Investing in Portugal whilst optimising your income and assets for the future

As Portugal continues to attract affluent expats and investors from around the globe, it is crucial to plan how you manage your income, wealth, and investments in one of the world's most popular relocation hotspots for Golden visas and the wider EU Schengen region investment opportunities this opens up.

This latest webinar provided valuable knowledge and strategies to understand what's available, how this market operates and what makes these opportunities attractive.

Hosting this event was Paul Stannard, Chairman of Portugal Pathways and WDF, who will be sharing the newly published research from the ''Wealthy Expats in Portugal Survey Report 2023-2025''.

Our expert panel included:

• David Vacani, Chairman of Federation European Independent Financial Advisors (FEIFA) and CEO & Founder of BG Wealth Management: David brings over 20 years of experience in cross-border financial planning, making him an ideal guide to investment and market opportunities in Portugal.
• Chris Marson, CEO of RTI Family Office: With over 30 years of experience managing significant wealth for ultra-high-net-worth international families, Chris possesses expert insight into private equity, wealth management, real estate, technology, and cross-border tax and financial planning.
• Luis Quaresma, Co-founder and Partner of Iberis Capital: Luis's extensive experience in venture capital, spanning over 15 years, makes him a valuable resource for navigating Portugal's venture capital landscape.
• Marcos Barcellos, Founder & Partner of Invino Capital: Marcos's over 20 years of expertise in international business, business development, and logistics operation, coupled with his strategic leadership experience, will provide valuable insights into Portugal's business environment.

Our expert panel debated and discussed some of the options available to investors and affluent expats in Portugal, diversifying investment portfolios and understanding the regulatory frameworks and risk profiles of this growing investment marketplace.

Our expert panel also discussed how to make the most of Portugal's Golden visa program and other visa schemes, such as the D2 Entrepreneur's visa and the D8 Digital Nomad visa. There's also a D3 visa to encourage highly qualified professionals or scientific talent coming to the country.

See our watch back video and learn from Europe's leading wealth management experts, cross-border investment and tax specialists, family office advisors, and some of Portugal's investment funds, and what to look out for and be aware of throughout 2024.

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This webinar covered:

• The updates following the Portuguese government state budget 2024 announcement and what this means to investors and stakeholders considering coming to Portugal or already living and investing in the country.
  

• How existing expat NHR tax status holders can mitigate potential progressive tax rates under the tax system in Portugal by acting early within their NHR tax life so that their assets, investments, and income are protected for the long term.
  

• Why Portugal continues to be hugely popular with wealthy expats and investors due to its ease of access to the rest of Europe, thriving property market, culture and heritage, healthcare and safety, reputation, and friendliness, alongside 300+ days of sunshine.
  

• How Portugal's tax regimes and investment opportunities compare with other jurisdictions in Europe and beyond in terms of its investment opportunities and relocation ecosystems.

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Answers to key webinar questions from attendees

Disclaimer: The guidance below and Q&As should not be fully relied upon and does not constitute formal instructed professional advice. In relation to tax advice in Portugal, please engage and instruct a regulated professional for all tax advice and structured financial planning. Please contact Portugal Pathways if you would like an introduction to one of our professional advisors.

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What are the key factors that we should take into account when planning and structuring their NHR tax status?

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Planning and structuring your income and assets early on within your NHR tax life is crucial to mitigating future progressive tax rates after the initial 10-year qualifying period. However, how you approach this is dependant on personal circumstances and as such it is important to schedule a no-obligation meeting with our experts to better understand your current position.

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With the focus shifting away from real estate for Golden Visas, what alternative investment options do you see holding the most potential for foreign investors considering both economic returns and visa benefits?

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With real estate taking a backseat in Golden Visa programs, several alternatives offer promising blends of economic and visa benefits for foreign investors: venture capital funds targeting innovative sectors like green tech or healthcare can deliver high growth potential and contribute to diversification, while government-backed infrastructure funds offer lower risk and steady returns alongside strong visa connections.

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Additionally, investment in renewable energy projects or cultural restoration schemes could unlock both financial incentives and appeal to countries seeking sustainable development and heritage preservation. Ultimately, the ideal option will depend on individual risk tolerance, sector expertise, and the specific requirements of each Golden Visa program.

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Considering potential policy changes, what factors should investors prioritise when choosing Golden Visa investments for long-term stability and residency security?

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For maximum long-term stability and residency security with Golden Visa investments, prioritize factors that minimize policy vulnerability:

1. Diversification: Spread investments across different asset classes (e.g., VC funds, government bonds) and countries to lessen dependence on any single program's potential policy shifts.

2. Focus on sectors ingrained in national priorities: Align investments with the host country's long-term goals (e.g., infrastructure, renewable energy) for increased policy stability.

3. Choose established, reputable programs: opt for programs with proven track records and clear residency pathways, minimizing the risk of sudden rule changes.

4. Consider flexibility and liquidity: Prioritize investments with readily tradable assets or exit strategies, allowing for adjustments if program landscape changes.

5. Factor in legal protections: Choose countries with strong contract enforcement and investor protection laws to safeguard investments against unforeseen policy interventions. Remember, while no investment is entirely immune to policy changes, these factors can significantly enhance long-term security in the evolving Golden Visa landscape.

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Why should I choose the Golden Visa Portugal Program instead of other European countries such as Greece, Spain, Ireland?

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Choosing the right Golden Visa program for your needs can be a complex decision. Here's a breakdown of why Portugal might be the perfect fit for you:

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Affordability: Portugal boasts the most budget-friendly Golden Visa program in Western Europe. The minimum investment threshold starts at just €280,000 for property investments in low-density areas or €500,000 for urban properties. This compares favourably to Spain's €500,000 minimum and Greece's €250,000 requirement (which comes with higher property taxes).

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Fast track to residency and citizenship: Portugal's program offers residency after just 5 years, with a path to citizenship after another year. This is faster than Spain's 10-year residency requirement and Ireland's 6-year pathway. Greece offers a 7-year residency track, but the citizenship process can be lengthier.

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Lifestyle and Quality of life: Portugal consistently ranks among the happiest countries in the world, offering stunning beaches, delicious food, a vibrant culture, and a relaxed atmosphere. The cost of living is significantly lower than in other Western European countries, making it an attractive option for retirees and families.