Unveiling the new expat hotspots
While traditional immigration powerhouses like the United States, Canada, and France continue to attract expatriates despite stricter policies, emerging nations are gaining prominence. Spain, historically known more for emigration, has transitioned to becoming a destination for immigrants. With a population of 48.61 million, 9.03 million were born abroad. In 2023, foreigners occupied 42% of the 749,000 new jobs, becoming vital to an economy grappling with an aging population, declining birth rates, and the exodus of skilled nationals—over 400,000 in 2022 alone. Similar patterns are emerging in other new lands of immigration.
Luxembourg
Expats are increasingly moving to Luxembourg. As of 2024, 47.3% of the residents, out of a total population of 672,050, do not hold Luxembourg nationality. Most of these immigrants hail from the European Union, with significant communities including 93,659 Portuguese (14.5% of the total population), 49,071 French (7.6%), 23,881 Italians (3.7%), 19,692 Belgians (3.1%), and 12,906 Germans (2%). Most live in Luxembourg City (70%), compared to the roughly 20% who settle in rural areas. Historically a land of emigration, Luxembourg has transformed into an immigration hub, mainly due to the development of sectors like finance in the late 20th century, which keeps drawing foreign talent.
However, only some find life in the Grand Duchy appealing. High living costs, particularly for rent, and a fast-paced lifestyle have prompted many expats to leave, trading a portion of their salary for a better quality of life elsewhere. Similarly, a small but notable number of Luxembourgers are relocating, primarily to neighboring Belgium and France, driven by the same issue of high rents. In 2023 alone, over 3,000 Luxembourgers emigrated, indicating a trend that observers believe may persist.
Liechtenstein
Despite its lower profile compared to traditional immigration destinations, Liechtenstein has a notable immigrant population. As of 2021, foreign nationals comprise one-third of the country's 39,315 residents. These immigrants are primarily from Europe, with the Swiss, Austrians, Germans, and Italians comprising the most prominent groups. They benefit from the European Economic Area (EEA) agreements, which allow residency under strict quotas—72 permits annually for EEA citizens and 17 for Swiss nationals. Residence permits for EEA citizens are obtained either through a lottery system or by government decision, although the government is not obliged to grant these permits. Liechtenstein maintains stringent immigration policies; foreign workers are prohibited from residing in the country even if employed locally. Nonetheless, these workers are vital in key sectors such as manufacturing, construction, and finance.
Portugal
Portugal has emerged as a prominent destination for immigrants, a trend underscored by the steady increase in foreign residents since 2016, as highlighted by the Foreigners and Borders Service (SEF) in January 2023. The health crisis did not impede this growth. Portugal is particularly appealing to digital nomads and expatriates, with a significant number being Portuguese speakers. The Brazilian community is the largest among foreigners, numbering 233,138 in 2023, followed by the British (36,639), Cape Verdeans (35,744), and closely by Indians (34,232), Italians (33,707), Angolans (30,417), and French (27,614). Ukrainians, Romanians, and Nepalese also represent large groups. There's also a growing influx of Americans drawn by the affordable cost of living and high quality of life.
To enhance its attractiveness to foreign talent, the Portuguese government relaxed immigration laws in July 2022. New legislation allows for a 120-day temporary visa for job seekers, extendable by another 60 days. Further simplifications were made for digital nomads in visa procedures on July 21, and in September, expedited visa processes were introduced for nationals from the Community of Portuguese Language Countries (CPLP), including Brazil and Angola.
These legislative changes are pivotal for addressing labor shortages and leverage Portugal's positive global reputation. Expats commend its quality of life, beneficial tax policies, and burgeoning opportunities in sectors like renewable energy, healthcare, education, industry, and digital technology.
Tightening immigration rules amidst political shifts
From 2023, Portugal's immigration landscape began to face challenges. The housing crisis has local residents frustrated, attributing rising prices to expatriates. Despite previously boasting one of the most liberal immigration policies in the EU, the political climate has shifted. In response to the changing political landscape, the new government announced plans in June to tighten immigration rules, including eliminating the possibility of entering on a tourist visa and then applying for a residence permit. This policy shift raises questions about the future of immigration in Portugal. Despite these changes, Portuguese emigration continues, particularly among young professionals such as engineers, researchers, and teachers. According to the Portuguese Emigration Observatory, 60,000 Portuguese opted to live abroad in 2021, a trend that persists despite economic recovery. Like Spain, Portugal remains a significant source of emigration.
Mauritius
As of May 2024, Mauritius has seen a significant presence of expatriates in its workforce, with 44,043 foreign nationals holding work permits, nearly half of whom are employed in the manufacturing sector (21,411 foreign workers). According to the Mauritian Ministry of Labor, 15,284 expatriates are engaged in construction. The ministry ensures that work permits align with the economic climate, supporting the country's growth initiatives. A pivotal change has been the removal of foreign labor quotas in the 2024/2025 budget, which previously restricted the hiring to one foreign worker for every three Mauritian employees.
Unveiled on June 7, 2024, the new budget eliminates quotas in specific sectors such as manufacturing, jewelry, and the free port area, which are not subject to customary controls. This change also impacts the burgeoning sectors of information technology (IT) and Business Process Outsourcing (BPO), which involve managing certain internal processes through specialized providers. Additional reforms are set to make foreign recruitment more flexible in agriculture, with the work permit process streamlined to a maximum of three weeks and the renewal period for manufacturing sector permits extended up to 10 years.
While Mauritius is a favored destination for European expatriates, the primary foreign workforce comprises Bangladeshis, Indians, and Malagasy. As of October 2021, these groups held 13,385, 5,596, and 2,424 valid work permits respectively, with several individuals from these countries also benefiting from exemptions. France ranks as the seventh largest group of foreign workers, holding 56 work permits and receiving 94 exemptions.
The Mauritian labor market at a crossroads
For Mauritius' Ministry of Labor, reliance on foreign labor is unavoidable due to aging demographics, declining birth rates, and the continuous emigration of Mauritians—factors that are not offset by incoming foreign labor. This situation has led to labor shortages in critical economic sectors, including manufacturing, IT, finance, health, and construction, with tourism still reeling from the impact of the Covid years.
However, the government's strategy to address these challenges has stirred controversy. While the Confederation of Public and Private Sector Workers (CTSP) acknowledges the issues with an aging population, it contests the official figures, claiming that the number of foreign workers is "at least 75,000," a significant discrepancy from the 21,411 reported by the government. Moreover, a portion of these workers are employed without valid permits. Adding to the complexity, the State Employees' Federation highlighted that as of the first quarter of 2024, Mauritius had 37,300 job seekers, comprising 50% women and 36% youth, which constitutes 6.3% of the workforce.
The tension peaked on July 7, when a protest organized by unions and local residents voiced opposition to the new measures. The protesters, emphasizing their historical roots as descendants of immigrants, argued for immigration policies that align more closely with the country's realities. They raised concerns about the local unemployment rate and the potential for increased exploitation of foreign workers due to the removal of quotas.
Conversely, the business sector, particularly those targeted by the reform, praised the government's move. The Association of Mauritian Manufacturers (AMM) endorsed the measure, asserting that it secures the competitiveness of the Mauritian industry internationally. Other companies highlighted the need for faster immigration procedures and stressed the importance of investing in the training of young Mauritians to balance the labor market dynamics.
Switzerland
Switzerland has seen a consistent increase in its foreign-born population since the 1980s. By 2022, immigrants and their descendants accounted for 40% of the permanent population, roughly 3 million people, a proportion that surpasses many traditional lands of immigration like the United States and aligns more closely with Canadian or Australian levels.
Most of Switzerland's immigrants originate from the European Union (EU) and the European Free Trade Association (EFTA)—countries that collectively account for approximately 63% of foreign residents, or 1.5 million people, as of 2023. Despite not being a member of the EU, Switzerland is part of the EFTA, facilitating free movement for these Europeans. An additional 19.5% of immigrants come from other European countries, with Italians historically being the first significant group. However, they have recently been matched by Germans, with federal statistics in 2023 reporting 14% Italian immigrants and 13.8% German. Portuguese and French nationals follow, making up 10.8% and 7% of the immigrant population, respectively.
Outside of Europe, Asian immigrants represent the largest non-European group at 8%, significantly outnumbering those from Africa (5%), the Americas (3.8%), and Oceania (0.1%).
Fueling economic growth through immigration
Switzerland's economic allure keeps growing, drawing 68,000 European workers in 2023 alone—a 29% increase from the previous year. Germans led this influx, followed closely by the French and Italians, who were attracted by the prospect of higher wages and superior living conditions. Switzerland boasts robust employment growth of 2% and maintains a historically low unemployment rate of 2%, a stark contrast to Italy's 6.8% and France's 7.3%.
According to the International Monetary Fund (IMF), Switzerland has navigated the health crisis more effectively than its neighbors. Despite facing similar challenges, such as labor shortages and an aging population, the country's economic vitality is significantly bolstered by immigration. Immigrants are not only prevalent in cutting-edge professions and less-skilled jobs but also play a crucial role in innovation and research. Notably, 39% of company founders and 50% of startup founders are foreigners, and many university professors in Switzerland are of foreign origin. This demonstrates that the impact of immigration extends beyond the economic domain, invigorating various social spheres as well.
The shift toward stricter immigration policies
While Switzerland has greatly benefited from the contributions of foreign workers, it has seen a gradual tightening of its immigration policies. In 2014, a slim majority (50.34%) voted in favor of a Swiss People's Party (SVP) proposal, a nationalist group, to limit immigration—a result that stood in contrast to the free movement norms of EFTA. The Parliament moderated this stance two years later. Dissatisfied with the implementation, the SVP in 2023 once again campaigned against increasing Switzerland's population to "10 million inhabitants." Although the political climate has shifted, with Switzerland unlikely to jeopardize its relationship with the EU, the SVP's message gained traction during the low-turnout federal elections in October 2023 (46.6%).
The future of Switzerland's immigration policies remains a topic of debate. Optimists believe that, like its European counterparts, Switzerland will continue to prioritize highly skilled expatriates. While EFTA members enjoy the benefits of free movement, non-Europeans encounter stricter requirements, needing to demonstrate high levels of skill. Despite these challenges, Switzerland is not expected to emulate Germany's recent move to reinstate border controls on September 19—a decision that has stirred EU tensions and raised concerns over immigration practices.
