Portugal is swiftly emerging as a prime destination for wealthy expats seeking more than just sunshine and sardines.
According to the ‘Wealthy Expats in Portugal Survey Report 2024/25’ from the World Digital Foundation, which interviewed over a thousand affluent individuals considering relocation, the country’s appeal lies in its favourable tax regimes, safety, excellent healthcare, and overall quality of life.
Tax incentives and residency programs
One of the significant draws for wealthy expats is Portugal’s advantageous tax policies. The Non-Habitual Residency (NHR) tax regime, introduced in 2009, has been particularly attractive, offering substantial tax benefits to foreign residents for a decade.
Though this regime will be replaced by the new NHR 2.0 scheme in 2025, it is expected to remain appealing, especially to tech professionals, entrepreneurs, and high-net-worth individuals.
This scheme will continue to support foreign wealth and innovation while ensuring that local benefits are protected.
Additionally, Portugal’s Golden Visa residency by investment program has been a key factor in attracting international investors.
This program grants residency to non-EU nationals who invest €500,000 in regulated funds.
After five years, investors can apply for permanent residency and even citizenship, offering freedom of movement across the EU.
This program has shifted from property investments to sectors like renewables, healthcare, technology, and tourism, fostering economic growth and diversification.
Safety and quality of life
Safety is a paramount concern for affluent expats, and Portugal delivers with low crime rates and a reputation for being welcoming and secure. According to Mathilda Green, a wealthy expat from Amsterdam,
Portugal feels like a sanctuary. I can walk around Lisbon any time of day or night without feeling unsafe.
Portugal also boasts a high standard of healthcare and a thriving luxury real estate market, especially in cities like Lisbon, Porto, and popular regions like the Algarve.
The influx of wealthy expats has led to a boom in the luxury real estate market, with properties in areas like Cascais, Comporta, and Ferragudo offering stunning locales and excellent investment returns.
According to the Property Market-Index, Portugal’s real estate market is set to grow twice as fast in 2024 compared to North America, Europe, and the UK.
The rise of digital nomads
Portugal’s rich cultural heritage and welcoming community are significant attractions for expats. The country offers a unique blend of historic charm and modern amenities, making it an ideal place for international families.
The rise of digital nomads and entrepreneurs has also contributed to Portugal’s growing start-up ecosystem. Cities like Lisbon have become hubs for international talent, drawn by lower taxes and a vibrant entrepreneurial scene.
A thriving expat community
The report indicates that Portugal continues to attract wealthy families from countries like the US, Canada, the UK, Israel, and various parts of Europe and Asia.
These individuals are drawn by the country’s political stability, favourable tax environment, and high quality of life.
Paul Stannard, Chairman at Portugal Pathways, an online platform supporting affluent families relocating to Portugal, states,
“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, and thriving luxury real estate market.”
Portugal’s strategic initiatives, from tax incentives to the Golden Visa program, combined with its high quality of life and cultural richness, make it an increasingly popular destination for wealthy expats.
As the country continues to evolve and adapt its policies to attract international talent and investment, it remains a top choice for those seeking a stable, welcoming, and prosperous environment.
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