Did the news that Prince Harry and Meghan Markle picked Portugal for their second home surprise you? While we thought for a while last year that the high-profile couple might opt for London, Portugal has been a rising star in the prime property market for some time.
The former royal couple bought a $14.7 million (£11.8 million) in starry Montecito back in 2020, but this European holiday home could prove a savvy investment.
House prices rose 6.6 per cent in Portugal over the past 12 months, according to the Knight Frank Global House Price Index. Estate agency Savills named Portugal as one of the top destinations for second homes this year, noting that Portugal’s economy expanded an impressive 2.3 per cent last year (versus 1.6 per cent across the eurozone in general).
Lisbon is currently ranked 5th in the world as a location for ‘executive nomads’ — the well-heeled counterparts to scruffier digital nomads looking for somewhere to run their businesses while enjoying a more pleasant lifestyle. “Connectivity, innovation, a diverse cultural scene and good weather year-round are key factors,” says Miguel Lacerda, Lisbon residential director for Savills.
Celebrities' including Nicole Kidman and Keith Urban, Scarlett Johansson, Michael Fassbender and Alicia Vikander, and Monica Bellucci have all bought property there. Fashion royalty Christian Louboutin is a long-term fan, owning multiple Portuguese properties. He opened his own boutique hotel Vermelho in the town of Melides last year.
Melides is believed to be close to where Harry and Meghan have made their second home purchase. The couple have family ties to the area. Princess Eugenie, Harry’s favourite cousin, reportedly owns a villa at the exclusive CostaTerra Golf and Ocean Club, a development of 300 homes on the Atlantic Ocean close to Melides where prices start at €4 million (£3.33 million).
Good weather plus international and private airports make it a “highly convenient” place for High Net Worth Individuals (HNWIs) looking for a European base, says Alex Koch de Gooreynd, partner at Knight Frank.
“Portugal’s sunny climate and ease of travel to other parts of Europe are also attractive aspects, but ultimately, the privacy, security, and unique lifestyle it offers are key reasons why it remains a favoured destination for HNWIs," he adds. Harry and Meghan’s net worth is a much debated topic — it could be anywhere from £33 million to £100 million — but they certainly move in this ultra-rich set and have been vocal about how much they value privacy.
The country also has an attractive tax regime. Portugal’s Non-Habitual Residency (NHR) scheme offers foreign residents and investors a host of tax exemptions for global wealth and preferential rates for 10 years. Introduced after the 2008 financial crash to woo overseas wealth to its shores, the scheme has changed recently but many current NHRs still have years of tax breaks left.
Super rich safe haven
As well as being a safe haven for money, Portugal is generally a safe place to enjoy a laid-back luxury lifestyle as a HNWI. It’s ranked seventh on the Global Peace Index, making it a relative safe haven in tumultuous times. And of course there’s the much-vaunted 300 days a year of sunshine — something California residents Harry and Meghan are sure to enjoy.
"Portugal continues to attract HNWIs for reasons that extend well beyond its favourable tax regime. Factors such as privacy, quality of life, and security are becoming increasingly important,” says Koch de Gooreynd.
“Security is a major factor; Portugal remains one of the safest countries in Europe, with virtually no incidents of break-ins or theft, which makes it highly appealing for ultra-high-net-worth individuals (UHNWIs).”
And then there’s privacy, something the rich and famous always crave. Despite its small size, the population is spread out. Along the wild Atlantic coast, these old villages are the perfect enclave for high profile people looking to live a low profile lifestyle.
“The Hamptons of Europe”
Developers catering to this level of buyer are taking note. Spatia Melides is a new development of villas along a 50 kilometre stretch of beach, 15 minutes from both Melides and Comporta — an area Koch de Gooreynd notes is particularly popular with the super-rich, earning it the moniker “the Hamptons of Europe”.
Comporta was “first on the map” agrees Steven Baldwin of luxury lifestyle consultants Lawrie Cornish. “It’s now established as very popular, low-key but expensive seasonal destination,” he says, adding it “has some of the best beaches in Portugal”.
Spatia Melides promises beach access as well as a spa and wellness facilities, plus a 24-hour concierge and security services. Prices start at €3.99 million (£3.32 million) and go up to €6.85 million (£5.57 million), with Savills.
There’s a thriving food and culture scene catering to well-heeled residents. Developer Miguel Carvalho created Melides Art in 2019, a pine forest with residential villas designed for patrons of the art that runs a cultural programme. Vermelho is a Michelin Guide hotel, naturally, as is Cavalariça in Comporta, a restaurant in a former stable run by executive chef Bruno Caseiro with Filipa Gonçalves as pastry chef.
Meghan Markle is a noted foodie, sharing recipes on her old lifestyle blog The Tig and teasing a television cooking show to tie-in with her (somewhat delayed) lifestyle brand American Riviera Orchard. Portugal has become something of a gastronomic destination, now boasting 39 Michelin Starred restaurants. While it used to have to share its ratings with Spain under a blanket Iberian Peninsula category, Portugal held its own Michelin Gala this year.
Golden beaches, golden visas?
Portugal’s strong economy despite global headwinds, an impressive array of trophy homes, and house price growth on a continuous up have made the country’s property market an attractive prospect for homeowners looking to invest.
From 2012 up until last year, international buyers could also obtain a residence permit by investing in Portuguese real estate.
For post-Brexit Brits like Harry and American citizens such as Meghan, this would have opened up visa-free access to all Schengen Area countries. The permit also allows you to fast-track to full citizenship within five to six years.
However, the scheme changed significantly in October last year when the Portuguese government introduced the ‘Mais Habitação’ law, removing the residency bonus for overseas investors buying a home.
“Requirements have changed substantially, so now it’s not as easy,” says Baldwin. “Though this depends on not just how much you are investing but where.”
To obtain a residence permit now, you need to invest €500,000 (£417,000) in a Portuguese business or investment fund, or donate a minimum of €250,000 (£208,000) towards preserving Portugal’s natural heritage. So if Harry and Meghan want to enjoy free movement around Europe — and those coveted tax benefits — they’ll need to open their wallets.
