ONE BUYER IN 3 IS FRENCH
Portugal has become one of the favourite destinations for French expatriates. Prices are skyrocketing in Porto, Lisbon and the Algarve.
Nicknamed the Florida of Europe. Portugal is more than ever a real estate Eldorado for the French. They are now the leading foreign investors in Portuguese property. For the second year running, they have overtaken the British and the Chinese.
As a result, almost 30 % of properties purchased by non-Portuguese buyers were acquired by French buyers in 2018. According to the association of Portuguese property professionals ASMIP. They are mainly attracted by PORTOLISBON and ALGARVE.
Very favourable taxation for foreigners
In addition to the climate, safety and quality of life, it is the tax measures passed in Portugal in January 2013 that continue to attract foreign buyers. Thanks to the RNH (non-habitual resident) status, retired expatriates are exempt from tax for ten years. Provided they spend at least 183 days a year in Portugal and have not been a tax resident for the last five years.
A very attractive measure aimed at both retired and working people. Their purchasing power will increase by around 35 % compared with France.
Private sector retirees account for 80 % of this figure. They also include self-employed professionals (entrepreneurs, technicians, architects, engineers, artists, health professionals, etc.), whose RNH status means that they are taxed at only 20 % on their income generated and received in Portugal.
Property prices in Portugal on the rise
The Portuguese property market has recovered well since the crisis of 2008, although there are significant disparities between towns and districts. Around 152,000 properties were sold nationwide in 2017. That's 27,000 more than in 2016. The number of applications for new building and renovation permits (January to November period) rose by 35 %. Compared with the same period in 2016, according to the Portuguese Construction and Developers Association.