News

Portugal to Bring Back Tax Breaks In Order to Attract Foreigners

Portugal’s new government intends to reinstate tax breaks for foreigners in an effort to attract highly skilled workers to the country while also addressing the housing crisis. According to Joaquim Miranda Sarmento, the Finance Minister, the tax will exclude “dividends, capital gains and pensions,” meaning that the tax break of 20 per cent flat rate of income tax will be applicable to “salaries and professional income”.

House prices on the rise

Houses for sale in Portugal continue to become more expensive. House prices in Portugal rose by 2.8% in the second quarter of the year compared to the previous quarter, a trend that set the median cost of housing at 2,683 euros per square meter (euros/m2) at the end of June.

33% of houses sell within 1 week

Around 11% of the homes for sale in the first quarter of the year, were on the market for less than a week. 22% of these houses were on the market between two weeks and one month, 24% between one and three months, 34% between three months and one year, and 9% for more than a year. The percentage of express sales in Porto is 15%.

Portuguese real estate attracts 682 million in foreign investment in the first quarter of 2024

Real estate continues to attract investors to Portugal. In the first quarter of 2024 alone, foreign direct investment in real estate amounted to 682 million euros.

Real estate developers feeling confident

The Portuguese Association of Real Estate Developers and Investors (APPII) has welcomed the measures on housing announced by the Government, with emphasis on the revocation of coercive leasing, considering that it took away confidence from investors.

Holiday rental property tax revoked

The Government has approved proposals to change the local accommodation (AL) rules included by the previous executive in the Mais Habitação program, including the revocation of the extraordinary contribution.