Portugal, a Wealth Migration Hotspot for UK Millionaires

More than 9,500 millionaires were expected to leave the UK in 2024, but the number actually rose to as high as 11,000. This exodus of millionaires from the UK was second only to China, and more than double its outflow of 4,200 high-net-worth individuals in 2023. There are many contributing factors to this, but tax concerns and political reasons are two strong push factors. As an alternative, many are relocating to Portugal – one of the emerging destinations for millionaires seeking to relocate abroad.

Why are millionaires leaving the UK?

London has seen its millionaire population drop in recent years, with a 12 percent decline since 2014. In contrast, cities such as San Francisco, Singapore, and Dubai are experiencing sharp increases in their affluent populations.

The reasons for this are complex. One key reason is that, effective April 6, 2025, the UK did away with its “non-domicile” tax regime that previously let wealthy individuals keep their foreign income tax-free for up to 15 years. Under the revised rules, that exemption is cut back to just 4 years for anyone who’s lived abroad for more than a decade.

High inheritance and capital gains taxes, alongside increased taxes on private education, have made the UK less attractive for millionaires. As a result, the world’s wealthy are looking for other locations with more attractive tax and lifestyle benefits.

Portugal: A Top Ten Wealth Destination

According to the Henley Private Wealth Migration Report 2024, in collaboration with the global wealth intelligence firm New World Wealth, Portugal now rubs shoulders with the traditional wealth havens as a destination of choice for high-net-worth individuals, alongside the United Arab Emirates, Spain, Italy, and Saint Kitts and Nevis.

Millionaires are defined in the report as individuals with liquid investable assets (excluding real estate) worth at least $1 million.

Portugal offers stability, lifestyle appeal, and allows for the optimization of taxes, which will contributed to Portugal being projected to see +800 high net-worth individuals move to the country in 2024, ranking in 9th position globally in terms of millionaire inflows.

Why are millionaires increasingly choosing Portugal?

Portugal’s popularity amongst the world’s wealthiest is not due to a single factor, with a myriad of reasons contributing to Portugal’s appeal. 

Key factors include: 

1. Tax optimization: The Tax Incentive for Scientific Research and Innovation – commonly referred to as the NHR 2.0. was introduced in the 2024 State Budget to attract highly skilled professionals and investors. Eligible individuals can benefit from a 20 percent rate on eligible professional income arising from Portugal and the possibility for an exemption on professional foreign-sourced income.
2. Quality of life and climate: Portugal’s climate is world-famous, with more than 300 days of sunshine per year in much of the country and mild winters. The country also offers high-quality healthcare, strong expat communities, and English is widely spoken. 
3. Political stability and safety: Portugal is one of the safest countries in the world – ranking in seventh place in the 2024 Global Peace Index and has a stable democratic political system with progressive legislation.
4. Strategic EU location: As an EU member and Schengen-zone country, Portugal offers easy travel across Europe. The fact that Portugal is on the same time zone as the UK also makes doing business straightforward. 
5. Route to citizenship: Portugal allows legal residents to apply for Portuguese citizenship after five years, provided they fulfill the requirements, such as having a clean criminal record and passing an A2 language test. Citizenship allows for increased mobility and financial freedoms. 
6. Diverse investment options: From Lisbon, Porto, and the Algarve, to emerging areas such as Comporta and Melides, Portugal can cater to a wide range of tastes. Property investments in Portugal remain very attractive, with strong yields and high capital appreciation. 
7. Variety of residency routes: The range of residency options, from the D7 (Passive Income Visa) to the Golden Visa (residency by investment Visa), makes the relocation process straightforward.

Portugal Promises Lifestyle, Safety, and EU Access

New World Wealth have noted that while the USA and Asia are dominating new wealth creation, particularly tech-driven cities, those seeking out lifestyle, safety, and EU access are looking to Europe – with Portugal standing out.

Portugal combines political stability, accessible residency options, and a favorable climate. Education and healthcare – both crucial for any expat seeking to relocate overseas – are also of very high quality in Portugal, and at a fraction of the cost compared to many other countries.

The favorable route to Portuguese citizenship is also a big driver. After five years of legal residency in the country, investors can apply for a Portuguese passport, allowing for increased travel freedoms, financial flexibility, and the ability to live, work, and study in any EU member country.

Summing Up: What does the future hold for wealth migration?

While New York is home to the most millionaires – 384,500 – followed by San Francisco, Tokyo, and Singapore – London seems to be slipping, reflected the number of millionaires leaving the UK.

While still ranking in the world’s top six cities, this shift reflects a broader shift in millionaire migration trends. The world’s wealthy are looking elsewhere to locations such as Portugal, Greece, Italy, and Switzerland to relocate to. Each of these four European countries make the top ten countries when it comes to net millionaire inflows.

So, watch this space. As we see the landscape of wealth migration evolve, Portugal’s strategic location, high quality of life, and residency opportunities look set to attract more high-net-worth individuals to its shores in the coming years.

Goldcrest: How We Can Help You

Portugal holds all the cards. With lifestyle benefits, a thriving property market, and an array of residency options, more high-net-worth individuals are setting their sights on Portugal than ever before.

If you are seeking to relocate to Portugal and are on the hunt for a property in the country, we are here to help you.

Goldcrest is the first buyers agent in Portugal, helping countless investors, families, and retirees successfully achieve their property goals in Portugal. From scouting out the property that meets your exact requirements, through to property acquisition and beyond, we offer a full-scope service tailored to your needs. Get in touch with us today!