Why is Portugal such an attractive property investment destination? It has liberal tax rules, good economic conditions and a beautiful climate. Find out why Portugal is so popular right now. The rest of this article is worth reading if you have apartments for sale in Portugal.
Marina Pasquill, a Vilamoura-based real estate analyst, said, “Even compared to a year ago, when we opened our doors, enquiries are up.”. Now in our second year, we look forward to a continued rise in enquiries and being part of one of Europe’s most exciting international markets.
The property market has recovered and the economy looks stronger than ever. According to the new Portuguese Housing Market Survey by RICS, property prices are expected to grow by 3 percent over the next 12 months and 5 percent over the next five years, with most of the growth coming from the Algarve and Lisbon. There’s a huge demand for properties in highly desirable areas such as Vale do Lobo, Quinta do Lago and Vilamoura. The limited supply versus the rising demand has been pushing property prices as well.
Reason #2: Mortgages in Portugal are cheaper than ever and easy to get. There’s a new confidence in the national economy, which can be seen in the country’s mortgage market. Most of the big banks in Portugal lend liberally to home buyers, offering housing loans at rates below 3.5%.
The weakness of the Euro has made Portuguese real estate extremely affordable, especially for British buyers. Due to the strengthening of the Sterling, Brits can now purchase a second home or vacation home in Portugal at affordable rates. Currently, £1 equals €1.38, which is much stronger than at the beginning of 2015, when £1 was worth €1.27. The currency exchange rates favor Brits, who are the most prominent foreign buyers of Portuguese properties. As a result of this, property prices in Portugal have risen.
Portugal has a very friendly tax regime that ensures foreigners’ financial interests are protected. During the first 10 years of residency in Portugal, foreign nationals can take advantage of Portugal’s Non-Habitual Residents (NHR) scheme, which offers amazing tax breaks on pensions and other foreign income. There is no wealth tax in Portugal and the inheritance tax is really very low, compared to many other countries in the world.
Reason #5: The Portuguese government lifted rent controls in 2012, and this has triggered a massive boom in construction in the country, with old apartment complexes making way for luxury apartments. So there’s a lot of new real estate development going on in Portugal, which has certainly pushed up the quality of the apartments and villas that are available for sale.
Reason #6: Portugal’s Golden Visa scheme, which promises residency to non-EU nationals who invest more than 500,000 EUR in Portuguese properties has caused many wealthy individuals from China, Hong Kong, Singapore, Brazil, Russia, etc. to shift to Portugal and buy properties here. The Golden Visa has been a massive success so far.
Reason #7: Portugal is a major green tourism destination, which is something that attracts environmentally conscious individuals. A well known environmentalist based in Lisbon, Dr Frederico Costa says, “With 220 days of sunshine a year and 800 kilometres of coastline, Portugal boasts some excellent natural advantages for the development of renewable energies.” Green tourism is big in Portugal and this is another great reason to buy properties here.
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