1. Market snapshot
1.1 How embedded is the family office model in your jurisdiction? Describe its evolution to date.
The family office model in Portugal has evolved significantly over the past decade, gaining traction as the economic landscape has changed and wealth among high-net-worth individuals has increased. Initially rare, family offices began to emerge in response to the 2008 financial crisis, as affluent families sought more personalised financial management solutions beyond traditional banking and private wealth management services.
In the 2010s, the popularity of family offices grew, fuelled by the Portuguese Golden Visa programme and by favourable tax regimes, which attracted foreign investments and a new wave of wealthy individuals looking for tailored asset management.
While still less mature than in countries such as Switzerland or the United Kingdom, the family office sector in Portugal is developing, with an increasing number of multi-family offices and independent advisers emerging to cater to the diverse needs of wealthy families. This growth indicates a maturing market that is becoming more sophisticated and aligned with global wealth management practices.
1.2 What types of families typically opt to set up a family office in your jurisdiction and what are the most common reasons for doing so? How has this changed over time?
Families that typically opt to set up a family office in Portugal are usually ultra-high-net-worth individuals with significant assets. These families often have complex financial needs that go beyond what traditional banking or private wealth management services can offer.
Historically, these were primarily Portuguese industrial or business families looking to manage and preserve their wealth across generations. Over time, the profile has broadened to include international families – especially those from Europe, Latin America and Asia.
The introduction of the Golden Visa programme and favourable tax regimes such as the Non-Habitual Resident programme have made Portugal an attractive destination for wealthy families seeking:
- residency;
- investment opportunities; and
- a strategic base for managing their global assets.
The most common reasons for setting up a family office in Portugal include:
- wealth preservation and growth;
- succession planning;
- tax optimisation;
- philanthropy and impact investing; and
- lifestyle and security.
1.3 Who are the main providers of family office services in your jurisdiction? How has this changed over time?
In Portugal, the main providers of family office services have evolved over time from traditional banking institutions to a more diverse range of specialised firms. Initially, large Portuguese banks and private banks with an international presence were the primary providers, offering family office services as an extension of their private banking divisions. These institutions focused on:
- investment management;
- estate planning; and
- tax advisory services.
As the demand for more personalised and comprehensive family office services grew, independent multi-family offices and boutique advisory firms began to emerge. These firms offer a more tailored approach focused on a broader range of services, including:
- wealth structuring;
- succession planning;
- philanthropy;
- legal and tax advice; and
- lifestyle management.
In recent years, global family office service providers have also entered the Portuguese market, either establishing a local presence or partnering with domestic firms. This trend has been driven by the influx of foreign wealth, particularly due to the Golden Visa programme and the Non-habitual Resident Tax programme, attracting international families seeking professional, locally based wealth management services.
1.4 Where are family offices typically located in your jurisdiction?
Family offices in Portugal are typically located in major cities and affluent areas that offer strong financial and professional services infrastructure. The most common locations include the following:
- Lisbon: As Portugal's capital and largest city, Lisbon is the primary hub for family offices. It offers:
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- a robust financial services sector;
- a concentration of legal and tax advisory firms; and
- a cosmopolitan environment, including an international airport.
- Porto: As Portugal's second-largest city, Porto is also a key location for family offices, especially those serving families with roots in the industrial and wine sectors.
- Cascais and Estoril: Located along the coast near Lisbon, these affluent towns are home to many wealthy individuals and expatriates. The high quality of life and proximity to Lisbon make them attractive locations for family offices.
- Algarve: Some family offices can be found in the Algarve region, known for its luxury resorts and favourable climate. This area primarily attracts international clients looking for lifestyle and residency benefits, with a focus on real estate investments.
1.5 What is the general approach of the government towards family offices in your jurisdiction? Have any programmes, incentives or similar initiatives been launched to encourage families to establish family offices in your jurisdiction?
The Portuguese government has generally taken a favourable approach towards attracting high-net-worth individuals and encouraging the establishment of family offices in Portugal. There are no specific programmes exclusively targeting family offices, but several broader measures have made Portugal an attractive location for wealthy families and their family offices.
Some of these broader measures include:
- the Golden Visa programme, which allows non-EU investors to obtain residency permits through qualifying investments;
- the Non-Habitual Resident programme, which terminated at the end of 2023 and which provided:
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- a flat 20% tax rate on income derived from high-value-added activities; and
- tax exemptions on certain foreign income for a period of 10 years;
- the creation of a more business-friendly environment by:
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- reducing bureaucratic barriers;
- improving the efficiency of public services; and
- offering competitive corporate tax rates; and
- regulatory improvements in the financial services sector, including efforts to:
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- align with international standards; and
- ensure transparency and compliance.
1.6 What industry codes of conduct, professional guidelines or similar govern family offices in your jurisdiction?
Family offices in Portugal operate within a framework that is primarily governed by broader financial and legal regulations rather than specific industry codes of conduct exclusively for family offices. Key regulations and guidelines include the following:
- Financial regulation and supervision: Family offices in Portugal that provide financial services (eg, investment management) must comply with regulations set forth by:
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- the Portuguese Securities Market Commission; and
- the Portuguese Central Bank.
- This includes adhering to rules on licensing, reporting and conduct to ensure investor protection and market integrity.
- Anti-money laundering and counter-terrorism financing: Family offices must comply with national and EU regulations on anti-money laundering and counter-terrorism financing, including the requirements set forth by EU directives. This involves:
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- conducting due diligence on clients;
- reporting suspicious activities; and
- maintaining robust internal controls to prevent illicit activities.
- Tax and legal compliance and reporting: Family offices must follow the guidelines set by the Portuguese tax authorities for tax reporting and compliance. This includes complying with the Common Reporting Standard and the Foreign Account Tax Compliance Act regulations for international tax reporting and transparency.
- Data protection and privacy: Family offices in Portugal must comply with the EU General Data Protection Regulation, which establishes strict data protection and privacy standards. This includes:
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- safeguarding client information;
- obtaining consent for data processing; and
- ensuring data security.
2. Family office models
2.1 Which types of family office models are typically found in your jurisdiction (eg, single office; multi-office; virtual office)? What are the advantages and disadvantages of each?
Family offices typically operate in Portugal in three main models:
- single-family offices;
- multi-family offices; and
- virtual family offices.
Single-family offices are exclusively dedicated to one family's wealth, providing personalised services such as:
- investment management;
- estate planning; and
- tax optimisation.
These family offices offer complete control and customisation but can be costly and complex to manage due to the need for dedicated staff and infrastructure. Single-family offices have been traditionally preferred by ultra-high-net-worth families, some of which have opted for the integration of some family office services into existing family business structures.
Multi-family offices serve multiple families, offering similar services as single-family offices but on a shared basis. These family offices are more cost efficient and provide access to a diverse team of professionals. However:
- they may offer less customisation and involve potential conflicts of interest; and
- families have reduced control over decision-making.
Multi-family offices are growing in popularity among both local and international families seeking professional management.
Virtual family offices use technology and a network of external advisers to deliver services without a dedicated office. These family offices are flexible and cost effective, providing access to specialised providers. The downsides include:
- the complexity of managing multiple external advisers;
- potential inconsistencies in service quality; and
- less personalisation.
Virtual family offices are an emerging trend, especially for tech-savvy or globally oriented families.
2.2 What services do family offices typically provide in your jurisdiction? Do these vary depending on the type of model?
While all models provide core services such as investment management, tax planning and estate planning, service personalisation will vary depending on the model.
Single-family offices provide highly personalised services, including:
- investment management;
- estate and succession planning;
- tax optimisation;
- risk management; and
- philanthropy.
These family offices:
- offer bespoke solutions tailored to the family's unique goals, such as personalised investment strategies and customised estate plans; and
- handle lifestyle management services, such as concierge and property management.
While multi-family offices provide similar services to those provided by single-family offices, the fact that they serve multiple families requires a more standardised approach to ensure efficiency. These family offices generally:
- manage diversified portfolios;
- offer estate planning with a more general framework; and
- provide tax planning services leveraging in-house expertise.
Virtual family offices use technology and external advisers to offer flexible services without a dedicated office. These family offices coordinate investment management, estate planning and tax compliance through a network of external specialists.
2.3 What key factors should a family consider in selecting the most appropriate model for their needs?
When selecting a family office model in Portugal, families should carefully consider several key factors to ensure that the structure aligns with their unique needs.
Wealth size and complexity are crucial considerations. A single-family office is well suited to families with significant wealth and complex financial needs that require highly personalised services. In contrast, a multi-family office is ideal for those with substantial wealth seeking professional management without the high costs associated with a single-family office. For families with moderate wealth or those desiring a more flexible, leaner structure, a virtual family office is the best option.
Control and customisation also play important roles in this decision. A single-family office offers maximum control and tailored services, making it suitable for families wanting direct involvement in decision-making. Multi-family offices provide professional management with some level of customisation but offer less control; while virtual family offices allow for flexibility and the ability to choose external advisers, although they may lack integrated service delivery.
Cost considerations are also significant. Single-family offices generally involve high operational costs, while multi-family offices are more cost effective by sharing resources among multiple families. Virtual family offices are typically the most economical option, leveraging technology and external services.
3. Ownership structures
3.1 What types of ownership structures are typically used for family offices in your jurisdiction? What are the advantages and disadvantages of each?
In Portugal, the main ownership structures of family offices are typically:
- limited liability companies (Ldas);
- joint stock companies (SAs); and
- holding companies (SGPSs).
An Lda offers limited liability protection, shielding family members' personal assets from business liabilities. It provides flexible governance and tax advantages, benefiting from corporate tax rates. However, it requires ongoing compliance, annual filings and financial transparency, which may increase operational costs.
An SA is suitable for larger family offices managing substantial wealth. Like an Lda, it offers limited liability, but also allows capital raising through share issuance, making it ideal if external investment is needed. This structure typically involves professional management, ensuring clearer governance, but is more costly and complex to maintain, with stricter disclosure and corporate governance requirements that may reduce privacy.
An SGPS is commonly used to manage diversified investments. It enables centralised asset management, which simplifies administration and may offer tax efficiencies on capital gains and dividends. However, SGPS structures are more specialised for investment management, offering less flexibility for other family office functions such as estate planning or concierge services. They also have significant compliance obligations, adding to administrative burdens.
3.2 Are all of these structures available to families based outside the jurisdiction? If not, what options are available to them?
Yes, all of these structures are available to families based outside Portugal.
3.3 What key factors should a family consider in selecting the most appropriate ownership structure for their needs?
When selecting the most appropriate ownership structure for a family office in Portugal, families must consider several key factors.
Wealth size and complexity play a major role in determining the best structure. Families with significant assets or diverse portfolios may prefer an SA due to its ability to handle larger operations and raise capital through shares. Smaller or simpler family offices may find an Lda more cost effective and easier to manage.
Legal liability protection is essential, as both SAs and Ldas offer limited liability, protecting family members from personal liability. Tax efficiency is also a critical factor, especially for families managing investments. SGPSs may offer some tax advantages.
Governance and control considerations are also important. Families seeking flexibility and control over daily operations might prefer an Lda, while those open to more formal governance and potential external investment could benefit from an SA.
For non-resident families, cross-border tax planning and compliance with international tax treaties are essential. Both Ldas and SAs are available to non-residents, but professional advice is crucial to navigate Portugal's tax system and manage cross-border assets efficiently.
4. Establishment and operation
4.1 What formal and substantive requirements are required to establish a family office in your jurisdiction?
Establishing a family office in Portugal involves meeting both formal legal requirements and substantive operational needs. The legal structure is typically set up as:
- a limited liability company (Lda);
- a joint stock company (SA); or
- a holding company (SGPS).
This requires:
- registering the relevant entity with the Commercial Registry;
- drafting articles of incorporation;
- appointing directors; and
- opening a corporate bank account to deposit the initial share capital.
For family offices engaging in financial services, registration with the Securities Market Commission (CMVM) may be necessary.
The family office must also register with the Portuguese tax authorities to comply with corporate tax and social security obligations. When handling financial transactions, the family office must adhere to anti-money laundering and counter-terrorism financing regulations; and if personal data is processed, compliance with the EU General Data Protection Regulation (GDPR) is required.
On the operational side, the family office must:
- establish a governance structure; and
- decide on the scope of services, such as:
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- investment management;
- tax advisory; and
- estate planning.
This often involves:
- hiring specialised staff; or
- working with external advisers.
Developing a strategy for succession planning and tax optimisation is critical, especially for multi-generational families. Family offices also need to implement secure IT systems and cybersecurity measures to protect sensitive data.
4.2 What are the typical costs involved in establishing and operating a family office in your jurisdiction? How do these vary depending on the chosen model and structure, and/or the services provided?
The costs of establishing and operating a family office in Portugal vary depending on:
- the model chosen;
- the legal structure; and
- the services provided.
Setting up a family office typically involves legal fees, notary costs and registration expenses, which can range from €5,000 to €20,000. If the family office engages in regulated financial activities, additional licensing costs with the CMVM may range from €10,000 to €50,000.
Operational costs are largely driven by human resources. A fully staffed single-family office may cost between €250,000 and €1 million annually for salaries and employment-related costs; while multi-family offices, which share resources, are more cost-effective at €100,000 to €300,000 per family. Virtual family offices – which rely on technology and external providers – typically have lower ongoing costs, ranging from €50,000 to €150,000 annually.
Office space, technology and professional advisory services further impact costs. Physical offices may cost €50,000 to €200,000 annually, while the implementation of secure IT systems can range from €10,000 to €100,000. Legal, tax and financial advisory services add further expenses, ranging from €50,000 to €500,000 annually.
4.3 What regulatory requirements apply to family offices in your jurisdiction? How do these vary depending on the chosen model and structure, and/or the services provided?
In Portugal, family offices are subject to several regulatory requirements depending on:
- their structure; and
- the services provided.
Single-family offices typically do not fall under direct financial regulation if they:
- manage only the assets of one family; and
- do not offer services to third parties.
However, if they engage in regulated financial activities, such as investment management or advisory services, they may be subject to supervision by the CMVM and the Portuguese Central Bank. Multi-family offices are more likely to be regulated and may need to obtain specific licences if they provide investment, portfolio management or financial advisory services.
All family offices involved in financial transactions must comply with anti-money laundering and counter-terrorism financing regulations. This includes:
- conducting client due diligence;
- identifying beneficial owners; and
- reporting suspicious transactions.
Multi-family offices, particularly those providing financial services to third-party families, are more closely monitored under these regulations.
Regardless of their structure, all family offices must comply with Portuguese tax laws, which involve registering with the Portuguese tax authorities for:
- corporate tax;
- value-added tax (if applicable); and
- social security contributions for employees.
Multi-family offices may have additional reporting obligations, especially if they operate internationally or manage complex cross-border assets.
Family offices handling personal data must adhere to the GDPR, ensuring that they protect the privacy and data of family members and clients. This applies across all models but may be more relevant to virtual family offices and multi-family offices that manage large amounts of sensitive data.
4.4 What other concerns and considerations should be borne in mind in relation to the establishment and operation of family offices in your jurisdiction?
When establishing and operating a family office in Portugal, several key considerations extend beyond legal and regulatory compliance. Tax optimisation and benefits can be crucial, while proper planning for international assets and potential double taxation is essential.
Succession planning is another priority, requiring clear governance structures and defined roles to ensure smooth wealth transition across generations. Aligning family values with long-term goals is equally important. Additionally, understanding Portugal's legal and cultural framework is necessary – especially for families with global ties – to ensure compliance and cohesion with other jurisdictions.
Talent acquisition also plays a critical role, as hiring specialised staff or external advisers is vital for managing wealth effectively. The same applies to investing in technology and digital security to safeguard sensitive information and ensure operational efficiency.
Finally, family offices must also keep pace with regulatory, legal and tax changes, including shifts in Portuguese and EU tax and financial laws.
5. Governance
5.1 What key risks do a family office and family members face in your jurisdiction, and what processes, policies and procedures should be put in place to mitigate them?
Family offices and their members in Portugal face several key risks that require careful management. Financial risks, such as market volatility, can impact investments, making diversification and regular portfolio reviews essential to mitigate losses. Regulatory and compliance risks, particularly regarding anti-money laundering and tax laws, are significant. Implementing strong compliance procedures, appointing a dedicated compliance officer and conducting regular audits can help to ensure adherence to legal standards.
Tax risks, including the possibility of tax evasion accusations due to improper reporting, can be managed by:
- engaging expert tax advisers; and
- developing a robust tax strategy that complies with Portuguese and international laws.
Cybersecurity threats, such as data breaches or cyberattacks, pose a substantial risk given the sensitive financial and personal information handled by family offices. Strong cybersecurity measures, including encryption and regular security audits, are crucial to protect this data.
Reputation and privacy risks also require attention, as wealthy individuals can become targets of media or information leaks. Confidentiality policies and secure communication protocols help to safeguard family privacy.
Finally, succession risks, such as intergenerational conflict, can disrupt family office operations. Clear governance structures, well-defined succession plans and family constitutions are essential to ensure smooth wealth transitions and minimise potential conflicts.
5.2 What key documents (eg, family charter/value statement/mission statement) should guide the activities of the family office, and how should these be developed and updated?
A family office in Portugal should be guided by key documents that align its operations with the family's goals and ensure continuity across generations. These include the following:
- Family charter (or constitution): The family charter outlines the family's values, vision, roles, decision-making processes and rules for participation in the family office. It helps to address:
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- wealth distribution;
- investment strategies; and
- succession planning.
- Mission statement: The mission statement defines the family office's purpose and long-term objectives. It guides decisions on:
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- wealth management;
- investments; and
- philanthropy.
- Investment policy statement: This document sets the family's:
-
- investment philosophy;
- risk tolerance; and
- asset allocation strategies.
- Developed with financial advisers, it should be updated to adapt to changing market conditions or family goals.
- Governance guidelines: These establish the structure and management of the family office, including:
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- roles and responsibilities;
- decision-making processes; and
- conflict resolution.
Developing these documents requires collaboration between family members and advisers to reflect the family's collective vision. Regular reviews every three to five years ensure that the documents stay relevant as the family and external conditions change.
5.3 How should the family office communicate and engage with key stakeholders (eg, family members; trusted advisers; the media)?
Regular communication with family members ensures transparency and alignment with the family's goals. This includes:
- periodic family meetings to discuss performance, strategy and governance issues; and
- clear financial reporting on investment performance and expenses.
Revisiting the family's mission and values periodically helps to keep everyone aligned with the office's long-term direction and vision.
Trusted advisers such as legal, financial and tax professionals play a critical role, so regular engagement is essential. Collaborative planning sessions allow advisers to provide timely input on strategy and risk management. Establishing clear communication channels ensures efficient information flow between advisers and the family office.
Media relations should be carefully managed to protect the family's privacy and reputation. A designated spokesperson or public relations professional should handle any media inquiries, ensuring consistency in communication. Additionally, having a crisis communication plan in place is essential for managing any negative press or reputational risks.
5.4 How and by whom should oversight of the activities of the family office be exercised?
Oversight of a family office in Portugal should involve both family members and external parties to ensure transparency and alignment with the family's goals.
Family members – particularly those in leadership positions – play a crucial role by regularly reviewing the family office's performance, financial reports and strategic direction. They may form a family council or meet quarterly to discuss key decisions and ensure that the family office operates in line with long-term objectives.
A board of directors or advisory board – consisting of family members, independent professionals and trusted advisers – adds a layer of governance. The board:
- reviews major decisions, such as significant investments; and
- ensures that the family office follows sound policies and financial practices.
Its involvement helps to provide balanced, professional oversight while minimising conflicts of interest.
External advisers – such as legal, financial and tax experts – offer additional oversight by ensuring that the family office complies with regulatory requirements and operates efficiently. Regular audits and compliance reviews conducted by these professionals help to safeguard the family office's financial health and legal standing.
5.5 What other concerns and considerations should be borne in mind in relation to the operation of the family office from a governance perspective?
From a governance perspective, several key considerations are crucial for the effective operation of a family office in Portugal.
Clear decision-making structures are essential to ensure that roles and responsibilities are well defined, preventing confusion or conflicts among family members and advisers. Establishing conflict resolution mechanisms is also important – particularly when differing views arise on investments, succession or family goals.
Succession planning is vital for smooth generational transitions, helping to avoid disputes and ensure continuity in leadership and decision-making. Transparency is another cornerstone of good governance, with regular reporting on financial performance, investments and strategic decisions maintaining trust within the family.
Effective risk management is also critical, focusing on financial, legal, operational and reputational risks. Regular audits, compliance reviews and risk assessments should be part of the governance framework to safeguard the family office's operations.
It is also important to align the interests of family office staff and external advisers with those of the family. Compensation structures, performance incentives and clear conflict-of-interest policies help to ensure that everyone is working towards the same goals.
Finally, regulatory compliance with Portuguese and international laws is essential. Regular audits and legal reviews ensure that the family office operates within the law.
6. Family office activities
6.1 What specific concerns and considerations should be borne in mind in relation to the following activities of family offices in your jurisdiction?
(a) Investment and wealth management
Balancing risk, diversification and long-term goals is key. A clear investment policy and regular reviews are essential.
(b) Tax management
This requires optimising tax strategies while complying with Portuguese and international laws, often involving experienced advisers.
(c) Succession planning
Clear, legally binding plans prevent conflicts and ensure continuity across generations.
(d) Estate planning
This focuses on minimising inheritance taxes and protecting assets through trusts or legal structures.
(e) Management of real estate
This involves handling:
- market fluctuations;
- tax liabilities; and
- property upkeep.
(f) Management of luxury assets (eg, private jets, yachts, art collections)
This demands careful valuation, maintenance and security measures.
(g) Reputational management
Having clear media policies and crisis communication plans helps to protect the family's public image.
(h) Education and development of upcoming generations
This is essential for preparing them to manage family wealth, with formal programmes and mentoring helping to build financial literacy and leadership skills.
(i) Hiring and management of staff (eg, domestic, PAs, security, other)
This requires confidentiality, security and efficiency, with professional staffing and clear contracts ensuring smooth operations.
(j) Other
Other considerations include:
- philanthropy, where charitable activities should align with family values and proper governance; and
- legal risks, requiring regular compliance checks with Portuguese and international laws to mitigate potential legal issues.
7. Philanthropy and ESG
7.1 What forms does philanthropy typically take in your jurisdiction? What are the advantages and disadvantages of each?
Philanthropy in Portugal typically takes several forms, including:
- private foundations;
- direct donations; and
- corporate philanthropy.
Private foundations allow families or individuals to establish independent entities to support charitable causes over time. While they offer complete control, long-term legacy and potential tax benefits, they come with high costs and regulatory oversight.
Direct donations are the simplest form of philanthropy, where individuals or businesses contribute directly to charities or causes. This approach is quick and involves minimal administrative costs, but it provides little control over how the funds are used and does not establish a long-term legacy.
Corporate philanthropy, often tied to a company's corporate social responsibility initiatives, allows businesses to donate a portion of profits or resources. While this can enhance a company's reputation and offer tax benefits, it may also create public expectations for continued giving, which could strain resources.
7.2 How embedded is impact investing in your jurisdiction? What key concerns and considerations should be borne in mind in this regard?
Impact investing is gradually gaining momentum in Portugal, although it remains less developed compared to more established markets. It has attracted interest from family offices, institutional investors and entrepreneurs, driven by:
- the rise of socially responsible investments; and
- a growing emphasis on aligning financial returns with social and environmental impact.
Contributing factors include:
- Portugal's commitment to sustainability;
- the European Union's green investment agenda; and
- the increased involvement of younger generations who prioritise ethical investments.
Portugal's flourishing startup ecosystem – particularly in renewable energy, social entrepreneurship and technology – has also fostered interest in impact investing.
However, key concerns and challenges must be considered. A primary issue is the lack of standardised metrics to measure social and environmental impact, making it difficult to compare and evaluate investments consistently. Additionally, there is often a trade-off between financial returns and social impact, which investors need to clearly define and manage.
The regulatory framework for impact investing in Portugal is still evolving, requiring investors to stay informed about legal developments. Moreover, there is a risk of greenwashing, where companies may exaggerate their positive impact for marketing purposes, thus making genuine impact assessment more difficult.
7.3 In what ways is the environmental, social and governance (ESG) agenda shaping the activities of family offices in your jurisdiction? What key concerns and considerations should be borne in mind in this regard?
The ESG agenda is increasingly shaping the activities of family offices in Portugal as they integrate ESG criteria into their investment strategies. This shift is driven by:
- growing awareness of responsible investing, particularly among younger generations; and
- the recognition that ESG factors can enhance long-term financial performance and risk management.
Family offices are directing investments towards sustainable sectors such as renewable energy and ethical enterprises, while also adopting governance practices that emphasise:
- transparency;
- ethics; and
- environmental stewardship.
However, several concerns need to be considered. A key issue is the lack of uniform ESG standards, which can make it difficult to assess the actual impact of ESG investments. Family offices must also be vigilant about greenwashing, where companies may exaggerate their ESG credentials to attract investors.
Another key issue is the risk of a perceived trade-off between achieving ESG goals and maximising financial returns, which requires careful balance. Regulatory developments, such as the EU Sustainable Finance Disclosure Regulation, are also crucial for family offices to monitor to ensure compliance with evolving ESG reporting and investment guidelines.
7.4 What other concerns and considerations should be borne in mind in relation to philanthropy and ESG in your jurisdiction?
When engaging in philanthropy and ESG in Portugal, family offices must consider several key factors to ensure effective and responsible outcomes. Alignment with the family's core values and long-term goals is crucial, as both philanthropic activities and ESG strategies should reflect the family's ethical principles and desired legacy.
Accurately measuring social and environmental impact is another challenge, as the absence of standardised metrics makes it difficult to evaluate outcomes. Family offices should develop tailored frameworks for tracking both financial performance and impact. Conducting thorough due diligence is essential to avoid supporting organisations engaged in greenwashing or socially irresponsible practices.
Regulatory compliance is also important, particularly with emerging standards such as the EU Sustainable Finance Disclosure Regulation and tax regulations for charitable contributions. Staying informed about local and EU requirements helps to mitigate legal and reputational risks.
Finally, balancing financial returns with social and environmental impact is a common concern in ESG investing. Family offices should establish clear strategies to manage this trade-off and maintain alignment with their financial and impact goals. Additionally, transparency in reporting is critical to building trust, both within the family and with external partners.
8. Talent acquisition and retention
8.1 What key personnel does a family office require for its smooth operation? How does this vary depending on the chosen model and structure, and/or the services provided?
The key personnel required for a family office in Portugal depend on:
- the model;
- the structure; and
- the services offered.
Essential roles typically include:
- a chief executive officer or family office manager, to oversee operations and ensure alignment with the family's strategy;
- a chief financial officer, who manages financial planning and reporting;
- an investment manager, who handles the family's portfolio and asset allocation;
- a legal counsel and compliance officer, to handle regulatory compliance, estate planning and tax efficiency;
- a tax and accounting specialist, to manages financial statements and tax filings;
- for family offices with a focus on philanthropy or ESG, a philanthropy adviser, to guide charitable initiatives; and
- for those managing real estate, an estate manager, to oversee property portfolios.
8.2 What are the optimal strategies for attracting talent to a family office in your jurisdiction? What key concerns and considerations should be borne in mind in this regard?
To attract top talent to a family office in Portugal, competitive compensation is essential, including:
- salary;
- performance-based bonuses; and
- eventually, long-term incentives such as equity.
Offering a unique work environment with close relationships to decision-makers and a focus on long-term strategy appeals to professionals seeking a more personal and stable setting compared to corporate environments. Highlighting the family's values, legacy and involvement in philanthropy or ESG investments can also attract candidates who prioritise impact-driven work.
Another key strategy is to provide opportunities for professional development, such as certifications and career advancement. Recruitment should be handled discreetly through specialised firms or networks, maintaining the privacy of both the family and potential hires.
Other key concerns include:
- cultural fit, as alignment with the family's values and long-term vision is critical;
- confidentiality, as family offices handle sensitive information, making trustworthiness a top priority;
- the avoidance of disruptive staff turnover; and
- flexibility, since family office roles often require adaptability across different functions over time.
8.3 Do family members typically assume official positions in family offices in your jurisdiction? What key concerns and considerations should be borne in mind in this regard?
Family members often assume official positions in family offices in Portugal – especially in single-family offices, where their involvement ensures alignment with the family's values and long-term goals.
However, several key concerns should be considered when family members take on leadership roles. While family members provide valuable insight into the family's vision, they must also possess the necessary skills and experience to manage wealth effectively. Lack of expertise can negatively affect the family office's performance.
Also, conflicts of interest may arise when personal interests diverge from the family's collective goals. To address this, clear governance frameworks and conflict resolution mechanisms should be established. Additionally, the potential for personal tensions within the family can complicate decision-making. Open communication and clearly defined roles are essential to maintaining harmony.
Combining family oversight with external professional management usually proves to be advantageous. Professional managers bring specialised expertise and objectivity, complementing family leadership and enhancing overall operations.
8.4 What other key concerns and considerations should be borne in mind concerning the attraction and retention of talent in family offices in your jurisdiction?
When attracting and retaining talent for family offices in Portugal, taxation and immigration rules play a crucial role. Until 31 December 2023, Portugal's Non-Habitual Resident regime was a key advantage for attracting international professionals, offering a flat 20% tax rate on Portuguese-sourced income and tax exemptions on certain foreign-sourced income for up to 10 years. This favourable tax treatment could significantly enhance the appeal of positions for expatriates, making compensation packages much more attractive.
Work permits and immigration rules are equally important. Portugal's Golden Visa programme allows non-EU individuals to gain residency through qualifying investments, which may benefit high-level executives or advisers.
In addition, a wide range of visas and residence permits can be used by potential hires. For non-EU talent, securing work permits can be complex, so engaging immigration specialists to navigate these processes is essential for timely recruitment.
9. Dispute resolution
9.1 In which forums are family disputes typically resolved in your jurisdiction? What issues do these disputes typically involve?
In Portugal, depending on the nature of the conflict, family disputes are typically resolved through:
- civil courts;
- family and juvenile courts;
- mediation; and
- occasionally, arbitration.
Civil and family courts handle most disputes, including matters related to:
- inheritance;
- asset division;
- divorce;
- child custody; and
- alimony.
These courts are the primary forum when legal entitlements or breakdowns in family relationships are involved.
Mediation has become an increasingly popular method for resolving family disputes, offering a less adversarial and more collaborative approach. In this voluntary process, a neutral mediator helps parties to reach a mutually satisfactory agreement, making it particularly useful for:
- inheritance disagreements;
- estate planning conflicts; and
- family business issues.
Mediation is often preferred when maintaining family relationships is a priority.
Arbitration, although less common in family matters, may be chosen for disputes relating to contractual or commercial issues within family businesses. It offers a binding resolution outside the court system, providing a faster and more private alternative to litigation.
Common issues in family disputes in Portugal include:
- inheritance and succession conflicts;
- disagreements over family business management and profit distribution; and
- divorce-related matters such as settlements and child custody.
Disputes regarding wealth and asset division, particularly in complex or multi-generational family structures, are also frequent sources of conflict.
9.2 What specific considerations and concerns should be borne in mind in relation to the resolution of family disputes in your jurisdiction?
The preservation of family relationships is paramount, as disputes over inheritance, family businesses or roles can damage personal relations. Non-adversarial methods such as mediation, which emphasise collaboration, are often preferred for maintaining family unity.
Understanding Portugal's legal framework – particularly succession laws and forced heirship rules – is essential for disputes involving inheritance and estate planning. Confidentiality is another important concern, as court proceedings are public, while mediation and arbitration offer more private resolutions. This can be especially critical for protecting sensitive family and business information.
Family businesses face long-term impacts from disputes, so it is crucial to protect business interests and ensure smooth generational transitions. Expert involvement from legal, financial and business professionals can help to navigate the complexities of family dynamics and business operations, ensuring well-informed decisions.
9.3 What specific considerations and concerns should be borne in mind where family disputes involve international aspects?
One key consideration is jurisdiction, as laws on inheritance, divorce and asset division vary across countries. Determining which legal framework applies and how it interacts with Portuguese laws, such as its forced heirship regime, is essential for ensuring a fair outcome.
Cross-border asset management adds complexity, as property and business interests in different countries may be subject to conflicting legal rules. Taxation issues, including double taxation and cross-border reporting obligations, must be carefully managed to avoid legal and financial complications. Likewise, navigating international tax treaties is crucial to minimise liabilities; and compliance with international regulations such as the Foreign Account Tax Compliance Act and the Common Reporting Standard is also vital to avoid penalties.
Cultural differences between family members living in various countries are another key issue, as these can influence perspectives on wealth, governance and dispute resolution. Dispute resolution mechanisms such as mediation or arbitration can offer flexibility, but enforcement across multiple jurisdictions may be challenging.
10. Cessation of activities
10.1 Under what circumstances might a family decide to cease the activities of its family office in your jurisdiction? What key concerns and considerations should be borne in mind in this regard?
A family may decide to cease the activities of its family office in Portugal due to:
- changes in financial circumstances;
- generational transitions; or
- operational inefficiencies.
A significant reduction in family wealth – whether from market downturns or business losses – might make maintaining the family office financially unsustainable. Also, generational shifts – particularly if younger members lack interest in managing family wealth – can lead to the closure of the family office, with families opting to outsource wealth management instead. Operational inefficiencies or high costs that outweigh the benefits may further prompt the family to discontinue the family office's activities.
Key considerations in this process include the smooth transition of asset management to external providers, ensuring minimal disruption to ongoing services. Tax implications are critical, as ceasing the family office may trigger tax liabilities, requiring careful tax planning to mitigate any financial impacts. Employment issues must also be addressed, managing contracts and severance for staff affected by the closure.
Finally, reputation and privacy concerns must be handled delicately, as the closure of a family office could attract unwanted attention.
11. Trends and predictions
11.1 How would you describe the current family office landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms that may affect the operation of family offices?
Family offices in Portugal are increasingly focusing on diversification and sustainable investing, driven by ESG concerns. Many family offices are channelling investments into green energy, real estate and impact-driven sectors such as healthcare and education. This shift aligns with broader European goals on sustainability and responsible investing.
One major trend is the rise of impact investing and philanthropy, as families seek to align their wealth management with broader societal and environmental objectives. There is also growing interest in alternative investments such as private equity and venture capital, particularly in sectors such as technology and healthcare.
A key concern for family offices in 2025 is navigating increasing regulatory and tax changes. The European Union is placing more emphasis on tax transparency and family offices must adapt to evolving compliance requirements. In Portugal, family offices are closely monitoring potential tax and regulatory reforms.
12. Tips and traps
12.1 What are your top tips for the smooth operation of family offices in your jurisdiction and what potential sticking points would you highlight?
First, clear governance is crucial, with well-defined roles, decision-making structures and accountability, especially for succession planning and wealth management.
Compliance with evolving tax regulations in Portugal and the European Union, such as anti-money laundering and the Common Reporting Standard, is equally important to avoid legal issues. Family offices should also invest in cybersecurity to protect sensitive data, as the increasing use of technology in managing assets heightens the risk of cyberattacks.
Diversification of investments – including alternative assets such as real estate, private equity and venture capital – is another key approach, particularly with a growing focus on ESG and sustainability-driven strategies.
Potential sticking points include:
- the complexity of tax compliance, especially when managing cross-border assets; and
- generational conflicts during leadership transitions.
Clear governance frameworks and early succession planning can mitigate these challenges. Potential changes in Portugal's estate and tax laws may also present future obstacles.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.