Portugal is one of the popular European countries that numerous expats make their home. The country’s wonderful climate, excellent quality of life, and moderate living cost make for the perfect conditions for anyone to make it their humble abode.
Portugal is also called one of the best places where you can retire, and it seems to be a popular destination for British expats as well. Many of the houses in Portugal have been occupied by more than 50,000 British people, and the trend continues to catch on.
Where to Buy Property in Portugal: Best Areas for Expats
If you are wondering where in Portugal should you move to, let’s have a look at some of the best areas for British expats.
Lisbon
Lisbon is the capital of Portugal and is known to be one of the best cities to live in the country. Many tech companies and startups have their operations in Portugal, which makes it a haven for investors and expats.
Apart from this, the real estate market is also flourishing, and buying a home in Lisbon is suitable for people who have a job in the city. Houses in Lisbon are generally more expensive than others, mainly because of the increasing demand.
Porto
Just like Lisbon, Porto is another popular city in Portugal, and it is popular for being a fishing town that gives people a glimpse into its history. If you are looking for Portugal beach property for sale, Porto is just the place for you. Some of the popular neighborhoods in Porto include Ribiera and the Foz Duoro neighborhood.
The Algarve
The Algarve is a popular spot for people who are looking to acquire houses for sale in Portugal. Also known as the Golden Coast, property for sale in The Algarve includes villas, luxury homes, beach houses, apartments, etc. Some of the popular areas in the city include The Vilamoura, Lagos, Albufeira, and many others.
The Silver Coast
People who love the beachfront can also check out The Silver Coast in Portugal, which is situated between Porto and Lisbon. This area has quite a few exquisite and high-end properties, and you can also find affordable Portugal Silver Coast property in Tomar, Peniche, Obidos, and other neighborhoods.
Current Situation of Portugal Real Estate for Expats
Although most countries of the world are still reeling from the effects of COVID-19, Portugal and its people have been greatly resilient. There were rough times for Portugal in 2020, especially during Q2 when the GDP was down by 16.3%. This led the prices of homes for sale in Portugal to rise drastically during the second quarter.
According to experts, it will take nearly an entire year before the housing prices will go down, making it more affordable for expats to move to Portugal. What’s even more encouraging is that the prices won’t rise more than 2-3% for the next year or two, which means that British expats can start planning their move to Portugal as early as today.
Buying Property in Portugal as a Golden Visa Expat
The Portugal Golden Visa is offered to non-EU nationals who wish to move to the country and due to Brexit, UK nationals have also become eligible for it. This type of visa offers you no visa restrictions and also helps you become a citizen of Portugal after you have completed five years. To maintain your Golden Visa status, you have to live in the country for at least seven days in a year.
The Portugal Golden Visa is suitable for British expats who have their business in other countries, and they can also gain access to social security benefits, healthcare, education, and other basic rights. Moreover, if you have plans for checking out the houses for sale in Portugal and make one of them your home, you can apply for the program if you buy a property worth €500,000 or invest €280,000 in any form.
Why Should You Invest in Portugal’s Property Market?
Real estate Portugal is one of the hottest property markets in all of Europe, which is the very reason why people from all over the world are looking to make it their home after retirement. One of the major reasons why investment in the real estate sector is growing is because of the plethora of options available to investors, and there is a wide range of houses, condos, flats, and villas in Portugal.
Let’s have a look at further reasons that would convince you to invest in real estate in Portugal.
1. Great Climate
One of the best things about Portugal is its wonderful climate, which British people find quite pleasant as compared to the rainy climate they experience in the United Kingdom. This is a major reason why British expats are choosing to move to Portugal, which allows you to enjoy the warm summers and spring, along with the moderate winter.
2. Lower Cost of Living
The cost of living in Portugal is much lower as compared to the UK, which is another major reason why expats prefer to buy villas in Portugal as compared to a small house in Britain. On average, homes for rent in Portugal are 30-50% more affordable than those in the UK. Therefore, if you have earned well in the UK or have a steady stream of income, you will be able to upgrade your lifestyle when you move to Portugal.
3. No Language Barrier
As mentioned above, there are above 50,000 British expats living in Portugal, so people easily understand and communicate with each other in English. Therefore, you won’t have any trouble communicating with the locals and expats in Portugal. Moreover, since there is a large British community in the country, you will find it easier to socialize and get familiar with people when you move to Portugal.
4. Affordable Housing
Just as Portugal is up to 50% cheaper than the UK when it comes to rental properties, the same goes for buying property in Portugal. You can find a property for sale in Portugal for much less than what you would have to pay in the UK. Plus, there are several housing options available, including villas, apartments, and even holiday homes as per your requirements.
Another encouraging factor regarding homeownership in Portugal is that roughly 75% of people own the house they live in, which is much higher than in the UK. Therefore, you won’t have any trouble making Portugal your home for the rest of your life.
What is the Portugal NHR Tax Regime?
Before you decide to uproot your life and move to Portugal, it is important to know about the NHR tax regime.
The non-habitual resident status was specially created by the Portuguese government in 2009 to provide expats with a special tax rate, so that they would be encouraged to live in Portugal. People who fall into the criteria of non-habitual residents have to prove that they haven’t been taxed in the country in the five years prior to the application.
Apart from this, the following conditions also deem a person a tax resident in Portugal:
- They have lived in Portugal for more than 183 days in the one year that starts or ends with the year of application for the NHR status.
- They have lived in Portugal for less than 183 days, but have acquired or chosen a property with the intention of keeping and occupying it as their residence.
- They are the member of a crew on an aircraft or ship on 31st
- They perform public duties overseas on behalf of the country.
To apply for the NHR status in Portugal, applicants have to file their application before the 31st of March in the year that follows the year of registration. Once the application is approved, the NHR status is granted to residents for 10 years, and it is non-renewable.
Key Takeaway
In a nutshell, British expats shouldn’t have to wait any longer to invest in houses for sale in Portugal, since the real estate market is stable and conditions are favorable for them right now. Moreover, thanks to schemes like the Portugal Golden Visa and the non-habitual resident tax status, expats will be able to invest with much more confidence.
To find the best solution for your Portugal property and residency needs, get in touch with our specialists on +44 207 998 0570 or e-mail enquiries@fwm.gi and book your private, no obligation consultation today!
