Major Surge in Demand from International Millionaires Relocating to Portugal

Portugal is set to see a new influx of international millionaires and entrepreneurs over the next two years – attracted by its lifestyle, luxury real estate, culture, cost of living, safety and security as well as tax and inheritance incentives.

With thousands more expected to arrive in Portugal, experts say it is further driving a boost to the luxury property market and the economy.

It comes as high-net-worth families and entrepreneurs look to relocate their lives and some of their business interests to Europe and take advantage of lifestyle, tax, and investment benefits there.

With its picturesque landscapes, warm climate, commitment to environmental sustainability, and rich cultural heritage, Portugal ticks all the boxes. It was named the no.1 relocation destination for 2024 and has had the fourth highest growth in its property values in any country in the world in the last 12 months.

Paul Stannard is chairman of Portugal Pathways, an organisation that supports affluent expats with real estate, visa, tax and financial experts who guide the affluent and their families effortlessly through the steps needed to secure their move to the country.

He explained: “We are inundated with inquiries from wealthy international families and businesspeople wanting to take advantage of all that Portugal offers. In particular, 40% of all inquiries currently come from the US and the UK regarding investing in real estate in Portugal.

‘’Last week, the Institute of Registries and Notaries in Portugal highlighted a huge increase in applications for citizenship in 2024, and we are seeing this trend continue and accelerate since the beginning of the third quarter.

“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 and the favourable tax and inheritance incentives.

“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. That’s great news for them and their families and for the Portuguese economy.

“It’s no surprise that Portugal is the number one place in the world for relocation right now according to International Living Index and Wealthy Expats in Portugal Survey Report published this summer.”

These millionaires and entrepreneurs are coming from all over the world, but the largest influxes are coming from US, Canada, UK, Ireland, Northern Europe, South Africa, Brazil, Israel, Singapore, Hong Kong and Thailand.

Upcoming changes to Portugal’s tax regime in 2025 are expected to increase its appeal, 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 not be permissible. Instead, they will be taxed under general income tax rules in Portugal. However, most US-connected citizens continue to pay taxes in the US but benefit from Portugal’s agreement with the US not to double-tax US-connected citizens.
 
However, US-connected citizens are subject to continued tax filing via the US Treasury, and Canadian citizens may be subject to exit taxes. However, there are double taxation agreements between Portugal and both North American countries so that you are not taxed twice. Neither of these taxes seems to be slowing the migration and relocation to Portugal from North America.

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 also shifted its focus away from real estate.

It now requires a €500,000 investment for an applicant and their family to secure dual residency, with the condition that they 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 investors towards investments in regulated Portuguese funds or start-ups that are approved for Golden Visa.

This shift reflects the government’s strategy to channel foreign capital into sectors that directly contribute to economic growth such as technology, clean energy, tourism, and healthcare.

Philip Button is managing director of Brookes Property Group, which has been building international real estate projects in Florida over the last twenty years and is now shifting its focus to Portugal.

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They have been researching and witnessing the strength of the luxury real estate market in Portugal – driven by increased demand from wealthy expats and entrepreneurs from around the world.

He explains: "We are just launching our new Quinta Heights development in Ferragudo, in the central Algarve this autumn. We have already sold 25% off-plan, predominantly to US, Canadian, UK and other international investors - even before the official launch.

“This particular Algarve 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."

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 said: “ We felt Portugal offered so much more and are selling our real estate assets in London and California. We’ve found a great international school in the central Algarve and have secured NHR tax status, which is much more favourable and we can see a lot of capital growth potential for a property portfolio in and around Lisbon as well as the central Algarve regions. We just want a better environment compared with the US especially safety and security.

“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, invest in real estate while we still have the appetite.”

Similarly, Graham Stevens from Seattle is preparing to open a new real estate business in Portugal. he says: “The business climate in Portugal is so much friendlier and less regulated than what we’ve been used to in the US.

“It’s a safer environment, and we’ve seen a lot of social issues getting worse in the US. Portugal also has a more stable and affordable healthcare system and offers an environment where businesses can truly thrive.

''They seem to want to welcome entrepreneurs, and we can still keep our operations in the US but build a team in Lisbon and the Algarve as the real estate market is on fire there at the moment and we can’t see this changing for at least 3 to 5 years due to supply and demand. We’re looking forward to the opportunities and some of our teams have already agreed to join us.’’
 
With these factors in play, Portugal is set to solidify its position as a leading destination for wealth relocation, luxury real estate, innovation and business in the years ahead.

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To arrange a call with one of our Portugal Pathways real estate experts and find out more about new developments, contact us today.

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