5 Reasons Why you should invest in Real Estate in Lisbon

Lisbon is still in the top 10 of the best cities to invest in real estate, according to a study by PwC and Urban Land Institute. The Portuguese Capital has been attracting investors from all over the globe, due to Portugal’s thriving economy and tax incentives for foreign investors. The growing tourism market is also in demand for quality hospitality services, and a big part of investors are getting into the short-term rental business.

Here are 5 of the top reasons investors choose Lisbon to buy their properties:

1. High and economical quality of life
 

Lisbon is one of the best cities to enjoy high living standards without spending much money. The city offers a quality of life on the same level as the other most popular European cities, with the difference that it is much cheaper. In Lisbon, you can enjoy a world-class quality of life, in one of the cheapest countries in the world to live.

Portugal is one of the most peaceful places in the world, according to the Global Peace Index, and has an education and health system that work really well.

2. Business Opportunities
 

For investors who plan to move to their property in Lisbon, or visit once in a while, having physical access to this location is your best move to stay close to great business opportunities. Lisbon has a huge and incredible start-up culture, with some of the best incubators in the world and is home to the Web Summit event, the marker of companies and people who invest in innovation and technology. Besides, it is really easy to establish a company in Lisbon.

By moving to Lisbon, you will also be close to the central European cities, and with easier networks to all the Portuguese speaking countries in the World.

3. Property Investment Opportunity

Properties in Lisbon are comparable to the most prestigious locations (such as Southern France) but at Portuguese prices – you’ll get high-status developments at very competitive prices. Lisbon has become a prime destination for property investment, enticing foreign investors with its growing economy, real estate and booming tourism market. Lisbon is the favourite holiday destination boosting property markets, both of seasonal rental and second house acquisition.

All of this confers strong rental profitability, both in seaside and city centres. When buying a property, you can choose different ways in which you’ll have your investment returns:

• Short-term rentals - With growing tourism numbers, the increased interest in Lisbon has led to a higher demand for quality accommodation faster than the market can supply. In 2016, Lisbon tracked over 54 million overnight stays.
• Long-term rentals - Lisbon has a huge ex-pat community, students and workers who are renting apartments.
• A house where you can live with your family, in a city with everything you need to have a pleasurable life.

4. Taxes and Costs

Nonresidents are only taxed on their Portuguese income. Residents, who reside in Portugal for 183 days or more, are taxed on their worldwide income. Portugal has tax incentives for foreign investors and foreign residents, known as the non-habitual tax residents programme.

If you plan to invest in Lisbon’s real estate to obtain a Portuguese Golden Visa, you should hurry up! The Portuguese parliament passed a law to end the real estate Golden Visa Program for Lisbon and Porto metropolitan areas and other coastal areas, which will come into effect on January 2022. True Memories has a variety of real estate projects with meticulous investment analysis and rentability studies that will provide the results you expect. Talk to our team to know more about our opportunities.