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Portuguese Golden Visa Property Investments Thriving

Portuguese Golden Visa Property Investments Thriving

Real estate investments in Portugal are on the rise and demand for new properties has reached an all time high, resulting in a big increase in the number of tourists, many of which are curious about what Portugal has to offer.

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With tourism levels high in Portugal investors are able to reap the benefits of the Golden Visa program as well as the additional advantages of owning a home in Portugal, ,such as the sunny skies, golden beaches, great food and endless culture.

Portugal is regarded as one of the most peaceful countries in the world and the locals are loved for their welcoming nature. Some would say that the reason for their kind hospitality dates back to when Portuguese sailors traveled the world, gaining experience from a range of different cultures.

Portuguese Finances

Foreign investment has been a key factor in the Portuguese real estate market. With a solid structure as far as tax is concerned, such as a low 10% of income tax is required and countless opportunities provided for smaller investors to take on a larger scale project.

Real estate numbers are very impressive. Capital gains of 10% are to be expected in the capital city of Lisbon, making a typical annual rental yield of over 5% possible, therefore, Portugal is a fantastic place to invest in property. With public national debt being managed better than ever and low capital interest rates, we're seeing a wider gap created between real estate funds and financial products.

Programs that have been put in place have made Portugal a special investment destination. The Non-Habitual Residency program for instance, permits citizens to move their tax residence to Portugal, despite not having lived in the country for the last five years. This creates a worldwide tax exemption for the next 10 years, with a 20% income tax on gains in Portugal.

Why Portugal?

Portugal relies heavily on the tourism industry, economically. The chance to change a residential property into a short-term rental investment produces more accomodation for tourists at a rapid rate. This is supported due to the low rental taxation and high rental income, making Portugal very appealing investment-wise.

The Golden Visa programme provides a higher volume of foreign capital invested in the real estate market, freeing up funds to renovate city centres, in turn enhancing their appeal to . Due to this, 2.9 billion euros has been invested in real estate with more than 5 thousand investors reaping the benefits.

This increase in investment is expected to rise further due to tourism spiking in 2017 by more than 10%. Proving how big of a destination Portugal is becoming. At the recent World Travel Awards, Portugal won awards in almost every category, including the prestigious World Leading Destination award. As tourism grows, so does investment. The opportunity of foreign investment is essential as locals are not able to meet the market demand.

Golden Visa Program

The Golden Visa Program was put into place to create an opportunity for non-EU citizens, providing a chance to gain residency by investing a minimum of 350.000€ into Portuguese real estate. Requirements are that applicants must spend only 7 days per year in the country as a minimum, with the major benefit being that after 6 years investors are eligible for permanent citizenship.

Launched initially in 2012 to pull foreign investors into the Portuguese real estate market, helping to renovate the busy city centres, creating a modern, dynamic real estate market. The market hit rock bottom between 2009 and 2012, however, since then the market has grown exponentially.

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