Portugal’s New Prosperity – Part 2

In a country where the minimum wage is 580€ per month, the price seems to be the biggest obstacle when it comes to renting or buying a property. Although banks are lending again, they are considerably more cautious than they were before the recession.

Due to the current tourism boom, more and more property owners are changing from long to short term rentals, especially in the most popular areas, making it more and more difficult to find a place to live for those who cannot afford to buy. At the same time, a diminishing number of long term rental properties is causing an increase of the rent. Continue reading

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Portugal’s New Prosperity – Part 1

Portugal is fashion. As described in my blog post Portugal’s New Popularity, 2017 was a record year in both property sales and tourist arrivals, contributing to the fastest economic growth in this century, quicker than the European Union average. An estimate by Statistics Portugal (INE) revealed that Portugal’s gross domestic product (GDP) increased from 1.5% in 2016 to 2.7% last year. Continue reading

Portugal’s New Popularity

Everyone who recently visited Portugal must have felt it’s new vibe. It’s almost as if it awoke from a long rejuvenating sleep, presenting itself to the world in a more attractive shape since the end of the recession in 2013.

Hidden behind the big neighbour Spain for decades, Portugal suddenly overcame its unfamiliarity and became a hotspot for both visitors and investors. For its inhabitants this certainly did not come as a surprise as we have been asking ourselves for a long time why its varied natural beauty, superb gastronomy, welcoming people and rich cultural heritage have not been enough to convince many people to explore this country. Continue reading

2017 – What a Year!

It is now official: 2017 was the best year ever in terms of property sales, at least since 2009 when this sort of data was collected and registered for the first time.

It certainly does not come as a surprise that the Portuguese property market has seen a massive recovery since 2014, after a heavy 5 year recession period but probably hardly anyone anticipated such a fast recovery. A recovery which has become a new boom. Continue reading

Local Lodging and the Simplified Tax Regime in 2018

After the heavily criticised proposal of the State Budget for 2018, presented on the 13th of October 2017, which aimed to drastically change the Simplified Tax Regime (Regime Simplificado), the government has now presented a milder version.

Nevertheless, the new rules will affect most of the self-employed professionals such as lawyers, architects, doctors, journalists and owners of holiday rental properties, with an annual invoiced income over 27,360€. Continue reading

Additional IMI Tax (AIMI)

With the state budget 2017 a new “wealth tax” in the form of an additional tax on higher-value properties, called AIMI (Adicional Imposto Municipal sobre Imóveis) has been created, replacing the existing Stamp Duty (Imposto de Selo) which used to be charged on residential properties or building plots with a fiscal value (VPT – Valor Patrimonial Tributável) above 1,000,000€. Continue reading