Portugal gains 725 super-rich residents in five years. Why is it a magnet for wealth?

Portugal now has 725 additional ultra‑wealthy residents compared with five years ago. This raises questions about their identities, sources of wealth, and the reasons they choose Portugal for residence and investment.

A recent Knight Frank study, based on the Prime International Residential Index, shows that the number of ultra‑high‑net‑worth individuals (UHNWIs) in Portugal has increased by nearly 50% over the past five years.

In 2021, Portugal was home to 1,462 ultra‑wealthy individuals, and Knight Frank projects that number to rise to 2,187 by 2026.

It is widely recognized that a substantial portion of these ultra‑wealthy residents are foreigners who have selected Portugal for living or investment.

Beyond its high quality of life, climate, safety and lifestyle, Portugal initially attracted affluent individuals through recent tax incentives, including golden visas and the Non‑Habitual Resident (NHR) regime.

Introduced in 2009, the NHR scheme offered a decade of tax benefits to attract highly skilled professionals and foreign pensioners, and now applies only to selected scientific and highly qualified activities.

Regarding golden visas, purchasing property is no longer an eligible route to residency under the programme.

The Knight Frank study suggests that these changes may reduce international demand, though they are unlikely to eradicate it.

The ultra-wealthy are not all foreigners

Among individuals with assets exceeding €25 million (approximately $30 million in Knight Frank’s report), many are Portuguese, particularly business owners.

‘Someone with this level of wealth primarily focuses on protecting assets, tax planning, and succession,’ Helena Seruca, co‑coordinating director of private banking at Banco Carregosa, told Euronews.

Banco Carregosa is a Portuguese financial institution that specialises in wealth management for high‑net‑worth clients. Its core client base consists of Portuguese entrepreneurs from northern and central Portugal, operating in sectors such as footwear, textiles, glass, plastics, wood, as well as emerging technologies and services.

Helena Seruca is not surprised by the five‑year rise in UHNWIs, attributing it to the post‑pandemic era as a turning point for new wealth creation: ‘Since the post‑COVID period, we have observed clients’ assets growing after the sale of their companies,’ she explains.

In an Euronews interview, Seruca noted that the substantial inflow of private equity into companies has left many entrepreneurs with large cash holdings.

Private equity and foreign wealth drive new fortunes

Private equity funds, which invest in unlisted companies to enhance their value over the medium to long term, have established a strong presence in Portugal in recent years, fostering a new generation of ultra‑wealthy entrepreneurs.

Many business owners sell stakes in their companies to finance expansion or to enter new markets without tapping their own capital.

‘A private equity deal essentially means taking a position in a company through a venture capital fund, which may or may not participate in management, depending on the stake acquired and the investor’s ambitions,’ explains Bruno Minoya Perez, head of Private Banking at Banco Carregosa.

The ageing of business owners has also accelerated outright company sales: ‘There are individuals in their 50s or 60s who no longer wish to run the business themselves, or who receive attractive offers and choose to sell. In the past five years, many such deals have occurred,’ he says.

Perez cites the sale of a central‑Portugal bakery company to a major French group as an example: ‘That entrepreneur suddenly received €100 million,’ he says, illustrating how a single transaction can elevate an individual to ultra‑wealthy status. He notes similar consolidation in sectors such as funeral services and law firms.

Bruno Perez also highlights similar processes in funeral homes and law firms, where larger groups acquire smaller operators to increase market share.

Helena Seruca points to the rise of digital nomads after the pandemic: ‘We saw many foreigners come to Portugal to work remotely, grow fond of the country, and settle here. They are typically financially secure, entrepreneurial individuals who go on to create businesses,’ she says.

She also highlights growing foreign investment, especially in real estate and tourism.

Although overseas property investors are not Banco Carregosa’s typical clients, Perez notes that demand has grown: ‘Israeli and Turkish clients who invest in Portugal are primarily real‑estate professionals from their home countries. They choose Portugal because they see good opportunities to buy and refurbish properties, particularly in cities such as Lisbon and Porto,’ he explains.

Some ultra‑wealthy investors relocate to Portugal, while others purchase second homes. According to Perez, the lifestyle also plays a role: ‘Very wealthy people often visit Portugal for the weekend, especially to play golf in areas such as Cascais, Comporta, and the Algarve. Some arrive by private jet, spend a few days enjoying the experience, and end up buying homes.’

An example is the Terras da Comporta development, which centres on a championship golf course opened in 2023 and has helped attract international buyers for luxury homes and development plots.

Luxury property cements Portugal’s appeal

A global study by Christie’s International Real Estate, one of the world’s largest luxury property networks, highlights Portugal’s growing importance in the international luxury housing market.

João Cília, CEO of Porta da Frente Christie’s in Portugal, told Euronews that affluent buyers are increasingly seeking primary residences, second homes, and portfolio diversification.

Entry‑level high‑end homes cost around €6,500 per sq m, while luxury properties typically command around €11,000 per sq m. The ultra‑luxury market is concentrated in prime locations such as Cascais, central Lisbon, Comporta, and the Algarve’s Golden Triangle.

Ultra‑luxury is also defined by prime locations, including Cascais, central Lisbon, Comporta, and the so‑called Golden Triangle of the Algarve (Vilamoura, Vale do Lobo, and Quinta do Lago).

The broader high‑end market is dominated by Portuguese buyers. ‘If we look at entry‑level high‑end properties, currently 95% of buyers are Portuguese; however, in the luxury and ultra‑luxury segments, about 65% are foreign, primarily North Americans and Brazilians,’ Cília says.

Among ultra‑luxury buyers, Portuguese purchasers account for around 35% and are typically entrepreneurs running successful midsize companies, although professional footballers also appear.

According to Cília, many foreign buyers now view Portugal as more than just a place to live: ‘These individuals are increasingly putting down roots in Portugal and investing here beyond their primary residence, thereby building substantial assets and strengthening their ties to the country,’ he says.

João Cília argues that the termination of the Non‑Habitual Resident (NHR) tax regime has had less impact than expected: ‘Even though it is no longer as tax‑competitive as before, compared with other European countries we continue to retain residents here.’

Branded residences add to Portugal’s luxury appeal

Another rapidly growing segment is branded residences — homes linked to luxury hotel brands.

According to the report, Portugal is Europe’s leading market for branded residences, with approximately 1,200 units representing 30% to 50% of the country’s luxury residential market.

Cília says the model appeals to international buyers who spend extended periods abroad: ‘This option allows them to arrive and enjoy the amenities of a hotel attached to their flat, and when they leave, to place the property under hotel management with no effort and the potential to generate income.’

Lisbon and Cascais rival Europe’s top luxury markets

Lisbon and Cascais have become two of Europe’s leading luxury property markets for ultra‑high‑net‑worth buyers.

According to Christie’s, the two locations account for more than 26% of the luxury housing supply it analysed across Europe, with Cascais ranking as the network’s second most represented market, ahead of London and Madrid.

Cília says prices now compete with Europe’s most expensive markets. An example is a nine‑bedroom villa in Guia, Cascais, listed for €20.4 million, exceeding Madrid’s current price ceiling.

Conflict in the Middle East draws investors to Portugal

João Cília notes that the Middle East has become one of the fastest‑growing sources of new buyers, particularly Qatar, where recent geopolitical tensions have prompted investors to seek safer destinations.

‘Right now they are looking for safer investment alternatives, and the greater the global instability, the more important this market becomes, as it offers a euro‑denominated, politically stable environment within the EU, making it an excellent alternative to more volatile markets,’ he says.

However, Cília believes limited supply could constrain future growth: ‘These individuals desire a distinct style of construction in highly privileged areas, and Portugal is not a large country.’

Portugal’s wealthy population set to keep growing

Knight Frank’s 2025 Prime International Residential Index forecasts that Portugal’s ultra‑high‑net‑worth population will continue expanding, reaching 2,452 individuals by 2031.

The report states that increasingly mobile wealthy individuals, following a so‑called “dip‑in, dip‑out” lifestyle across multiple countries, are helping drive this growth.

For Banco Carregosa’s executives, Portugal’s combination of political stability, quality of life, and international appeal continues to attract wealthy residents and investors. Although tax incentives are no longer as generous as before, Portugal remains one of Europe’s leading destinations for international wealth and luxury property investment.

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