Some options for investing in real estate Portugal

Buying a home for your own use

• Rising market prices
  The prices for new homes have risen by around 8 to 10% in recent years. This, combined with the widely used method where builders only ask for 20 to 30% of the value as a down payment, makes this a very interesting investment.
• Affordable prices
  The prices in Lisbon, Porto and the Algarve are comparable to the large cities in the UK, but in many regions living is much cheaper than in many other Western European countries.
• Tax advantages
  Portugal has no wealth, gift or inheritance tax. Also inquire about the new RNH regime where many foreign incomes, such as dividends, interest, capital gains and royalties, are exempt from taxes.
• Equity from the sale of real estate
  If you reinvest your equity in a new home or use it as a pension provision, this is exempt from tax.
• Safety and culture
  As one of the safest countries in the world, Portugal offers a hospitable atmosphere, rich history and traditions such as fado and a great cuisine. Currently Portugal is ranked 7th safest country in the world (Source: Global Peace Index)

Buying a property to let

• High tourist demand
  Portugal attracts millions of visitors each year, especially to Lisbon, Porto and the Algarve, creating strong demand for short and long term rentals.
• Attractive returns
  Rentals in popular areas can yield gross returns of 7-8% per year on rental income. This, combined with property price increases of 8-10% per year, makes this an excellent investment.
• Favorable market
  Property prices remain competitive relative to potential rental income and with a growing expat community, there is also high demand for higher end properties for longer term rentals.
• Flexibility
  A property can be used for both personal use and rental, with the potential to alternate seasons for additional income.

Buying a property to resell before completion

• Low entry costs
  New developments often offer payment plans, where you pay just 20-30% upfront and the rest upon completion, reducing risk and freeing up capital.
• Profit potential
  The Portuguese property market is growing by around 8-10% per year, particularly in cities and coastal areas. By selling before completion, you can benefit from these price increases without having to pay the full purchase price. This means you can potentially double your investment during the construction period.
• High demand for new construction
  Modern, new properties are in high demand, particularly among international buyers and investors, making resale relatively easy.

Conclusion

Whether you are buying a property for your own use, rental or resale, Portugal offers unique advantages: affordable prices, a strong market and a high quality of life. For rentals, you benefit from the thriving tourism sector, while resale offers opportunities due to market growth. Thorough research and professional guidance are essential to get the most out of your investment.