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The 10 reasons to invest in Portugal

The 10 reasons to invest in Portugal

No other market is more dynamic than the Portugal real estate market. This is indeed what several studies carried out by specialized firms reveal.

Investors have understood this and are flocking in from all over the world. Not only because Portugal real estate offers a wide choice of available properties. But also because it generates rates of return that are difficult to beat.

So discover the 10 reasons why Portugal is a real estate Eldorado. And what if you were to take advantage of it, too?

1. A real estate market in development and growing steadily

In just a few years, Portugal has become a preferred market for real estate investors. According to a study conducted by PwC in 2019, Lisbon has topped the European ranking of the most interesting cities to invest in real estate

Read More

Unlike most European countries, Portugal did not experience the housing bubble of 1996-2007, and the crisis seems to have wiped out the inflationary price increase, allowing the country to maintain a relatively low price per square meter.

According to the study “Emerging Trends in Europe in 2019” conducted by the British audit and consulting firm PwC (PricewaterhouseCoopers) and the American association Urban Lan Institute, Lisbon is at the top of the European ranking of the most interesting cities to invest in real estate. In one year, it went from 11th to 1st place, dethroning Berlin. This marked preference of buyers is explained by the “quality of life”, but also by the growth of the Portuguese economy, which is attracting more and more foreign companies and investors.

JLL (Jones Lang LaSalle) another US real estate consulting firm estimated that €3.3 billion was invested in Lisbon stone in 2018, an increase of 74% over the previous year.

The perceived trend in the capital is spreading to other major cities in the country and their agglomerations. And it is in these new regions that good deals are to be found today.

3. A very attractive tax system

Many tax incentives have been introduced by the Portuguese government to attract new investors. These measures have made Portugal one of the most dynamic real estate markets in Europe.

Read More
  •  Granting of “RNH” status (Non Habitual Resident) for foreigners coming to Portugal offering an exemption from income tax for pensioners for 10 years and a flat-rate tax rate of 20% for working people
  • No wealth tax
  • No inheritance tax for spouses and direct heirs
  • No housing tax
  • Transfer tax: 1%-6% depending on the value of the property,
  • Impôt de mutation : 1%-6% selon la valeur du bien
  •  No VAT on rents (with a few exceptions)
  • Moderate property taxes: 21% for legal entities through a SCI or 28% for non-resident individuals
  • There are also many tax exemptions on real estate capital gains, especially if they are reinvested.

5. Political and economic security (3rd safest country in the world. Ref. Global Peace Index 2019)

According to the international institute “Global Peace Index”, Portugal has been one of the Top 5 most secure countries in the world for more than 3 years.

Read More

The Portuguese economy has been improving for almost three years. Portugal turned the painful page on the crisis and was able to exit the excessive deficit procedure on 16 June 2017. The country has returned to growth (2.7% in 2017) thanks to the good results of its tourism sector and the dynamism of its exports. The unemployment rate has fallen sharply (9% in 2017 compared to 17.5% in 2013), thanks in particular to job creation in the tourism and construction sectors.

7. Portugal, a little Silicon Valley

Thanks to the spectacular economic recovery successfully undertaken by its government, Portugal is now enjoying a renewal that is attracting a large number of multinationals, such as Google, Amazon, Adidas or BNP Paribas.

Read More

Hard hit by the crisis, Portugal has recently experienced a real economic revival that is encouraging investors to bet on the future. Portugal has a number of advantages: skilled and cheap labour, tax incentives, high tourist attractiveness, and the deployment of modern infrastructure both in terms of transport (international airports) and digital technologies. All these assets make Portugal a first-class tourist destination, but also a privileged holiday destination for foreign pensioners with strong purchasing power. It is not surprising then that Portugal attracts large international retail chains, large real estate networks and, increasingly, service networks!
Many companies are setting up there, and some have even recently chosen Portugal as their European headquarters, such as the giant Amazon and Google. Amazon has been negotiating for a year now to set up a service centre in Porto (250 skilled jobs) which, far from being a simple logistics platform, should be a real technological centre where the leader in online commerce will be working on its expansion in Africa.
Other major European groups are choosing Portugal for their technology centres. Adidas, Crédit Agricole and BNP Paribas work with IT service providers based in Portugal.

Portugal is dreaming of becoming a new European start-up paradise!

9. Portugal, an attractive country

By doubling the number of tourists in less than 10 years, Portugal has become the fastest growing destination in Europe. And its progress is far from having reached the potential offered by the country.

Read More

In 2016, Portugal welcomed a record of 11.4 million foreign tourists, an increase of 12.7% compared to the previous year. By way of comparison, the growth of tourists at the international level is 6%, according to an estimate by the World Tourism Organisation (WTO). Since then, the number of visitors has grown steadily each year.

In addition, Portugal collects awards from the World Travel Awards, an institution with an international reputation that rewards excellence in the world of tourism, travel and hospitality.

World Travel Awards 2018

  • The best destination in the world in 2018: Portugal
  • The best urban destination in the world in 2018: Lisbon
  • The best leisure hotel complex in 2018: Conrad Algarve, Portugal
  • The best tourist office in 2018: Visit Portugal

2. Very attractive real estate prices compared to other European markets

Compared to other European countries, the price per m2 in Portugal of EUR 2,213 for a new or renovated property is well below the average of more than EUR 4,000.

Housing prices continue to rise in Portugal. Data from the INE (Institut National de Statistiques) indicate a 1.5% increase in the average price of home sales in the third quarter of 2018. Again according to the INE, 57% of the homes in Lisbon, Porto and Cascais were bought by foreigners last year. However, compared to other European countries, the price per m2 remains well below the average with an amount of EUR 2,213.00 for a new or recently renovated property.

Read More

4. The very attractive seasonal rental. High rental income

With more than 23 million tourists in 2017, more than twice as many in 10 years, Portugal is the fastest growing country in Europe. This craze has led to a scarcity of rental properties and an increase in rental prices, much to the delight of investors.

Read More

From the Silver Coast to the South via Lisbon, seasonal rental is a business model that attracts more and more investors.

It is even becoming a boon given the lack of housing in most parts of Portugal.

Tourism incomes in Portugal have far exceeded those of other countries such as France (2x more), Spain (3x more) and Italy (4x more).

6. Portuguese legislation protects buyers

The real estate investor is protected by Portuguese legislation, on legal bases comparable to those practised in our countries.

Read More

Portugal has put in place legislation that protects buyers and regulates the market (land register, cadastral registration, mortgage registration). The administrative and financial procedures are therefore very similar to ours and the purchase costs on your investments remain low. Count between 5% and 6%, including taxes, notary and lawyer fees.
Financial risks are very limited, as exchange rates, inflation and interest rates are controlled by the European Central Bank.
Moreover, the procedure for acquiring a property is quite simple and quick: 4 weeks can be sufficient between the promise and the authentic deed.

8. Portugal is considered as the 25th best country in the world to develop business (ref. "Doing Business 2018")

Portugal’s economic growth, which is higher than the European average today, encourages the development of new markets and the creation of successful companies.

Read More

Portugal’s regulatory reform efforts in recent years have been remarkable: the country has implemented more than 1,000 administrative simplification and e-government measures between 2006 and 2011 under the SIMPLEX programme.

The country now has first-class systems for business creation and property registration.

10. A very wide variety of properties to meet all types of projects

The dynamics of the Portuguese real estate market have created an unprecedented enthusiasm. In all regions of the country, high-yield investment opportunities are to be seized.

Read More

With the popularity of Portugal today, it is only natural that many entrepreneurs from all over the world are interested in investing in it. The supply of real estate has therefore continued to grow and diversify throughout the country. There is a wide variety of objects for all types of projects, from small neighborhood shops to large modern buildings that nowadays accommodate multinationals.

1. A real estate market in development and growing steadily

In just a few years, Portugal has become a preferred market for real estate investors. According to a study conducted by PwC in 2019, Lisbon has topped the European ranking of the most interesting cities to invest in real estate

Read More

Unlike most European countries, Portugal did not experience the housing bubble of 1996-2007, and the crisis seems to have wiped out the inflationary price increase, allowing the country to maintain a relatively low price per square meter.

According to the study “Emerging Trends in Europe in 2019” conducted by the British audit and consulting firm PwC (PricewaterhouseCoopers) and the American association Urban Lan Institute, Lisbon is at the top of the European ranking of the most interesting cities to invest in real estate. In one year, it went from 11th to 1st place, dethroning Berlin. This marked preference of buyers is explained by the “quality of life”, but also by the growth of the Portuguese economy, which is attracting more and more foreign companies and investors.

JLL (Jones Lang LaSalle) another US real estate consulting firm estimated that €3.3 billion was invested in Lisbon stone in 2018, an increase of 74% over the previous year.

The perceived trend in the capital is spreading to other major cities in the country and their agglomerations. And it is in these new regions that good deals are to be found today.

2. Very attractive real estate prices compared to other European markets

Compared to other European countries, the price per m2 in Portugal of EUR 2,213 for a new or renovated property is well below the average of more than EUR 4,000.

Housing prices continue to rise in Portugal. Data from the INE (Institut National de Statistiques) indicate a 1.5% increase in the average price of home sales in the third quarter of 2018. Again according to the INE, 57% of the homes in Lisbon, Porto and Cascais were bought by foreigners last year. However, compared to other European countries, the price per m2 remains well below the average with an amount of EUR 2,213.00 for a new or recently renovated property.

Read More

3. A very attractive tax system

Many tax incentives have been introduced by the Portuguese government to attract new investors. These measures have made Portugal one of the most dynamic real estate markets in Europe.

Read More
  •  Granting of “RNH” status (Non Habitual Resident) for foreigners coming to Portugal offering an exemption from income tax for pensioners for 10 years and a flat-rate tax rate of 20% for working people
  • No wealth tax
  • No inheritance tax for spouses and direct heirs
  • No housing tax
  • Transfer tax: 1%-6% depending on the value of the property,
  • Impôt de mutation : 1%-6% selon la valeur du bien
  •  No VAT on rents (with a few exceptions)
  • Moderate property taxes: 21% for legal entities through a SCI or 28% for non-resident individuals
  • There are also many tax exemptions on real estate capital gains, especially if they are reinvested.

4. The very attractive seasonal rental. High rental income

With more than 23 million tourists in 2017, more than twice as many in 10 years, Portugal is the fastest growing country in Europe. This craze has led to a scarcity of rental properties and an increase in rental prices, much to the delight of investors.

Read More

From the Silver Coast to the South via Lisbon, seasonal rental is a business model that attracts more and more investors.

It is even becoming a boon given the lack of housing in most parts of Portugal.

Tourism incomes in Portugal have far exceeded those of other countries such as France (2x more), Spain (3x more) and Italy (4x more).

5. Political and economic security (3rd safest country in the world. Ref. Global Peace Index 2019)

According to the international institute “Global Peace Index”, Portugal has been one of the Top 5 most secure countries in the world for more than 3 years.

Read More

The Portuguese economy has been improving for almost three years. Portugal turned the painful page on the crisis and was able to exit the excessive deficit procedure on 16 June 2017. The country has returned to growth (2.7% in 2017) thanks to the good results of its tourism sector and the dynamism of its exports. The unemployment rate has fallen sharply (9% in 2017 compared to 17.5% in 2013), thanks in particular to job creation in the tourism and construction sectors.

6. Portuguese legislation protects buyers

The real estate investor is protected by Portuguese legislation, on legal bases comparable to those practised in our countries.

Read More

Portugal has put in place legislation that protects buyers and regulates the market (land register, cadastral registration, mortgage registration). The administrative and financial procedures are therefore very similar to ours and the purchase costs on your investments remain low. Count between 5% and 6%, including taxes, notary and lawyer fees.
Financial risks are very limited, as exchange rates, inflation and interest rates are controlled by the European Central Bank.
Moreover, the procedure for acquiring a property is quite simple and quick: 4 weeks can be sufficient between the promise and the authentic deed.

7. Portugal, a little Silicon Valley

Thanks to the spectacular economic recovery successfully undertaken by its government, Portugal is now enjoying a renewal that is attracting a large number of multinationals, such as Google, Amazon, Adidas or BNP Paribas.

Read More

Hard hit by the crisis, Portugal has recently experienced a real economic revival that is encouraging investors to bet on the future. Portugal has a number of advantages: skilled and cheap labour, tax incentives, high tourist attractiveness, and the deployment of modern infrastructure both in terms of transport (international airports) and digital technologies. All these assets make Portugal a first-class tourist destination, but also a privileged holiday destination for foreign pensioners with strong purchasing power. It is not surprising then that Portugal attracts large international retail chains, large real estate networks and, increasingly, service networks!
Many companies are setting up there, and some have even recently chosen Portugal as their European headquarters, such as the giant Amazon and Google. Amazon has been negotiating for a year now to set up a service centre in Porto (250 skilled jobs) which, far from being a simple logistics platform, should be a real technological centre where the leader in online commerce will be working on its expansion in Africa.
Other major European groups are choosing Portugal for their technology centres. Adidas, Crédit Agricole and BNP Paribas work with IT service providers based in Portugal.

Portugal is dreaming of becoming a new European start-up paradise!

8. Portugal is considered as the 25th best country in the world to develop business (ref. "Doing Business 2018")

Portugal’s economic growth, which is higher than the European average today, encourages the development of new markets and the creation of successful companies.

Read More

Portugal’s regulatory reform efforts in recent years have been remarkable: the country has implemented more than 1,000 administrative simplification and e-government measures between 2006 and 2011 under the SIMPLEX programme.

The country now has first-class systems for business creation and property registration.

9. Portugal, an attractive country

By doubling the number of tourists in less than 10 years, Portugal has become the fastest growing destination in Europe. And its progress is far from having reached the potential offered by the country.

Read More

In 2016, Portugal welcomed a record of 11.4 million foreign tourists, an increase of 12.7% compared to the previous year. By way of comparison, the growth of tourists at the international level is 6%, according to an estimate by the World Tourism Organisation (WTO). Since then, the number of visitors has grown steadily each year.

In addition, Portugal collects awards from the World Travel Awards, an institution with an international reputation that rewards excellence in the world of tourism, travel and hospitality.

World Travel Awards 2018

  • The best destination in the world in 2018: Portugal
  • The best urban destination in the world in 2018: Lisbon
  • The best leisure hotel complex in 2018: Conrad Algarve, Portugal
  • The best tourist office in 2018: Visit Portugal

10. A very wide variety of properties to meet all types of projects

The dynamics of the Portuguese real estate market have created an unprecedented enthusiasm. In all regions of the country, high-yield investment opportunities are to be seized.

Read More

With the popularity of Portugal today, it is only natural that many entrepreneurs from all over the world are interested in investing in it. The supply of real estate has therefore continued to grow and diversify throughout the country. There is a wide variety of objects for all types of projects, from small neighborhood shops to large modern buildings that nowadays accommodate multinationals.

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