Real estate the assets of Portugal

Young professionals and retirees no longer hesitate to move to Portugal. The country has been kind to them in terms of taxation.

The French have become the champions of Lusitanian real estate. At 1er quarter of 2016, according to Home in Portugal, 25 % of the housing purchased by foreigners in Portugal were acquired by French people in the first quarter of 2016. There is no shortage of motivations. A secure living environment and a temperate climate just 2 hours by plane from Paris or major French cities, a lower standard of living than in France and property prices that are much more attractive than in France....

According to the Barnes network, prices vary globally between 1,800 €/m² to 5,100 €/m depending on the type of property, its location and its condition, knowing that exceptional properties can be close to 10 000 €/m². “A Lisbonne, l’ancien à rénover oscille entre 1 500 et 2 000 €/m², indique Geoffroy Moreno, spécialisé dans la rénovation. Après réhabilitation, les résidences haut de gamme sont proposées à la vente entre 4 600 €/m² et 8 000 €/m²”.

Cherry on the pastéis de nataSince 1 January 2010, theer janvier 2013, sous la pression de la troïka européenne qui a lui demandé une plus grande libéralisation de ses marchés suite à la crise financière de 2011, le Portugal a mis en place un système fiscal allégé pour attirer les investisseurs étrangers : le “golden visa” pour les étrangers hors Union européenne et le non-habitual resident regime for European nationals, which allows them to be exempt from income tax for 10 years.

As a result, from France, the country sees an influx of mainly retired people or couples in their thirties who are expatriates. Qo create their own business. In total, about 25,000 French people have succumbed to the sweetness of life in Lisbon in recent years.

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Any departure must be prepared in advance to avoid administrative and tax pitfalls. For example, it is important to remember that only private sector pensions are tax-exempt, not those from a public sector career. Similarly, rental income from a property located in France will be taxed in France. To benefit from Portuguese tax benefits, il faut installer sa résidence principale au Portugal et y vivre plus de 183 jours par an. “Le fisc peut contrôler si le centre des intérêts économiques des personnes se situe bien au Portugal".