Factors such as quality of life, legal security, political stability, culture and environment also matter — and above all whether you can truly imagine your life there.
For now, we remain in that process of searching, keeping an open mind about new countries that might offer better options in the future.