Current Investment in Portugal
Portugal has often been overlooked as an investment location and it has historically been Spain that has received the most attention. Recently, some of the emerging markets have also hit the headlines but when there are so many opportunities why do the British and Irish still continue their love affair with Portugal? Yes, the lifestyle is important but there are some crucial reasons why we think Portugal offers great potential and at the same time is one of the safest places to invest in the world. We like to think it’s where the common-sense investors choose to be.
When you are out with us we go to great lengths to show and explain what new investment is happening in Portugal but for now, here is a quick snapshot of why we expect property values to continue to rise for the foreseeable future. Remember by becoming a Berkshire Hathaway HomeServices Portugal Property member we will keep you up to date with all the latest investor news.
Did you know that the total EU spending in Portugal for 2017 (latest figures) was €3.976 billion? With typical market sectors under pressure such as agriculture and fishing, it’s the tourist market that generates the most revenue for the government and that’s why the majority of this money is directed towards improving the standards of tourism.
It is difficult to spend some time here and not see the vast improvements underway. From new motorways to new promenades, new golf courses, and new beachfront cafes to new underground parking facilities. In fact, everywhere is receiving a new fresh impetus to bring it up to high standards.
New Airport and High-Speed Train Link (TGV)
Lisbon’s improved Humberto Delgado International Airport now carries around 29 million passengers a year. With a total investment in the region of €25 billion, the airport boasts leading-edge technology and handles flights from all over the world. This, in turn, has increased the number of low-cost operators providing many other UK airports with the opportunity to fly directly into Lisbon. There are some 60 worldwide airlines operating scheduled flights to and from Lisbon Airport.
In January 2019, Portugal's government unveiled a €1.1 billion plan to expand Lisbon's current airport and build a second one in Montijo. It aims to handle around 50 million passengers a year from 2022.
New TGV – High-Speed Train Link: The Portuguese Alfa Pendular trains connect all of the major cities in Portugal. From the capital city of Lisbon, travel in comfort to Coimbra, Porto and Braga in the north or to Faro in the far south. With speeds up to 220 km/h, Alfa Pendular trains are the fastest way to get around in Portugal.
Some Other Key Facts
- The country is in the top 3 European countries most likely to make you money over the next 10 years, as reported by PricewaterhouseCoopers and featured in A Place In The Sun.
- Despite the previous economic difficulties, the Governor of the Bank of Portugal has claimed Portugal will withstand the current issues albeit suffering a few scratches and bruises.
- The government has offered a five-year 50% income tax discount to Portuguese citizens who left during austerity and want to return (between 2010 & 2015, half a million people—5% of the population—emigrated). This measure is intended to encourage better-off young graduates to come back and invest in Portugal.
- Loan-to-value mortgages allow you to maximise your investment by borrowing up to 85% of the valuation of the property. With the Euribor reduced interest-only mortgages can now be secured as low as 1.75%.
- Strict planning permission here secures the natural beauty of the country and limits the supply of new properties - keeping demand high.
- One of the safest places in the world. We have no international issues with war and no current threat of terrorism to interfere with our stability. Lisbon was recently voted the safest city in the EU.
- And finally, let’s not forget it’s one of the nicest places in the world so irrespective of investment considerations you can still obtain a quick resale, secure rental income and enjoy visiting your second home at any time of the year. To us, it all stacks up wonderfully!
For more information please write to us on firstname.lastname@example.org or feel free to call us on +44 (0) 800 014 8201 and a member of the Portugal Property team who will be happy to answer any of your questions.
We look forward to helping you find your dream Portugal property!