The Algarve is not just a holiday hotspot but the preferred relocation destination for a growing number of the world’s affluent. The latest ‘Wealthy Expats in Portugal Survey Report 2024/25’ by the independent research organisation World Digital Foundation reveals key insights into why affluent individuals are choosing this location.
The report, based on interviews with over a thousand wealthy expats, highlights Portugal’s and especially, the Algarve’s appeal. Due to its friendly atmosphere, robust healthcare system, safety, security, and cost of living, as well as it’s favourable tax regimes for investors, entrepreneurs, highly qualified professionals and high-net-worth individuals.
Cassie Hawk, spokesman for the ‘Wealthy Expats in Portugal Survey Report 2024/25’ said: ‘’ Portugal has seen a meteoric rise over the last 10 years in terms of attracting affluent families and investors, and the country has been long famous for sardines, local produce, culture, weather and is really punching above its weight with international people looking for a safer landing place for life as well as their wealth, income and assets.’’
Paul Stannard, Chairman at Portugal Pathways, an online platform that supports affluent international families relocating and investing in life in Portugal, says: “There’s no slowdown in the influx of high-net-worth individuals coming into the Algarve, thanks to the region’s safety, rich culture, favourable tax regimes, the Golden Visa residency by investment program, and a thriving luxury real estate market especially in and around Lisbon and the Algarve.”
The updated Golden Visa program is a significant draw, offering dual residency in Portugal and freedom of movement across the EU Schengen region in exchange for a €500k investment in regulated Portuguese funds. This program no longer includes property investments, opening avenues in sectors like renewables, healthcare, technology, tourism, and hospitality. According to Stannard, this shift is beneficial: “What has replaced it is potentially better for the country and gives far more choices to investors in terms of the sectors and scope for investment.”
The Algarve's appeal also extends to its vibrant cultural scene and diverse, welcoming community. Mathilda Green, an expat from Amsterdam, praises the region, stating, “The Algarve feels like a sanctuary. I can walk around any time of day or night without feeling unsafe, and I haven’t been able to say that in my home country. The polarisation of politics in Northern Europe and other parts of the world are so far removed here, and it feels open and welcoming.’’
Similarly, Maria Santos from Brazil appreciates the cultural richness: “The culture here is so diverse and welcoming. I love the blend of old-world charm with modern amenities being developed. There is a real feeling of community, and local people, as well as international families, seem to embrace the Algarve's welcoming and friendly nature.’’
Portugal's favourable NHR (Non-Habitual Residency) tax regime, introduced in 2009, has been a substantial draw for wealthy expats and entrepreneurs who want to benefit from their worldwide income while resident in Portugal, specifically the Algarve region. With many families still being able to secure NHR tax status in 2024 using the grandfathering conditions, with the help of organisations like Portugal Pathways or other tax and immigration professionals. These grandfathering conditions dictate that individuals must demonstrate proof of intent to reside in Portugal to qualify this year for the existing NHR tax scheme, which was more aligned to passive income and wealthy retirees as well as entrepreneurs.
The NHR tax regime is soon to be replaced by the NHR 2.0 tax regime in 2025, which remains a major incentive, particularly for tech professionals, entrepreneurs, and innovators. Maria Alvarez Garcia, Tax Partner at Vida Advisors, said: “The NHR 2.0 tax regime is expected to be highly beneficial for tech professionals, entrepreneurs, and startup founders, making Portugal a hub for innovation and business growth. It will encourage investment and help build a more robust Portuguese economy as a result.
However, we are expecting the new government to potentially make amendments as the outline bill was originally put in place last November by the old government, but the new government has already indicated that it wants to be investor-friendly but also make sure that local people are protected and benefit.’’
The Algarve’s luxury real estate market is also thriving. According to the Property Market-Index’s ‘Portugal’s Property Hotspots Report,’ the demand from wealthy buyers is creating a supply shortage, driving significant capital growth. Amanda Collison from Property Market-Index explains, “The continued influx of entrepreneurs and wealthy families choosing the Algarve is delivering for investors, with quality build programs now on par with international standards.”
Sarah Thompson, a British expat, shares her experience: “The real estate opportunities here that we have seen in the last two years have really surprised us, both in the quality of the architecture and the amazing locations and backdrops that make these opportunities so appealing. Coupled with the quality of life on offer, I’ve never regretted my decision to move here.”
One luxury developer, Brookes Property Group, in central Algarve who is launching their Quinta Heights development between Carvoeiro and Ferragudo this summer, said: ‘’We are just launching, and we have 25% sold off plan already. The demand for central Algarve is very high as it offers such a rich cultural experience and luxury developments like our Quinta Heights development that offers a lot more value with comparable developments in the Golden Triangle which is just 30 to 40 minutes up the road.
‘’The beaches and bays, as well as the seafood and sardines in Ferragudo and Carvoeiro, mean that you can have those stunning sea views and at the same time see the inward mountain views from our soon-to-launch Quinta Heights luxury development, which will have the very highest specifications and amenities including wellness and yoga spa facilities, garden walks and even its own observatory to star gaze from the rooftops and witness the incredible night sky without the light pollution.
‘’We have been building international luxury real estate for more than 20 years, originally in Florida, and we are very excited about what’s going on and the opportunities coming up in the Algarve. It is no surprise that it is attracting so many international affluent families.’’
The Algarve is much more than a land of sardines and sunshine. Its welcoming environment, strategic tax benefits, and robust real estate market make it an attractive destination for the world’s wealthy elite.
Photo courtesy of Depositphotos.com
