Updated: November 29, 2024
Portugal’s Algarve region is the most affordable property market in Europe for millionaires, followed by Bordeaux, in France, and Tuscany, in Italy.
According to Knight Frank’s 2024 European Lifestyle Report, the Algarve was one of the regions where residential property prices increased the most following the COVID-19 pandemic, but the region remains a very affordable region for millionaires.
Portugal 7th in Diversity of Property Buyers by Nationality
Europe has the most diversity of property owners in terms of nationality, with Portugal in seventh place out of ten destinations. France is in first place, followed by Spain (2nd), Italy (3rd), the UK (4th), Greece (5th), and Switzerland (8th). Rounding off the top ten are Croatia (8th), Ireland (9th), and Germany (10th).
Why Portugal?
A key reason for this the popularity in Portugal amongst foreign investors from across the globe is due the tax benefits that Portugal has been providing in recent years.
Portugal has also been attempting to attract new talent and boost homeownership, with residents under 35 exempt from property purchase tax and Stamp Duty when buying a first home as a primary residence.
Other key incentives for millionaires looking to move to Portugal include changes in market conditions – Portugal has become a top property investment spot, cementing itself on the global stage – in addition to a range of visa options to suit different buyer profiles.
The high quality of life and lifestyle improvements are also important considerations that have bolstered interest in Portugal.
Many millionaires and foreign buyers have their sights set on the Algarve due to the relative affordability of the property market here when compared with other Western European countries, alongside the many investment and lifestyle benefits attributed to buying property in the region.
Attracting more expat profiles
Portugal, and the Algarve region in particular, have long been highly sought-after locations amongst tourists. However, expats from all walks of life are increasingly setting their sights on relocating to Portugal.
The pandemic brought in new hybrid models, with more individuals working remotely than ever before and an increase in retirement or semi-retirement amongst people in their fifties also contributed to this trend of increased mobility.
Getting to know other countries did not have to be restricted to a holiday as more people realized that they were able to work from stunning locations across the world.
Portugal’s introduction of the Digital Nomad Visa in 2022 highlights that the government gauged the importance of this, alongside the already-existing D7 Visa, also known as the retirement visa.
The Golden Visa program, Portugal’s residency by investment program has also instigated massive investment into the country since it was introduced in 2012.
The abundance of excellent international schools in Portugal – 51 in total and 12 in the Algarve – is a key reason why many expat families are also setting their sights on Portugal, as they can ensure their children get a high quality of education while also chasing a better quality of life.
For an overview of why the Algarve is a smart investment move, check out our article on Real Estate Investment Algarve.
Security and Privacy
The Knight Frank’s 2024 European Lifestyle Report highlighted that, above tax benefits, millionaires prioritize security and privacy when relocating or purchasing a second home, particularly in the current geopolitical climate.
Portugal is well regarded as being a safe country, ranking in seventh position in the 2024 Global Peace Index. This Global Peace Index uses several qualitative and quantitative indicators and measures the peace level of a country across three domains – the level of societal safety and security, the extent of ongoing domestic and international conflict, and the degree of militarization.
Quality of Life
Paris, Berlin, Madrid, Barcelona, and Vienna are among the European cities that are most desired by the wealthiest who are considering moving to Western Europe, while Lisbon is amongst the top five choices based on quality of life, while, on a national level, Portugal ranks in 13th position in the Quality of Life Index by Global Citizen Solutions,
More and more of the world’s richest individuals are looking to move for a better quality of life, where the country has good infrastructure, education, and emerging business opportunities, which is the case in Portugal. The unique culture, stunning landforms, array of leisure activities, and sublime climate add to its appeal.
Why choose the Algarve?
Portugal boasts a high quality of life, is one of the safest countries globally, and is increasingly attracting investors and foreign buyers from all walks of life. Alongside Lisbon and, increasingly Porto, the Algarve is the most popular location amongst expats and tourists.
The region boasts one of the most incrediblele coastlines in the world, an array of top investment choices for investors, given the wide array of properties on the market, high rental yields and potential for capital appreciation, and a high quality of life, with cultural activities, more than 30 golf courses, and an abundance of water sport activities. The fact that English is widely spoken, and the healthcare and education options are generally excellent add to its appeal.
It is no wonder why millionaires are seeking out this region and, particularly compared to other countries in Western Europe, property prices are quite reasonable. It is possible to snap up a luxury villa or stunning modern apartment with sweeping ocean views at a very reasonable price. Plus, demand continues to soar in the region, making Algarve real estate a smart investment.
Looking to find your dream property in the Algarve? Check out our ultimate guide.
