16 July 2020
English
After the crisis, Portugal has seen a growing appreciation in the real estate market. From 2009 onwards this growth has been continuous and has continued to this day. The real estate network in Portugal has accompanied this growth. Average property sales figures in Portugal increased by 7.6% and in the major cities (Lisbon and Porto) by 18%.
Investing in real estate in Portugal has attracted many foreign and domestic investors. Since it is more advantageous to buy rather than rent, the buying and selling market has been booming. About 80% of buyers are Portuguese and the rest are foreigners.
Those looking to buy a house, choose places with comfort and surrounding leisure areas. Real estate investors have contributed to boosting the coastline, historic centres and other locations. Anyone looking for a property in Portugal has an excellent help in fiscal, profitability and other more bureaucratic issues.
Currently, Portugal is a stable country, with the real estate market growing and very dynamic in recent years and tax benefits.
Compared to other European countries, it may have an excellent quality of life as it is one of the countries with the lowest cost of living and there is a low financial risk in terms of inflation and interest and exchange rates.
At the bureaucratic level, it is relatively simple for a foreigner to buy a house in Portugal and the specifications of the property acquisition procedures are clear. There are special and advantageous regimes for foreigners.
In addition to the above, the location is excellent and is one of the first points of interest for foreign buyers/investors. There are excellent investment opportunities and good profitability. This is due to the fact that Portugal is now one of the most desired holiday destinations in the tourism area. With this, the local rental and accommodation sector has developed a lot, as well as the holiday home acquisition sector. Thus, Portugal has a high potential of income in terms of tourism near the coast and big cities like Lisbon, Porto and Algarve.
In relation to home ownership, due to the current market, it is not advantageous to rent a house. There are many Portuguese and foreigners buying a house because the instalments on the mortgage and the corresponding interest have become more affordable and advantageous compared to a house rent. Besides being an excellent investment, if you choose to move in and once the real estate market is in appreciation, you can later sell your house and get a great deal.
All these aspects indicate that it is advantageous to invest in real estate in Portugal, whether for permanent housing or holiday homes.
Taxes and fees on the acquisition of property are calculated according to the acquisition value of the property. These taxes are paid by the buyer. In the real estate business of purchase and sale no VAT is charged.
After purchasing, it is mandatory to pay the annual IMI (Municipal Property Tax). This value is calculated from the VPT (Tributary Patrimonial Value). The City Councils determine the amount to be paid taking into account the patrimonial values between 0.3% and 0.5%.
If you intend to rent your house, you will have to pay a 28% income tax if you are a natural person. If you have organized accounting, the fee is 25%. In both situations, administration, maintenance and tax charges can be deducted in the tax calculation.
If you sell your second home, you will have to pay a 25% tax on the profits generated. On the other hand, if you sell your permanent home, you can be exempt from this tax.
All these taxes and fees may change from year to year. Consult the industry professionals to see what their real values are.
When we look for work we want a stable professional activity with the possibility of career advancement. Being a real estate consultant is something that fits those who want this stability and career progression. Real estate consultants are generally responsible for the personalized attention of clients, for advising the purchase and/or sale of real estate and also for its rental. The following is a summary of some advantages when investing in this career:
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