What makes Portugal such an attractive destination for overseas property seekers? Liberal tax rules, favourable economic conditions and great weather. There’s huge interest in Portugal right now and we tell you why. This If you have apartments for sale in Portugal, you will want to read the rest of the article.
Marina Pasquill, a real estate analyst from Vilamoura says, “Even compared to a year ago when we opened our doors, we’re seeing an uplift in enquiries. As our office enters its second year, we’re looking forward to a continuing rise in enquiries and being directly involved in one of Europe’s most exciting international markets.” Read on for the 7 top reasons for this increase in interest in Portuguese properties for sale.
Reason #1: The property market has recovered and the economy looks better than ever. The new Portuguese Housing Market Survey by RICS that studied average property prices in Portugal predicts that property prices are expected to rise by 3 percent over the next 12 months and then 5 percent a year over the next 5 years, with much 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%.
Reason #3: The weakness of the Euro has made Portuguese property really cheap, especially for British buyers. Brits can now take advantage of the increasing strength of the Sterling to buy a second home or vacation home at affordable rates in Portugal. At the time of this writing, £1 equals €1.38, which is much stronger than it was at the start of 2015, when £1 was worth €1.27. So the currency exchange rates are overwhelmingly in favour of Brits, who are the most prominent foreign buyers of Portuguese properties. This has actually pushed up property prices in Portugal because of the increase in demand.
Reason #4: Portugal has a very friendly tax regime which ensures that the financial interests of foreigners are taken into consideration. Portugal’s Non-Habitual Residents (NHR) scheme assures amazing tax breaks on pension and other foreign income to foreign nationals in the first 10 years of residency in the country. 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.