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PORTUGAL REAL ESTATE MARKET
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NEWS
Many countries are facing challenges and uncertainty due to the global recession. However, Portugal has remained strong and stable amidst the turmoil. As a result, it has become a popular destination for expats seeking refuge from the recession, while countries like the UK and the US struggle to maintain their stability and growth. Portugal continues to captivate those in pursuit of an enriched lifestyle. Its allure stems from a multitude of factors, including a robust economy, a delightful climate, and an impeccable track record of safety, ranking amongst the top 7 safest nations in the world. Moreover, Portugal's endearing population and vibrant cultural heritage add to its charm, making it an idyllic destination for those yearning for a more fulfilling lifestyle. Unveiling the Keys to an Exquisite Life: Climate and Nature's Charms: Revel in Portugal's Mediterranean climate, where sun-kissed summers and mild winters conspire to create an irresistible haven for those who cherish comfort. The Warm Embrace: The Portuguese people, adorned with generosity and hospitality, open their hearts to embrace and welcome expats into their communities. A Fortress of Security: Portugal's unwavering commitment to safety has catapulted it to global recognition as one of the most secure havens, ensuring a tranquil environment for expats to thrive. A Journey Through Time: Embark on a voyage through Portugal's riveting history and diverse cultural tapestry, providing expatriates endless opportunities to immerse themselves in the country's captivating personality. A Shield of Protection: Rest easy with access to affordable life insurance options, safeguarding expats' financial well-being and instilling a sense of calm within a dependable healthcare system. A Strategic Haven: Geographically positioned as a gateway to Europe and the US/Canada, Portugal unveils a realm of effortless connectivity, welcoming expats to explore neighbouring realms with ease. Among the myriad of reasons enticing expats to consider Portugal, its competitive cost of living stands tall when compared to the UK and the US. This promises expatriates a life of elevated quality, where living costs are within reach, leaving room for potential savings on essentials such as housing, sustenance, transportation, and taxation. One of Portugal's most renowned tax regimes has been ingeniously crafted to entice foreign residents, offering remarkable fiscal advantages to eligible individuals. The Non Habitual Resident (NHR) tax regime, which grants qualified individuals reduced tax rates on specific income types for a decade, has enticed an array of expatriates to embrace Portugal's allure. Even in the face of economic downturn, the Portuguese property market has exhibited superb fortitude, experiencing a steadfast surge, especially within the rental sector. Data from the esteemed National Statistics Institute (INE) illustrates the market's unwavering upward trajectory, with residential property demand remaining vigorous and the availability of rental properties scarce, thus propelling exceptional yields. In 2022, as reported by the INE, the Portuguese real estate market witnessed an unparalleled surge in house prices when compared to the preceding year. Even amidst the prevailing macroeconomic climate, Portuguese families have tenaciously pursued homeownership, leading to record-breaking sales in 2022. The unwavering strength of the Portuguese property sector can be ascribed to several prominent factors. Firstly, the country's robust economy has commendably contributed to anchoring the property market's resilience over the past five years. Additionally, the alluring tax regimes have magnetised both domestic and international investors, fostering further prosperity. Simultaneously, Portugal has captivated substantial foreign investments, thanks in part to its vibrant tourism sector and the immense popularity of initiatives such as Portugal's esteemed Golden Visa program, which has consistently fostered a robust demand for residential and commercial properties. However, direct real estate investment option for the Golden Visa is currently being discussed in the Portuguese Parliament and is expected to come to an end soon. Portugal continues to be a popular destination for British and American expatriates due to its thriving economy, low cost of living, and attractive tax benefits. The country's charming allure is also a contributing factor to the influx of expats. If you would need assistance in looking for your dream home in Portugal, please don't hesitate to contact us.
Portugal continues to attract discerning buyers seeking luxury residences, positioning itself as the seventh most prominent luxury residential market in Europe, according to Knight Frank's The Wealth Report 2023. However, when it comes to the primary purchasers of luxury homes in Portugal, the British lead the way, closely followed by the French. Furthermore, the influx of digital nomads has played a significant role in driving the growth of this market in recent years. Now, let's delve into the specifics. Based on The Wealth Report 2023, a comprehensive annual publication by renowned consultancy firm Knight Frank that provides insights into global wealth, prime real estate, investments, and global trends, France emerges as the leading European market for international luxury residential properties. Following closely behind are Spain, Italy, the United Kingdom, and Greece. Portugal secures its place on this list, ranking seventh among the ten most internationally sought-after 'prime' residence markets in Europe. When examining the nationalities of luxury homeowners in Portugal, The Wealth Report highlights that the highest number of high-end properties in the country belongs to foreign individuals originating from the United Kingdom, France, the Netherlands, the United States, and Spain. Additionally, the list includes individuals from India and Brazil who have also made notable contributions to this segment of the market. As part of the comprehensive survey conducted for this report, which involved 500 participants from private banks, consultants, intermediaries, and family offices, Knight Frank inquired about the preferred destinations for purchasing a new home. European respondents disclosed that if they were to contemplate buying a new property, their top choices would include Spain, the United States, France, Italy, and Portugal. So the question remains: what is it about Portugal that holds such allure for a significant number of foreign individuals? According to The Wealth Report 2023, the coastal real estate markets in Italy, France, and Portugal offer an appealing lifestyle that resonated with many individuals during the COVID-19 pandemic. These destinations are characterised by a relatively low cost of living and convenient accessibility. Notably, Portugal has experienced a notable influx of young professionals with substantial incomes in recent years, including surfers engaged in the technology industry based in the United States. The report emphasises that the trend of digital nomads flocking to Portugal displays no signs of decline, further stating that numerous technology companies are establishing offices in Lisbon. This trajectory indicates that the market is poised to attract an even larger number of investors between 2023 and 2024. However, Knight Frank cautions that the expansion of digital nomads may encounter constraints due to tax regulations. The report explains that although individuals may be enticed by the notion of relocating their workstation from a desk in Frankfurt to a café table in Lisbon, their companies might not share the same enthusiasm. As stated in the report, up to this point, freelancers and self-employed individuals have shouldered the weight of this transition, contending with intricate tax frameworks, social security commitments, and legal ramifications that restrict their professional independence, as elucidated in the report's findings. While destination countries demonstrate a clear commitment to streamlining tax regulations, as seen through Portugal's dedicated visa program for digital nomads, the report stresses the potential difficulties in fostering cooperation among the home countries of these remote workers. Indeed, facilitating the acquisition of passports, visas, and citizenship plays a pivotal role in promoting global mobility among affluent investors. The report highlights Portugal and Spain as countries that actively encourage visa programs for investors. However, it is crucial to acknowledge that the landscape is evolving. The discontinuation of golden visas in Portugal is under consideration, although visas for digital nomads and start-up visas, designed to attract foreign entrepreneurs, are still available as viable options.
