There are only a handful of places where wealthy families can establish a wealth management structure that will allow them to grow wealth in a tax-optimized environment while protecting their assets for future generations.

Further, if you wish to manage your wealth from Europe… Choices are even scarcer due to the high taxation, invasive policies, and difficult immigration regulations. And if you want a place friendly for foreigners and with little language and cultural barriers… You can count them with the fingers of one hand. 

But today we present you with one of those lucky few: Portugal. The Portuguese Golden Visa program is widely considered the best in the world and Madeira was voted one of the safest islands in Europe and almost free of COVID-19, while it has one of the most beneficial trade zones in Europe.

Why Portugal?

When looking to establish a family office, many families ignore lifestyle and cultural aspects. Yet, an aptly planned family office involves considering where can family members move if things go south. In the US and in the UK, things can go south quickly. Just look at COVID-19 and the political polarization in these countries. This is a factor that must be considered.

Culture is another significant aspect to consider. For example, you do not want to be a Jewish family establishing a family office in Dubai. The way you and your children will be treated and how you will feel with the language and the culture is almost as important as the tax optimization and asset protection aspect of your family office.

Wealthy Western families will feel at home in Portugal. Portuguese, English, and Spanish (more accurately, Portuñol, the name they usually give to the mixture of Spanish and Portuguese) are widely spoken. Plus, Portugal has been a long-standing cultural and political ally of the US and the UK, meaning these families are easily accepted into the Portuguese society.

Your investment advisors, bankers, lawyers, and financial consultants will treat you as locals and see you as part of their culture, meaning transactions and investments will be way smoother. Plus, your children will easily gain access to the best European university and integrate into the city’s financial life. Portugal is a small country but one of the models of recovery after the EU debt crisis thanks to its capacity to welcome foreign investment.

Also, Portugal is a safe country. Europe is, in general, a safe continent, but even there, Portugal shines for its low crime rate. Plus, it has not face refugee issues as Spain or Italy.

It does not make sense to have a family office in a country if you cannot visit that country. Many wealthy families that safeguarded their money in the US experienced this problem when they were denied visas to get there and could not solve banking issues that had to be attended in person. However, the Portugal Golden Visa is considered the best in Europe and you can receive the citizenship five years after.

The whole point of a family office is protecting your assets and optimizing your taxes.

Well, Portugal has a non-dom regime for golden visa holders that will give you a ten-year full exemption on your worldwide income. Plus, with proper guidance and using a trust, you can have zero tax on worldwide income forever.

Bank account safety is essential today. Any family office needs access to first-level banking and a safe bank. Unlike the rest of Europe, Portugal is receiving a massive flow of FDI thanks to its Golden Visa and its opening to foreign investment. Thus, its banks are growingly liquid. Portuguese private banks are high-level with boutique services.

You are forever free!

If you do not want to receive residency in Portugal through the Golden Visa, you can use Portugal as the base of your family office through a IBCM company plus a Madeira trust.