Portugal emerges as a prominent destination for affluent population relocations
A Fresh Look at Portugal's Allure to UK Millionaires
In recent years, Portugal has become an irresistible draw for millionaires departing from London, with over 11,000 high-value individuals leaving the British capital in 2024. This trend is largely attributed to tax concerns and the aftermath of Brexit.
According to a recent global wealth report by Henley & Partners in partnership with New World Wealth, Portugal is quickly gaining traction among affluent individuals seeking a secure, tax-efficient, and captivating destination. The nation now ranks alongside traditionally coveted wealth havens such as the United Arab Emirates, Spain, Italy, and even offshore jurisdictions like Saint Kitts and Nevis.
The term "millionaire" refers to individuals with liquid investable assets (excluding real estate) amounting to at least $1 million. These wealthy individuals are gradually preferring Portugal for its appealing residency programs, including the D7 visa and the revamped Golden Visa pathway, which continues to entice international investors despite the elimination of real estate as an eligibility criterion.
Once a magnet for global wealth, London's millionaire population decreased from 227,000 in 2023 to 215,700 in 2024, marking a reduced growth of over 5%. This downward trend, which started a decade ago, represents a decline of 12% since 2014. In contrast, cities such as San Francisco, Singapore, and Dubai have witnessed a significant surge in their wealthy populations.
Andrew Amoils of New World Wealth highlights that the United States and Asian cities, particularly technology-driven hubs, are predominantly driving new wealth creation. Yet, for those seeking lifestyle comfort, safety, and EU accessibility, Portugal stands out. "Portugal offers political stability, an appealing climate, and residency offers that appeal to affluent individuals aiming to establish a base in Europe," Amoils said.
Besides the UK's capital gains and inheritance tax burdens, Brexit's impact, and the relative erosion of London's financial markets compared to Frankfurt and Dubai, other factors contributing to millionaires abandoning the UK include:
- An attractive lifestyle and favorable climate, characterized by beautiful landscapes, a relaxed atmosphere, robust safety and healthcare systems, and desirable cities such as the Algarve, Lisbon, and Porto.
- Post-Brexit residency and visa options, including the Golden Visa Program, the D7 Visa for retirees or passive income earners, and the D8 Digital Nomad Visa, facilitating flexible residency without demanding full-time presence in Portugal.
- Affordable cost of living compared to other Western European countries, offering a desirable lifestyle optimization for the wealthy.
- Favorable tax regimes, particularly the Non-Habitual Resident (NHR) tax scheme, advantageous for retirees and professionals with foreign income.
- Continued EU access with global mobility, allowing UK nationals to regain freedoms to live, work, and travel within the EU.
- A growing and friendly expat community, easing the relocation process for newcomers.
As the global landscape of wealth migration evolves, Portugal's unique combination of location, quality of life, and residency opportunities establishes it as a rapidly growing hub for international investors and high-net-worth individuals seeking new opportunities.
In the global landscape of wealth migration, Portugal's unique combination of factors such as attractive lifestyle, favorable climate, and competitive residency programs like the Golden Visa and D7 Visa, make it an increasingly popular destination for high-net-worth individuals – even surpassing traditional wealth havens like Spain, Italy, and offshore jurisdictions such as Saint Kitts and Nevis.
As Brexit concerns and tax burdens in London persist, Portugal's growing appeal to UK millionaires isn't solely due to financial reasons. The nation offers political stability, an alluring lifestyle with desirable cities like the Algarve, Lisbon, and Porto, and a friendly expat community that eases the relocation process.
In contrast to the decreasing millionaire population in London, Portugal has managed to attract significant numbers of these affluent individuals. The decrease in London's millionaire population from 227,000 in 2023 to 215,700 in 2024 is a testament to this trend.
Furthermore, Portugal's continental Europe location, coupled with its EU access and agreeable tax regimes, provides an attractive proposition for those seeking global mobility and relief from burdensome UK capital gains and inheritance taxes. As such, Portugal stands out as a desirable destination for those seeking lifestyle, safety, and a base in Europe.
