Portugal, the question is when

Portugal has been one of the best European tourist destinations for several years. This distinction is based on the art of welcoming the Portuguese, the warm way they do it, the gastronomy so characteristic of each region and not least, its mild climate. These are some of the main requirements of those who choose our country to spend a fun and relaxing holiday.

Increasingly, Portugal is on the mouth of the world. A country full of history and culture, rich in a past of discoveries and that today delights those who do not yet know this small great country. Whether for the Portuguese language, fado, Port wine, the charms of Lisbon, the delicious Pastel de Nata, the cork or the beautiful Azulejos, Portugal is a real box of surprises.

Over the last few years, many have been the passers-by who have surrendered to the charms of Portugal and for this reason, choose to live here a big part of the year. In the last 2 years, approximately 25 thousand houses were sold, mostly buyers with fiscal domicile outside Portugal, according to INE (National Institute of Statistics), the Algarve was the most sought-after region, followed by the metropolitan area of Lisbon. Buyers who invest in the Algarve, do so from the perspective of a second home, among which the English have dominated the numbers for a few years, followed by a smaller percentage, Germans, French and Swedes.

Portugal is one of the easiest European countries to obtain a residence visa and because of that, recently there was a significant demand of North American investors that is already having a direct impact on the purchase of houses. These investors are buying for habitation and already represent 15% of transactions. It should be noted that competitive prices and the appreciation of the dollar have contributed to this growth. In the last months, we have been finding that a good part of these clients sells their properties in their home country to invest in Portugal.  Approximately 40% of houses purchased by North American citizens are located in Lisbon, 13% in the Algarve and 9% in Porto.

The motivation has been to buy a house to live, enhanced by the current work scenario and not exactly buy a holiday home. The main reason is related to our quality of life, health system, culture and climate. Portugal, when compared to North American standards, has a more affordable cost of living, access to free health care or attractive proposition to private health insurance, hot weather, tax incentives, safety and fluency in the English language, among many other positive aspects.

Last year, North American investment amounted to 1.15 billion euros, 33.7% of the total amount invested in the country and in the first quarter of 2023, already represented 67% of real estate investment in the country.

It is undeniable the importance of this investment in terms of the economic recovery of our country, and Portugal and the Portuguese should take the opportunity to create infrastructures and solutions that promote more benefits, evaluate how to ensure greater legal and fiscal stability, as well as promote the reduction of bureaucracy of some processes, in order to continue to attract more investors and improve the conditions of all those who choose to stay in this Garden of Europe planted by the sea.