Portugal is loaded with reasons to make it your new home. But purchasing property is a big commitment.
If you did make the move, you certainly wouldn’t be alone. Portugal has been incredibly attractive to foreign buyers over the last few years. Last year, more British citizens moved to Portugal than ever before.
Its alluring weather, golden coastline, lush green landscape and iconic cities means it’s bursting with versatility – there’s something for everyone in Portugal.
Before you make your decision, let’s run through some of the advantages of buying property in Portugal.
Grab a Golden Visa
The Golden Visa is a dream for foreigners looking to move to Portugal. By purchasing property for €500,000 (€350,000 if it needs some restoration) or more, nationals from countries around the world can get their hands on one.
This grants you and any family members permission to live, work and study in Portugal. It can be renewed every two years as long as you spend at least two weeks in the country during that time.
However, as of January 2022, the Golden Visa is going through some changes. From next year, it will no longer apply to residential property in many popular Portuguese destinations, such as Lisbon and Porto.
Properties purchased for holiday-home use – rather than full-time living – may still be accepted. Otherwise, your best bet is to buy property in rural, inland or areas with low population density.
Some of the locations you can look at are the autonomous regions of the Azores and Madeira. The Azores is considered a gold mine for property buyers. The weather is similar to many other popular expat destinations, such as Cyprus and Canary Islands, but real estate is far cheaper.
Madeira, home to the Cristiano Ronaldo airport, is a bit more expensive than the Azores but still good value – particularly if you buy in the outskirts.
Great rental potential
Portugal is one of the best places in Europe to buy property to let. Whether you’re looking to rent to locals, expats or tourists, Portugal’s rental market thrives in all departments.
As expected, rental properties do particularly well in the summer months. You shouldn’t find it difficult to keep the rooms full when the sun shines. The Algarve is an especially strong destination for rental property. Its all-year-round moderate climate means you’ll continue getting attention outside of the high season.
Portugal is also an extremely popular golf destination, attracting tourists from all over the world. The sport is well suited to Portugal’s winter months, so property in areas near golf courses is likely to help attract renters over the colder period.
Enjoy relaxed tax
A hugely enticing reason for buying property in Portugal is the non-habitual residency (NHR) tax code. The NHR was created in 2009 to attract investors and professionals of high economic and cultural worth to live in the country. So, if your job is favoured by the Portuguese government, you might be able to qualify.
The benefits are significant. With NHR status, you can live in Portugal tax-free for ten years. This covers almost all sources of foreign income, including capital gains and employment. The scheme has so far proved successful, drawing in over 10,000 NHR residents.
Low cost of living
If you’re thinking about buying property and living in Portugal, its cost of living might be a deal-breaker. Portugal is the most affordable country in Western Europe. According to Numbeo, a family of four can expect to pay roughly €1,870.91 (£1,591.76) per month and a single person €533.26 (£453.70). Here’s how it compares:
- Spain: Family of four = €2,155.54 (£1,833.92). Single person = €610.48 (£519.39)
- Italy: Family of four = €2,630.12 (£2,237.68). Single person = €744.97 (£633.81)
- UK: Family of four = €2665.46 (£2,265.54). Single person = €765.24 (£650.43)
- France: Family of four = €2,897.39 (£2,465.07). Single person = €810.80 (£689.82)
Portugal has a fantastically well-connected transport system. Expect to find three major international airports, a huge railway system and a dynamic network of roads. The cities have speedy, regular public transport which makes getting around super easy.
You won’t have to pay much either. Single fares on local public transport will cost you an average of €1.60 (£1.35) and a monthly pass is around €40 (£33.95).
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