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BUY OR RENT IN PORTUGAL? THE GUIDE TO FACILITATE YOUR DECISION

BUY OR RENT IN PORTUGAL? THE GUIDE TO FACILITATE YOUR DECISION
By Joana P. . 5 years

If you are thinking moving to Portugal, firstly you have to think about how to get settled. If there is the question of choosing where to live, in the city center or a village, by the sea or surrounded by the mountains or on the plains. Do you move to work or retire? 

 

Is it better to go for a lease or a purchase? What factors would make you lean towards buying or towards renting in Portugal? This overview could help you with some of these decisions.

 

From a financial point of view.

 

When the government introduced Non-Habitual Resident status it hoped to bring more capital into the country. But seeing as there are different ways of attracting foreign investment this status is not restricted simply to the buyers.

 

Indeed the only requisite is that you spend half of your time living in Portugal (183 days). Those renting are therefore not excluded from obtaining this status.

 

The other great attraction is the « Golden Visa » where the requirements are different; rather it is aimed mainly at non-Europeans from Asian or Middle Eastern countries who therefore obtain a European visa allowing them to travel more freely within the Schengen area. An investment of 350.000 euro in real estate is necessary to make, however, or investment in a business and the maintenance/creation of 10 jobs. 

 

From an investment point of view.

 

Many have ultimately decided to invest in the country and have done so through buying in Portugal.

 

And the reason why is rather simple. The price of real estate in Portugal is rather low and those seeking the sun are coming first and foremost to find an attractive investment.

 

Property prices have fallen in recent years and it’s perfectly possible to buy a good condition two-bedroom property in Lisbon, something which is virtually impossible in a large city or seaside resort/region in France.

 

To emphasize the investment side of things even further, the purchase of a property where you would live for 6 months/ year could also be rented out for the remaining 6 months. The rental yield if you buy in Portugal is a little over 5% whilst it is only about 3% in similar cases in Paris.

 

Seizing the opportunity

 

Making the choice to buy is,therefore, often preferable and allows you to combine business with pleasure, especially as renting a property could also be problematic, if you want to acquire this famous non-habitual resident status.

 

The location might be enough of course, if you only want to stay in Portugal for one month per year, just to relax and recharge when the weather in your home country is bad, so you can walk along the beaches of the Algarve.

 

It is also understandable to in order to go live in Portugal and wait to familiarize yourself better with the country, the time to find out which region you like best or the time to find what seems to be the best opportunity for you.

 

But in each of these cases the choice of renting is rarely made in the long run.

 

Most will seize the opportunity of buying in Portugal for the chance of a beneficial investment.