Political instability and global uncertainty are sending affluent families towards Portugal, with the tax opportunities seen as a bonus rather than the main draw.
That was the view of Chris Marson, head of private wealth at Portugal Pathways, speaking at the recent Portugal Investment Forum, a five-date series of debates staged across the country to plot a path forward after years of economic growth.
Marson was part of a panel session on diversification, risk and long-term family wealth planning in front of a high-profile audience in Lagos, in the Algarve.
“I think everyone’s looking for a plan B,” he explained.
“Whether they are from the US, UK or Northern Europe, Portugal fits because it’s a country on the up.
“It’s a country actively looking for people through the likes of the Golden Visa programme or the new tax regimes.
“They give people the security and knowledge that there is an option out if they choose to leave where they live.
“What are they investing in? They’re investing in the country. Most people come here because it’s an amazing country to live in.
“That’s the driver – it’s never just the tax or the investment. It’s the fact they love it here.”
Peace of mind is the key pitch to international families, according to Nuno Santos, a cross-border tax lawyer at CMS Portugal who works with high and ultra-high net worth clients.
“When you think about what’s happening in the world with political instability, wars and social instability, I think people want to have a plan B knowing that if something goes wrong in their home countries, they have a very nice place to go.
“People move for the lifestyle, to have their kids in Portuguese schools, for the safety.
“Obviously, the tax regimes that Portugal has and the Golden Visa are a bonus.”
That makes relocation, rather than investment, the real story.
“The investment comes in at a second stage,” Santos said. Families are “more worried to have a safe place for their family and that’s why they are choosing Portugal.”
Paul Nicholson, group executive and senior wealth manager at finance and tax advisers St James Global, said up to 70% of his clients are British nationals, and that changing tax regimes at home are weighing heavily on them.
“For the majority of our British expat clients, one of the big motivating factors is they’re concerned about threats to their UK pensions. They are really concerned about how the UK government is going to tax their pensions.
“And secondly, I think a lot of our clients are concerned of what will happen if they die. What happens to their global assets in the hands of their UK tax resident children or other beneficiaries?
“But there are very specific pieces of tax legislation in Portugal that work extremely well for expats in helping them consolidate their assets, reducing the tax administration, the servicing and the management of their global assets. It’s as simple as that.”
The Portugal Investment Forum was organised by Portugal Pathways and the Portugal Investment Owners Club.
Staged across five venues over nine days, it took in the Algarve, Lisbon, Estoril and Porto.
About Portugal Investment Owners Club
The Portugal Investment Owners Club, or PIO Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.
About Portugal Pathways
Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on estate planning, wealth management, Golden Visa and tax optimisation, including post-NHR / IFICI tax regime planning, as well as private healthcare, money transfers and bespoke relocation and luxury real estate solutions to enhance life and investment in Portugal
Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (PIO Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.
