Portugal sees a new opportunity to attract large number of millionaires from UK, as a result of change in non-domicile regime in the UK. The United Kingdom has lost its shine as a golden destination for rich and wealthy migrants due to Brexit, safety concerns, predatory tax system, political uncertainty and economic challenges..
UK’s Millionaire Decline
The U.K. government has abolished a special non-domicile tax status from April 6, 2025 that has allowed rich individuals to exempted paying worldwide income from British taxes. This key reform has triggered departure of 10,000+ millionaires leaving the UK. The UK new tax residency system cuts exemption of taxes to 4 years instead of previous 15 years for those who lived more than 10 years abroad.
The introduction of Non-Domicile Tax, High Inheritance and Capital gains taxes made UK less attractive for Millionaire families.
To complicate things further, UK universities levying higher education fees for foreign students along with introduction of VAT from 1 January 2025, all education and boarding services provided by a private school or connected person will be subject to VAT at the standard
High capital gains taxes and the introduction of 40% high inheritance tax from April 6, including taxing non-UK (overseas) assets upon transfer, also makes the U.K. less desirable for wealthy long-term residents.
According to The Guardian, Britain’s three-quarters of a century-long reputation for being a millionaire magnet really began to wane from 2017 to 2023 – post Brexit.
“Britain is not the fun-packed playground it once was for the cash rich”
-The Guardian
Since 2022, UK has abolished Golden Visa allowing people to invest £2 million gilts in the U.K, prevented millionaires to settle to UK citing, abuse and money laundering. Tighter immigration rules discouraged rich families moving to UK looking for permanent residence and citizenship .
Experts warn these harmful policy changes, will trigger the great exodus of millionaires will have a counter effect on the economy such as investment flight, loss of jobs, lesser tax collection and decline in property market, with the country already grappling with inflation and other economic challenges.
Portugal is a Hotspot for Global Wealth
Portugal provides a red carpet welcome to multi millionaires arriving from UK bringing their wealth and talent with them. Many of those millionaires, have set sights on Portugal and nearby countries. Portugal is becoming a new hotspot for millionaires for these reasons…
- Great weather with lots of sunshine (sun and sea).
- High safety, upper quality of life, great healthcare and education.
- Close proximity to UK and Ireland connecting Europe.
- Low cost of living compared to UK.
- Affordable property market for Luxury properties with high ROI.
- NHR 2.0 special tax regime available to resident millionaires to pay flat tax. Portugal has no wealth tax, inheritance tax and capital gains tax for non-residents. Stamp duty exempted for family members. Retirees can avoid capital gains tax by reinvesting in insurance or pension funds.
- Availability of Golden visa program catering to rich to secure residency with path to nationality after 5 years.
To secure a fast track residency through golden visa, it is required to park €500,000 subscribing investment funds for five years. The capital is refundable after 5 years at the time of filing Portuguese nationality application.
Portugal further stands to gain rich individuals, from The latest European Supreme court (CJEU) judgment against Malta ruling citizenship by investment as ‘illegal’. Malta is a little sunny country in Europe attracted to millionaires and yacht lovers with its citizenship by investment program..
Portugal remains popular choice for expat millionaires relocating to or buying property in Portugal. Portugal’s warm weather with 300 days of sunshine, a well-established expat community with English is widely spoken everywhere, are the primary pull factors for wealth foreign immigrants to buy a home and settle in Portugal.
Conclusion
It is unclear how long the door will be open for millionaires amidst rising criticism and international pressure on Golden migration programs.
