Portugal is increasingly attractive to high-net-worth families due to its residency programs, tax advantages, and investment prospects.
Luiz Maia (Maia International): Real Estate
The market’s high demand, coupled with an undersupply in prime rental properties, makes it attractive for investors targeting prime real estate assets. Prices, while high by Portuguese standards, are still accessible for international buyers. Selling a modest home in central London, for instance, could finance a quality property in Portugal and leave surplus funds for lifestyle or retirement. The last three months have seen a record number of inquiries for properties between Lisbon and Cascais, driven by families moving to Portugal, establishing roots, businesses, and creating significant revenue streams for the state.
American buyers are common, but demand is growing among the English-speaking world. The influx of French, British, South African, Australian, and New Zealand families could even bolster Portugal’s rugby prospects in a few years. The prime rental market’s chronic undersupply often results in properties fetching up to 30% more than their initial asking price due to competitive bidding among potential tenants.
Portugal is often viewed as a safe harbour in turbulent times, and Lisbon’s unique status, limited new development opportunities, and the allure of owning period properties in a dynamic, peaceful, and international city add to its desirability. The combination of Lisbon’s global status, the low value of the Euro relative to the USD, stability, and restricted supply of top-end properties means that prime markets will remain highly desirable for high-net-worth property buyers.
Investing in a foreign country can be daunting, but the right partner can mitigate this apprehension. Portugal Panorama is eager to share its expertise with investors looking to benefit from the opportunities in this beautiful country. We are passionate about Portugal and are here to help.
Michael Maxwell (Portugal Panorama): Private Equity and Golden Visa Eligible Investments
In the past year, there has been a significant increase in interest in residency by investment, transforming it into an asset class in its own right. It is crucial to view these investments primarily as financial decisions. Prospective investors should ask themselves, “Would I be interested if a visa were not attached?” Factors to consider include the team involved, conflicts of interest, risk profile, fee structure, and exit strategy. Portugal Panorama aims to attract internationally minded individuals who expect high standards of commercial expertise and corporate ethics.
Investors seeking residency-linked investments should ensure that these investments can stand independently. Track record, team, governance, and conflicts of interest are essential considerations. If these fundamentals align, the residency benefit is a bonus, making the investment decision straightforward. High-net-worth families increasingly see second residency as an opportunity for financial and succession planning, extending retirement plans, budgets, and improving lifestyles. It serves as a backup plan (Plan B or C) as much as a primary plan (Plan A), especially for baby boomers and mobile digital nomads.
Countries differ in their business and social environments. Access to countries with fair legal systems and protective security forces is a significant draw for high-net-worth families. Portugal excels in these areas and offers a rich cultural, dynamic, and affordable lifestyle.
Recent rule changes have restricted Golden Visa investors to non-property investments, but fund investments remain eligible and promising. Investment funds regulated by the Portuguese Financial Services Regulator (CMVM) represent real opportunities in a rising economy.
Lionel de Freitas (Dixcart Management): Immigration and Tax
Portugal offers the best blend of fiscal and immigration programmes when comparing to other jurisdictions.
Portugal offers several options, such as B visas, the Golden Visa and Non-Habitual Residents (NHR) programme. These programmes offer a favourable path for individuals moving to Portugal, combining residency and tax benefits. The Golden Visa is a swift route for non-EU investors to obtain a valid residence permit and travel freely within the Schengen Area, with the potential to convert to permanent residency or citizenship later.
Over 18,000 families have benefited from the Golden Visa, which typically involves a €500,000 fund investment. This program, alongside the NHR, which offers a ten-year beneficial tax status, has been attractive to EU and non-EU citizens alike. The NHR program provides a flat tax rate of 20% on domestic income and exemptions on foreign income, with favourable inheritance, wealth, and donation tax policies.
Contact information:
Michael Maxwell – Founder
Portugal Panorama
michael@portugalpanorama.com
+351 965 592 312
Disclaimer:
The views expressed on this page are those of the author and not of The Portugal News.