While many nations are vying for top talent, Portugal has emerged as a frontrunner, offering an attractive blend of lifestyle, affordable living, and evolving tax benefits, according to recruitment and careers experts. The Portuguese government’s strategy is simple: foster a welcoming environment for young talent and innovators.

Recent initiatives have introduced tax breaks for those under 35, coupled with policies that cater to digital nomads and entrepreneurs. A reduction in capital gains taxes has become a central part of Portugal’s plan to attract individuals who can contribute to its economic development.

Portugal is projected to surpass both the UK and the EU in economic growth in the coming years, as reported by Fitch Ratings and separate research by Ernst & Young. The latter notes that investor confidence in Portugal has reached unprecedented levels compared to the UK and other European countries.

This optimism is mirrored by the influx of international digital nomads and entrepreneurs gravitating towards cities such as Lisbon, Porto, and Braga, as well as regions like the Silver Coast, Algarve, and the arts and design centre of Comporta.

Paul Stannard, Founder of Portugal Pathways and its Portugal Investment Owners Club, which helps support affluent UK families, high-skilled professionals, entrepreneurs and young talent planning a new life or investment in Portugal Stannard said the country’s attractions are so multifaceted: “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.”

Meanwhile, the UK government grapples with demographic challenges, the exodus of young and entrepreneurial talent and an uphill battle to retain and balance the economy. Charlie Baron, a tech entrepreneur who recently moved to Lisbon, expressed frustrations shared by many in the UK’s business founder and startup communities: “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 tax raids looming in the upcoming budget, many entrepreneurs are already considering relocating their businesses and as migration from the UK continues, Portugal plans to step-up its strategy to attract young and skilled professionals.

Paul Stannard hinted at upcoming developments: “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 to facilitate the entry of value creators by connecting them with local partners, real estate ventures, and investment funds tailored to international needs.

Chris Marson, CEO of the RTi Family Office, said: “We are seeing private wealth feeling and value creators 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 5 years ago, commented: “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 who currently lives in California, said: “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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