Political instability and global uncertainty are sending affluent families toward Portugal, and the tax opportunities are a bonus rather than a lure.
That’s the opinion of a leading wealth manager, speaking at the recent Portugal Investment Forum – a five-date series of debates staged across the nation to plot a path for the nation after years of economic growth.
Speaking at a panel session on diversification, risk and long-term family wealth planning, Chris Marson, wealth manager at event organisers Portugal Pathways, outlined the nation’s key attractions for the affluent.
“I think everyone’s looking for a plan B,” he explained to a high-profile audience in Quinta do Lago in the Algarve.
“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 the tax or the investment. It’s the fact they love it here.”
The key pitch to international families is peace of mind, according to Nuno Santos, a cross-border tax lawyer at CMS Portugal who advises high and ultra-high net worth clients.
He explained: “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, not investment, the real story.
“The investment comes in at a second stage,” the law expert 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 of finance and tax advisors St James Global, says up to 70% of his clients are British nationals, and changing tax regimes at home are weighing heavily on their shoulders.
He explained: “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 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
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