Data from the Institute of Registries and Notaries (IRN) shows over 84,000 applications, highlighting the nation’s continued appeal.

With its exceptional quality of life, favourable tax incentives, healthcare, and a thriving luxury real estate market, Portugal was ranked the number one relocation destination in 2024 by International Living and the Wealthy Expats Report. This recognition reaffirms Portugal as a hub for both lifestyle enhancement and investment opportunities.

The Wealthy Expats Report also highlights the appeal of the Non-Habitual Residency (NHR) tax regime, to affluent families in Portugal. Many of the expats interviewed expressed their satisfaction with the favourable tax benefits.

Experts in the report suggest that current NHR tax holders can continue to thrive in Portugal by engaging in early, strategic tax planning before the regime's 10-year expiration. This proactive approach would help mitigate future tax burdens and allow them to maintain their financial advantages in Portugal.

The start of 2024 also saw robust activity in the Golden Visa residency by investment program, attracting those seeking a European foothold.

Paul Stannard, Chairman of Portugal Pathways, which assists wealthy families and professionals relocating to Portugal, comments on this growing trend:

“Portugal remains a magnet for entrepreneurs, skilled professionals, and those seeking an enhanced lifestyle. The combination of safety, a low cost of living, luxury real estate, and a favourable business environment continues to attract global interest.”

Stannard also emphasises the importance of the Golden Visa program: “The residency by investment scheme, particularly through regulated funds, has been a major draw. It provides families dual residency with EU access and offers potential returns on investment.”

Portugal Pathways’ data shows an increasingly diverse influx of residents. In 2024, 23% of prospective new residents were from the United States, followed by 17% from the United Kingdom, 16% from Northern Europe, and 14% from Brazil.

Growing interest from Asia, Canada, Ireland, South Africa, and Israel further fuels the expanding expat community.

The rising inquiries from highly skilled professionals and wealthy investors signal a strong trend driven by lifestyle benefits, tax incentives, and luxury real estate opportunities.

Philip Button, from Brookes Property Group, a luxury real estate development company, is among those eyeing Portugal as an investment hotspot. After two decades of developing luxury homes in the US, UK, and Bahamas, Button launched his first major project in Portugal's Central Algarve region—Quinta Heights in Ferragudo.

“We have just launched Quinta Heights, and already 25% of the development has been sold off-plan. Investor and buyer demand has been steep, driven by professionals and entrepreneurs seeking properties for both lifestyle and investment,” Button says.

Beyond luxury real estate, The NHR tax regime, is again, another significant draw for affluent expats offering significant tax benefits for up to 10 years. However, many NHR tax holders remain unaware of the steep tax implications they may face once their NHR tax status expires.

Paul Stannard stresses the importance of early planning: “Too often, NHR tax holders are enjoying life in Portugal and neglect to plan for the future. They wake up in year 8 or 9, facing tax rates as high as 48% after their NHR status expires.

‘’Our experts always advise planning early. With the right structuring of income and assets, tax burdens can be minimised for up to 20 years, with some individuals paying as little as 5%.”

As the original NHR tax scheme closes at the end of 2024, the introduction of the NHR 2.0 tax regime in early 2025 is another major draw as it shifts focus towards attracting highly qualified professionals and entrepreneurs.

This new scheme aims to support business and innovation in Portugal, creating additional opportunities for those looking to relocate.

Sarah Thompson, a UK expat, shares her optimism about the new tax regime: “While NHR 2.0 won’t apply to pensions, it aligns perfectly with our business and personal goals, making Portugal even more appealing.”

Paul Stannard concludes by highlighting Portugal’s evolving role on the global stage: “Portugal offers more than culture and sunshine. Increasingly, it is a prime destination for business and investment opportunities.”

Portugal Pathways offers to arrange a free, no-obligation discovery call for NHR tax holders seeking clarity about their situation with professional advisors.