Portugal has added 725 ultra‑high‑net‑worth individuals in the past five years, according to a recent study by the British firm Knight Frank.
Growth in the ultra‑wealthy population
The Prime International Residential Index shows the number of residents with at least €25 million in assets rose from 1,462 in 2021 to an estimated 2,187 in 2026. That represents a near‑50 percent increase.
Why Portugal draws foreign money
Beyond a mild climate and safety, the country’s appeal began with tax incentives. The Non‑Habitual Resident (NHR) regime, launched in 2009, offered a decade of tax breaks to skilled professionals and foreign retirees. Although the scheme now limits benefits to certain scientific and highly qualified activities, it still influences decisions.
Golden‑visa programs once allowed residency through property purchases, but that route has been closed. The Knight Frank analysis suggests these changes may temper demand, yet they are not likely to erase it.
Domestic entrepreneurs add to the count
Many of the new ultra‑wealthy are Portuguese business owners who focus on asset protection, tax planning and succession.
Related: Monitoring Employees Without Invading Their Privacy: Practical Steps That Work
Private‑equity deals fuel new fortunes
Private‑equity funds, which invest in unlisted firms to boost value, have become a major source of wealth creation. Ageing owners also accelerate sales. “People in their 50s or 60s who no longer want to run the business themselves, or who receive attractive offers, decide to sell,” said a banking executive.
Similar consolidation has occurred in funeral services and law firms, where larger groups acquire smaller operators to expand market share.
Foreign investors and lifestyle buyers
Remote workers who discovered Portugal during the pandemic often stay. These digital nomads tend to be financially secure and entrepreneurial, sometimes founding new businesses locally.
Real‑estate investors from Israel and Turkey also see opportunities, especially in refurbishing properties in Lisbon and Porto. “They come because they see good opportunities to buy and refurbish,” a banking source noted.
Luxury lifestyle remains a draw. Wealthy visitors frequently spend weekends playing golf in Cascais, Comporta or the Algarve, arriving by private jet and sometimes buying homes after short stays. The Terras da Comporta development, centered on a championship golf course opened in 2023, exemplifies this trend.
Related: Experts warn of China shock as Germany stays passive
Luxury property market data
A Christie’s International Real Estate study places Portugal prominently in the global luxury housing market. Entry‑level high‑end homes cost about €6,500 per square metre, while ultra‑luxury properties command roughly €11,000 per square metre. Prime locations include Cascais, central Lisbon, Comporta and the Algarve’s Golden Triangle.
While 95 percent of entry‑level high‑end buyers are Portuguese, the luxury and ultra‑luxury segments see about 65 percent foreign participation, mainly from North America and Brazil. Portuguese purchasers in the ultra‑luxury tier are typically entrepreneurs, though professional footballers also appear.
Branded residences—units linked to luxury hotel brands—represent a fast‑growing segment. Portugal leads Europe with roughly 1,200 such units, accounting for 30 to 50 percent of the country’s luxury residential market. Buyers appreciate the ability to enjoy hotel amenities and generate rental income when away.
Outlook
Even with less generous tax incentives than before, Portugal’s combination of political stability, quality of life and international appeal continues to attract wealthy residents and investors. The steady rise in ultra‑high‑net‑worth individuals suggests the country will remain a key destination for European luxury property and capital flows.
Investors remain confident.