The shift is being driven partly by tax reform elsewhere. The UK moved to a residence-based inheritance tax model from April 2025, replacing the old domicile rules that many internationally mobile families had relied on for succession planning. That change has pushed a number of UK-linked families to look again at where they hold and pass on wealth.

Portugal's own succession rules are part of the appeal. Spouses, direct descendants and ascendants are exempt from inheritance tax entirely under current legislation. Other beneficiaries face a 10% stamp duty rather than a graduated inheritance tax, a simpler position than many families are used to navigating elsewhere.

There is no general wealth tax either. Property owners are only drawn into the additional municipal property tax, known as AIMI, once a property's value passes €600,000 for an individual or €1.2 million for a couple, and even then it applies only to the value above that threshold.

Governance and compliance credentials matter as much as tax figures for a family office deciding where to base itself. Portugal scores above 0.9 on the World Justice Project's Rule of Law Index, ahead of the EU average of 0.79. It ranks 16th out of 50 jurisdictions on the Basel AML Index, a stronger position than Ireland, which ranks 20th.

PwC's Portugal Family Office Location Guide, published in April 2026, points to the country's asset and wealth management infrastructure as a further draw. The firm's new Asset & Wealth Management Investment Centre highlights fund administration, custody and international reporting as services now established locally, alongside a competitive cost base.

Credits: Supplied Image; Author: Portugal Pathways; Why more family offices are choosing Portugal as a base

The income tax picture is more mixed. The IFICI tax regime, which replaced the old NHR tax scheme from January 2025, offers a flat 20% rate on qualifying Portuguese-source income for eligible professionals in scientific research, technology and other designated innovation sectors. It is narrower than the NHR it replaced and no longer extends favourable treatment to pension income, so families weighing up a move need to look at their specific circumstances rather than assume blanket benefits.

Paul Stannard, chairman and founder of Portugal Pathways and the Portugal Investment Owners Club, said:

“Families used to think about where they live and how they pass on wealth as separate questions. We're seeing more of them arrive at Portugal by asking both at once."

If you're weighing up Portugal as a base for family wealth or succession planning, Portugal Pathways can talk you through the residency, tax and structuring landscape as it currently stands.

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