Since the 1960’s, Portugal has become an extremely popular tourist destination, drawing around 13 million visitors a year. This rise in popularity can be attributed to the fantastic Mediterranean climate, the natural beauty, great food and wine and of course, the friendly people. Also, despite being a developed country and member of the EU, Portugal is relatively inexpensive when compared to other EU countries offering a similar quality of holiday.
But is Portugal a wise investment choice?
The first point to consider would be the Portuguese economy, which is still feeling the effects of the Financial Crisis of 2008. In May 2011, Portugal followed Ireland and Greece in taking an international bailout of €80 billion from the IMF. Since then, they have been keeping to the austerity measures set by the IMF and many believe that Portugal will combat the recession and make a good economic recovery.
Foreign Investment Policy
Portugal’s government actively encourages foreign investment and offers attractive retirement options and favourable flat rate tax schemes for entrepreneurs and professionals.
There are no restrictions to the entry of foreign capital and foreign investors do not need a national partner.
Portugal’s property market has a stable track record. Like many European countries, Portugal experienced a depression in its housing market, but unlike Spain, where over-development caused many problems, Portugal implemented strict development controls and property prices were not that badly affected.
At around €2,200 per square metre, (compared with roughly €13,300 in France and €5,000 in Greece), purchasing property in Portugal is fairly inexpensive, while the rental yields are high, meaning that real estate investment in Portugal carries a considerably lower level of risk than in many other European countries.
Portugal offers a huge selection of investments – there is literally something to suit every lifestyle, from seaside villas to urban apartments, townhouses and properties in luxurious golf estates.
The Algarve region in particular is extremely popular without being over-developed, and offers an excellent rental yield, all year round.
10 Top Reasons for Investing in Portugal
Portugal is a solid investment option for anyone looking to relocate to greener pastures, secure a retirement home, or simply purchase a holiday home to enjoy a couple of times a year. Here are our 10 top reasons to purchase a property in Portugal:
- According to the 2011 Global Peace Index rankings, Portugal is the 17th most peaceful country in the world.
- Portugal has one of the lowest population-to-land-densities in Europe, so even the cities are not overcrowded and there is plenty of open space for all to enjoy.
- Portugal boasts one of the lowest crime rates in Europe and the capital Lisbon (Lisboa) was recently voted the “safest capital city in Europe.
- Portugal has a booming renewable resource industry and has considerable wind and river power resources, the two most cost-effective renewable resources.
- If the head of the household qualifies for Portuguese residency, all dependents automatically qualify without any additional costs.
- Portuguese residents can choose to live and work almost everywhere in Western Europe or Brazil, and can visit most countries without any restrictions.
- Living costs, including food and drink, gas, electricity, water and transports costs are cheap compared to most other European cities.
- The climate is unbeatable!
- Public transport by road or rail is safe, reliable and affordable.
- Portugal has a wonderful, laid-back culture of enjoying “the simple things in life” – good food, good wine and the natural beauty that one can see in every direction.
To find out more about the country, property acquisition or residency/citizenship applications, speak to the experts in all things Portugal, by visiting www.passporttoportugal.com or call +44 (0)20 7759 7527.