Portugal is the perfect place of some expatriates who choose to settle there for a better quality of life. However, making a rental investment in Portugal is just as interesting.

We now know why many expatriates (currently specifically French) come to Portugal. Exemption from income tax for pensioners for 10 years, a 20% ceiling on the income tax for working people, no wealth tax, cost of living about 30% lower than in France or other European countries, record sunshine rates… Why do not go live in Portugal after all?

In any case, if you are not yet ready to make this step and move to Portugal, you can start by making a rental investment. Purchase a beachfront or walking-distance apartment and enjoy a nice rent until the day you decide to move in.

Where to invest in Portugal?

To make the rental a good income, choose a dynamic and touristic city or a near-to-the-beach area.

Lisbon and Porto are the two economic capitals of the country and two leading tourist destinations in Portugal, but they have gone up in price recently too much. In order to create good profits, choose Faro, Vilamoura or Tavira instead, three of the most attractive cities in Portugal’s seaside region, the Algarve.

Whether it is for long-term or seasonal rentals, be sure to invest in a lively place all year round, not just in the summer. Contact a real estate agent to get help with the purchase.

Choose between seasonal and annual rental

The vacation rental is particularly profitable, especially since the last few years Portugal is very en vogue for investors worldwide. Real estate prices and property taxes, although rising, are still more attractive than in many other European countries.

Professionals in the sector are thus announcing profitability of 6 to 8% for high-demand areas. Short-term rentals are particularly popular in large cities and the Algarve where many NHR applicants are looking for property to buy, yet first rent to get acquainted with the different areas.

Annual rental for a T2 apartment can bring € 1.000 per month (on average) in the Central Algarve. A weekly rate of € 1.500 per month (on average) over the high Season period for holiday rentals

So realize your real estate dream and make a successful investment. Get a professional real estate agent to accompany you at all time. From the search of the property to the management of the rental through the signature of the sale agreement. They should be at your side throughout this new adventure.