Portugal - A country to invest and live
Portugal, with its warm people, beautiful beaches, sunny weather, enchanting historic architecture and excellent cuisine, is a global tourism destination. This was again recognised at the prestigious World Travel Awards for Europe. In 2014 Portugal was nominated in the great majority of the categories and won 13 awards.
While CNN considers Lisbon “with atmosphere, charm, great food and nightlife, … Europe's coolest capital”, more and more international media praise the quality of the city as well as the enchanting area of Estoril and Cascais at a 30 Km distance from the capital.
After a period of economic recession, real estate market prices in Portugal have reached their bottom. The most important markets such as Central Lisbon and the area of Estoril and Cascais show a high potential for medium and long term appreciation. Rental income added to the increase of the underlying asset value offer a very interesting profitability for investors (7%-10% expected long term annual average gross profitability).
The Portuguese real estate market became subject to a significant foreign demand as a consequence of the new residence and fiscal legislation mainly with Law 29/2012, issued on 9/August/2012. The Golden Visa Residence program allows foreigners who invest 500,000 Euros in a housing property to gain access to a temporay residence permit and free circulation within the European Union Schengen Area. After five years of temporary residence the foreign person qualifies for permanent residency and may renew the residency permit for five more years. Additionaly, after 6 years of residence in Portugal, the foreign person may aplly for Portuguese citizenship and an EU passport, subject to certain criteria.
During a period of 10 years, taxation related to IRS (personal income tax) on labour income obtained in Portugal is fixed at rate of 20%.
The Conventions to avoid Double Taxation involving Portugal and 67 countries are extensive to the incomes of pensions or employment and self-employment abroad. According to the new legislation these types of incomes became free of taxation in Portugal and consequently in the countries of origin. There may be some exceptions in the case of the income of people employed in the public sector, such as the case of France. The foreign person must apply and be registered in Portugal with the Non-Habitual Resident Status.
Portugal is undoubtedly a place to conduct profitable and safe real estate investments and to live and retire in peaceful and warm communities where culture and historic traditions are allied to modern technology and comfort.