Why the Algarve? It offers many advantages. With plenty of airports and low cost airlines offering flights to Algarve's Faro International Airport, and flight times not more than a few hours from most of Western Europe, the Algarve is easily accessible. Voted one of 2018's most peaceful countries in the world Portugal has one of the lowest population to land densities in Europe. The strict planning regulations secure the natural beauty of the sandy beaches, open countryside and forests. This in turn limits the supply of new properties, keeping the demand of property for sale high!
Politically, Portugal is stable, has no terrorist groups, gangs or mafias! With one of the lowest crime rates in Europe and the capital, Lisbon, recently voted the safest in Europe there is an increasing demand for properties and rentals, both short and long term.
Portugal also offers some excellent tax advantages. The Portuguese Golden Visa or 'Resident Permit for Investment' is a fast-track method for non-EU members and their family members to obtain Residency Permits in Portugal, with no direct tax implications/obligations for income generated outside Portugal.
There is also the Non-Habitual Tax Regime (NHR) in Portugal, offering a decade of generous tax breaks.
In comparison to property prices in other European countries such as the UK, Ireland, Paris, Spain and France, property in Portugal is still very affordable. Quality properties at low prices means good rental returns. Rental yield on average still remains one of the highest in Europe, statistics show that gross rental income in Portugal ranges from 5% to 7%.
Read Part 2 of Buying An Investment Property In The Algarve to find out more about the costs and potential income generated.
