Why is Portugal so popular?

Portugal is a stunning country with something for everyone, from the beautiful sandy beaches, golf, fantastic weather, fine seaside resorts, and a number of incentives for overseas property investors – including high tourist demand for homes to rent, an improving economy, Golden Visas and the Non-Habitual Resident (NHR) tax regime.

The NHR regime, for example, makes Portugal one of Europe’s most tax-friendly destinations for foreigners, with a 20% flat rate for certain Portuguese source incomes from specific professions and income from self-employment – as opposed to normal Portuguese income tax rates of up to 48%.

The NHR, valid for 10 years, enables anyone who hasn’t been resident in the country for the past five years to be eligible to receive pension income, rental income, capital gains on real estate and non-Portuguese income tax-free, while investors in Portugal can also benefit from an absence of wealth tax, inheritance tax and gift tax, all of which could help to make investment more appealing and profitable.

Those worried about the impact of a no-deal Brexit – which is still a possibility if Britain doesn’t agree a trade deal with the EU by the end of the transition period, and Boris Johnson sticks to his pledge to not ask for an extension to make special arrangements for British tourists in the event of a crash-out exit.

Whatever happens with Brexit, it’s likely that Portugal and the UK will continue to have a very strong relationship, tied together by tourism in the Algarve, investment and one of the oldest and most robust alliances in the world.

The Anglo Portuguese Alliance – or Aliança Inglesa in Portuguese – was ratified at the Treaty of Windsor in 1386. It has led to a deep connection ever since, and this is likely to be the same no matter what the outcome of Brexit.

The information supplied by Home Search Overseas is for guidelines only – you must always do your own research and use the services of an independent qualified Real Estate Lawyer for your overseas property purchase.