Why buy a property in Lisbon
Lisbon is the capital of Portugal and sits on seven hills with a population of 2.8 million people. This makes it the largest city in the country. It is one of the most visited capitals in Europe receiving millions of international visitors each year. We consider Lisbon as the tourism and property hub of Portugal. In other words, there are many reasons why Lisbon is attractive to investors. Above all, who are looking to buy a property. Here are some of the reasons to buy a property in Lisbon.
5 Reasons to buy a property in Lisbon
Huge demand for rental housing
The tourism industry in Lisbon is experiencing a boom of international visitors who want to experience the magic of Portugal and all the charm the city has to offer. The exponential increase in the number of tourists is creating a spike in demand for short-term rental with a promise of high returns. Although Lisbon is a cheap city that’s pleasant to live in and with many attractions to see. Therefore there are usually insufficient rental units to meet the demand during the high and summer months. Buying a property to offer for rentals in Lisbon is a profitable investment that will yield high returns for its owners.
Buying a property in Lisbon offers investors the opportunity to enjoy almost all sources of foreign income (including pensions) tax-free with the validity lasting up to ten years of being a new resident. The benefit is available under the country’s Non-Habitual Residence (NHR) regime under which foreigners won’t incur any type of tax, which makes Portugal one of Europe’s most tax-friendly countries for foreigners. Investors do not need to worry about wealth tax, residential tax or even taxes on real estate gains. Its attractive tax system makes a good argument on why you buying a property in Lisbon is worth considering.
Low living costs
Unlike top destinations around the world, the cost of living in Lisbon is low which makes it one of the most affordable places to live. Comparative studies by global consumer price website Numbeo.com shows that consumer prices in Portugal are 28 percent lower than the United Kingdom. This allows for an easy standard of living for foreigners who want to migrate to Lisbon. For example, the cost of expenditure (especially food) in the city is among the lowest in Europe.
Beautiful scenery and attractions
Lisbon is a city that’s good to live in all year round. For example, the weather is usually great for nine months out of 12. The life in the city is usually quiet and less stressful, which makes it a fantastic destination for tourists who want to take a break from a busy and noisy lifestyle to enjoy a serene holiday. Some of the attractions worth visiting are the famous seven hills, Lisbon Oceanarium, Rossio Square, etc.
The Portuguese legislation makes it easy for buyers in real estate to acquire property. The process is quite straightforward and is similar to that in France. While it’s up to the buyer and seller to determine the agreed price for a property. For example, the seller is expected to pay the agency fees. In addition, the buyer pays the tax on the transmission of the property which is known for short as IMT.
In summary, Lisbon is a great location to buy a property for the purpose of real estate business and also for raising a family. The tax exemptions, as well as the low cost of living, make the city a great location to own property.
If you want to buy a property in Lisbon or its surroundings and live there as a second home, then your best option is to contact us at VORBILD Architecture. At VORBILD, we provide architectural, interior design, landscaping design, management, and property search services.
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