Political and economical stability: Unlike many countries of the European Union, where political uncertainty is rising, Portugal benefits from a stable government solution. Also, the economy is performing better than forecasted. In fact, in 2016 the GDP will have grown 1,6%, according to the Bank of Portugal. The economy is also expected to grow 1,7% in 2017 and 1,6% in 2018.
Tax and other incentives: The Portuguese non-habitual resident regime grants tax exemption for pensions income, during a period of ten years, for any retired person of the European Union, provided that he or she becomes tax resident in Portugal.
Furthermore, in Portugal, is offered the possibility of applying for a residence permit for the purpose of developing investment activities. For example, the “golden visa” is granted for investments in the acquisition of either properties above € 500,000, or properties above € 350,000, provided that such assets are more than 30 years old or are located in areas of urban renovation.
Opportunities in real estate: First of all, Lisbon is one of the European capitals in which the real estate prices are relatively low when compared to those of other major cities. Secondly, Lisbon faces a challenge for the time being: lack of quality office space. Considering the reduced pipeline of new projects, it is anticipated that there will be space for rents to increase and vacancy rate to go down. This is the time to either invest in new construction or redevelop existing buildings in central locations.
Finally, there will be good opportunities in tourism sector, which had a remarkable performance in 2016. The forecast for 2017 is that the supply of new hotels in Lisbon will grow below the demand. This means that there will be opportunities for investment in new hotel concepts and in the local lodging (short term touristic lettings).