A few days ago, we mentioned the Financial Times article pointing out Portugal as a place for international property buying for retirement. Now it’s Bloomberg’s turn; the financial media outlet is describing the growing movement of wealthy Brazilians into Portugal.
A new trend
Unlike the British, the Brazilians – the upper classes, the only ones with a chance of migrating elsewhere in their retirement – have no tradition of retiring to Portugal. In the eyes of the most successful, wealthy and cosmopolitan Brazilian entrepreneurs, the former colonial power was regarded as a poor and under-developed country.
Brazilians were not looking for a sunny climate; unlike the British, they have that at home. And they were also not looking for relaxed and warmer people; they had it back home. The cultural and civilizational similarities between Brasil and Portugal were driving them away, to something new, cooler and more developed. Miami, in particular, and the United States in general, were the priority for Brazilians looking for a second-home spot.
Reasons for this trend
Security. More than ever, facing high rates of criminality, Brazilians are looking for a safe place. The United States is not that impressive either, regarding that matter. Portugal, on the other hand, ranked fourth the 2018 Global Peace Index. Brazilians feel they can wander around with no body-guards and no real need to carry guns, and that gives them a great sense of freedom.
Tax incentives. Bloomberg quotes Ricardo Bellino, “multimillionaire, who made his fortune in the modelling business”, saying that he “will benefit from a flat income-tax rate of 20% and may be entitled to a tax-free pension when he retires”. Both the NHR (Non-Habitual Resident) and the Golden Visa programs are being able to attract a good number of foreign residents.
The “revival”. The same Ricardo Bellino says that Portugal is going through a “revival over the last few years”, at least from a tourist standpoint. Lisbon and Porto city centres are crowded with people, buildings being renewed, and international superstars like Madonna wandering around. The Brazilian millionaire also adds that Portugal means “a tax haven which isn’t an island in the Caribbean”, but rather a European country.
According to Bloomberg, Brazilians may be the number one foreign nationality buying properties in Portugal right now. They haven’t found Algarve yet, though – where the Ayrton Senna Street, in Quinta do Lago (Vilamoura), honours the name of their fellow countryman which discovered it way before.