Portugal: The new home for high-net-worth individuals

EQTY Capital engages with foreign investors looking at Portugal as a plan A or plan B on a daily basis. From our discussions with them, we recognize that while factors such as fiscal benefits are relevant, the overriding view is that Portugal offers a highly appealing lifestyle, which is a key driver for migration into the country. The interesting thing is, Portugal has always had an abundance of rich history, art, and culture, making it the wonderful place to live that it is, however the boosted foreign interest is quite recent. In fact, the influx of foreigners and international businesses setting their home or headquarter in one of the picturesque coastline locations of Portugal, has risen notably with the transition to hybrid work and the global status quo. These foreign investors tend to be well established, business owners, successfully retired or entrepreneurs looking to secure a back-up plan and enhance their quality of life.

According to Henley & Partners’ Global Citizens Report approximately 88,000 High-Net-Worth Individuals (HNWIs) are expected to migrate by the end of 2022, and Portugal is amongst the top 10 countries expected to receive this influx of millionaires. Indeed, Henley & Partners identified the Portuguese Golden Residence Permit Program as the most attractive in 2022 and expect the relocation of 1,300 HNWIs in the next year, ranking Portugal 6th on the list of countries that attract the most millionaires. By investing and relocating, these HNWIs are stimulating and adding value to the Portuguese economy, creating employment and promoting the brand further. It is the quality of these investors that should be noted, and Portugal is privileged to welcome them.

We observe that the attractiveness of real estate investment – either in the form of direct property purchase or funds – is furthermore accentuated, notably for international investors. A 2022 survey data from Statista indicates that the most important factors involved in the decision to invest in a European city’s development or real estate market are forecasted real estate returns, availability of assets/ new development opportunities, city’s economic performance, market size and liquidity, transport connectivity and digital connectivity, amongst other factors. As such, the heightened popularity among international investors, especially HNWIs, provides a positive indicator that the main cities of interest in Portugal rank high in those respective categories. With this in mind, EQTY has assembled a team that resonates with this audience and understands their needs and requirements with equal emphasis placed on local and international track record.

With real estate central to EQTY Capital, especially prime residential, we are well placed to add value to the endeavors of these individuals in Portugal and welcome them to contact us. We are glad to share our collective experience with them and ensure their arrival in Portugal is as smooth as possible and add positively to their Portuguese adventure.

Jeanne Paquette
Market Research Analyst at EQTY Capital