Villa in Quinta Do Lago, Algarve, Portugal
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In November 2023, El Economista reported the Spanish Constitutional Court (TC) approved a tax on large fortunes. The impact? Wealthy Spaniards are considering a move to Portugal.

When implemented, it’s said the TC’s levy will be imposed on assets over €3 million, with the first €700,000 exempt. Around the same time the news hit, Pedro Sánchez was reelected as Spain’s Prime Minister, after striking a controversial deal with Catalan separatists.

With those things in mind, the country’s wealthiest taxpayers are approaching lawyers about changing their place of residency – inquiries have jumped in volume. Many have given themselves until the end of Q1 2024 to decide.

The majority of interest is from foreigners, primarily those hailing from Latin America who moved to Spain at some point. Given they’ve already changed residency before, they’re comfortable going through the process again, especially when it involves a neighboring country.

Why is Portugal particularly favorable? Late last year, the country’s Socialist Party put forward an amendment to extend the special tax regime for non-habitual residents, implementing a transitionary scheme until the end of 2024 (and backtracking on a previous announcement eliminating the program).

The extension was well-timed, attracting high-net-worth individuals from Spain to a nearby country with a similar climate, culture, and cuisine.

According to JamesEdition, homes for sale in Portugal have an average listing price of $932,000, ranging between $490,000 and $24,000,000. The average price per square meter is $4,260, with more than 45,500 luxury homes in Portugal currently listed on JamesEdition.

Popular regions include Lisbon (averaging at $5,380 per sqm), the Algarve ($4,380 per sqm), Madeira ($3,930 per sqm), and the districts of  Porto ($3,850 per sqm), Évora ($3,280 per sqm), and Leiria ($2,750 per sqm).

Wealthy individuals and families looking to make the move should analyze the situation carefully, taking factors like Spain’s exit tax into account.

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