Where are the world's rich? Portugal ranks in top 10 for HNWI migration

Portugal has emerged as a hotspot for High Net Worth Individuals (HNWI) seeking new horizons.

The country's unique combination of factors, including the Golden Visa programme, appealing climate, lucrative property market, favourable tax policies, and streamlined visa systems, has turned the nation into a magnet for those seeking both financial opportunities and a high quality of life.

According to Henley & Partners 2023 Private Wealth Migration statistics, Portugal ranked as the ninth-highest country for HNWI migration inflow.

So, just why is Portugal such an attractive destination for the world’s rich?

The Golden Visa Programme: Gateway to Europe

At the heart of Portugal's appeal to HNWI lies the Golden Visa programme. Launched in 2012, this initiative offers non-EU citizens a fast-track route to residency and, ultimately, citizenship in exchange for investment in the country.

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Although, currently the Golden Visa programme is being discussed in Parliament and a bill was being proposed to remove the visa by real estate investment option. However, as of August 21st 2023, the Portuguese President vetoed the bill proposed by the parliament on July 19th 2023 to change the Golden Visa programme and sent it back for further discussion in the upcoming session in September.

Applicants can currently still choose from a variety of investment options, including real estate investment, job creation, capital transfer, investment fund, and more. It not only provides an attractive incentive for wealthy individuals but also facilitates their integration into the European lifestyle and business landscape.

Comparatively, the D7 Visa (also known as the ''Retirement'' or ''Passive Income Visa'') which is used in conjunction with the Non-Habitual Residency Programme offers the same benefits as the Golden Visa programme at a much cheaper price and lower requirements.

Climate and Lifestyle

The Mediterranean climate is a significant draw for those seeking an escape from harsher weather conditions elsewhere.

With over 300 days of sunshine per year and mild winters, the country offers a relaxed lifestyle that combines outdoor activities, coastal living, and a rich cultural heritage.

The appeal of enjoying the finer things in life against a backdrop of stunning landscapes and historic towns has been a compelling factor for many affluent individuals moving to Portugal.

Lucrative Property Market

Portugal's property market has experienced a surge in interest from HNWI, with Lisbon and Porto leading the way.

Compared to other Western European cities, property prices in these areas are relatively lower, offering attractive investment opportunities. The renovation of historic properties into luxury apartments and boutique hotels has also contributed to the real estate market's allure.

HNWI are not only investing in homes but also in commercial properties, contributing to the urban revitalization and economic growth of these cities.

Favourable Tax Regime

Portugal's tax policies have been a major draw for HNWI looking to optimize their financial portfolios.

The Non-Habitual Residency (NHR) tax regime, introduced in 2009, provides significant tax benefits for eligible individuals, including a flat income tax rate of 20% for certain types of income earned in Portugal.

However, the crucial benefits the NHR status has to offer are the 0% tax on non-Portugal derived income such as dividends, royalties and rental income as well as the 10% flat rate tax on their pensions.

With early planning, you can extend the NHR tax advantages to 20 years, paying on average only 3.8% during instead of regular rates.

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Additionally, there is no wealth tax, and inheritance and gift taxes are relatively low. These favourable tax conditions allow HNWI to retain a larger portion of their wealth, making Portugal an attractive destination for financial planning and management.

Streamlined Visa Systems

The ease of obtaining visas and residency permits in Portugal has played a pivotal role in attracting HNWI. The Portugal Golden Visa programme offers a straightforward path to residency for investors.

Additionally, the country's visa policies for citizens outside of the European Union such as those from the United Kingdom are relatively hassle-free, making it simpler for individuals and their families to relocate.

The ability to enjoy the benefits of Portuguese residency, such as access to high-quality healthcare and education systems, has made the prospect even more appealing.

A variety of different visas are available to cater to a variety of individuals, with the D7, D8 (digital nomad visa) and the Golden Visa being the most popular.

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Article Author & Bio: João Rodriguez

A seasoned writer with a remarkable expertise in Portugal's intricate visa landscape, offering invaluable insights into various visa options for individuals and families. With an understanding of Portugal's tax frameworks and residency regulations, João crafts articulate content that guides readers through the nuanced pathways to achieving their dream of living and thriving in the picturesque landscapes of Portugal.

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