In just a few years, the country has become one of the most popular destinations for French expatriates. As a result, prices are skyrocketing in Lisbon and the Algarve.
The French rush to Portugal is confirmed
The French are now the leading foreign investors in Portuguese real estate, downgrading the British and Chinese for the second year running. As a result, nearly 30 % of properties bought by non-Portuguese were acquired by the French in 2017, according to the Portuguese Real Estate Professionals Association. They are particularly attracted to Lisbon and the Algarve region in the south of the country.
In four years, the number of French people living in Portugal has more than quintupled to 50,000 (up from a few thousand in 2013), including 80% retirees, according to the Franco-Portuguese Chamber of Commerce and Industry (CCIFP). There has also been a surge inprices since the implementation of this tax measure and the arrival of new residents. However, they remain measured, as Portugal did not experience a speculative bubble in the 2000s like France."
Climate, safety and quality of life
In addition to the climate, safety and quality of life, it is in particular the tax measures passed in Portugal in January 2013 that continue to attract foreign buyers. Thanks to the RNH status (non-habitual resident)In France, retired expatriates are tax-exempt for ten years, provided they spend at least 183 days a year there and have not been a tax resident for the last five years.
On average, French people invest between 200,000 and 250,000 euros in the purchase of a home. At this price, you can get a nice house of 100 to 150 m², close to the sea and the city center. Homes costing between 300 and 350,000 euros are also in high demand. And for a budget between 750,000 and one million euros, you can acquire a luxurious residence of 300 m², near the sea.
Retirees are wanted...
A highly attractive measure aimed at retirees as well, since Portugal has no IFI (real estate wealth tax) or inheritance tax. 80 % of these retirees are from the private sector, as well as the liberal professions (entrepreneurs, technicians, architects, engineers, artists, healthcare professionals, etc.). RNH allowing them to be taxed at only 20 % on income generated and received in Portugal.
Regarding the taxation of inheritance, free transfers made within the framework of a death or a donation are exempt from stamp duty. This applies to descendants or ascendants and married persons. However, this exemption does not apply to real estate located in Portugal.