According to the latest report from the Portuguese government’s Agency for Integration, Migration and Asylum (AIMA), last year saw a 33.6% increase in the number of foreign residents registered by the end of 2023.
It takes the total now living in Portugal to just over 1.04 million. In 2017, the figure stood at just 480,300.
It underlines the nation’s attraction for those from across the world – including affluent expats and international investors who view the nation as a perfect place for funding and business.
The monetary authority for the country, the Banco de Portugal, recently issued a report which revealed in the first half of 2024 alone, the country had seen €4.1 billion of direct investment from abroad.
Some 1.6bn came in real estate as the wealthy look to take advantage of the country’s safety, cost-of-living and year-round good weather.
It comes courtesy of Portugal’s growing reputation for its strong economy and with a GDP currently growing faster than the likes of the UK, France, Germany and Italy.
Paul Stannard, chairman of Portugal Pathways, an organisation which helps support high-net-worth individuals as well as international and institutional investors in facilitating their dealings with the country, said: "We’ve observed a growing trend of international entrepreneurs, skilled professionals and affluent families moving to Portugal in 2024 and those who plan to in 2025. Many of whom bring substantial wealth.
“This wave of talent and capital is helping fuel a significant increase of inward investment, particularly in sectors like real estate, tourism, renewables, education, healthcare and tech.
“This boosts the country’s economy. We see this trend continuing as the Portugal government’s plans for encouraging talent and investment, as well as the incentives for business, are strong."
Philip Button of Brookes Property Group, the UK company behind the new Quinta Heights luxury development in Ferragudo in the Central Algarve, is one of those companies attracted to Portugal’s potential. He said: “Having worked internationally for 20 years in luxury real estate in Florida, the Bahamas, Antigua, and the UK, we identified Portugal as the country with the most to offer. It’s the whole package.
“This has been proven as we’ve already sold 25% of the Quinta Heights project off-plan in the last month to international investors as a result of the strength if the market of both Portugal and the Central Algarve.”
Adds Chris Marson, an international family office specialist from Beacon Global Wealth Management: “We’re witnessing a significant amount of inward investment into Portugal. It’s coming from private wealth as well as institutional investment from the likes of the EU’s European Investment Fund.
“We’re also seeing family offices moving into asset classes such as Portugal-focused alternative investment funds in sectors such as biotechnology, solar energy, tourism and technology.
“Serious investment is also being directed into major infrastructure and development projects, which have become key areas for sophisticated foreign investors.
“The NHR tax regime has also played a critical role in attracting new wealth, investment and creating jobs, and the successor to NHR, expected to launch in 2025, will continue positioning Portugal as a hotspot for growth and investment."
The NHR – or Non-Habitual Residency – offered a host of tax breaks but will be replaced next year by NHR 2.0 or, more formally, the Tax Incentive for Scientific Research and Innovation Program – a scheme designed to encourage, as the name suggests, experts in key fields to move in.
Portugal’s government is expected to finalise the new NHR 2.0 tax regime in October. It should clarify who will qualify for the program and could potentially widen the scope of the professions eligible to take advantage.
The population growth in Portugal from migration continues to be driven by Portuguese-speaking Brazilians. Those from the South America country now make up some 35.3% of the total foreign population.
Changes to the government in Brazil has seen an exodus of the wealthy seeking to move to Europe.
Similar concerns are motivating entrepreneurs and affluent families from the likes of the US, UK, Singapore, Europe, South Africa and Canada.
Many have settled in and around Lisbon – where over 431,000 foreign nationals reside. It makes the capital the region with the highest absolute growth.
Other key regions include the Algarve – a perennially popular destination for affluent expats – Porto and Setúbal.
In addition to wealthier residents, more than half of the foreign population in Portugal is of working age, primarily between 25 and 44 years old.
As many as 80.5% of the foreign residents are employed, making significant contributions to the local economy and nearly 70% speak the language of international business, English.
Numbers have also been swollen by the continuing popularity of the evolved Golden Visa residency-by-investment program.
It requires an investment of €500,000 in a government-approved regulated alternative investment fund in Portugal.
In addition, the D8 visa – commonly known as the Digital Nomad visa – continues to be popular, as does the D2 entrepreneurs’ visa.
Adds Paul Stannard from Portugal Pathways: “There are various methods high-net-worth individuals from around the world can obtain residency in Portugal.
“All are designed at boosting local investment and creating opportunities for the people living there.
“We urge anyone considering their options to seek professional advice from those who know the system inside out to ensure their transition to their new life is as smooth, and profitable, as possible.”
