We now know why many expatriates (particularly French) come to Portugal. Exemption from income tax for pensioners for 10 years, a 20% ceiling on the income tax for working people, no wealth tax, cost of living about 30% lower than in France or other European countries, record sunshine rates... Why do not go live in Portugal after all?
However, if you are not yet ready to take the plunge and move to Portugal, you can start by making a rental investment. Purchase a beachfront house in Albufeira or an apartment in Lisbon and enjoy a nice rent until the day you decide to move in.
Where to invest in Portugal?
Whatever the nature of the rental, choose a dynamic and touristic city.
Lisbon and Porto are the two economic capitals of the country and two leading tourist destinations in Portugal. Albufeira and Faro, for example, are two of the most attractive cities in Portugal's seaside region, the Algarve.
For a seasonal rental, the main cities of the country, which happen to be those of the three international airports of the country (Lisbon, Porto and Faro ) are wise choices. Not to mention that they are very attractive for tourists (heritage and culture).
Whether it is for long-term or seasonal rentals, be sure to invest in a lively city all year round, not just in the summer. Contact a notary or real estate agent to get help with the purchase is strongly recommended.
Choose between seasonal and annual rental
Vacation rental is particularly profitable, especially since the explosion of tourism in Portugal. Real estate prices, although rising, are still more attractive than in many other European countries.
Professionals in the sector are thus announcing a profitability of 6 to 8% for high-demand cities such as Lisbon, whose price per square metre remains well below that of Paris or London. It costs about 6000 € per square metre for an apartment in the centre of Lisbon and around 2500 € per square metre for an apartment in the centre of Porto.
Short-term rentals are particularly popular in Lisbon and Porto. Thus, in Lisbon, you can have a rental incorme between 60 and 130 euros per night for your apartment, depending on the area and period. In Porto, your apartment can pay you between 50 and 100 euros per night.
An annual rental for a T2 apartment can bring 1500 euros per month (on average) in the centre of Lisbon and around 850 € per month in the centre of Porto.
To realize your real estate dream and make a successful investment get accompanied by a real estate professional, estate agent or notary. From the search of the property to the management of the rental through the signature of the sale agreement, they will be at your side throughout this new adventure.
E. B - Meretdemeures.com.
Find your house or apartment in Portugal on Mer et Demeures: Property for sale in Portugal.