The Algarve is the most accessible prime market in Europe for millionaires, closely followed by Bordeaux and Tuscany. However, according to the European Lifestyle Report by Knight Frank, it is one of the regions where residential property prices have increased the most in percentage terms since the pandemic. Conversely, London is the most expensive destination, even for millionaires.
“Europe is at the top of the global rankings in terms of countries with the greatest diversity of property owners in terms of nationality, with Portugal ranked seventh in a list of 10 destinations,” the estate agency’s statement indicates.
France ranks first, followed by Spain (2nd), Italy, the United Kingdom, Greece, and Switzerland (respectively). Croatia is in 8th place, Ireland in 9th, and Germany in 10th.
“Portugal is among the countries offering the most tax benefits to new residents, whether on passive income and capital gains, or on pensions and/or earned income, alongside countries such as France, Austria, or Spain,” it continues.
According to Kate Everett-Allen, Head of Europe Residential Research at Knight Frank, “changes in market conditions, tax incentives, visa options, and improvements in lifestyle can also influence the decisions of the wealthy to relocate.” “The pandemic, new hybrid work models, and the increase in early retirement or semi-retirement among people in their fifties have contributed to this trend of increased mobility,” she highlights.
The international study also reveals that millionaires prioritise security and privacy “over tax benefits when it comes to relocating or buying a second home, due to geopolitical concerns.”
Paris, Berlin, Barcelona, Vienna, and Madrid are among the most desired European cities by the wealthy considering moving to Western Europe. Lisbon is in the top 5 cities for living due to its quality of life and is ranked fourth for its environmental quality.
What are the most sought-after areas in the Algarve for second homes?
The Algarve remains one of the favourite destinations for investment, attracting both foreign and national capital to the real estate and tourism sectors.
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