Portugal and Italy have emerged as top destinations for those looking to stretch their retirement dollars, thanks to their favorable tax regimes, lower living costs, and attractive Golden Visa programs. Baby Boomers, in particular, are taking advantage of these opportunities as they look to optimize their financial futures.


The Tax and Cost Drivers

In recent years, Canadian tax policies have added to the financial pressures on affluent individuals. One major change in 2024 was an increase in the capital gains tax inclusion rate to 67%, up from 50%, affecting those selling secondary properties or investments. With discussions about further tax hikes and potential wealth taxes, many Canadians are rethinking their plans for retirement​.

In addition to tax burdens, the rising cost of living in major Canadian cities is driving retirees abroad. As one example, living in Portugal can be up to 40% cheaper than in Canada, with housing, groceries, and healthcare significantly more affordable​.

Italy also offers a flat-tax option of €200,000 on global income for new residents, making it a highly attractive choice for high-net-worth Canadians.


Portugal and Italy: A New Wave of Interest

Portugal’s Golden Visa program has become a popular route for Canadians seeking residency in Europe. While the program has recently undergone reforms, it still offers pathways through real estate investment, capital transfer, or job creation. Italy, too, has attracted Canadians with its attractive tax options, lifestyle, and diverse investment opportunities​.


Michael Maxwell, founder of leading Golden Visa qualifying investment platforms in both Portugal and Italy, Portugal Panorama and Ariete Capital (www.portugalpanorama.com, www.arietecapital.com), recently visited Toronto and noted a surge in interest. "The response in Toronto has been stronger than ever," Maxwell said. "We’ve seen a significant rise in inquiries from Canadians looking to diversify their investments and secure European residency. They want flexibility, solid returns, and—most importantly—programs without the risk of sudden policy changes. Portugal and Italy both offer these advantages." According to Maxwell, investors are particularly drawn to real estate and capital investment opportunities that align with the Golden Visa programs in both countries.


Investor Preferences

Werner Gruner of Get Golden Visa (www.getgoldenvisa.com) emphasizes the growing interest from Canadian investors: "Many of our Canadian clients are looking for diversification and flexibility in their investments. They want a solid track record of success, and most importantly, they don’t want to take on any Golden Visa risk. Programs like Portugal's and Italy's offer just that—security, predictability, and an opportunity for long-term planning"​.

Regarding real estate preference, "Downtown Lisbon is a favourite for Canadians," says Anne Brightman, founder of Brightman Group (www.brightmangroup.com) . "Many are seeking out the city’s historic districts, like Baixa and Chiado, where they can enjoy a blend of old-world charm and modern amenities. The simple living lifestyle compared to other European capitals, along with the strong cultural appeal, makes it a top choice."


Practical Considerations for Canadians

Moving to Portugal or Italy involves more than just tax advantages—it requires careful planning to navigate legal, financial, and lifestyle issues. For example, Canadians need to sever residential ties in Canada to avoid ongoing tax liabilities, address exit tax concerns, and plan for new healthcare arrangements abroad​.

Canadians relocating abroad are advised to have a solid plan in place, particularly regarding tax residency and estate planning.

Canadian David Lesperance, an international tax and immigration expert and founder of Lesperance Associates, highlights the need for pre-move planning: "Without careful pre-immigration tax planning, Canadians can face unexpected financial burdens when relocating abroad. Exit taxes, ongoing reporting obligations, and the need to acquire residency in a country with a favorable tax treaty are all essential considerations."


Conclusion

For Canadians, particularly Baby Boomers, Portugal and Italy present compelling options for retirement. With their favourable tax regimes, lower costs of living, and appealing Golden Visa programs, these countries offer a chance to preserve wealth while enjoying an enhanced quality of life. As interest continues to grow, it’s clear that for many, the opportunity to secure European residency through investment is an increasingly attractive alternative to staying in Canada.


Contact information:

Michael Maxwell - Founder

Portugal Panorama

michael@portugalpanorama.com

+351 965 592 312

www.portugalpanorama.com