Is Portugal still a desirable country to invest in?

Temperatures are rising in the Algarve with summer well and truly here. But, just as thermometers are hitting the high notes what about the number of foreigners looking to buy? Is Portugal still a desirable country to invest in?

Well, the short answer is yes, yes, it is, but that doesn’t really make for an interesting Blog, so here are a few reasons why, year after year, foreigners choose to buy in our favourite part of Europe.

• Favourable investment climate: It’s not just the actual climate - 300 days of sunshine every year & mild winters - that entices buyers, it is the fact that Portugal offers a stable environment for investors. Interest in Portugal’s dynamic real estate market has steadily increased over the years and the government has implemented various pathways to attract foreign investment. The non-habitual residency, the D7 and digital nomad visas are among the most successful – you can find out more about them here.
• Economic growth: For many years Portugal has been thought of as Spain’s poorer neighbour, and although this is still true to a certain extent, Portugal’s economic standing is definitely on the up. Recently Portugal experienced significant economic growth. The country's GDP has been steadily increasing, driven by sectors such as tourism, renewable energy and most recently technology. The Web Summit is now an annual event attracting thousands of tech-savvy people to our capital city, together with the boom in digital nomads choosing Portugal as a go-to country, Portugal is stamping its mark as a techno hub for the future. This economic stability makes Portugal an appealing destination for investment.
• Affordable real estate prices: Even though real estate prices have been rising over the last few years, the budget you set yourself back in 2020 may no longer get you the same size property now, compared to other European countries, Portugal still offers affordable real estate prices. This makes it an attractive market for those seeking good value for money. Also, once you have bought a property here you will not need to get a second mortgage to afford the cost of living. Eating out is affordable, the health service is available to everyone at a low cost, running a car does not cost the earth and maintaining a comfortable standard of living doesn’t break the bank.
• Booming tourism industry: Portugal and the Algarve in particular, come alive in the summer months, the early autumn, as well as the spring and the winter too thanks to the influx of golfers here in the cooler months – what we are trying to say is the tourism sector of Portugal is booming. Record numbers of visitors flock to our stunning beaches, historic cities, and picturesque countryside every year which has created a strong demand for short and long-term rental properties.
• Quality of life: Unlike all the other points, our final reason is hard to really measure. But even though it may not be so easy to quantify we think that having a safe, welcoming and friendly place to call home has to be one of the main reasons people chose to buy, live and work in Portugal. Portugal consistently ranks high in global indices for quality of life and safety. It is the 7th safest country in the world, according to the 2023 Global Peace Index, falling just behind countries like Iceland and New Zealand. Considered a stable country, politically and economically, with a low crime rate, Portugal has many desirable qualities for investors.

If these are not enough to show why investors love Portugal then here are a few more reasons we think might prove the point a little further:

• Easy access to and from the European Union (daily flights from main airports at competitive prices)
• A country with one of the lowest crime levels in the world
• Portuguese are welcoming and generally speak some English
• A European health system and a European currency
• No major financial risks (exchange rate, inflation, interest rates are all controlled by the European Central Bank)
• A transparent purchase process for foreign buyers
• An advantageous tax system: no inheritance tax for Portuguese residents, special exemption regime or reduced income tax for non-habitual residents
• Recognized building quality
• Legislation that protects buyers and oversees the market