Buying a House in Portugal for UK Citizens in post-Brexit
Despite the restrictions imposed by the Brexit and the pandemic, British citizens continue to express particular interest in living and buying a house in Portugal.
There are currently more than 50,000 british people living in Portugal, and demand remains high even after the end of the transition period.
In the second half of 2020, UK citizens were considered the main buyers of properties in resorts in the country, mainly in the Algarve region. An interest motivated by the beaches, the weather, the lifestyle and the friendliness of the Portuguese.
Despite the pandemic, which will limit the growth of the national economy, the Portuguese and property market remains resilient. Real estate investment is estimated to reach €3 billion in 2021 and GDP figures will reach the same figures from 2019 by the end of 2022.
It is also predicted that the few number of new properties could ensure a level of stability in the housing market throughout the year, although there may be a slight drop in prices.
Maintaining bank moratoriums until economic activity recovers will also play an important role in the stability of the sector.
Meanwhile, the pound’s performance has raised some urgency among British investors, who can secure significantly lower prices as a result of the current exchange rate.
What exactly changes?
Although Brexit has imposed some restrictions, notably with regard to the movement of British citizens within the European Union, the Portuguese Government is willing to facilitate the processes for the entry of Britons into the country, preserving the historic relationship between Portugal and the United Kingdom.
British citizens wishing to move to Portugal and here want to purchase a property will have to obtain a visa or residence permit and thereby benefit from the same privileges as EU citizens.
The Portuguese Government also remains committed to the Non-Habitual Resident Scheme (NMR),which guarantees favourable tax benefits to its holders.
If they wish to continue to live in the UK and benefit from European citizenship, British citizens will be able to apply for the Portuguese Golden Visa programme. To do so, they only need to make an investment in the country and reside, on average, seven days a year, for a period of five years.
There is also the possibility of combining the NMR with this programme in order to benefit from free movement within the EU, as well as the exemption from taxation for most income earned abroad for a period of ten years.
Although the Algarve is one of the most popular regions among British citizens, from the next year on, due to the most recent changes to the Golden Visa Programme, some restrictions on investment will arise in this region of the country. For this reason, it is important that interested parties looking for properties for sale in the Algarve, Lisbon and Porto, start their process as soon as possible, in order to enjoy the current investment conditions.
