We knew that the country had become in a few years one of the favorite destinations of 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 in a row. Thus nearly 30 % of properties purchased by non-Portuguese were acquired by French people in 2017, according to the association of Portuguese real estate professionals. They are especially attracted by 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 are still 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. Thus, thanks to the RNH status (non-habitual resident)For example, retired expatriates are exempt from taxation for ten years, provided they spend at least 183 days a year in the country and have not been a tax resident for the past 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 very attractive measure that is aimed at retirees as well, Portugal has neither IFI (tax on real estate wealth) nor inheritance tax. It concerns 80 % of retired people from the private sector, but also liberal professions (entrepreneurs, technicians, architects, engineers, artists, health professionals, etc.), the status RNH allowing them to be taxed at only 20 % on their 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.
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