Why family offices are choosing Portugal

Portugal is now regularly mentioned among the jurisdictions attracting a share of that expansion.

Part of the pull comes from tax reform elsewhere rather than from Portugal itself. Since April 2025, the UK has taxed inheritance on a residence basis rather than under the old domicile rules that many internationally mobile families had structured their planning around. That change has prompted a number of UK-linked families to reconsider where they hold and eventually pass on their wealth.

Succession treatment is one of the reasons Portugal features in that reconsideration. Under current legislation, spouses, direct descendants and ascendants pay no inheritance tax at all. Anyone outside that group faces a flat 10% stamp duty instead of a graduated inheritance tax, a more straightforward position than many families are accustomed to.

Portugal also has no general wealth tax. The exception is AIMI, an additional municipal property tax that only applies once a property's value exceeds €600,000 for an individual or €1.2 million for a couple, and then only on the value above that threshold.

For a family office choosing where to base itself, governance and compliance standing carry as much weight as the tax figures. Portugal scores above 0.9 on the World Justice Project's Rule of Law Index, above the EU average of 0.79, and sits 16th out of 50 jurisdictions on the Basel AML Index, ahead of Ireland at 20th.

Infrastructure is another factor. PwC's Portugal Family Office Location Guide, published in April 2026, sets out the country's growing asset and wealth management capability, including a new Asset & Wealth Management Investment Centre offering fund administration, custody and international reporting, alongside costs the firm describes as competitive.

Income tax treatment is less clear cut. The IFICI tax regime, which took over from the old NHR tax scheme in January 2025, gives a flat 20% rate on qualifying Portuguese-source income, but only for professionals working in scientific research, technology and other designated innovation sectors. It is narrower than NHR and excludes pension income from favourable treatment, so any family assessing a move needs to look at its own circumstances rather than assume the same benefits applied across the board.

Paul Stannard, chairman and founder of Portugal Pathways and the Portugal Investment Owners Club, said:

"Families used to think about where they live and how they pass on wealth as separate questions. We're seeing more of them arrive at Portugal by asking both at once."

If you're considering Portugal as a base for family wealth or succession planning, Portugal Pathways can connect you with the tax, legal and wealth professionals who work across this landscape.

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About Portugal Pathways

‍‍Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on estate planning, wealth management, Golden Visa and tax optimisation, including post-NHR / IFICI tax regime planning, as well as private healthcare, money transfers and bespoke relocation and luxury real estate solutions to enhance life and investment in Portugal

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Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (PIO Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.

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