Why Invest in Real Estate?
Real estate offers competitive risk-adjusted returns, which can improve the risk-and-return profile of an investor’s portfolio. Particularly when contrasted to the markets for equities and bonds, the real estate sector often exhibits moderate volatility.
When compared to more conventional sources of income, real estate is especially appealing because the rates are low.
Why Invest in Real Estate Portugal?
Portugal has rapidly become one of the best places for real estate investment for several reasons. Here are a few key factors that make Portugal highly attractive to investors:
- Strong real estate market: Portugal’s real estate market has been growing consistently in the past decade, particularly in cities like Lisbon and Porto. The demand for properties, both from locals and international buyers, has been increasing, leading to potential capital appreciation for investors.
- Affordability: Portugal offers a relatively low cost of living and affordable property prices compared to many other European countries. This means that investors can acquire high-quality properties at a fraction of the cost compared to other major cities in Europe.
- Tourism boom: Portugal has experienced a significant increase in tourism in recent years, with its stunning landscapes, vibrant cities, and rich history attracting millions of visitors annually. This sustained growth in tourism increases the demand for short-term rental properties, making real estate investments profitable.
- Favorable tax regime: Portugal offers several tax incentives and benefits to real estate investors, making it an ideal country for investment. For instance, non-habitual residents may benefit from a 10-year tax exemption on foreign income and a reduced flat income tax rate of 20% on Portuguese employment and self-employment income.
- Quality of life: Portugal consistently ranks high in quality of life indexes. It boasts a pleasant climate, beautiful coastline, rich cultural heritage, and excellent healthcare and education systems. These factors contribute to Portugal’s appeal for investors seeking not only financial returns but also an excellent lifestyle.
It’s important to note that while Portugal offers attractive investment opportunities, it’s always essential to conduct thorough research, seek advice from experts, and perform due diligence before making any investment decisions.
