Portugal is set to see a significant influx of UK millionaires and entrepreneurs over the next two years, attracted by its lifestyle, culture, safety, security, and tax and inheritance incentives.
The UK government has been indicating that capital gains and other tax changes may come in, accelerating many affluent families’ life and residency decisions. With thousands expected to arrive in Portugal, experts say it further boosts the luxury property market and the economy.
It comes as high-net-worth UK families and entrepreneurs look to relocate their lives and some of their business interests in Europe and take advantage of lifestyle benefits plus a lack of the political, economic or other tax uncertainties with which they are concerned.
With Portugal’s picturesque landscapes, warm climate, commitment to environmental sustainability and rich cultural heritage, Portugal is ticking all the boxes.
Paul Stannard is chairman of Portugal Pathways, an organisation of tax, real estate, visa and financial experts which guide the affluent and their families effortlessly through the steps needed to secure their move to the country.
Portugal to see more UK millionaires
and entrepreneurs relocate
Cascais is one of the most sought-after areas for wealthy expats in Portugal.
Portugal is set to see a significant influx of UK millionaires and entrepreneurs over the next two years, attracted by its lifestyle, culture, safety, security, and tax and inheritance incentives.
The UK government has been indicating that capital gains and other tax changes may come in, accelerating many affluent families’ life and residency decisions. With thousands expected to arrive in Portugal, experts say it further boosts the luxury property market and the economy.
It comes as high-net-worth UK families and entrepreneurs look to relocate their lives and some of their business interests in Europe and take advantage of lifestyle benefits plus a lack of the political, economic or other tax uncertainties with which they are concerned.
With Portugal’s picturesque landscapes, warm climate, commitment to environmental sustainability and rich cultural heritage, Portugal is ticking all the boxes.
Paul Stannard is chairman of Portugal Pathways, an organisation of tax, real estate, visa and financial experts which 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, we currently see 40% of all inquiries coming from the UK and North America.
‘’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 that Portugal has, plus hassle-free access to the 29 European countries that comprise the Schengen region and 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 increase in the coming 24 months. That’s great news for them and their families and the Portuguese economy but not so good for their home countries.
“It’s no surprise that Portugal is currently the number one relocation destination in the world according to the International Living Index and the Wealthy Expats in Portugal Survey Report published this summer.”
Upcoming changes to Portugal’s tax regime 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 be discontinued for new entrants, instead being taxed under general income tax rules.
However, those who apply for the NHR tax regime under the current scheme before the end of 2024 and meet certain grandfathering conditions may still benefit from the existing regime on pensions.
Despite these impending changes, the NHR 2.0 regime will continue to offer significant tax advantages, including a 0% tax rate on passive income such as dividends, royalties, and rental income from non-Portuguese sources and a low flat rate on professional income.
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 shifted its focus too. It now requires a €500,000 investment for an applicant and their family to secure dual residency, and they are required to stay just seven days per 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, it directs 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 the Managing Director of Brookes Property Group, based in New Malden, Essex. The company has been building international real estate projects. It has researched and witnessed the strength of the luxury real estate market in Portugal, which is driven by increased demand from wealthy expats.
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 UK and US investors – even before the official launch.
“This particular 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, choosing his future home was a no-brainer.
He explains: “We looked at coming back to the UK, but to be honest, we felt Portugal offered so much more and are selling our assets in London. We’ve found a great international school in the central Algarve and have secured NHR tax status, which is much more favourable than UK or US tax systems. We just want a better environment compared with the US or UK, 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 while we still have the appetite.”
Similarly, Peter Harding from Kent is preparing to open a new business in Portugal. he says: “The business climate in Portugal is so much friendlier and less regulated than what we’ve been dealing with in the UK.
“It’s safer, more stable and offers an environment where businesses can truly thrive, and they seem to want to welcome entrepreneurs. We’re excited to make the move and start this new chapter.”
Safety and stability have become increasingly important to people in the UK following recent riots and other knife crime attacks that are becoming more common.
Portugal’s reputation as a safe, welcoming, and stable country is expected to drive further interest from global investors, affluent families, professionals, and entrepreneurs. With these factors in play, Portugal is set to solidify its position as a leading destination for wealth relocation, innovation and business in the years ahead.
