Portugal is preparing to welcome a further influx of millionaires and entrepreneurs over the next two years.
It comes as more wealthy families are drawn by the country’s exceptional lifestyle, attractive business environment, and stable conditions.
Paul Stannard is chairman of Portugal Pathways, an organisation that supports affluent expats coming to Portugal.
He explained: “We are inundated with inquiries from wealthy international families and businesspeople wanting to take advantage of all that Portugal offers.
“They want the high standard of living and climate which Portugal has – plus the hassle-free access to the 29 European countries which comprise the Schengen region.
“They also want to live somewhere which does not have the political and economic instability seen in so many countries.
“Our research over the last two years shows over 2,700 millionaires and entrepreneurs have chosen to relocate and invest and we only see that increasing in the coming 24 months.
“It’s no surprise that Portugal is the number one place in the world for relocation right now.”
That is being reflected in demand for some of the latest developments in the country.
Philip Button is managing director of Brookes Property Group which has seen the strength of the luxury real estate market in Portugal continue to grow – driven by increased demand from wealthy expats.
He explains: “We are just launching our new Quinta Heights development in Ferragudo, in the central Algarve. We have already sold 25% off-plan to UK and US investors – before the official launch in September 2024.
“This particular area offers so much potential for capital growth and remains very authentic in what it offers as a location. Having worked internationally for 20 years in luxury real estate in Florida, the Bahamas, Antigua, and the UK, we identified Portugal as the country with the most to offer. It’s the whole package.”
Recent and upcoming changes to Portugal’s tax regime, being ushered in by the new government, are expected to enhance its attractiveness, particularly for entrepreneurs and highly skilled professionals.
The Non-Habitual Residency (NHR) tax regime, which has been a major draw for foreign investors and wealthy families, is set to be revised in 2025.
Under the new NHR 2.0 tax regime, the current 0% tax on foreign pensions will be discontinued for new entrants, instead being taxed under general income tax rules.
Despite these impending changes, the NHR 2.0 regime will continue to offer significant tax advantages, including a 0% tax rate on passive income such as dividends, royalties, and rental income from non-Portuguese sources, as well as a low flat rate on professional income.
This is expected to keep Portugal highly attractive to entrepreneurs and professionals managing global operations or looking to establish a base in Portugal.
The Golden Visa residency-by-investment programme, which has also been pivotal in attracting foreign investment, has shifted its focus too.
It now requires a €500,000 investment for an applicant and their family to secure dual residency with the condition they must reside in Portugal for just seven days a year. In exchange, they gain hassle-free access to the EU Schengen region for the entire family.
However, the Golden Visa residency-by-investment programme no longer includes residency through direct real estate investment, instead directing applicants towards investments in regulated Portuguese funds or startups.
Andy Wright is a UK music producer living in California with his young family. For him, the choice for his future home was a no-brainer.
He explains: “We looked at coming back to the UK, but to be honest, we felt Portugal offered so much more. We’ve found a great international school and secured NHR tax status. We just want a better environment compared with the US or UK.
“We see Portugal as a place where we can build on what we’ve achieved while enjoying a safe and pleasant lifestyle. It’s also a great place to continue our business activities while we still have the appetite.”
Similarly, Mary Sandling from South Africa is preparing to open a new business in Portugal. She says: “The business climate in Portugal is so much better than what we’ve been dealing with in Johannesburg.
“It’s safer, more stable and offers an environment where businesses can truly thrive. We’re excited to make the move and start this new chapter.”
As safety and stability become increasingly important to the world’s wealthy, Portugal’s reputation as a safe, welcoming, and stable country is expected to drive further interest from global investors, affluent families, professionals, and entrepreneurs.
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