Portugal is a lovely country whose beauty is enchanting thanks to the stunning coastlines, friendly climate, and incredibly hospitable people. It is not a surprise that the country has become one of the choice destinations for foreign property buyers. You may be taken aback to learn that nearly three-quarters of people within the country own their homes, and this is more than the averages in the UK and US.
The beauty of investing in Portugal's properties is that foreigners do not have to struggle with barriers on their quest to own properties in the country. Many citizens from other countries have already acquired properties in Portugal.
Here are some reasons why you should consider investing in Portugal's real estate sector:
Political stability and a low crime rate
Do you long to live in one of the safest and most peaceful countries in Europe and the world? You need not to look further than Portugal. The country prides itself on having the lowest number of crime incidents in Europe and is highly ranked as one of the friendliest nations globally. Regardless of where you choose to settle–the capital Lisbon, or in Porto to the north, or Algarve to the south–you will have a peaceful stay among the locals and citizens from other countries. The country also has one of the most stable political climates in Europe.
Do you also want to get a slice of the Portuguese real estate pie? You can consider investing through buying a property. What's more is that you could become a resident through the Portugal Golden Residence Permit Program, a residence by investment program for non-EU citizens. Here is more information for you to check about the program, and you will have a leading and reliable visa agent to guide you.
Developing and steadily growing real estate market
In a matter of a few years, Portugal has emerged as a preferred destination for real estate investors. A PwC study in 2019 puts Lisbon at the top of the list of Europe’s most interesting cities for real estate investment.
Like many other main cities, Lisbon is also constantly growing, with new buildings coming up to meet the increased demand and the older ones being renovated. Several companies are also investing in modernizing ancient properties and putting up new buildings around the city. And the better part is that the same process is happening across the county, thus giving new life to old properties.
A very friendly and attractive tax system
The Portuguese government has introduced several tax incentives to win over new investors. The incentives have transformed Portugal into one of the most thriving real estate markets. One of the tax incentives is allowing enjoyment of RNH status (Non-Habitual Resident) for immigrants to Portugal. It offers pensioners exemption from income tax for ten years and imposes a 20% flat tax rate for those who are working. There is also no wealth tax, no inheritance tax for the direct heirs and spouses, nil housing tax, many tax exemptions for real estate capital gains especially when they are reinvested, among other tax incentives.
Attractive seasonal rent income
2017 saw 23 million tourists visit Portugal, which was more than twice as those who visited in ten years. This undeniably put Portugal top on the list of the fastest-growing countries in Europe. The effect of the craze is high pressure on rental properties, leading to scarcity to the advantage of the real estate investors. More and more investors are being drawn into the seasonal rent business model in various parts of the country.
Conclusion
Besides the above reasons, the real estate transactions in Portugal are protected by the legislation, so there is no worry of losing your investment. The country is also one of those with the most affordable cost of living in Europe. With all of these things in favour of Portugal's property market, it is no doubt that an investment in the country's real estate is a worthy investment.
