Countries such as Portugal with attractive migration packages hold immense appeal.
Given the events happening worldwide for the past couple years, it has been well known that private capital of High Net Worth Individuals has started to shift. Millionaires have started to move their assets globally and certain countries are experiencing a significant inflows and outflows. These movements act as an indicator of proving the stability, quality and performance of countries. Those that are experiencing a significant stream of millionaires’ assets are countries with welcoming business opportunities, attractive tax incentives, low crime rates and diversification of assets and risks.
Popular millionaire hubs such as the UK, India and China – these are the countries that are experiencing the highest ouflow of their HNWIs. UK has had an unpleasant shift of HNWI since the Brexit. Starting 2017 they have seen higher outflow than inflow of millionaires. When it comes to Europe, investors are more opting for countries that are part of European Union. India can consider itself as a lucky country.
Despite the higher outflow of Indian millionaires in the past years, the country is still thriving with production of more millionaires. Therefore their current shifting trend is an aspect that India should not be worried about. China is simalarily experiencing a leaving trend of its HNWIs. Even though the numbers are quiet high (approximately 10,000 of them in this year already) still given the fact of total number of millionairs it is not yet big of a concern for China. The US recently has been unable to keep the private wealth of thousands of millionaires, either.
The numbers of outflows are higher than ever. One of the reasons is definitelly the tax liability that is being imposed on US citizens, noticeable rising crime rate as well as a political situation where a possible mid-term elections could shaken up the scene, too.
Not to forget to mention, Ukraine – first time ever in history has seen a significant number of millionaires that has left their country. Current Russian-Ukrainian war made almost 50 per cent of HNWI to leave their mother country. Ukrainians were forced to move not just their assets but their whole families and restart their lives in other countries. Since other European countries have been very warm and welcoming to them, it is very unlikely that even once war is over they would return back to their home country.
So where are all these millionaires shifting their assets to? Which countries do they find the most appealing and attractive?
The most important factors that are impacting the decisions of High Net Worth Individuals are countries with favourable migration programmes. CBI and RBI programs were made and altered for HNWI to gain access to the residency and citizenship easier whilst at the same time offering them attractive tax programmes and favourable business set ups incentives.
It is very well known that the winner amongst all programs has been the Portuguese Golden Visa program. With this Residency by investment program Portuguese law grants the opportunity to investors and their dependants to apply for European Union passport already after 5 years.
According to Service of Foreign Immigration (SEF) in Portugal, country has been receiving applications from investors more than ever. The number one country that is currently investing in Portugal is US.
Portugal charmed investors by so many factors. Starting with living in a country that has 300 days a year filled with sun. Climate of Portugal is very pleasant and thus attracts also many tourists almost all year long. Portugal keeps being awarded as one of the best spots for their golf courses. Water enthusiasts can find (especially on the south, in Algarve and in the island of Madeira) beaches that are one of the most popular for swimmers and surfers.
Due to the location and climate Portugal offers high quality of local products and opportunities in agricultural industry. Country as well has a great developed logistic infrastructure and advanced communication systems. Madeira Island offers an Internation Business Center with a lot of tax optimization schemes for companies.
Real estate market has been booming for the past decade. Capital appreciation on the market in the last year hit in average 8 per cent. Numbers of demand are growing in double digits, too and not just for purchasing the properties but as well for renting them. Interest of foreign investors is coming mainly from China, US, Middle East, Brazil, Russia and UK.
When it comes to statistic of Golden Visa program itself, the US citizens are number one to apply for residency of Portugal since the beginning of 2022. This fact is mainly due to travel restrictions imposed during Covid times, that limited mainly investors from the east side of the world. Luckily, the restrictions has been lifted and therefore HNWI are not hesitant but taking actions more than ever.
To be precise the Golden Visa program creates only 2 per cent of the whole demand on portuguese real estate market. It is a clear indicator that not only due to attractive RBI programme, but due to returns and capital appreciation, many millionairs are opting for a Portugal for their investments. Portugal is seen as a favorite tourist destination, as well as a perfect place for relocation and retirement.
Investors have started to lay their eyes on Portuguese islands too. Madeira is preparing to attract HNWI to welcome high-income foreign residents, to increase the economy and to become even more cosmopolitan region. Madeira’s airport is well connected with the biggest capital cities, therefore is easily accessible. Potential on real estate of this island is undeniably notable and investors can recognize it’s upcoming uprise.
Recent statistics of 2022 are showing that supply of real estate in Portugal is far from meeting the demand. Therefore it is a smart move not to hesitate with moving forward with your assets and secure yourself sooner than later.
Portugal has a very good public healthcare system accessible for free. The safety of the country is well known. Portugal became a vibrant multicultural place welcoming all nationalities and making them feel home and safe.