Recovering property prices, low mortgage rates and foreigner-friendly tax and visa rules are helping to make Portugal one of Europe’s most attractive overseas property destinations, said PortugalBuyingGuide.com in September, which this month celebrates the first anniversary of its Algarve office.
“Our PortugalBuyingGuide.com office in Vilamoura has noted an upturn in demand in 2015, partly fuelled by the weaker euro but also by the favourable mortgage deals available in Portugal now. Meanwhile, there is evidence of limited supply of new-build in some areas of the Algarve, which is also putting upward pressure on the market. In terms of mortgages, since Portugal’s exit from the bailout last year, there has been more confidence in the home finance market, with Portuguese banks becoming more competitive, typically offering 80 per cent LTV and rates of below 3.5 per cent, helped by the incredibly low Euribor rate.
“Another attraction for Brits and other foreigners moving to Portugal is the low taxation, thanks to the country’s Non-Habitual Residents (NHR) scheme, which guarantees considerable tax breaks on pension and income in the first ten years of residency. In addition to this, Portugal has no wealth tax and inheritance tax is benign compared to other EU countries. And for citizens from outside of the EU, Portugal’s Golden Visa scheme continues to attract foreign investors predominantly from China, Brazil and Russia. Many purchase properties in Lisbon, where a lifting of rental controls in 2012 has triggered the rehabilitation of many of the city’s older grand properties, many of which are being converted into luxury apartments.
“It’s true that as our PortugalBuyingGuide.com office enters its second year, we’re looking forward to a continuing uplift in enquiries and being directly involved in one of Europe’s most exciting international markets.”