International report highlights Portugal’s appeal among wealthy expats – London Business News | Londonlovesbusiness.com

Portugal has become an increasingly popular relocation destination for wealthy expats seeking more than sunshine and sardines.

According to a new ‘Wealthy Expats in Portugal Survey Report 2024/25’ from the World Digital Foundation, which interviewed over a thousand wealthy expats looking to relocate their life, tax status and investments in Portugal.

The report highlighted Portugal’s reputation as a friendly and welcoming country with an excellent track record for healthcare, safety and security, as well as cost of living. Portugal also has favourable tax regimes for investors, entrepreneurs, highly qualified professionals and high-net-worth individuals.

Cassie Hawk, a spokesman for the ‘Wealthy Expats in Portugal Survey Report 2024/25’ said: ‘’ Portugal has seen a meteoric rise over the last 10 years in terms of attracting affluent families and investors, and the country has been long famous for sardines, local produce, culture, weather and is really punching above its weight with international people looking for a safer landing place for life as well as their wealth, income and assets.’’

Portugal has also recently updated its Golden Visa residency by investment program, which gives individuals and their families dual residency in their home country and Portugal and freedom of movement throughout the 29 EU Schengen region countries. This is in return for a €500k investment in one of the regulated and approved Portuguese investment funds but cannot be property related.

After 5 years, this gives you the option to apply for permanent citizenship in Portugal and the EU, as well as potential return on your investment.

Portugal’s Golden Visa residency by investment program offers numerous investment opportunities for capital growth in alternative investments in sectors like renewables, healthcare, technology, tourism, and hospitality.

The country also boasts a growing start-up ecosystem, fuelled partly by international talent and entrepreneurs and its growing band of Digital Nomads coming to the country and enjoying lower taxes.

This picturesque and culturally rich country offers a unique blend of lifestyle benefits, from vibrant cities such as Lisbon and Porto to in-vogue locations such as Cascais, Comporta, Foz do Douro, Braga, Lagoa, Quinta do Lago, Lagoa, Ferragudo and Carvoeiro.

These locations are outperforming not only the national property market for capital growth but also even more so against international real estate markets such as North America, UK and Europe.

According to the new Wealthy Exapts in Portugal Report 2024, Portugal is also continuing to benefit from an influx of wealthy families who are leaving countries such as the US, Canada, the UK, Israel, South Africa, Taiwan, Hong Kong, Singapore, China, Northern Europe, and Brazil.

These families and entrepreneurs as well as professionals are seeking better safety, security, friendly tax system and overall quality of life, which they feel their home countries can no longer provide due to political and economic reasons. Additionally, many of these families are reflecting their relocation decisions in their investment choices.

Paul Stannard, Chairman at Portugal Pathways’ an online platform that supports affluent international families relocating and investing in life in Portugal, says: “There’s no slowdown in the influx of high-net-worth individuals coming into Portugal, thanks to the country’s safety, rich culture, favourable tax regimes, the Golden Visa program, and a thriving luxury real estate market especially in and around Lisbon and the Algarve.

Not forgetting the temperate climate as well as the sardines and 300 days of sunshine. It’s also very clear that Portugal offers a much more friendly and less divisive environment than what they are often seeing back in their country of origin.

This includes political uncertainty, cost of living, and no tax on wealth and inheritance, as Portugal continues to tick all the boxes, and it’s no surprise to us the results from this new research with international wealthy expats already in Portugal or considering that move.”

Safety is of paramount concern for affluent expats. Portugal delivers on this front with low crime rates, healthcare, and an evolving luxury real estate market that continues to thrive, but it still has a reputation for bureaucracy in dealings with the government departments.

According to wealthy expat Mathilda Green from Amsterdam: “Portugal feels like a sanctuary. I can walk around Lisbon any time of day or night without feeling unsafe, and I haven’t been able to say that in my home country, the polarisation of politics in Northern Europe and other parts of the world are so far removed in Portugal and feels open and welcoming.’’

Portugal’s rich cultural heritage is another significant attraction. From historic landmarks to vibrant festivals, amazing coastlines and countryside, the country offers many experiences.

Maria Santos, an expat from Brazil, explains: “The culture here is so diverse and welcoming. I love the blend of old-world charm with modern amenities being developed. There is a real feeling of community, and local people, as well as international families, seem to embrace the Portuguese welcoming and friendly nature.’’

Portugal’s favourable NHR (Non-Habitual Residency) tax regime introduced in 2009, has been a substantial draw for wealthy expats and entrepreneurs who want to benefit from their worldwide income while resident in Portugal.

The NHR tax regime will be replaced in 2025 by a new scheme, some calling it ‘NHR 2.0’. Again, this seems very aligned with supporting wealth from abroad, and entrepreneurs in particular, as well as highly talented professionals, innovators, scientists, and researchers.

While the new tax scheme aimed at expats coming to Portugal has been outlined, the new government in Portugal is now putting its own mark on the reforms with potentially more professions added to the qualifying list ready for its full implementation in 2025.

Many families can still secure NHR tax status in 2024 using the grandfathering conditions, with the help of organisation like Portugal Pathways or other tax and immigration professionals.

These grandfathering conditions dictate that individuals must demonstrate proof of intent to reside in Portugal to qualify this year for the existing NHR tax scheme, which was more aligned to passive income and wealthy retirees as well as entrepreneurs.

Maria Alvarez Garcia, Tax Partner at Vida Advisors, said: “The NHR 2.0 tax regime is expected to be highly beneficial for tech professionals, entrepreneurs and start-up founders, making Portugal a hub for innovation and business growth.

It will encourage investment and help build a more robust Portugal economy as a result. However, we are expecting the new government to potentially make amendments as the outline bill was originally put in place last November by the old government, but the new government has already indicated that it wants to be investor friendly but also make sure that local people are protected and benefit.’’

The Golden Visa residency-by-investment program is another major factor driving the influx of wealthy expats, but due to recent changes, this is not impacting the local property market and is now much more sophisticated. Many new investment funds in other sectors are now being offered in a regulated environment.

This initiative grants residency to non-EU nationals who make qualifying investments of €500,000 in regulated funds that have been approved for Golden Visa residence by investment in Portugal.

Chairman of Portugal Pathways Paul Stannard adds: “The Golden Visa program has been instrumental in attracting foreign investment. It no longer relates to investing in property, as that was stopped in 2023. What has replaced it is potentially better for the country and gives far more choices to investors in terms of the sectors and scope for investment.

There are now opportunities to invest in renewable energy funds, where Portugal has become a leader in Europe over the last few years. Hospitality and tourism, innovation start-ups, and healthcare are also examples of alternative investment funds that are now available.”

Portugal Pathways have recently put together a Golden Visa index of all the different regulated funds approved for Golden Visa residency by investment in Portugal. There are now over 40 funds to choose from.”

It’s a win-win situation for people wishing to secure a Golden Visa and bring investment to the country that helps further improve Portugal’s growing economy, and we are seeing no let-up in demand for this.’’

According to the latest international ‘Portugal’s Property Hotspots Report’ from Property Market-Index, Portugal’s luxury real estate market is also thriving. The report indicates a supply shortage based on the demand from wealthy buyers and investors. This, coupled with Portugal’s growing reputation, means that Portugal’s real estate market will grow twice as fast in terms of capital growth in 2024 compared with North America, Europe, and the UK.

Amanda Collison, at Property Market-Index, said: ‘’ The continued influx of entrepreneurs and wealthy families choosing Portugal over other popular relocation marketplaces is not only delivering for investors but the quality of the build programs in Portugal are now right up there with the best you can find internationally.’’

Sarah Thompson, a British expat, says: “The real estate opportunities here that we have seen in the last two years have really surprised us, both in the quality of the architecture and the amazing locations and backdrops that make these opportunities so appealing.

We looked at central Algarve and found a beautiful beachfront villa that was a fraction of the price of the Golden Triangle, near Ferragudo, which was 30 minutes up the road by car but gave us a far richer Portuguese experience, and we found the quality of beaches, local produce and eateries as good as anywhere but without paying through the nose as you do in certain parts of Quinta do Lago and Vale do Lobo.”

Coupled with the quality of life on offer, I’ve never regretted my decision to move here.’’

One luxury developer, Brooks Property Group, in the Algarve who is launching their Quinta Heights  development between Carvoeiro and Ferragudo this summer, said: ‘’We are just launching, and we have 25% sold off plan already. The demand for central Algarve is very high as it offers such a rich cultural experience and luxury developments like our Quinta Heights development that offers a lot more value with comparable developments in the Golden Triangle which is just 30 to 40 minutes up the road.

The beaches and bays, as well as the seafood and sardines in Ferragudo and Carvoeiro, mean that you can have those stunning sea views and at the same time see the inward mountain views from our soon-to-launch Quinta Heights luxury development, which will have the very highest specifications and amenities including wellness and yoga spa facilities, garden walks and even its own observatory to star gaze from the rooftops and witness the incredible night sky without the light pollution.”

We have been building international luxury real estate for more than 20 years, originally in Florida, and we are very excited about what’s going on and the opportunities coming up in Portugal. It is no surprise that it is attracting so many international affluent families.’

For others just considering a move, Portugal presents a compelling case for why it should be at the top of their list, having been voted best travel destination in Europe 5 years out of the last 6 and the no.1 location in the world for wealthy expats relocating internationally based on this new report.