· Huge opportunity for IFAs as 9,500 millionaires plan to leave UK in 2024
· Portugal looking to welcome 800 millionaires this year
· Moving to Portugal Show taking place in London on 17th October 2024
A record 9,500 millionaires are due to leave the UK in 2024, according to the Henley Private Wealth Migration Report 2024 – more than double the country’s record-breaking loss of 4,200 millionaires in 2023. Only China will lose more millionaires than the UK this year.
Portugal, meanwhile, is one of four European countries included in the top ten countries for millionaire inflows in 2024. Henley projects that Portugal will see an influx of 800 millionaires this year.
The situation presents an interesting opportunity for Independent Financial Advisors (IFAs) with knowledge of fiscal policies and taxation in both the UK and Portugal. Many wealthy Britons will be seeking expert advice on the financial impact of becoming tax resident in Portugal.
The situation also says much about the perceived economic health of both the UK and Portuguese economies by high-net-worth individuals (HNWIs). In the UK, the tax changes that are widely anticipated to result from Labour’s October 2024 budget will likely include the party’s manifesto commitment to “end the use of offshore trusts to avoid inheritance tax.” Add that to the removal of VAT exemption on private school fees and tinkering with capital gains tax (the upper band could shoot up to 45% if brought into line with income tax) and there are plenty of reasons for HNWIs to set their sights on a move overseas. There are also plenty of areas on which they will require expert financial advice.
Portugal, on the other hand, is shaping its tax and visa offerings in a way that encourages an inflow of HNWIs. The country has no inheritance tax; there is a stamp duty of 10% on the inheritance of Portuguese assets, but it doesn’t apply to spouses, children or parents. Those aged 65+ can avoid capital gains tax by reinvesting the proceeds into an eligible pension fund, life assurance policy, or insurance contract. In June 2024, the Portuguese Government launched the ‘Accelerate the Economy Programme,’ made up of 60 initiatives designed to enhance the global tax competitiveness of Portugal’s economy, and to enable businesses to attract foreign investment, fresh capital and skilled professionals.
The Non-Habitual Residency 2.0 (NHR 2.0) programme is Portugal’s latest tax incentive scheme, designed to attract foreign investment and skilled professionals to the country. This innovative regime, officially known as the Fiscal Incentive for Scientific Research and Innovation (IFICI) Program, replaces the original NHR tax regime that has been in place since 2009. The transition to NHR 2.0 marks a significant shift in Portugal’s approach to attracting international talent and capital, offering a more targeted and potentially more beneficial tax structure for eligible individuals.
Portugal also has a range of visas to suit different needs. These include a Golden Visa, which offers residency in exchange for qualifying investments in the country (real estate, job creation or business). While there have been changes to the Golden Visa in recent years, particularly around investment in property, the program still offers several attractive options.
There are also visas aimed at entrepreneurs and those looking to retire or live in Portugal without needing to work. The D7 Visa, for example, is popular among retirees and individuals with passive income.
IFAs keen to understand the benefits of moving to Portugal in greater depth are invited to register online for the free-to-attend Moving to Portugal Show and Seminars on 17th October 2024. Taking place at London’s Pestana Chelsea Bridge Hotel, the event provides access to expert information and advice on all aspects of relocating to Portugal. Specialist exhibitors will cover investment, banking and currency, pensions, legalities, relocation, estate agency and resort living.
The Moving to Portugal Show will also include a special seminar session focused on investment strategies and opportunities in Portugal. Aimed at professionals – including family offices, wealth managers and investors – the session will explore Portugal’s potential as a strategic destination for residency and portfolio diversification. It will deliver an in-depth analysis of Portugal’s Golden Visa programme, strategic guidance on navigating Portugal’s investment landscape and key legal and tax considerations.
Christina Hippisley, General Manager of the Portuguese Chamber of Commerce in the UK, comments:
“Britons are becoming increasingly financially literate about the advantages that residency and investment programmes in Portugal can offer. As new investment funds become available, wealth management professionals need to be up-to-date with the latest information to ensure their clients can achieve financial returns that align with their investment strategies, while also gaining the advantages of residency in Portugal. The Moving to Portugal Show and Seminars can provide valuable assistance in this area.”
