The Algarve region is accelerating its appeal as a magnet for millionaires and entrepreneurs seeking a new lifestyle, investment opportunities, and a secure environment for their families.
As Portugal continues to attract high-net-worth individuals, the Algarve is taking centre stage thanks to its luxurious coastal lifestyle, booming property market, and its unique blend of authenticity and modern amenities.
This is further being fuelled by new tax regimes to replace the existing NHR tax regime which ends to new entrants at the end of 2024. This new NHR 2.0 tax regime being launched in 2025 and is aimed at entrepreneurs and high-value professions.
Paul Stannard, chairman of Portugal Pathways, an organisation that specialises in guiding affluent families through the relocation process, notes that the Algarve is increasingly the top choice for many of his clients. He explains, “We are seeing a surge of interest in the Algarve, especially from wealthy international families who are drawn to its beautiful coastline, golf courses, and exclusive resorts. They appreciate the region’s laid-back charm combined with world-class amenities.”
This sentiment is echoed by Philip Button, managing director of Brookes Property Group, who highlights the growing demand for luxury real estate in the Algarve. “Our latest development, Quinta Heights in Ferragudo, has attracted significant attention from UK and US investors even before its official launch.”
Button says: “The Algarve offers unparalleled potential for capital growth while maintaining its authenticity. After working in luxury real estate across the globe, we’ve identified the Algarve as one of the most attractive regions for high-net-worth individuals.”
The Algarve’s appeal is not just about its lifestyle. Recent and upcoming changes to Portugal’s tax regime are expected to enhance its attractiveness, particularly for entrepreneurs and professionals looking to establish a base in a stable and tax-efficient environment.
While revisions to the Non-Habitual Residency (NHR) tax regime are on the horizon, the Algarve remains a hotspot for those seeking favourable tax conditions alongside a luxurious living experience.
The region also benefits from the ongoing success of Portugal's Golden Visa residency-by-investment program, which allows investors to secure dual residency with minimal time spent in the country. Although the Golden Visa no longer includes direct real estate investment, the Algarve continues to attract those looking to invest in regulated funds or startups, offering a pathway to EU residency while enjoying one of Europe’s most desirable regions.
Andy Wright, a UK music producer based in California, has chosen the Algarve as the perfect location for his family’s future. “We considered going back to the UK, but the Algarve offered so much more – great international schools, a relaxed lifestyle, and NHR tax status. It’s the ideal place for us to continue our business activities while enjoying a better quality of life,” Wright explains.
Similarly, entrepreneur Mary Sandling from South Africa is preparing to launch a new business in the Algarve. “The business climate here is far better than what we’ve been dealing with in Johannesburg,” she says. “It’s safer, more stable, and offers an environment where businesses can truly thrive. We’re excited to make the move.”
As more millionaires seek safety, stability, and a premium lifestyle, the Algarve is set to solidify its reputation as a leading destination for wealth relocation. With its combination of luxury, opportunity, and authentic charm, the region is poised to remain a top choice for global investors and affluent families in the years ahead.
