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Recent reports showcase the growing number of skilled professionals, innovators, scientists, and entrepreneurs leaving the UK for Portugal. At the heart of their decision is the pursuit of a better quality of life, enhanced career opportunities, and the lure of tax advantages, amid concerns over potential tax increases under the anticipated Labour government.
Although many countries are vying to attract this talent, Portugal is emerging as a leading destination. Its unique combination of lifestyle benefits, affordable living, and tax incentives has made it an attractive option, say recruitment and career specialists. The strategy of the Portuguese government is straightforward: create a welcoming environment for young talent and entrepreneurs.
Recent measures have introduced tax breaks for those under 35 and new policies catering to digital nomads and business founders. A reduction in capital gains tax is a key part of Portugal’s bid to attract individuals who can drive economic development.
According to reports from Fitch Ratings and a study by Ernst & Young, Portugal is set to outperform both the UK and EU in economic growth over the next few years. Investor confidence in Portugal has never been higher, outpacing that of the UK and other parts of Europe.
This optimism is reflected in the steady flow of international digital nomads and entrepreneurs, who are choosing to settle in cities like Lisbon, Porto, and Braga, along with regions such as the Silver Coast, Algarve, and the artistic hub of Comporta.
Paul Stannard, the Founder of Portugal Pathways and its Portugal Investment Owners Club, which supports affluent UK families, high-skilled professionals, entrepreneurs, and young talent seeking a new life or investment in Portugal, emphasized the country’s appeal: “Tax breaks are certainly a powerful incentive, but the wave of people from the UK also see Portugal as a place that values the contributions of skilled professionals, value creators, entrepreneurs who are open to new ideas and innovations and respect the risks and investment they can bring. There’s a sense of strong optimism that many feel is now missing back in the UK.
“Beyond the financial appeal, Portugal also offers a superior quality of life, where people can find work-life balance, enjoy beautiful weather year-round, and access world-class beaches, vibrant culture and nature – all within a 20-minute drive from major cities.
“It’s a lifestyle that allows you to reset and live in a way that’s difficult to achieve in the UK. There’s a peace and security here that many professionals crave, and over 70% of the population speak English, and our trading links have been well established for centuries.”
In contrast, the UK is struggling with demographic shifts, the loss of young and entrepreneurial talent, and challenges in stabilizing the economy. Charlie Baron, a tech entrepreneur who recently relocated to Lisbon, voiced the frustrations felt by many in the UK’s startup scene: “Rising taxes and uncertainty around policies are pushing us away. It feels like Portugal has rolled out the welcome mat while the UK is shutting the door.”
With possible tax increases looming in the next budget, many business owners are already exploring relocation options. As more talent leaves the UK, Portugal plans to strengthen its efforts to attract skilled professionals and entrepreneurs.
Paul Stannard alluded to forthcoming initiatives: “Portugal Pathways and Portugal Investment Owners Club is opening up exciting initiatives to make the transition to Portugal smoother for UK professionals and entrepreneurs, offering not just relocation advice but community integration and access to investment opportunities and networks.”
The Portugal Investment Owners Club is also positioning itself as a key facilitator, connecting international value creators with local partners, real estate opportunities, and tailored investment funds.
Chris Marson, CEO of the RTi Family Office, noted: “We are seeing private wealth and value creators feeling undervalued in the UK due to the mood music coming out from the new government and its upcoming budget.
“Businesses and young talent can set up almost anywhere these days, and that’s why so many are looking at Portugal more and more, as it's open for business and clearly appreciates wealth, value and job creation that’s willing to take financial risk and reward that activity within their tax system.”
David Vacani, Founder at Beacon Global Wealth Management, who moved his business from the UK to Portugal five years ago, shared: “Almost every week we receive enquiries from affluent families and entrepreneurs wanting to be fairly taxed for the risk they have taken in life and also want to ensure that they have a succession plan that doesn’t penalise them.
“Portugal has always respected this and therefore offers excellent tax incentives and no inheritance tax, which is a big draw for many, including tech companies, established SMEs and even unicorns.”
“And Portugal’s surging attraction is being noticed further afield.”
Steven Harper, a UK music producer now living in California, remarked: “Portugal is really standing out as we were going to come back to the UK as things in the states are getting a bit scary, but we just couldn’t contemplate coming back to the UK from a lifestyle or financial perspective, so we are moving our life and business to Lisbon.”
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