Key facts
- Portugal gained 725 ultra-wealthy residents in the past five years.
- The number of individuals with a net worth of at least €25 million increased by nearly 50% in Portugal.
- Knight Frank estimates the number of UHNWIs in Portugal will reach 2,187 by 2026.
- Private equity deals and company sales have significantly contributed to new wealth creation.
- Luxury property in prime locations like Lisbon, Cascais, Comporta, and the Algarve is a key draw for foreign buyers.
- Portugal leads Europe in branded residences, a segment appealing to international buyers.
Portugal has seen a significant influx of ultra-wealthy individuals, with the number of residents holding at least €25 million in net worth increasing by nearly 50% over the past five years. This growth, adding 725 individuals to the UHNWI population, is driven by a combination of factors including Portugal's quality of life, climate, safety, and historically attractive tax incentives like the Non-Habitual Resident (NHR) scheme and golden visas, though these programs have seen recent changes.
According to a study by Knight Frank, Portugal had 1,462 UHNWIs in 2021 and is projected to reach 2,187 by 2026. While many of these individuals are foreigners, a substantial portion are also Portuguese entrepreneurs, particularly from industrial sectors, who have benefited from post-pandemic wealth creation. This includes significant growth fueled by private equity deals and the sale of companies, as many business owners, some in their 50s and 60s, opt to sell their stakes.
Experts like Helena Seruca and Bruno Minoya Perez from Banco Carregosa highlight that private equity funds have played a crucial role in creating new ultra-wealthy entrepreneurs by investing in and increasing the value of unlisted companies. The sale of businesses, sometimes for sums as high as €100 million, has propelled individuals onto the UHNWI list. The rise of digital nomads and foreign investment, particularly in real estate and tourism, has also contributed to this trend.
Portugal's appeal is further cemented by its luxury property market. Christie’s International Real Estate notes that affluent buyers are increasingly seeking primary residences, second homes, and portfolio diversification. While Portuguese buyers dominate the entry-level high-end market, foreign buyers, primarily from North America and Brazil, constitute around 65% of the luxury and ultra-luxury segment. Prime locations such as Cascais, central Lisbon, Comporta, and the Algarve's Golden Triangle are particularly attractive. The country is also a leading market for branded residences, offering a blend of luxury and convenience for international buyers.
Despite modifications to tax regimes, such as the NHR program no longer being as tax-competitive, Portugal is still managing to retain wealthy individuals compared to other European countries. The country's lifestyle, including opportunities for leisure activities like golf, continues to draw both investors and those seeking second homes, with some arriving for short visits and ultimately purchasing property.