Podcast Summary: Real Estate Without Borders - "Why Wealthy People Are Moving to Portugal"

Release Date: June 13, 2025
Host: Real Estate Without Borders
Guest: Alessandro Palombo

Introduction

In the episode titled "Why Wealthy People Are Moving to Portugal," host Daniel welcomes Alessandro Palombo, an expert in global citizenship, cryptocurrency investment, and international relocation strategies. The conversation delves into the burgeoning trend of affluent individuals relocating to Portugal, exploring the underlying push and pull factors driving this movement, the benefits of Portugal as a destination, and the broader implications for global real estate and taxation.

Guest Introduction: Alessandro Palombo

Alessandro Palombo introduces himself as an Italian entrepreneur based in Lisbon. He is the founder of Businesship and Envisa Farm, a Bitcoin ecosystem designed to help individuals acquire European citizenship through investment. Additionally, Alessandro spearheads a startup in the global living and mobility sector, offering subscription-based relocation services with tax and administrative assistance across multiple countries. With a strong academic background in law, including a Ph.D. in Public Law and a master's in Global Regulation of Markets, Alessandro leverages his expertise to simplify borderless living for his clients.

Push Factors: Why Are the Wealthy Leaving Their Home Countries?

The conversation begins by addressing the reasons why wealthy individuals are choosing to exit their home countries rather than protesting political or economic dissatisfaction.

Alessandro Palombo [03:26]: "Wealth is mobile by definition. Like for example the Norwegian billionaire who was based in the UK now is moving to the UAE. In general, wealth is always moving as you know, some famous guys always say where it's treated the best."

Alessandro explains that the affluent possess the resources to relocate easily when they perceive instability or unfavorable conditions in their current environment. Factors such as loss of identity, desire for stability, and dissatisfaction with political systems play significant roles. For instance, Canadian entrepreneurs feel increasingly constrained by shifting political landscapes, while Americans are influenced by changing administrations.

Pull Factors: What Makes Portugal an Attractive Destination?

The discussion shifts to the allure of Portugal, highlighting its unique advantages that make it a prime destination for wealthy individuals seeking relocation.

Alessandro Palombo [08:32]: "Portugal is one of the most underrated tax optimization places in the world. With proper structure, Portugal can give you 0% foreign tax income through the new NHR called EFISHI."

Key Pull Factors Include:

1. Pathway to European Citizenship: Portugal offers a streamlined process for obtaining an EU passport, providing access to 27 European countries and the right of settlement. This stability is particularly appealing in an era dominated by rapid technological advancements and economic shifts.

2. Tax Optimization: The EFISHI program allows for significant tax benefits, including 0% taxation on foreign income under specific conditions. This makes Portugal a competitive alternative to traditional tax havens like Dubai.

3. Lifestyle Advantages: Portugal boasts a favorable climate, lower cost of living, exceptional healthcare, and a vibrant culture. Its status as a hub for tech and crypto enthusiasts further enhances its appeal.

4. Cryptocurrency Benefits: Portugal offers tax exemptions on cryptocurrency gains, making it highly attractive to investors in the digital asset space.

However, Alessandro also notes the bureaucratic challenges in Portugal, particularly in the real estate sector, which can impede business operations despite the country's openness to foreign investors.

Alternative Destinations: Beyond Portugal

Alessandro expands the conversation to other global hotspots that attract wealthy individuals for various reasons.

Alessandro Palombo [15:00]: "Dubai and the UAE in general is still one of the greatest hotspots. Singapore is a bit more than Dubai, but highly recommended for startups as an alternative to Delaware."

List of Key Alternatives:

• Dubai, UAE: Known for its economic freedom, robust infrastructure, and strategic location. It serves as an acceleration hub for businesses and offers substantial wealth protection.

• Singapore: Offers a highly regulated environment ideal for startups, especially those seeking funding from American investors. It is comparable to Switzerland in terms of wealth protection.

• Thailand: Attractive for digital nomads due to its affordability and favorable tax policies for non-resident income.

• Paraguay: Ideal for those seeking tax residency while maintaining a nomadic lifestyle, allowing for continuous travel and investment.

• Singapore and Dubai: Highlighted for their strong economies and favorable business environments, making them top choices for entrepreneurs and investors alike.

Tax Optimization and Its Impact

Daniel raises an essential point about the importance of tax optimization in enhancing net returns over gross income.

Alessandro Palombo [16:40]: "If you can save yourself a 20% on tax, your ROI on your business earnings is way higher on a net basis than on a gross basis."

Alessandro emphasizes that strategic relocation and tax planning enable individuals to retain a more significant portion of their earnings, thereby accelerating wealth accumulation and investment potential. This is particularly pertinent for digital nomads and entrepreneurs who operate online businesses.

Political and Economic Considerations

The dialogue delves into the trade-offs between living in autocratic versus democratic countries, particularly concerning economic freedoms and political stability.

Alessandro Palombo [21:12]: "It's always a matter of trade offs and perspectives of what eventually you prioritize in a specific phase."

Alessandro discusses how autocratic regimes like the UAE offer economic freedoms and low taxation but may impose restrictions on political participation. In contrast, democratic countries provide political freedoms but often have higher tax burdens and more bureaucratic red tape, influencing wealthy individuals' decisions on where to reside.

Additionally, Alessandro highlights the low civic participation rates in Europe, questioning the effectiveness of democratic systems and suggesting a future trend towards specialized economic zones that offer tailored governance frameworks.

Real Estate and Housing Affordability in Portugal

Daniel discusses the impact of Portugal's Golden Visa program on the local housing market, noting a significant deterioration in housing affordability for residents.

Daniel [25:05]: "Portugal created this golden visa program, created the digital Nomad program, and then housing affordability. Portugal had the worst deterioration in housing affordability for locals since the beginning of the pandemic."

Alessandro provides a nuanced perspective, attributing the housing affordability crisis not solely to foreign investors but primarily to systemic supply constraints:

Alessandro Palombo [26:47]: "The real problem in Portugal has been the capacity of yearly production of new housing in Portugal hasn't yet recovered compared to 2008. The system collapsed, and regulations require three years to get a license, which is crazy."

He explains that inadequate housing supply, exacerbated by bureaucratic hurdles, has driven up prices. Additionally, a high number of properties remain off the market due to inheritance disputes, further limiting availability. Despite these challenges, certain areas in Portugal, particularly Lisbon, continue to experience real estate appreciation due to infrastructure developments like the new airport.

Future Outlook: Policy Changes and Economic Growth

Looking ahead, Alessandro discusses potential legislative changes and economic strategies that could enhance Portugal's attractiveness:

Alessandro Palombo [32:40]: "In Portugal, then you consider that in 2023, October, the Golden Visa rules changed and real estate became not anymore an investable eligible investment for Golden Visa."

He projects that Portugal is unlikely to adopt extreme taxation measures on non-European investors, given its cultural openness and the integral role of foreign capital in sustaining its economic growth. Instead, future policies may focus on promoting social housing investments and expanding economic incentives to maintain Portugal's status as a premier destination for international investors.

Furthermore, Alessandro highlights the emerging EU Inc. initiative, which aims to establish a unified legal framework for tech startups across Europe. If realized, this could position Lisbon as a leading hub for European startups, fostering innovation and attracting global talent.

Alessandro Palombo [36:48]: "Europe, and specifically Lisbon, is going to become the best place where to build companies because potentially you can create the equivalent of an incorporation in Delaware, in everyone in 27 countries in Europe with the same legal framework."

Conclusion and Future Engagements

As the episode wraps up, Daniel expresses interest in featuring Alessandro again for future discussions, recognizing the depth of Alessandro's insights into global real estate and relocation trends.

Daniel [40:14]: "Can we have you back on the show?... I like what some of the guests who have deep knowledge and just want to have you almost on as a regular to talk through this stuff."

Alessandro is enthusiastic about future collaborations, inviting listeners to connect via his newsletter, Substack, or his X (Twitter) handle.

Alessandro Palombo [41:21]: "I publish every week, at least once a newsletter. The name for now is the Alice Letter... you can find me on X as DAllebPalombo."

Key Takeaways

1. Mobility of Wealth: Wealthy individuals prefer to exit unfavorable systems rather than protest, leveraging their resources to relocate to more stable and tax-friendly environments.

2. Portugal's Appeal: Portugal remains a top choice for global citizens due to its streamlined citizenship programs, tax optimization opportunities, and high quality of life, despite facing bureaucratic and housing market challenges.

3. Tax Optimization Strategy: Strategic relocation can significantly enhance net returns by minimizing tax liabilities, a critical consideration for digital nomads and entrepreneurs.

4. Global Real Estate Trends: While Portugal leads, other regions like Dubai, Singapore, and Thailand also offer compelling benefits for wealth preservation and business growth.

5. Future of Governance and Economy: The emergence of specialized economic zones and unified legal frameworks like EU Inc. could redefine global business landscapes, fostering greater innovation and connectivity.

Connect with Alessandro Palombo

• Newsletter: Alessandro's Alice Letter on Substack
• X (Twitter): @DAllebPalombo

For those interested in exploring international real estate opportunities, tax optimization strategies, or global relocation, Alessandro Palombo offers valuable insights and services to navigate these complex landscapes.