In the latest Portugal Insight 2018 report by Knight Frank, Alex Koch De Gooreynd, head of Knight Frank’s Portugal desk, explains how the housing markets in Lisbon and Algarve have changed compared to a year ago.
He says: “The housing markets of Lisbon and the Algarve are markedly different from one another but both have seen an uptick in sales volumes, price growth and market liquidity over the last year.
“The Algarve’s Golden Triangle extending from Quinta do Lago to Vale do Lobo and Almancil remains the Algarve’s most exclusive second home destination. Villas below €5m have registered strong sales rates whilst at the western end of the coast, the area between Portimão and Sagres, villas below the €1.2m threshold are facing strong demand.”
Alex adds: “Unlike a number of countries, the Portuguese Government has not tightened rules on foreign ownership or increased property taxes. Instead two other initiatives have been critical in attracting new investment. Firstly, the Non-Habitual Residence (NHR) tax rule, introduced in 2009, allows for a flat rate of 20% personal income tax from activities performed in Portugal and a tax exemption, including pensions, on all foreign income.
“The second measure, ‘The Golden Visa’, arguably of greater relevance to the Lisbon market, offers residency to investors outside the EU (enabling free movement across the Schengen area, comprised of 26 EU states) in return for a minimum property investment of €500,000.”