Portugal has been experiencing a real estate boom in recent years, and for a good reason! The country is beautiful, the people are friendly, and the cost of living is relatively low. In this blog post, we will discuss some of the reasons why Portugal is such a great opportunity for real estate investments. We will also look at some of the best places to buy property in Portugal. So if you’re thinking about investing in Portuguese real estate, read on!
Table of Contents
History of The Property Market
Portugal has a long and varied history regarding its property market. For much of the country’s early history, the nobility and the church owned the land. In the late 19th century, this began to change when the Portuguese government began selling off state-owned land. This process continued into the 20th century, and by the mid-1900s, private ownership of land had become the norm.
The property market in Portugal began to take off in the 1970s. This was due to several factors, including its increasing prosperity and its entry into the European Economic Community (now the European Union). As a result of Portugal’s membership in the EU, foreign investors began to take an interest in the country’s property market.
The late 1990s and early 2000s were a particularly prosperous time for Portugal’s property market. This was due, in part, to the country’s strong economic growth rates. However, the global financial crisis of 2008 hit Portugal’s property market hard. This was followed by a period of stagnation.
There has been a resurgence in Portugal’s property market in recent years. This is due to several factors, including its strong economic growth and its status as a safe haven for investors. In addition, the country’s property market is becoming increasingly attractive to foreign investors.
Property Prices
The average price of a property in Portugal has been rising for the past few years, and it doesn’t seem to be slowing down any time soon. In fact, according to recent studies, prices are expected to continue increasing by an average of two percent each year through 2020. So what is driving this growth? And more importantly, why should you consider investing in the Portugal real estate investment market? There are several reasons behind the rise in property prices. One of the most significant is the country’s strong economy. In recent years, Portugal has been one of the fastest-growing economies in Europe, with GDP growth averaging around two percent annually. This has helped create a healthy demand for housing, which is pushing prices up.
Another reason for the increase in prices is Portugal’s growing popularity as a tourist destination. The country welcomed over 20 million tourists last year, and this number is expected to grow in the years ahead. As more people discover Portugal’s stunning beaches, charming towns, and friendly people, demand for vacation rentals is rising. This is good news for investors, as vacation rental properties tend to generate high yields.
If you’re thinking about investing in Portugal’s real estate market, now is a great time to do it. Prices are rising, and a strong economy and tourist industry provide a solid foundation for future growth. You can enjoy healthy returns and long-term capital appreciation with the right property.
Types of Properties
Portugal is known for its stunningly beautiful coastal towns, so it’s no surprise that beachfront property is in high demand. But Portugal has so much more to offer than just its coastline. Lisbon, the capital city, is a thriving metropolis with a rich history and culture. And if you’re looking for a quieter pace of life, Portugal’s countryside is dotted with charming villages and breathtaking scenery. Portugal has something to offer everyone, whether you’re looking for a city apartment or a rural retreat.
Fewer Taxes
Portugal has always been a great place to do business, and with the recent changes in its tax laws, it’s become an even more attractive destination for investors. The country’s corporate tax rate is now just 20%, one of the lowest in Europe, and there are no capital gains taxes or wealth taxes. These new tax laws, coupled with Portugal’s stunning scenery and Mediterranean climate, make it an ideal place to invest in real estate.
Low Cost of Living
Portugal’s low cost of living is one of the main reasons the country is seeing an increase in real estate investment. In addition to being relatively affordable, Portugal also offers a high quality of life. The country has a stable political and economic environment and a desirable climate. These factors make Portugal an attractive destination for both retirees and investors.
Requirements For Buying Property As a Foreigner
Portuguese law also provides some protections for foreign buyers that make purchasing property in Portugal much easier than in other countries. However, buyers must meet a few requirements to purchase property in Portugal.
The first requirement is that the buyer must have a valid visa or residency permit. This can be difficult for some investors, as Portuguese visas are notoriously difficult to obtain. However, there are a few exceptions. If the buyer already has a valid visa for another Schengen Area country, they will be allowed to purchase property in Portugal.
The second requirement is that the buyer has a bank account in Portugal. This can be difficult for some investors, as many Portuguese banks are not interested in doing business with foreign buyers. However, there are a few banks that do offer services to foreign buyers.
The third requirement is that the buyer has a minimum amount of money in their bank account. This requirement varies depending on the type of property that the buyer is interested in purchasing. For example, if the buyer is interested in purchasing a new construction home, they will need a minimum of €500,000 in their bank account.
The fourth and final requirement is that the buyer is a resident of Portugal. This can be difficult for some investors, as Portuguese residency permits are notoriously difficult to obtain. However, there are a few ways that foreign buyers can become residents of Portugal. The most common way is by purchasing property in Portugal.
Portugal has a lot to offer with a strong economy, a desirable climate, and new tax laws that favor investors. Foreign buyers should be aware of the requirements for purchasing property in Portugal, but overall the process is much easier than in other countries. With so much to offer, it’s no wonder that Portugal is seeing an increase in real estate investment.
Featured Image by Steffen Zimmermann from Pixabay
