PORTUGAL - House Prices increased 8.4%
In 2020, the House Price Index (HPI) increased 8.4% when compared with the previous year. This rate of change was 1.2 percentage points (pp) lower than in 2019. From 2019 to 2020, the prices of existing dwellings (8.7%) increased at a higher rate than new dwellings (7.4%).
In the 4th quarter of 2020, the HPI year-on-year rate of change was 8.6%, 1.5 pp more when compared to the previous quarter. In this period, price increases were less intense for existing dwellings than for new dwellings, 8.5% and 9.0%, respectively.
In 2020, a total of 171,800 dwellings were transacted, 5.3% less than in 2019. The total amount of transactions reached 26.2 billion euros, an increase of 2.4% compared to the previous year. The value of new dwelling transactions increased by 9.3% to €5.4 billion and that of existing dwellings rose by 0.7% to €20.8 billion euros.
Between October and December 2020, the number of transacted dwellings stood at 49,734, resulting in a year-on-year rate of change of 1.0% and an increase of 10.2% when compared with the previous quarter. In this period, the value of house sales totalled 7.5 billion euros, up by 8.7% compared to the same period in 2019.
Portugal Golden Visa
Reduced Option: 350,000 Euro Real Estate Rehabilitation
As of January 1st, 2022, where you can invest in real estate to qualify for the Portugal Golden Visa will be restricted. Properties purchased in Lisbon, Porto, or the coastal towns will not qualify for the program. This rule change does not apply to any purchases made until the end of 2021.
There are a few different investment methods that qualify an investor for the Portugal Golden Visa. Among these, real estate acquisition is the most popular one by far.
However, within the real estate acquisition module, there are multiple available options. You can either get a property for 500,000 Euro or choose to go with an urban rehabilitation option, where the minimum investment value drops down to 350,000 Euro!
As its name suggests, the objective of this option is to promote urban rehabilitation and offer the investor a series of benefits for contributing to the renovation of the property in return.
Acquisition of real estate, which must be constructed more than 30 years ago or located in an urban rehabilitation area. The acquired property must be rehabilitated in accordance with the municipality regulations. The total amount of the property purchase price and the renovation works must equal or be greater than 350,000 Euro.
The 350,000 Euro minimum amount includes the property price + the renovation works.
The lowest real estate investment threshold for the Golden Visa program in Portugal is 280,000 Euro. In order to qualify for this option, the property needs to be older than 30 years old, renovated, and located in a low-density area.
Grants & Incentives for investors
The success of Portugal as an investment destination is based on the country’s positive approach towards international business. Portugal offers a strategic location, access to key markets, skilled human resources, competitive costs and top infrastructures.
Portugal offers national and foreign investors investment incentives.
Incentives may come as financial incentives, repayable or non-refundable, tax benefits and co-financing. Exceptionally, specific subsidies may also be granted, such as reimbursement of employers’ costs with the training of employees.
Imagine living in a country where you can find a huge diversity of landscapes and environments in a small area: sandy beaches as far as the eye can see, golden plains and mountains, vibrant and cosmopolitan cities and a millennial heritage.
Portugal is currently once of the most sought-after countries in Europe, both by tourists and investors.
Portugal is a truly global destination, considered one of the best in the world and increasingly a country to work, to invest and to live in.
You can live and work freely in Portugal if you are a citizen of the European Union or European Economic Area (EEA).
But if it is not your case, if you are a citizen of a non-EEA country, you have other ways to live, work, invest or study in Portugal.
Golden Residence Permit Program, Startup Visa (and Startup Voucher), Portugal Passive Income Visa, Work or Business Visa, Through your Family, Working Holiday visa, Student Visa, Tech Visa, ...