Why to invest in Portugal
According to the french journal Les Echos, Portugal as one of the most interesting markets to invest in real estate.
In May, this journal published an article about the fiscal benefits in this country and how this is a strong and very attractive reason to invest in Portugal. Having said that, it puts Portugal in the 4 safest countries to invest in real estate, considering that he has the potential of the United States, the profitability of Germany and the safety of Luxembourg.
In this article the journal reminds you that Portugal continues to be the favourite destination for French for holidays. According to the Franco-Portuguese Chamber of Commerce and Industry (CCIFP), since 2013 about 25.000 French moved to Portugal and became residents with the Status of Non Habitual Resident Tax regime. With this status you can enjoy 10 years without paying taxes if your official tax residence is in Portugal, and you need to live here for 183 days per year and did not lived in the last 5 years as resident in Portugal. The weather, the low prices and the high quality of the goods, the safety, highways, airports, justify well the change and the investment.
The French journal alerts for the increasing prices in Baixa and Chiado in Lisbon. Where the price per sqm can go from 4.500€ to 10.000 € in renovated buildings. The search is strong in Lisbon, Porto and Algarve with guaranties of rentability that goes from 3 to 6%. But be aware, if you buy a building with a intent in, make sure that the contract is new, otherwise you might be facing very low rents which can compromise the profitability.
According to APEMIP ( Associação dos Profissionais e Empresas de Mediação Imobiliária de Portugal) the french have climbed 2 positions representing 26% of the foreign investment, they are followed by the United Kingdom ( 19%) and China (13%).
The foreign represented 20% of the real estate transactions in the first trimester of 2016.