Europe is a strategic asset class, says CEO of MFG Consultants
8 JUN, 2026
Over the past decade, European residency programmes have undergone a quiet but significant repositioning. Once primarily associated with lifestyle improvements such as better weather, healthcare, and retirement options, they are now increasingly viewed through a strategic lens. For many internationally mobile families and investors, the focus has shifted toward diversification, jurisdictional risk management, and long-term optionality in an era marked by geopolitical uncertainty, evolving tax regimes, and more complex global mobility.
We speak with João Pedro Cunha, CEO of MFG Consultants, a Portugal-based advisory firm specializing in European residency-by-investment strategies and international investor advisory, about how European residency programmes have evolved from lifestyle-driven choices into strategic tools for diversification, tax planning, and long-term global mobility.
Five years ago, European residency programmes were mostly associated with lifestyle. What changed?
The nature of the conversations changed. Five years ago, most people approached Europe through the lens of lifestyle: better weather, safety, food, healthcare or retirement planning.
Today, the discussion is far more strategic. Most of the families we work with are already well established in their home countries. They are not trying to leave. What changed is their perception of stability and exposure. The last few years accelerated that shift. Wars returned to Europe. The Middle East became unstable again. Political cycles became more aggressive across Western democracies. Tax pressure increased almost everywhere. People with international businesses, international assets or globally mobile families started asking themselves a different question: what happens if the world becomes materially less predictable over the next ten years?
That is where European residency enters the conversation. Not as an emotional decision. As a positioning decision.
Are investors becoming more sensitive to jurisdictional concentration risk?
Very much so. Ten years ago, most families still believed political and economic stability in developed countries could largely be taken for granted. Today, that confidence is weaker.
Many investors built their businesses, wealth structures and personal lives around a single jurisdiction for decades. What changed is the growing awareness that concentration risk also exists at a country level. Tax exposure, banking access, political cycles, currency risk, regulatory changes and even mobility rights can all become materially relevant surprisingly quickly. That does not mean families are abandoning their home countries. It means they increasingly want a second layer of protection and flexibility already in place before they actually need it.
For many investors, European residency is becoming part of broader geographic diversification. Almost like an insurance policy on family mobility.
Italy seems to be attracting much more attention recently. Why?
Because Italy managed to combine three things very few countries offer simultaneously: lifestyle, tax efficiency and relatively accessible entry thresholds. Most people are emotionally connected to Italy before they even understand the programme itself. Milan, Florence, Rome or Lake Como already sell the idea long before anyone discusses visas or tax structures.
But what really changed the market was the fiscal side. Italy’s flat-tax regime for new residents completely altered how internationally mobile families started looking at the country. Particularly after the UK dismantled the Non-Dom regime. That created a vacuum in Europe. Italy stepped into that space very effectively. Today, we regularly see entrepreneurs, business owners and families who historically would have looked first at London or Switzerland seriously considering Milan instead. Not only because of tax treatment, but because Italy offers a strong overall package: European positioning, global connectivity, lifestyle, education and long-term quality of life.
What makes the Italy Investor Visa attractive compared with other European programmes?
The structure itself is relatively straightforward. The programme allows a €250,000 investment into an approved innovative Italian startup or €500,000 into an existing Italian company. There is also no minimum physical stay requirement to maintain residency status. That point matters more than most people initially realize. Many investors are not looking to relocate immediately. They want legal access to Europe without needing to redesign their entire life around the residency itself. Italy works particularly well for people who may want optionality first and gradual integration later. The fiscal regime strengthens that proposition considerably.
How does Italy compare with Portugal today?
They solve different problems. Portugal remains one of Europe's most flexible residency programmes from a mobility perspective. The Portuguese Golden Visa requires a very low physical presence requirement, which works extremely well for families who want European residency while continuing to live primarily elsewhere.
Italy is different. Italy tends to attract people already thinking more seriously about building part of their life in Europe over time, whether personally, fiscally or professionally. Portugal is often about flexibility. Italy is increasingly about positioning. For some families, Portugal makes more sense operationally. For others, Italy fits far better once tax exposure, lifestyle preferences, schooling or business interests enter the equation.
How important is succession and family planning in these decisions?
Much more than most people assume. In many cases, the initial motivation comes from the parents. But the long-term logic is often about the children. Access to European universities, future mobility, the possibility of living or working across Europe later in life, and creating long-term family flexibility all weigh heavily on the decision. Many families are not making these investments for immediate relocation. They are creating future options for the next generation. That becomes particularly relevant for internationally exposed families coming from regions where political, economic or mobility uncertainty can change rapidly over time. A second residency framework creates continuity. And continuity matters a great deal once families start thinking generationally rather than transactionally.
Many investors still focus heavily on citizenship. Is that the right way to look at these programmes?
Not necessarily. One of the biggest misconceptions in the industry is treating citizenship as the primary objective. In reality, the residence permit is often the real asset. Citizenship is simply a potential dividend that may arrive later. The moment an investor obtains legal residency in Portugal or Italy, the family gains access to a second jurisdiction, the right to live in Europe, access to education systems, healthcare, business opportunities and freedom of movement across Schengen. That value exists from day one. Citizenship may eventually become relevant. But for many families, the practical benefits of residency are already enough to justify the decision. In fact, many of our clients never intend to relocate permanently or apply for a passport. They simply want the flexibility that comes from having a legally established position inside Europe. The passport is the dividend. The residence card is the asset.
Some countries offer extremely fast routes to citizenship. Should investors be cautious?
Absolutely. Investors should always ask themselves a simple question: If obtaining citizenship is extremely easy, how valuable can that citizenship remain over time?
The most respected jurisdictions in the world do not hand out passports casually. There is a reason why countries such as Italy, Portugal, Switzerland or the United States maintain robust legal frameworks around long-term residence, integration and citizenship. A passport is one of the most valuable sovereign assets a country possesses.
When governments begin treating it as a commodity, investors should pay attention. History shows that programmes offering overly aggressive citizenship timelines often face political pressure, regulatory scrutiny or international criticism sooner or later. That does not mean those programmes are necessarily wrong. It simply means investors should evaluate long-term credibility rather than focusing exclusively on speed. The best residency programmes are usually not the fastest. They are the most durable. And durability is ultimately what families are buying.
Has the profile of residency-by-investment investors changed?
Completely. Fifteen years ago, parts of the industry were still heavily driven by lifestyle marketing and, in some cases, by investors looking primarily for fast passports.
Today, the market is far more mature. Clients ask better questions. They want to understand tax implications, legal durability, fund structures, political stability, succession planning and operational realities. In many cases, residency discussions now happen alongside conversations with tax advisors, wealth managers and family offices. That is a healthy evolution for the industry. Because these are long-term decisions. And long-term decisions should be approached seriously.
Many firms still market residency programmes mainly around passports. Is that becoming outdated?
In many cases, yes. The residence permit itself already carries enormous value long before citizenship becomes relevant. People often underestimate what European residency actually provides from day one: Schengen mobility, the ability to live in Europe, access to education systems, family inclusion and long-term flexibility. Most families are not making these decisions purely because of passports. They are thinking about optionality. They are thinking about where their children could study one day, where they could spend more time later in life, or how to reduce dependence on a single country over the long term. That is a very different mindset from what existed ten years ago.
What mistakes do investors still make when evaluating these programmes?
Treating the decision as purely transactional. The investment threshold alone tells you very little. The real questions are usually somewhere else: Does this structure integrate properly with my tax situation? Does the programme still make sense if legislation changes later? Am I comfortable maintaining this structure for years? Does this country fit the long-term reality of my family? Those are the questions that actually matter.
That is also why independent advisory matters. At MFG Consultants we do not approach residency programmes as products sitting on a shelf. Different families need different structures. Sometimes Portugal is the right fit. Sometimes Italy is clearly the better solution. And sometimes the correct advice is not to proceed at all.
What are people ultimately buying today?
Flexibility. The ability to create options before those options become urgent. Most internationally mobile families simply recognise that the world has become more unstable, more politically fragmented and less predictable than it was a decade ago. Europe still offers institutional stability, quality of life, strong education systems and long-term credibility. That is why these programmes continue growing despite political noise around them. People are not reacting only to what Europe is today. They are positioning themselves for what the world may look like ten years from now.
About João Pedro Oliveira Cunha
João Pedro Cunha is the CEO of MFG Consultants, a Portugal-based advisory firm specializing in European residency-by-investment strategies and international investor advisory. The firm has advised hundreds of internationally mobile families, entrepreneurs and investors since 2012, with a specific focus on Portugal and Italy. MFG Consultants is a member of the Investment Migration Council (IMC) and the Portugal–U.S. Chamber of Commerce.
