Portugal is a country located in the south-western part of Europe with an economy that is fast-growing. Its tourism industry has gained worldwide recognition, making Portugal a favorable option for investment in the real estate market. Portugal houses diverse options from historic villas in remote areas of Alentejo to beachfront apartments in the Algarve.
Despite the pandemic, the property market in Portugal has not been heavily affected. The government has implemented favorable policies that make it easier for investors to acquire property. However, to make a wise investment, you need a basic understanding of the factors that influence the Portuguese property market.
Location is crucial
Like with any real estate investment, the location of the property plays a significant role in its market value. Lisbon and Porto rank as the most profitable cities with a high return on investment. Likewise, regions such as the Algarve and Cascais attract a high number of tourists because of their beaches and mild weather. Thus, they offer excellent rental returns.
The Portugal Golden Visa Program
The Portuguese government established the Golden Visa Program to entice investors from all over the world to purchase property in the country. The program grants a residence permit to non-European investors who invest at least 500,000€ in property. The visa also grants travel freedom in the various European Union countries.
Buying property in Portugal follows a specific legal process. Potential buyers should hire reputable lawyers and real estate agents with knowledge of the Portuguese real estate sector. Local real estate agents usually have a better understanding of local laws and culture that affect the purchase of properties.
Portugal offers tax-friendly options for real estate investors. The government charges a property transfer tax of 6% of the property’s total value. Additionally, the yearly property tax ranged between 0.3% to 0.8% of the property’s total assessed value.
Investing in the Portuguese real estate market offers excellent opportunities for investors looking for profitable returns. Portugal’s stability and favorable policies have established it as a premier location to invest in real estate. The country’s golden visa program grants investors from all over the world residency status and the chance to invest in Portugal property.
Nonetheless, investing in the Portuguese property sector requires caution, understanding of the legal procedures, and working with trusted professionals. With careful planning and research, investors can acquire properties that offer them excellent returns in Portugal.