Not Just a Residency Option: Why Portugal Has Become a Strategic Base for Entrepreneurs and Families

By Paul Stannard, Founder and CEO of Portugal Pathways, which advises international investors, entrepreneurs and families on Portuguese residency and relocation.

For many affluent individuals and families, mobility, resilience and long-term planning have taken on increasing importance. It is no coincidence that residency-by-investment programmes such as Portugal’s Golden Visa offer have increased in popularity at the same time – with the IMF reporting more than 10,000 successful annual applications for some of the most popular.

This number reflects not only the geopolitical, social and economic instability which has challenged citizens across the globe, but also the increasing view of such programmes as an essential element of bigger decisions around lifestyle, business, education and wealth preservation. In this search for a strategic ‘Plan B’, the multiple benefits associated with Portugal’s programme have seen the Golden Visa become one of the most talked-about and sought-after, not just in Europe but worldwide.

A stable base in an increasingly unstable world

With geopolitical uncertainty rising, entrepreneurs and investors are looking for ways to protect their families and businesses by seeking residency rights in locations noted for political and institutional stability, rule of law, and economic prosperity.

Portugal’s position within the EU and Schengen Area provides a level of certainty around access to one of the world’s biggest trading blocs, alongside a better quality of life, more secure society and a welcoming international environment.

It must also be noted that the Golden Visa provides optionality – enabling families to secure residency without having to relocate (and with a current minimum physical presence of seven days per year, on average), meaning they can keep their options open while maintaining their current lifestyle in their home country.

More than just lifestyle appeal

Portugal’s relaxed, mediterranean lifestyle is without doubt appealing – but residency-by-investment choices are rarely made based on the same criteria one would pick a holiday destination. To become such a viable option, the country has had to showcase far more strategic advantages. Take for instance its burgeoning technology, innovation and start-up ecosystem which have seen it catch the attention of global entrepreneurs. Indeed, the AICEP reports 17,000 companies owned by overseas founders, of which more than 9,700 were established during the past decade. No doubt internationally-minded founders and investors will have taken into account the easy access to EU markets and visa-free movement offered by Portugal.

For those seeking to maintain their existing business and personal structures, the evolving residency-by-investment programme offers them much-needed flexibility around residency rights and tax status.

Rather than an all-or-nothing decision about where they work, live and invest, the Golden Visa offers a middle ground: the ability to formulate a diversified international strategy without uprooting themselves and their family. If or when they choose to take that step at some point in the future, eligible individuals may (after the relevant qualifying period and subject to meeting all legal requirements) be able to apply for permanent residency or Portuguese citizenship.

Appeal for families and individuals alike

For those with eligible dependents, the ability to include them within a single Golden Visa application – subject to AIMA approval – is also advantageous: giving internationally mobile families the opportunity to access high-quality healthcare and education.

OECD figures showcase a higher than average life expectancy (by around 1.4 years), lower rates of preventable and treatable mortality than average, and a slightly higher proportion of children achieving baseline proficiency in reading, science and mathematics. Alongside an above-average bachelor’s degree completion rate and its international connectivity, Portugal’s health and educational offerings position it favourably for families making strategic decisions based on their children’s prospects and quality of life.

By offering multiple residency pathways, the country has proved extremely effective in attracting a range of individuals – from the aforementioned families and entrepreneurs to digital professionals and retirees. This naturally suggests a wealth of benefits which appeal to a range of people in different circumstances.

Regardless of the global popularity now associated with Portugal’s residency-by-investment programme, investors and HNWIs are of course planning their futures based on suitability, not vogue. The Golden Visa is no doubt an attractive proposition thanks to a combination of European access, ease of travel and entrepreneurial opportunity. It delivers long-term optionality which resonates with an ever-expanding number of globally-minded families and business owners, and its star appeal shows no sign of dimming any time soon.