Recent tax reforms in the UK – including the planned abolition of the non-dom regime and a move toward residence-based inheritance tax – are prompting many high-net-worth individuals (HNWIs) to reassess their residency, tax planning, and succession strategies. With similar shifts under way in other traditional wealth centres, HNWIs are increasingly seeking stable jurisdictions that offer both financial efficiency and quality of life.
For many, Portugal has emerged as one of Europe’s most attractive alternatives. From its investor-friendly climate to its favourable lifestyle and inheritance structures, Portugal remains a compelling destination for individuals and families looking to preserve capital, enhance mobility, and secure long-term residency.
Below, we explore the key reasons why Portugal continues to appeal to HNWIs in 2025.
1. A Reputable, Stable Environment for Global Citizens
Portugal offers a politically stable, EU-aligned environment with strong property rights, independent institutions, and a globally respected legal system. As a full Schengen member, Portugal also enables seamless access across Europe — a valuable feature for internationally mobile families, investors, and entrepreneurs.
Its banking sector is well regulated and EU-compliant, and international families can access a wide range of wealth management, legal, and investment advisory services in English.
2. Tax Efficiency – Even Post-NHR
The previous Non-Habitual Residency (NHR) regime officially closed to new applicants at the end of 2024, but Portugal has introduced a successor framework, informally referred to as “NHR2.”
The new system offers targeted benefits for qualifying professionals in high-value sectors such as:
- Technology and software development
- Scientific research and innovation
- Start-ups and R&D
- University-level education and training
While more limited than its predecessor, the new regime still represents Portugal’s ongoing commitment to attracting skilled and affluent residents. For those who no longer qualify under the new system, Portugal remains competitive compared to many Western European jurisdictions, especially when planned correctly before arrival.
Importantly, Portugal continues to tax individuals based on residency – not citizenship – making it especially attractive for globally mobile HNWIs seeking flexible tax residency options.
3. No Wealth Tax
One of the standout advantages for HNWIs is that Portugal does not impose a general wealth tax on global assets. This sets it apart from countries like France, Spain, or Switzerland, where wealth taxes (or their equivalents) may apply to real estate holdings or financial assets above certain thresholds.
Although Portugal does levy an annual stamp duty (AIMI) on higher-value Portuguese residential properties — currently applying to properties valued over €600,000 per individual (€1.2 million for married couples) — there is no tax on financial portfolios, foreign income (if exempted via planning), or personal net wealth.
4. Inheritance and Gift Tax Relief
Portugal offers highly favourable inheritance and gift tax treatment — particularly for direct family members.
- There is no inheritance or gift tax between spouses, parents, and children.
- Transfers to more distant relatives or non-family members are subject only to a modest 10% stamp duty.
For HNWIs focused on legacy planning and intergenerational wealth preservation, this offers significant advantages compared to jurisdictions such as the UK, where inheritance tax can reach up to 40%.
As the UK transitions to a residence-based inheritance tax model from April 2025, many families are exploring pre-migration strategies to Portugal to protect family wealth structures and benefit from a lighter succession regime.
5. Capital Gains Planning Opportunities
Portugal does tax capital gains, but there are planning opportunities — especially for non-Portuguese assets acquired prior to residency. In many cases, these gains can be excluded from Portuguese tax under specific structuring and timing strategies.
For example:
- Entrepreneurs selling a UK-based business may reduce or defer Portuguese tax if the transaction is structured after establishing residency, depending on source-of-income rules and double tax treaties.
- Pre-arrival restructuring or trust planning may allow for asset protection and reduced exposure.
These strategies should always be undertaken with qualified professional advice and a clear understanding of cross-border tax laws.
6. Golden Visa Access Still Available
Portugal’s Golden Visa program has undergone changes in recent years — most notably, the removal of residential real estate as a qualifying investment route. However, the program remains open via other investment categories, such as:
- Private equity and venture capital funds
- Cultural heritage projects
- Scientific research
- Job creation and business development
Golden Visa holders enjoy a clear path to residency and eventual citizenship, along with visa-free travel across the Schengen Zone. For HNWIs seeking geographic flexibility and a “Plan B,” Portugal remains one of the most accessible and transparent routes to EU residency.
7. Residency Timing and Liquidity Events
One of the most powerful tools for HNWIs is strategic relocation before a liquidity event, such as the sale of a company, large property portfolio, or major investment holding.
By establishing Portuguese tax residency in advance — ideally in coordination with UK or US exit planning — individuals may be able to:
- Avoid or reduce capital gains tax in Portugal (depending on the asset and its origin)
- Benefit from treaty-based exclusions
- Restructure ownership into more tax-efficient vehicles
As Portugal does not retroactively tax assets acquired before residency, careful timing and structuring of residency status can lead to significant tax savings.
8. Quality of Life and Value for Money
Portugal offers an exceptional quality of life for a relatively modest cost, especially when compared with other high-end locations like London, Geneva, or Monaco.
- Mediterranean climate with 300+ days of sunshine per year
- International schools and healthcare
- Direct air links to Europe, the US, and beyond
- World-class golf, sailing, and wellness infrastructure
- Lower cost of private services, staffing, and lifestyle amenities
Regions such as Lisbon, Cascais, and the Algarve are particularly popular among affluent expats for their combination of safety, community, and prestige properties.
9. Increasing Interest from UK and US Investors
Recent data from global property platforms shows a surge in demand from both UK and US-based buyers – especially those considering a permanent move or dual residency strategy.
Portugal now ranks among the top European searches for luxury real estate by Americans, driven by geopolitical concerns, tax reform, and lifestyle shifts.
The trend is clear: HNWIs are prioritising jurisdictions that offer long-term security, financial predictability, and a welcoming environment for family life and retirement.
Conclusion: A Strategic Jurisdiction for the Globally Minded
Whether you’re exiting a business, restructuring your estate, or simply seeking a better quality of life, Portugal remains one of the most advantageous jurisdictions in Europe for high-net-worth individuals.
With expert planning and the right advisory team, it’s possible to optimise your global wealth strategy while enjoying everything Portugal has to offer — from tax efficiency and legal stability to year-round sunshine and world-class living.
📞 Looking to Explore Your Options?
Blacktower Financial Management has been helping expatriates and international investors in Portugal for over 20 years. If you’re considering relocation and residency, our team can help you navigating cross-border financial planning
Contact us today for a confidential consultation with one of our expert advisers
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
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