Golden investment opportunities in Portugal, thanks to a virtuous business environment and a favorable climate for foreign capital both in the short term as well as in the long term. Its strategic location is extremely ideal for those who wish to serve the European market or want to extend their business across the world. Portugal has taken remarkable steps in recent years to boost growth by increasing its competitiveness and simplifying the process of investment and business. Portugal is currently in the desirable position of having world-class infrastructure, a highly qualified young work force, a safe environment and high standards of investment protection.
Portugal is ranked by the World Bank as 23rd out of 189 countries in terms of the ease of starting a business and enforcing contracts. The Portuguese economy is showing remarkable growth than the other countries within the Euro Zone. The Portuguese economy is expected to grow at a rate of 0.9 percent which is quite impressive amongst the repercussions of the global economic downturn and is expected to grow at a rate of 1.4% in the coming year based on the signs of global recovery.
There are loads of incentives which the Portuguese government provides to foreign investors. However, these incentives are based on the certain factors such as the contribution of the investment for development purpose, the size of the investment, job creation. The Portuguese government provides a reduction of the corporate tax by as much as 15% for resident companies in areas that are eligible for benefits whereas for companies that create permanent jobs can get a deduction of 50% on their social security payments.
Prices on real estate in Portugal have recovered significantly since the crisis of 2008 and are attracting renewed interest from international investors. Foreigners have accounted for some 80% of commercial property investments in recent years, and as many as one of five of the residential properties sold.
There are no restrictions on foreign property ownership in Portugal and transaction costs are generally low. The high-end of the property market has benefitted especially from the country’s Golden Visa program, which grants non-European Union citizens who buy at least half a million euros worth of property immediate residency.
Smaller apartments tend to be more profitable. For example, 1 BHK apartment in most expensive housing in Portugal, would be 149000 Euros (surface: 44,5 +8,5 m2 balcony) in the Algarve.
Rental yields would be 12 to 15000 euros per year.
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