The Benefits of Luxury Real Estate Investment in Portugal for International Retirees
6 August 2024 • 3 min read
No one can think of Portugal without images of turquoise waters and golden beaches, cliffs towering over the sand like rocky giants, and the quaint white villas of its cities springing to mind. These picture-postcard landscapes are the stuff of daydreams and fantasy.
In recent years, Portugal has become one of the top living destinations for discerning individuals searching for a unique day-to-day life. With that in mind, investing in luxury real estate in Portugal has become an obvious choice for many international retirees.
Why Portugal Is an Ideal Destination for Luxury Real Estate Investment
Portugal’s Economic and Political Stability
Portugal is in a league of its own thanks to its idyllic landscapes but also for its economic stability. While deficits continue to rise in many countries, Portugal’s national debt has decreased from 134.9% of GDP in 2020 to 112.4% of GDP in 2022.
Numerous tax consolidation reforms have also been introduced, driven by political stability. Meanwhile, property prices continue to rise, and the luxury market is gaining a foothold – much to the delight of investors.
The Luxury Real Estate Market in Portugal
Portugal’s prosperous economy has had a positive impact on its luxury real estate market. Since the pandemic, this market has flourished, partly due to the tax advantages offered by the Portuguese state.
In Lisbon, for example, luxury real estate prices have significantly increased since the second quarter of 2023, placing this charming capital in the top 10 list of cities on the rise.
In more remote areas, luxury market prices are also tending to rise, likely due to many people wanting to enjoy Portugal’s ideal living conditions.
Quality of Life in Portugal
Living in Portugal seems like paradise for several undeniable reasons.
First, the country’s beauty is plain to see. Many Portuguese towns, cities, and regions have become highly sought after by the wealthy due to their abundant natural splendor.
The climate is perfect for enjoyable daily life, avoiding overly cold temperatures in winter. As a result, you can enjoy the beaches all year round, whether for swimming or simply strolling.
However, no place would be so attractive without also being incredibly safe. According to a 2022 study by the Global Peace Index, Portugal is among the safest countries in the world, ranking 6th out of 163 countries.
Tax Advantages for International Retirees in Portugal
The Non-Habitual Resident (NHR) Tax Regime
The NHR tax regime is specifically designed for international retirees looking to settle in Portugal, whether for a temporary period, or across a number of shorter visits.
Through this tax regime, various benefits are offered to new retirees, including income tax exemption on foreign income, a flat rate of 20% on income from highly qualified activities, no wealth tax, and free transfer of capital to Portugal.
Other Tax Advantages
Besides the NHR regime, international retirees in Portugal can take advantages of other tax benefits. For example, under certain conditions, a total tax exemption is granted for ten years, or a tax rate of just 10%.
Our new luxury real estate programme
If you have always dreamed of spending your retirement peacefully in an idyllic setting, Portugal is the destination for you. With breathtaking landscapes, a booming luxury real estate market, high-end activities, tax benefits, and a fantastic climate, all that is left to do is take the plunge! Our team at Rising Stone can offer you a selection of prestigious homes that are sure to meet your expectations in Portugal, across a many of the country’s majestic regions!
