Article by John Westwood, group chairman at Blacktower Financial Management
Over my many decades in the cross-border financial services industry, I’ve seen first-hand how political and economic shifts in one country can shape the fortunes of another. Right now, Portugal is standing at the edge of what I believe will be one of its most significant growth periods for expatriate financial advice.
With the UK’s recent tax reforms – particularly the changes to the non-dom regime – the writing is on the wall. High-net-worth individuals, business owners, and retirees are reassessing their futures, and many are deciding that now is the time to make the move. Portugal, with its enviable climate, quality of life, and competitive cost of living, is firmly on their radar.
In the next five to ten years, I expect to see a marked increase in the number of UK millionaires and affluent families relocating here. The trend is already in motion – more people are leaving the UK than arriving – and Portugal, particularly Lisbon and the Algarve, stands to benefit enormously.
Rising demand – and opportunity When I first began operating in the Algarve, there were only a handful of established advisory firms specialising in the expat market. Today, demand is such that most locally based firms are looking to expand, I know my own organisation is seeking to recruit quality advisers right now. – the business is there for those who operate with integrity, compliance, and a deep understanding of both UK and Portuguese financial systems.
One of the most important aspects of serving this market is collaboration. I’ve spent decades building relationships with UK financial planners who recognise that, once a client leaves the UK, the UK adviser has difficulty in providing ongoing suitable and compliant advice. The most professional among them are keen to ensure their clients are looked after properly abroad, and that’s where we step in – licensed, regulated, and experienced in cross-border advice.
This relationship-building extends beyond the UK. Here in Portugal, my team and I have worked hard to foster connections with local legal firms, accountants, and other professionals. These partnerships are essential – they create a two-way flow of referrals and ensure that clients receive holistic, comprehensive advice and support.
The planning challenge One of the biggest issues on the horizon is UK inheritance tax (IHT) and how the new UK rules will bring pensions into scope. For many clients, this is an unwelcome surprise – and one that demands careful, forward-thinking, planning before the move to Portugal is even made.
Similarly, Portugal’s own tax landscape can catch new arrivals off guard. Many come here under the Non-Habitual Residency regime (now NHR 2.0) without fully understanding that the beneficial treatment lasts just 10 years. After that, income is subject to Portugal’s progressive rates. Without the right planning, the end of that 10-year window can cause significant financial strain.
That’s why I always emphasise – we are financial planners first and foremost. Wealth management and investment selection are important, but they’re just one part of the bigger picture. True planning is about ensuring that, from day one of your move to Portugal right through to your later years, every tax exposure, pension consideration, and estate planning need is accounted for.
Why now is the time For advisers, Portugal right now is a challenging environment – highly complex demand, an ever-growing expat community, and a need for genuinely expert, compliant, and trusted advice. For clients, it’s a country offering lifestyle, safety, and a stable base in the EU – but only if they arrive with a proper plan.
After nearly 40 years in this profession, I’ve learned that success in expat financial planning comes down to three things: knowledge, relationships, and trust. Portugal has never needed these more – and for those who get it right, the opportunities in the years ahead will be extraordinary.
John Westwood is group chairman at Blacktower Financial Management
