Buying a property to live in Portugal is a no-brainer. But reality shows that international buyers also find it extremely interesting to invest in the country’s real estate market. Whether to resell with a healthy margin or rent for a steady and immediate profit, in this article, we will show you why a property in Portugal is still a great decision for non-habitual residents (also known as NHR).
You Don’t Have to Live in Portugal to Invest in the Country
Despite the discontinuation of real estate purchase as a qualifying option for Portugal's Golden Visa programme back in 2023, the Portuguese property market remains a highly attractive and lucrative avenue for international investors. The market is experiencing unprecedented growth, with property prices and rental yields on a consistent upward trajectory.
Investing in Portuguese real estate offers a multitude of benefits, even for those residing abroad full or part-time:
- Strong Capital Appreciation: The consistent rise in property values ensures that investments appreciate over time, providing substantial returns upon resale.
- Attractive Rental Yields: With rental prices on the rise, property owners can enjoy a steady income stream, capitalising on the country's thriving tourism industry and growing expatriate community.
- Favourable Tax Environment: Portugal offers a competitive tax regime for property investors, including potential exemptions and reductions that enhance profitability.
- Stable and Growing Economy: Portugal's economic resilience and growth contribute to a secure investment climate, bolstering confidence in long-term property investments.
By seizing the opportunity to invest in Portugal's dynamic real estate market now, you set yourself up for long-term success in a market that has proven to be both resilient and profitable.
What has Changed and What has Not for Non-Habitual Residents in Portugal
Portugal's Non-Habitual Resident (NHR) tax regime, established in 2009, was designed to attract foreign professionals and retirees by offering favourable tax benefits for a period of ten years. By 2019, over 27,000 individuals had benefited from it, showing how successful the initiative was.
However, in October 2023, the Portuguese government announced the replacement of the original NHR regime by the Tax Incentive for Scientific Research and Innovation (IFICI), commonly referred to as NHR 2.0. This new option focuses only on professionals in specific sectors such as scientific research, technology, and innovation.
Among the changes, the old eligibility criteria of purchasing property in Portugal was also removed. However, despite these changes, the appeal of Portugal's real estate market remains strong. Many international buyers continue to invest in Portuguese property, drawn by the robust and constant property market growth, which offers amazing potential for capital appreciation.
Here’s the Secret of Thousands of Successful Buyers
Despite the discontinuation of both the real estate option from the Golden Visa and the NHR regime, Portugal remains an appealing destination for property investment among overseas buyers, thanks to all the enduring benefits it offers.
Nonetheless, the secret to a successful and stress-free investment is to count on an experienced local partner who can give you exclusive market insights, access to top listings in each region, and consistent support before, during, and after your purchase. This is exactly what Portugal Homes has provided to thousands of international investors and what we can ensure you will receive as well.
Our team of experts is ready to find you not only a great property, but also the solution that will best suit your goals regarding taxes, relocation, and return on investment.
Talk to us now before more unforeseen changes arise. Fill in the form to become the proud owner of a profitable property in Portugal.
