Portugal is expected to see an inflow of some 800 millionaires this year, many of them from the UK.
The news adds to the shift that Portugal has seen in recent years in terms of those choosing to make the country their home. Its traditional market of retirees looking for a life in the sunshine remains strong. However, Portugal is also seeing increasing interest from entrepreneurs, young families, wealthy investors and more, with Britain remaining a major source of property buyers for Portugal’s leading resorts and estate agencies.
We caught up with Christina Hippisley, General Manager of the Portuguese Chamber of Commerce in the UK and organiser of the Moving to Portugal Show and Seminars taking place in London on October 17, 2024, to find out more.
How is the nature of those moving to Portugal changing?
Christina Hippisley: We’ve seen a real shift in the last 3-4 years towards younger people moving from the UK to Portugal. Entrepreneurs, businesspeople and young families are all looking to Portugal to achieve a better work/life balance, as well as to underpin their financial success. There’s also more movement within the business environment than there used to be, after the pandemic showed people that they can think differently about where and how they work.
At the same time, Portugal is still attracting keen interest from retirees in the UK who want to spend their golden years in the sunshine, rather than the rain. This means there’s a real mix of people making the move to Portugal right now.
What’s also clear is the importance of demand from European buyers. In the resorts around Albufeira-Loulé (including Vilamoura, Quinta do Lago and Vale de Lobo), European buyers accounted for 96% of sales in 2023, with British buyers leading the charge and accounting for 57% of all sales to international investors.
What is driving this change?
CH: Each family is different when it comes to the decision to move overseas. For many, the decision has been prompted by staycations in Portugal during COVID and beyond. People have realised how easily they can work remotely from Portugal.
In addition, the painful fiscal changes anticipated in the new Labour government’s first budget in October 2024 are definitely playing a role in pushing some businesspeople to move overseas. Portugal is seen by many as offering a more welcoming environment in terms of taxation, as well as a lower cost of living than the UK.
Of course, the favourable weather and outdoor lifestyle available in Portugal will always be important considerations for those moving away from the UK as well!
Why is Portugal proving particularly attractive to wealthy British businesspeople right now?
CH: Portugal has always appealed to wealth businesspeople due to the quality of life on offer. Now, the country also offers a high-quality remote technology environment, in addition to a huge range of flight options. In 2023, there were 581 direct flight departures to Britain per week, with a total seat capacity of 106,059. Six airports in Portugal serve 24 British airports and scheduled seat capacity on non-stop flights from Portugal to the UK in 2023 exceeded 2019 levels by 10%. This combination of digital and physical connectivity is a winning one.
Then there are push-factors from the UK. Labour’s October 2024 budget is widely anticipated to include painful tax changes for wealthy individuals. That’s on top of the removal of VAT exemption on private school fees. Portugal, meanwhile, offers a welcoming environment with tax incentives for those who set up businesses here or who carry out skilled professions.
Portugal is proving attractive for those looking at longer-term wealth planning, too. It has advantages over the UK in terms of inheritance tax and capital gains tax considerations, which is why wealthier business people and their families are giving Portugal such serious consideration.
The other factor is the variety of visas available to those who want to set up their future in Portugal. It’s clear that Portugal is serious about supporting people to build a new life, with visas that are well suited to everyone from entrepreneurs and digital nomads, to retirees and investors.
Have there been any notable changes in terms of the general profile of British expats buying property in Portugal?
CH: The age of prospective buyers attending our Moving to Portugal Shows is coming down and we’re seeing younger people looking at buying property and relocating to Portugal. At our March 2024 event, almost half of attendees were aged between 40 and 60 years old – it’s not just retirees who have Portugal on their radar these days.
We’ve also seen an increase in families bringing their children to Portugal – and we’re seeing changes in Portugal that tie in with this trend. In the past five years alone, the number of international school places in the Lisbon region has increased by 93%.
As well as families buying homes in Portugal, there’s plenty of interest from investors. There seems to be more awareness of Portugal’s property market movements nowadays, which is driving investors to want to be part of its future success.
How have buyers’ geographical preferences changed?
Broadly speaking, the Algarve and Lisbon continue to be the top destinations in Portugal for British movers. At our March 2024 Moving to Portugal Show, 49.9% of attendees listed the Algarve as their most desired location and 45.7% listed Lisbon, broadly consistent with our previous London show in autumn 2023.
City life holds plenty of appeal for businesspeople and entrepreneurs moving to Portugal, which is why Lisbon – and to a lesser extent, Porto – tend to attract such interest. The more relaxed pace of life in the Algarve attracts more retirees, though we’ve also seen plenty of interest from younger buyers in that region too of late.
Island life is also on many buyers’ radars now. We’re seeing buyers looking to balance value for money with stunning natural beauty, with Madeira and the Azores both in the spotlight as a result.
How can those interested in moving to Portugal find out more?
The Moving to Portugal Show and Seminars is designed to help anyone thinking about making the move. It’s free to attend – people just need to register online. The event is packed with information from specialist firms spanning the relocation, legal, banking, pensions, real estate and other sectors.
We’ve had more than 9,000 people attend the Moving to Portugal Shows over the years, so we’ve evolved the format of the event in line with their needs. It is now the premier and biggest event for the UK market to find out how to move to Portugal, including information on property, tax, pensions, visas and so much more.
The next show is in central London, at the Pestana Chelsea Bridge Hotel, on October 17, 2024. It’s a great way for people to make the contacts they need to ease their transition from life in the UK to a whole new adventure in Portugal.
