Portugal is on the rise.
After a difficult period from 2011-14 as the global credit crunch made its mark, there’s now a real revival, with the economy growing by 2.6% last year.
This revival is due in part to foreigners realizing that Portugal is the ideal place to invest in real estate.
There are many factors that make Portugal real estate particularly appealing. Here’s our rundown of why Portugal could be a great place for you to invest in!
Great Place to Live
Whether you’re planning to settle in Portugal or rent out the property as a holiday let, Portugal has a lot going for it in terms of quality of life.
It scores highly in terms of quality of housing, work-life balance, safety, and health services.
Areas such as the Algarve and Lisbon are key centers of tourism, attracting millions of visitors annually from the EU and beyond.
Key attractions include the mild climate, which ranges in Lisbon from an average low of 52 degrees Fahrenheit in January to a balmy 75 degrees Fahrenheit in July.
The Algarve Lifestyle is also extremely appealing. Visit one of the stunning beaches in the morning and then head off for lunch with a chilled glass of wine in one of the picturesque villages.
It’s the perfect place to snap up your Portugal property, with plenty to see and do all year round and the potential to make a rental income from some of the almost 9 million tourists who pass through Faro Airport each summer.
Portugal is an obvious choice for EU investors looking to grab a holiday home or rental opportunity. That’s because of the rights that EU citizenship gives them, namely, that they can live and work without restriction in other EU member states.
The great news is that Portugal is also keen to attract investors from outside the EU. That’s why they have created the ‘Golden Visa’ scheme.
This allows non-EU nationals to receive a residence permit when they spend a minimum of EUR350,000 ($405,000) buying property in Portugal.
The great part for investors is that you don’t have to become a permanent resident – you only need to spend 7 days a year in the country!
This means that Portugal – Europe’s closest point to the US, is more appealing for buyers from the United States than ever before. With flight times to Lisbon just 8 hours direct from either New York or Miami, it’s an easy hop over the pond.
If you’d like to make your move more permanent, there’s even the option to apply for citizenship after 6 years!
For many people looking to retire abroad, taxes are a big consideration. The thought of double taxation is enough to put many off taking the leap.
However, Portugal continues to be very keen to attract foreign investors from right around the world. To support this, it has instituted a very favorable tax regime for foreigners who settle there.
Of course, tax laws change periodically, so it is always prudent to check the current situation before planning your move.
However, currently, many investors who invest in Portugal real estate will not have foreign income, such as their pension, taxed in Portugal.
This could mean that your dollar goes a long way in Portugal, making it possible to enjoy a great lifestyle on a fixed income.
Portuguese cuisine may be rather underrated – when was the last time you headed out to your local Portuguese joint for the evening?
However, that’s not to say that it’s not delicious and a major draw for people looking to buy real estate in Portugal. In common with other Mediterranean countries, expect lots of fresh produce, grilled meats, and tasty desserts.
Lisbon and other tourist areas are also replete with the wide range of eateries that you would expect in any western destination, including Italian, Indian and Mexican joints.
Buying food in the supermarkets to prepare at home is also reasonably priced, with several international and local chains operating in a competitive marketplace.
Now to the most important consideration – what is Portugal real estate actually like?
If you’re looking to move to Portugal on a Golden Visa, you will need to invest at least EUR350,000 ($405,000) in Portugal real estate. What will that buy you in today’s market?
For that price, you could snap up a stylish, modern two bedroom 1150 square foot apartment in the center of Lisbon. With views onto local shopping streets, full air-conditioning and located just 2 minutes from a subway station.
If you’ve got a larger family, or are expecting a lot of guests, you can snag yourself a 6-bedroom house on the outskirts of Lisbon for the same EUR350,000 price tag!
Located just 10 minutes drive from the beach, you’ve got the best of both worlds with city living and a beach lifestyle right on your doorstep. Expect a more local, rustic style in the suburbs, with low beams, tiled floors and terraces surrounding the house.
If your idea of perfection is being close to beaches, golf, and tennis facilities, then the Algarve is perfect for you.
For EUR350,000 and up, you can get yourself an 1100 square foot south facing apartment, with use of a glorious swimming pool, all set in a private condominium development.
Just minutes from the beach and other amenities, you’ll feel as though you’re living in a luxury hotel, but with all the privacy of your own home.
The Bottom Line: The Keys to Portugal Real Estate Investment
The Portugal real estate market is booming for a reason – it’s a great place to live, the property is reasonably priced, and the government is very favorable toward foreign investment.
Whether you’re thinking of a retirement in the sun, or a holiday let investment to bring in some extra income, you should definitely make a point of checking of what Portugal has to offer!
For more great real estate advice, check out our real estate investment blog today!