Celebrities Eyeing Portugal for Property Investments
The former royal couple, Harry and Meghan, made headlines when they purchased a $14.7 million (£11.8 million) home in Montecito back in 2020. Now, their interest in a European holiday home in Portugal could be a savvy investment choice.
Rising House Prices
According to the Knight Frank Global House Price Index, house prices in Portugal have risen by 6.6% over the past year. The estate agency Savills has identified Portugal as a prime destination for second homes, particularly as the country’s economy expanded by 2.3% last year, significantly outperforming the 1.6% growth across the eurozone.
A Hub for Executive Nomads
Lisbon ranks 5th globally as a hotspot for ‘executive nomads’, a term referring to affluent individuals seeking a conducive environment for work and leisure. Factors such as connectivity, innovation, and a vibrant cultural scene make it particularly attractive, as noted by Miguel Lacerda, Lisbon residential director for Savills.
Celebrity Investments
Several celebrities, including Nicole Kidman, Scarlett Johansson, and Christian Louboutin, have invested in Portuguese properties. Louboutin even opened his own boutique hotel, Vermelho, in Melides last year, showcasing the region's appeal.
Family Ties and Luxury Living
Harry and Meghan’s potential second home purchase is believed to be near Melides, where Princess Eugenie, Harry’s cousin, owns a villa. The area is known for its luxury developments, such as the CostaTerra Golf and Ocean Club, with homes starting at €4 million (£3.33 million).
Attractive Living Conditions
The combination of good weather, multiple international airports, and a favorable tax regime makes Portugal a prime location for High Net Worth Individuals (HNWIs). The Non-Habitual Residency (NHR) scheme offers various tax exemptions and preferential rates for a decade, making it an attractive option for wealthy investors.
Safety and Lifestyle
Portugal offers a laid-back luxury lifestyle and is ranked 7th on the Global Peace Index, providing a safe environment for affluent individuals. The country’s 300 days of sunshine a year adds to its allure, appealing to residents accustomed to sunny climates.
The Hamptons of Europe
Developers are catering to the wealthy with new projects like Spatia Melides, a luxury villa development along a stunning 50-kilometer beach, which has gained the nickname “the Hamptons of Europe.” Prices for these exclusive properties start at €3.99 million (£3.32 million).
Culinary Delights
Portugal is also becoming a gastronomic destination, now boasting 39 Michelin-starred restaurants and a vibrant cultural scene. Meghan Markle, known for her culinary interests, may find the local food scene particularly appealing.
Changes in the Golden Visa Scheme
However, potential investors should be aware of changes to the Golden Visa scheme. As of October, the ‘Mais Habitação’ law removed residency bonuses for overseas investors. To obtain a residence permit now, one must invest at least €500,000 (£417,000) in a business or donate €250,000 (£208,000) for environmental preservation.
This shift means that Harry and Meghan may need to adjust their financial strategies if they wish to maintain their lifestyle and enjoy the benefits of living in Europe.
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