There are many reasons to choose a property in Portugal. In the following, we have described in detail next to the purchase process and costs a few more aspects. If you have comments or questions, we look forward to hear from you.
The improved economic development and the increased interest of foreign investors have ensured stable property prices in Portugal. Prices increased in 2016 by about three percent. In 2017/2018 comparable growth rates are expected (source: Wirtschaftswoche).
Housing is much cheaper in Portugal than in other European countries. For 200.000 EUR you get in Germany about 97m² of living space, while in Portugal it is about 194m² (Source: German business news). In Lisbon and Porto you get almost six times as much living area as for a comparable investment in London.
The number of tourists and overnight stays have increased by ten percent from January to November 2017 alone (official statistics). Rental income grew even faster during this period - by 17 percent (Source: INE). For 2018, an increasing number of tourists is expected (Where to invest in Portugal?). In the past renting to tourists was not always easy. This has changed a lot in the last three years. Platforms like airbnb charge the hosts only service fees of 3%. In most regions, whole industries have specialized in the private rental market "alojamento local", which greatly simplifies the use of real estate from abroad. A completely foreign-managed and taxed property can still be about 60% of sales as a profit.
Portugal offers a lot of tax savings and financial incentives when you become a tax resident. An interesting advantage is above all the exemption of income of category H (pensions) from tax liability. This applies to all kinds of pensions. Even non-retirees can benefit from a tax flat rate of 20% if they carry out activities with high added value. We'll be happy to help you find out if and how you can personally benefit from tax relief.
With an average daytime temperature of 14-21°C the weather is much milder than in UK or Germany with 4-12°C. Even in the winter you can find place like Algarve where the temperature does not drop below 10°C.
In addition, the living costs in Portugal are about 25% lower than in UK or Germany, which is associated with a significant purchasing power of UK or German income in Portugal. This is particularly noticeable in labour costs and local food.
Not to forget the traditional Portuguese cuisine, which is based on a great variety of fish and seafood, meat, vegetables, rice and of course high-quality wines.
Portugal has invested heavily in the modernization of its infrastructure. The result is an extensive transportion network connecting the main cities. The main airports of Portugal - Porto, Lisbon and Faro - are well connected in Europe and are prime destinations of all low cost airlines such as Ryanair. As a result traveling to the easternmost country in Europe has become very cheap and time attractive.
The road network in Portugal has been well developed. The main routes are covered by fee-based Autoestradas or toll-free Itinerários Principais (IP) or Itinerários Complementares (IC).