If you’re looking for a new investment opportunity, you may want to consider Portuguese real estate. There are many benefits of investing in this market, including strong economic growth, a stable government, and a favorable tax climate. In this article, we will discuss the main reasons why you should consider investing in Portuguese real estate.
Strong Economic Growth
One of the main reasons to invest in Portuguese real estate is the strong economic growth that the country has been experiencing in recent years. In 2017, Portugal’s economy grew by a whopping three percent, and it is expected to continue growing at a similar rate in 2018. This growth is being driven by a number of factors, including an increase in exports, a decrease in unemployment, and an increase in tourism. As a result of this strong economic growth, property values in Portugal have been rising steadily, making it an ideal time to invest.
Another reason to consider investing in Portuguese real estate is the country’s stable government. Portugal has been a member of the European Union since 1986 and is a signatory to the Maastricht Treaty, which means that it is committed to maintaining a stable economy. In addition, Portugal has a strong tradition of democracy and has a very low level of corruption. This makes it an attractive destination for investors who are looking for a safe and secure place to invest their money.
Favorable Tax Climate
One of the main benefits of investing in Portuguese real estate is the country’s favorable tax climate. Portugal has a very attractive tax regime for both individuals and businesses. For individuals, there is a flat income tax rate of 20 percent. And for businesses, the corporate tax rate is just 12.
Moreover, Portugal has a number of double taxation agreements in place with countries around the world, which means that you can avoid paying taxes on your profits twice.
Possible Access To EU Funding
Another benefit of investing in Portuguese real estate is the possibility of accessing EU funding. If you are planning to invest in a property that will be used for commercial purposes, you may be eligible for EU funding. This can help you to reduce your investment costs and increase your potential return on investment. Namely, the European Regional Development Fund and the cohesion funds are two sources of funding that you may be able to tap into.
Opportunity To Gain A Visa
If you are not a citizen of the European Union, investing in Portuguese real estate can also provide you with an opportunity to gain a visa. The Portugal investment visa or the Golden Visa program provides residency visas to non-EU citizens who invest a minimum of €500,000 in property in Portugal. This visa allows you to live and work in Portugal and travel freely throughout the Schengen Area.
In addition, if you invest €350,000 in property in Portugal, you may be eligible for a residence permit. This permit allows you to live and work in Portugal and travel freely throughout the European Union.
Benefit From An Easy Rental Market
If you are planning to invest in Portuguese real estate for rental purposes, you will benefit from the country’s easy rental market. There is a high demand for rental properties in Portugal, especially in the larger cities such as Lisbon and Porto. As a result, it is relatively easy to find tenants for your property. In addition, the rental market in Portugal is very stable, so you can expect to receive a steady income from your investment.
Even more so, the yield on rental properties in Portugal is quite high. For example, in Lisbon, the average gross yield on a two-bedroom apartment is around six percent. This is a very attractive return on investment, especially when compared to other European countries.
Favorable Transportation Links
Portugal has a number of favorable transportation links, which is another benefit of investing in Portuguese real estate. The country has an extensive network of highways and railways, as well as two major international airports. This makes it easy to get around Portugal and to travel to other countries in Europe. Moreover, when you invest in Portuguese real estate, you will also benefit from the country’s excellent climate. Portugal has a Mediterranean climate, which means that it enjoys mild weather all year round. This makes it an attractive destination for both tourists and investors.
Last but not least, Portugal is a culturally rich country. It has a long history and a diverse culture. You can find everything from medieval castles to modern art galleries in Portugal. In addition, the Portuguese people are known for their warm hospitality. This makes Portugal an ideal place to invest in real estate.
For example, you could buy a property in Lisbon and use it as a holiday home. Or you could invest in an apartment in Porto and rent it out to tourists.
Politically Stable Country
Investing in Portuguese real estate also has the benefit of being in a politically stable country. Portugal is a member of the European Union and it is a safe country to live in. In addition, the Portuguese government is committed to attracting foreign investment. As a result, you can expect a stable political environment when you invest in Portuguese real estate.
Capital Gains Tax Exemption
Another benefit of investing in Portuguese real estate is the capital gains tax exemption. When you sell a property, you will not have to pay any capital gains tax on your profits. This makes Portugal an attractive place to invest in real estate.
Likewise, the tax regime for property owners in Portugal is very favorable. Property owners in Portugal are only taxed on their net income, which means that they can keep more of their profits. This means that investing in Portuguese real estate is a good way to increase your wealth.
These are just some of the main reasons why you should consider investing in Portuguese real estate. With strong economic growth, a stable government, and a favorable tax climate, Portugal is an attractive destination for investors. In addition, there are a number of benefits that you can enjoy if you invest in Portuguese real estates, such as the possibility of accessing EU funding, the opportunity to gain a visa, and the benefit of an easy rental market. So if you are thinking about investing in property, Portugal is definitely worth considering.