According to the Portuguese Foreigners and Borders Service (SEF), the Portugal Golden Visa program has generated over €7.1 billion in investment for Portugal since it was launched in 2012. Of this amount, over €6.3 billion was invested in real estate.
Portugal’s Golden Visa programme is essentially a government scheme which offers citizens of non-European Union countries the opportunity to obtain residency – and potentially, citizenship – in Portugal once they have invested in Portuguese property. It is dealt with by the Portuguese Immigration and Borders Service, or the Servico de Estrangeiros e Fronteiras (SEF) and has helped Portugal generate foreign investment and employment in the country.
The benefits of the Portugal Golden Visa program include:
To be eligible for the Portugal Golden Visa program, applicants must be non-EU citizens and must make one of the following investments:
The cost of the Portugal Golden Visa program depends on the type of investment that is made. For example, the minimum investment for real estate is €500,000, and the minimum investment for a capital transfer is €1 million.
To apply for the Portugal Golden Visa program, applicants must submit a completed application form, along with supporting documentation such as a passport, proof of address, and proof of investment. Applications can be submitted online or through a Portuguese embassy or consulate.
The processing time for a Portugal Golden Visa application is typically 2-3 months. However, it is important to note that the processing time can vary depending on the complexity of the application and the workload of the Portuguese Immigration and Borders Service (SEF).
To maintain a Portugal Golden Visa, holders must spend at least seven days in Portugal per year. Additionally, holders must renew their visa every two years. To renew their visa, holders must submit proof that they have met the residency requirement and that they have paid the applicable fees.
Yes, holders of a Portugal Golden Visa can apply for Portuguese citizenship after five years. To apply for citizenship, holders must meet the following requirements:
The tax implications of the Portugal Golden Visa program vary depending on the applicant's residency status and other factors.
Resident taxpayers in Portugal are subject to Portuguese income tax on their worldwide income. However, there are a number of tax benefits available to resident taxpayers, such as the Non-Habitual Resident (NHR) regime. The NHR regime allows new residents of Portugal to benefit from a reduced tax rate on certain types of income, such as foreign-sourced pension income and foreign-sourced investment income.
Non-resident taxpayers in Portugal are only subject to Portuguese income tax on their Portuguese-sourced income.
It is important to seek professional advice from a qualified tax advisor to understand the specific tax implications of the Portugal Golden Visa program.
Whether or not the Portugal Golden Visa program is a good investment depends on the individual applicant's circumstances and goals.
The program offers a number of benefits, such as the right to live, work, and study in Portugal, free movement within the Schengen Area, and the possibility of obtaining Portuguese citizenship after five years. However, the program also has some costs, such as the investment requirement and the application fees.
It is important to weigh the benefits and costs of the program carefully before making a decision.
If you are interested in the Portuguese Golden Visa programme, IP Global is happy to help investors through the process. Simply contact us here.
Property investment is a popular way to achieve financial growth and passive income, but it's not without its challenges. To make the most out of your investments, it's crucial to educate yourself and steer clear of common pitfalls. Let’s delve into the top 5 mistakes that investors often make when investing in property in Europe/UK, providing insights and guidance on how to avoid them.
Rushing into a property investment without thorough research is a recipe for disaster. It's imperative to gather comprehensive data about all the factors that could influence your investment’s performance before making a decision.
When researching a property investment, you need to consider the below:
Is this property close to transport links which will improve rentability? Is it in a well-established area which typically will result in a lower yield or is it located in an up-and-coming neighbourhood which offers higher yields? Is there regeneration present which will drive up the value?
The type of investment property you select should reflect the long-term demographic and lifestyle trends. Is there a rise in single-family households meaning it makes more sense to opt for studios and one-bed apartments? Is the work from home movement here to stay and will tenants value remote working facilities more?
It’s important to thoroughly inspect any property you purchase if it is a resale, this includes. When buying off-plan, check the track record of the developer and see that the specification was adhered to or that the property was built to standard and has grown in value as anticipated.
Understanding the property's rental potential allows you to assess its ability to generate rental income, cover mortgage payments, and potentially yield a positive cash flow. Factors such as location, amenities, local rental market trends, and demand for housing in the area influence the property's rental value.
Understanding the property's market value allows you to assess whether the asking price is fair and whether you're making a sound investment decision. This research involves analyzing recent comparable property sales in the area, current market trends, and economic indicators that influence property values. Accurately determining the market value ensures that you don't overpay for the property and that you have a realistic understanding of its potential for appreciation over time. It's a fundamental step to safeguarding your investment.
When you purchase a property you don’t only pay the purchase price of the asset. There are additional expenses such as stamp duty, legal fees, survey costs, and potential maintenance or renovation expenses.
Understanding ongoing ownership costs like property taxes, insurance, utilities, and potential homeowner association fees is crucial for accurately budgeting and ensuring that the property remains a financially viable asset.
Understanding the risks associated with property investment, such as fluctuations in property values, tenant vacancies, and unexpected maintenance costs, enables you to develop a comprehensive risk management strategy. By being aware of these risks, you can make contingency plans, allocate resources wisely, and minimize the impact of adverse events.
Thorough research empowers you to approach property investment with a balanced perspective, making choices that align with your risk tolerance and safeguarding your investment against unforeseen challenges.
Before you invest in any property, you need to have a clear idea of what you want to achieve. Are you looking to generate passive income? Make a capital gain? Or both? Typically you will find that you get more capital growth on an expensive property with a lower yield, as well as lower risk. However, properties with cheaper entry price points may offer higher yields but the future performance of the investment is less secure.
Not having a clear investment strategy is a significant mistake in property investment because it can lead to haphazard decisions and a lack of focus on your financial goals.
Without a well-defined strategy, you might purchase properties that don't align with your objectives, resulting in suboptimal returns or even financial losses. A clear investment strategy guides your property selection, financing choices, and risk management approach. By neglecting to establish a clear strategy, you risk scattering your resources and missing out on opportunities that could have contributed to a more successful and coherent property portfolio.
One of the quickest ways to lose money on a property investment is to overpay. This is why it is important to get a professional valuation before you make an offer.
The valuation will give you an idea of the fair market value of the property. This will help you avoid overpaying and ensure that you get a good return on your investment.
Overpaying for a property is a common mistake in real estate investment due to various factors that can cloud judgment. Emotional attachment, lack of thorough research, and market hype can contribute to buyers offering more than a property's actual market value. Overestimating potential returns or succumbing to peer pressure may also lead to inflated bids. This mistake not only reduces potential profits but also prolongs the time it takes to recoup the investment. By overpaying, investors compromise their financial goals and miss out on opportunities to acquire properties at their true value.
Conducting diligent research, obtaining professional valuations, and maintaining a disciplined approach to negotiation can help investors avoid this pitfall and secure properties at prices that align with their investment strategy.
Effective property management is pivotal for a successful real estate investment, yet it remains a prevalent mistake. Inadequate property management can lead to financial losses, property deterioration, and legal complications.
Proper property management encompasses several key responsibilities, such as tenant selection, rent collection, maintenance, and legal compliance. Neglecting these aspects can lead to unpaid rent, increased repair costs due to deferred maintenance, and potential legal actions from dissatisfied tenants. To avoid this mistake, engage with the following practices:
By prioritizing effective property management, you mitigate risks, enhance tenant satisfaction, and safeguard your investment's long-term success. Proper management not only prevents financial setbacks but also creates a positive environment that benefits both you and your tenants.
Not utilising leverage is a common mistake in property investment with significant implications for potential returns. Leverage involves using borrowed funds, typically through a mortgage, to finance a property purchase. While some investors opt for an all-cash purchase to avoid debt, this approach can hinder the growth and profitability of their investment portfolio.
Using leverage can provide several advantages. Firstly, it allows investors to control a higher-value property than they could afford with their own capital alone, thus maximising potential returns. Additionally, leveraging enables diversification – instead of investing all available funds in a single property, investors can spread their investments across multiple properties, reducing risk. Leverage also magnifies returns: as property values appreciate, the initial investment increases in value, resulting in higher overall returns on investment.
However, it's crucial to exercise caution and make informed decisions when using leverage. While it can amplify gains, it can also magnify losses in a declining market. Investors should carefully assess their risk tolerance, secure favorable mortgage terms, and ensure that rental income covers mortgage payments and other expenses. By strategically leveraging, investors can optimise their real estate investment portfolio's growth potential, achieve higher returns, and diversify their assets for a balanced and successful approach to property investment.
Navigating the world of property investment requires careful consideration and the avoidance of common pitfalls. To safeguard your investment journey and maximise returns, steer clear of these top 5 mistakes: insufficient research, lack of a clear investment strategy, overpaying for a property, inadequate property management, and not using leverage. Thorough research empowers you with knowledge to make informed decisions, while a strategic investment approach aligns with your financial goals. Proper property management ensures tenant satisfaction and financial stability. Leveraging borrowed funds can amplify potential returns and diversify your portfolio. To receive personalised insights and expert guidance on avoiding these mistakes and optimising your property investment journey, take advantage of a free consultation with an IP Global wealth manager. Don't miss the opportunity to enhance your investment strategy and pave the way for a prosperous property portfolio. Schedule your free consultation today to secure a successful property investment future.
As we approach the midpoint of 2023, the global real estate landscape continues to evolve, presenting investors with a myriad of opportunities to diversify their portfolios and achieve financial success. The quest for the best countries for property investment can be an exhilarating adventure, taking you across continents and introducing you to the unique attributes that make each nation stand out.
In this article, we will journey through the top countries for property investment in 2023, uncovering the reasons behind their appeal and providing you with invaluable insights to make well-informed decisions and maximise your returns.
Why should you consider investing in property this year? Here are the key factors that make 2023 an ideal time to join the property investment game.
Resilient Asset Class: Amid ongoing economic recovery, property remains a steadfast asset class, providing long-term value and growth potential.
Emerging Opportunities: New opportunities post COVID-19 continue to emerge in 2023, presenting investors with untapped potential and attractive opportunities for high returns. As the world moves on from the pandemic and people start moving around again, short-term lets have attracted a significant amount of interest driving up yields. However, it is important to understand all that comes with the various let options and what to factor in (such as void periods), download our guide here.
Diversification: Spread your risk across various countries and markets, reducing the impact of local market fluctuations on your overall investment portfolio.
Before diving into the top countries for property investment, let's first examine the factors that should be considered when investing in real estate. These factors can help you determine whether a particular country is an ideal destination for property investment opportunities. These are also some of the key factors that our methodical investment team have considered before committing to the many successful global investments across our portfolio.
From picturesque coastal towns to bustling metropolises, the world of property investment is brimming with opportunities. In 2023, a select few nations are set to outshine the rest, offering unparalleled potential for growth and an enticing quality of life. Our curated list of top countries for property investment in 2023 caters to a diverse range of investor preferences. By diving deep into the unique characteristics and market trends of each location, you'll be equipped with the knowledge and inspiration to make informed decisions and elevate your property investment portfolio to new heights.
We have created a detailed investment case for each of these countries, which you can download at no cost by visiting their respective pages.
Despite various challenges, the UK property market offers numerous benefits for international investors with a reputation for resilience despite uncertain circumstances. This is largely due to the ever increasing under-supply of housing which has led to continuous pressure on property and rental prices. Between 2010 and 2020, IP Global’s key UK cities (London, Manchester, and Birmingham) outperformed the FTSE 100 in price growth. London led the charge with 77% growth in the past decade.
Property prices are anticipated to see subdued growth due to mortgage rate changes throughout 2023 following a very buoyant year for real estate, but the UK has always shown to operate one of the best global property markets for long-term growth. Average house prices are estimated to increase around 34% between 2022 and 2035 and when factoring in the ability to leverage, ROI is in excess of 100%. Rental properties also are in short supply in London as well as many regional cities offering favourably low void periods and opportunities for rent increases not seen as regularly in other markets.
Portugal has emerged as a hotbed for property investment thanks to its stable economy, attractive tax incentives, and beautiful coastal locations. The country's GDP growth rate has steadily increased, with an average annual growth rate of 2.6% from 2017 to 2021, signalling a strong economic foundation for property investment (World Bank, 2021). Moreover, Portugal's Golden Visa program has attracted numerous investors, with a total of €5.6 billion invested in the real estate market since its inception in 2012 (SEF, 2021). International housing demand in Portugal's district capitals surged to 27% due to urban regeneration and luxury resort investments, while rental demand rose from 24% pre-pandemic to 32% in December 2022.
Germany is the third largest exporter in the world, with an economy expected to reach EUR 5.34 trillion by 2035. As Europe's largest economy, Germany offers a robust property market with strong potential for capital appreciation. The country's GDP growth rate was 2.5% in 2021 (World Bank, 2021), and house prices have increased by an average of 5.8% per year between 2015 and 2020 (Global Property Guide, 2021). In fact, house prices are predicted to increase by a further 45% by 2035. In particular, cities like Berlin, Leipzig, Frankfurt, and Munich are predicted to experience significant growth.
As we reach the end of our insightful exploration of the best countries for property investment in 2023, it's clear that the global real estate landscape offers a diverse array of promising opportunities for real estate investors. By setting your sights on these premier destinations, you can capitalise on their unique strengths, solid economic foundations, and promising growth prospects.
However, the journey doesn't end here. The global property market is ever-changing, and staying informed about market trends and emerging opportunities will empower you to make strategic investment decisions that align with your financial goals. We trust that this comprehensive guide to the top countries for property investment in 2023 has inspired you to embark on your next investment adventure, armed with the knowledge and confidence to take your property investment portfolio to new heights.
Speak to one of our real estate investment experts today to begin building your property portfolio here and unlocking the full potential of your investments in 2023 and beyond.
IP Global has been the property investment partner of choice for over 15 years. From sourcing, financing and acquisition to ongoing management and resale, we pride ourselves on making real estate investment an easily manageable and highly profitable aspect of your portfolio.
The world of international real estate investment is an alluring one, offering the prospect of diversifying your portfolio and tapping into potentially lucrative markets. As globalisation continues to shrink the world, international real estate investment opportunities are becoming increasingly attractive to investors seeking to capitalise on the potential for high returns and portfolio diversification. However, investing in overseas property also comes with its fair share of challenges and risks. In this blog post, we will explore the pros and cons of overseas property investment, the importance of due diligence, choosing the right location, managing your investments, and finally, whether it is worth it in the end.
Many, if not all, of these drawbacks can be mitigated by utilising a property investment partner that is well-versed in international real estate investments.
For over 15+ years, IP Global has been the trusted partner of choice for both first-time and experienced investors who are looking to explore the lucrative world of overseas property investment. From sourcing, financing and acquisition to ongoing management and resale, we pride ourselves on making real estate investment an easily manageable and highly profitable aspect of your portfolio.
View our impressive Track Record
Every investment requires a certain amount of due diligence, but venturing into the world of overseas property investment demands a stronger foundation of research and analysis. This not only minimises your risks but also equips you with the confidence to make informed decisions. To lay this groundwork, start by delving deep into the local market, exploring aspects such as property values, rental demand, and economic trends.
Moreover, familiarise yourself with the legal and regulatory landscape in your target country to avoid unforeseen pitfalls. Seek expert advice from professionals who specialise in international real estate investment, as they can provide invaluable guidance, research and insights tailored to your specific situation. In essence, due diligence is the cornerstone of a successful overseas property investment, paving the way for informed and strategic decision-making and financial gain.
As we close in on the midway point of 2023, the global real estate landscape continues to transform, presenting investors like you with a multitude of opportunities to diversify portfolios and achieve financial success. The pursuit of the best countries for property investment can be a thrilling journey, taking you across continents and acquainting you with the distinctive qualities that make each nation shine.
The ideal country for rental investment hinges on several factors, such as robust economic growth, political stability, and a healthy balance between supply and demand. Beyond these criteria, consider infrastructure development, economic outlook and the potential for capital appreciation. It's also crucial to align these factors with your personal financial goals, ensuring your investment strategy resonates with your long-term objectives.
In 2023, countries like France, the UK, Germany, Spain, and Portugal are anticipated to provide lucrative rental investment opportunities, owing to their flourishing tourism industries and the unwavering demand for rental properties. By carefully evaluating these factors and aligning them with your individual goals, you can unlock the door to prosperous overseas property investments.
View our previous insights, which takes a closer look at the Best Countries for Property Investment in 2023.
Once you've invested in an overseas property, ongoing management becomes crucial to ensure its long-term success. This entails staying up-to-date with local market conditions, maintaining your property in top-notch condition, and addressing any legal, tax, or regulatory issues that arise. While it may seem overwhelming, a proactive approach to property management is indispensable to safeguard your investment and maximise returns.
To ease the burden of managing international real estate investments, many investors opt to partner with property management companies or collaborate with local contacts who can provide on-the-ground support. By entrusting your investment to experienced professionals, you can rest assured that your property is well taken care of, allowing you to focus on the bigger picture and enjoy the rewards of your overseas property investment journey.
The enthralling world of international real estate investment has much to offer, from portfolio diversification to tapping into lucrative markets worldwide. As globalisation reshapes the landscape, international real estate investment opportunities are becoming increasingly attractive to investors seeking high returns and portfolio diversification. However, investing in overseas property comes with its own set of challenges and risks.
Throughout this blog post, we've delved into the pros and cons of overseas property investment, the significance of due diligence, choosing the right location, and managing your investments. A critical takeaway is the importance of aligning your investment strategy with your personal financial goals, ensuring a harmonious blend of aspirations and practicality.
So, is it worth investing in overseas property? Ultimately, yes! While the answer depends on your appetite for risk, your investment objectives, and your ability to navigate the complexities of international real estate, with proper planning, thorough research, and the assistance of experienced professionals, overseas property investment can unlock a world of opportunities and contribute significantly to your financial success.
Sunny Porto in 葡萄牙 is the perfect place for a happy work-life balance. It’s a safe city comprised of a rich culture and heritage, a booming tech-driven economy and a renown Research and Development environment. In addition to this, the city has a plethora of high-quality health services, international schools and excellent flight connectivity.
波尔图 is also known for being very welcoming and open to foreigners. This allows for easy cross-cultural integration, whilst offering a unique quality of life for everyone who has chosen Porto as their home.
In 2018, Porto was crowned Europe’s most start-up friendly city by The World Excellence Awards, following on from the successful Scale-Up Porto initiative launched back in 2015.
The aim was simple: support the growth of local tech start-ups with the potential to scale internationally and position Porto as a city open to creativity, innovation and entrepreneurship.
The current ecosystem provides 69 research and development centres, 20 incubators, 14 co-working spaces, and 8 technology and transfer centres.
The city is now a pioneer in the creation of tech start-ups, accounting for 36% of the national total and home to several leading high-tech companies. Porto’s top start-ups include: Farfetch, Porto.io, Opolab, NOW, Porto Innovation Hub and Muratto Open Space Porto. A flourishing market has subsequently evolved within the city, as it continues to draw in a growing pool of talented workers and students.
An esteemed business mentality is not new to the running of 波尔图, as Rui Coutinho, Executive Director of the Centre for Business Innovation explains, “our DNA is one of business people, manufacturers, industrialists and traders. There is a strong and long entrepreneurial background to the city”.
波尔图 is also Portugal’s leading education hub, attracting 72,000 students (the country’s highest number of students in higher education) and is home to several of the country's best universities.
The city's large pool of highly qualified, multi-lingual, and extremely motivated graduates has fostered Porto's importance as an area to produce entrepreneurs and start-up founders.
This in turn has made Porto the industrial and business hub of the country, as opposed to its sister, Lisbon, which is very much the creative and tourism hub of Portugal.
Porto is experiencing soaring rental and property prices. House prices in the city’s historic centre have more than doubled since 2014, albeit from a lower base. Like other Portuguese cities, Porto is suffering from a residential supply shortfall and property prices will continue to rise. As of Q1 2020 the city saw 19% annual growth in house prices.
In the last two years there has been significant redevelopment efforts across the city; large public investment in new roads, libraries and universities are providing a welcomed facelift to the city. Previously run-down buildings in the city centre are being refurbished and these projects are rightfully attracting international capital.
Despite mounting demand, the square metre price of property in Porto remains lower than Lisbon and more affordable than other global investor hotspots. A 300% increase in jobs created by foreign investors was seen between 2013-2016 and in late 2018 Amazon announced it would be opening a new European base in the city.
According to EY’s European Investment Monitor, Porto’s levels of foreign direct investment (FDI) grew at a rate of 11.4% between 2013 and 2018. This growth rate is faster than other Portuguese regions as well as the EU average.
The 2020 EY Portugal report tracked 51 FDI projects across Northern Portugal accounting for 5,722 new jobs. This equates to an 88% annual increase in FDI projects and a 93% annual increase in the number of jobs created to 2019.
Porto’s investment profile is strengthening not only in Portugal but worldwide. Future forecasts remain strong and robust. To take advantage of this unique investment opportunity, see IP Global's latest Porto residence below.
Litoral Living is IP Global’s second development in Porto and is located within the southern part of the Matosinhos neighbourhood. If you would like to find out more about investment opportunities in 波尔图 and Litoral Living, contact us today.
Portugal’s Golden Visa programme has become hugely popular among non-EU citizens looking to invest in Portuguese property.
Since the Portuguese government launched the scheme in 2012, it has generated an impressive EUR5.2 billion as of June 2020 in foreign investment and is a strong incentive for property investors worldwide.
But how exactly does the programme work and what makes it so popular among would-be investors? Check out our guide answering the top 10 questions.
Portugal’s Golden Visa programme is essentially a government scheme which offers citizens of non-European Union countries the opportunity to obtain residency – and potentially, citizenship – in Portugal once they have invested in Portuguese property. It is dealt with by the Portuguese Immigration and Borders Service, or the Servico de Estrangeiros e Fronteiras (SEF) and has helped Portugal generate foreign investment and employment in the country.
An individual must be a citizen of a third-party country to apply for a golden visa, which means Portuguese and EU nationals are not eligible to apply.
Since launching in 2012, the scheme has mainly attracted high-net worth individuals, highly-skilled professionals and retirees.
To qualify for a golden visa, one of the following three key criteria must be met:
In some cases, people who are investing in small and medium businesses, or in the arts and culture or scientific research may qualify too but the vast majority (90%) receive the visa through real estate investment.
In some cases, property investments valued at €350,000 or above may qualify, but the SEF will only approve these if the property being purchasing is more than thirty years old, is located within specific regeneration areas and requires extensive renovation work. If an investor elects to pursue this route, it is important to seek legal advice first.
The scheme requires that the investor maintains their investment for five years and complies with the minimum required periods of stay during this time. Most applicants need to provide proof of medical insurance to stay in the country, and the government may carry out checks to ensure applicants have a clean criminal record.
Many investors like Portugal’s Golden Visa programme because it is a fast-track way to acquire residency and allows investors to gain residency permits not only for themselves but also their spouse and any dependent children they may have. It also allows for travel throughout the EU Schengen zone without any additional visas - and once residency or citizenship has been gained investors and their dependents can live, work and study freely throughout the zone.
Once a golden visa is issued, the holder is also entitled to tax exemptions from other overseas income, if the investors lives in the country for less than 183 days per Portuguese tax year. Please speak to a tax advisor for more information.
The visa is valid for one year and it must then be renewed every two years after that. After five years, most people can apply for permanent residency and after six years, it is generally possible to apply for full citizenship by investment.
To keep a golden visa valid, the holder must spend at least seven days in the country during their first year as part of the programme, and after this, two weeks in the country every two years. Once an investor applies for permanent residency, they may have to pass a basic language test.
When applying to the scheme, the following documentation must be provided:
Once a qualifying property has been purchased and the paperwork submitted, an investor should be able to expect to receive their visa within three months or more, depending on if any problems exist with the application and supporting documentation.
If you are interested in the Portuguese Golden Visa programme, IP Global is happy to help investors through the process. Simply contact us here.
*Update: The Portuguese government announced in February 2020 that it intended to omit the coastal cities from the regions applicable to the golden visa programme in order to boost inland investment and create more jobs. This, however, has been tabled due to the COVID-19 pandemic. For the foreseeable future Porto and Lisbon remain the best options for investors in terms of capital upside and visa acquisition.
Long considered Lisbon’s quieter sibling, Portugal’s second city is undergoing an incredible moment of transformation. On the steep banks of the Douro River, Porto is establishing itself through its rich culture, thriving culinary scene, and growing student population, as well as being one of Europe’s leading start-up centres.
Portugal’s property markets are currently some of the most attractive in Europe. More than just a desirable holiday destination, the country is now also a hotly desired place to live and invest in. Portugal’s northern jewel is playing an instrumental role in the country’s revival and we expect Porto’s growth to continue.
So, why is IP Global investing in Porto?
strategic location
This Unesco heritage city in Northern Portugal is strategically located within a well-connected region. Already attracting record tourism levels – Portugal saw double-digit growth in visitor numbers every year between 2014 and 2017 – Porto is increasingly appealing to students and young professionals looking for an alternative to other, more expensive European hubs.
Only a 3-hour train ride from Lisbon and with over 8,000 weekly flights to international destinations, Porto offers residents and visitors an ideal position within the continent.
education
Home to The University of Porto, the city hosts over 72,000 higher education students and is known as the main university hub within Portugal. With the highest number of students in higher education in Portugal, the University of Porto is Portugal’s highest ranked institution, according to the QS World University Rankings 2018. Other universities, including Porto Polytechnic and Porto Business School contribute to the city’s energetic student population and attract a high number of international students.
With only 1,250 dedicated university or religious housing units available in Porto, the majority of students in the city must rent in private accommodation, which is good news for property investors.
technology hub
Thriving business is not new to Porto. ‘Our DNA is one of business people, manufacturers, [industrialists] and traders. So there’s a strong and long entrepreneurial background to the city,’ explains Rui Coutinho, executive director of the Center for Business Innovation at Porto Business School.
Historically, foreign investment in the Porto region took the form of blue-collar factories from IKEA, Continental and Bosch. However, more recently, these companies have upgraded and expanding into technological development, creating some of the most innovative centres within their sectors.
In 2018, The World Excellence Awards named Porto Europe’s ‘Best Start-Up Friendly City’. ScaleUp Porto is an initiative launched by the Camara do Porto in 2015 aimed at supporting the growth of local technological start-ups with the potential to scale internationally. ScaleUp has been instrumental in successfully positioning the city as a European hub open to entrepreneurs. The city is now a leader within Portugal, accounting of 36% of the nation’s total number of technological start-ups and housing offices of Farfetch, BLIP, Critical Software and Talkdesk, among others.
infrastructure improvements
Porto has world-class infrastructure systems and is only improving its offerings. The Porto Airport is an award-winning and highly connected hub, and an international entryway to Europe. One of the best airports in Europe, it served almost 12 million passengers in 2018 and offers flights to over 110 destinations.
Reaching key European cities including London, Paris, Frankfurt or Rome within three hours by air, future route expansions by Ryanair and Emirates will encourage increased levels of traffic.
The Leixões port, just outside Porto, serves as a logistics platform to the city and the airport. Responsible for 20% of Portuguese international trade, it has also recently inaugurated a new cruise terminal in 2015 at a cost of EURO50 million which now sees tens of thousands of passengers every year.
Public transport in Porto’s city centre is reliable and good value for money, featuring an extended and diverse network of metro and tram systems, and various urban buses. Managed by a state-of-the-art contactless ticketing system, Porto also has the largest network of buses in the world that have Wi-Fi. An expansion of seven new stations is projected to be completed by 2022 and will increase ridership by an estimated 30,000 rides per day.
housing shortage
House prices in Porto’s city centre have more than doubled since 2014, albeit from a lower base, and demand will continue to exceed the city’s supply across the sales and lettings markets for the foreseeable future.
The housing shortage is driving even more rapid growth in the rental market, with the average rent nationwide increasing by 13% in 2018 alone. Porto’s growing tourism industry has led to many homeowners pursuing opportunities such as Airbnb, and subsequently the city’s housing supply for residents have become increasingly squeezed. Many of the one-bedroom units on the market are targeted at the large student population and growing entrepreneur base.
value
Lisbon has led Portugal’s property market story since the country’s recovery period began. Porto is approximately three to four years behind the capital, boasting greater value and strong growth potential.
Porto is a highly affordable major city in Western Europe. According to Porto.ForTalent, the living cost in Porto is 46% lower than Paris, 32% lower than Frankfurt, and 25% lower than Barcelona. Porto’s house prices also remain affordable in comparison to other global investor hotspots.
investor incentives
Investors are taking note that Portugal’s tax regime offers a low effective tax burden, free overseas remittances and no gift, inheritance or wealth tax. Property buyers whose purchase qualifies them for a Golden Visa are offered the additional benefit of being able to apply for Portuguese nationality to obtain an EU passport for both themselves and any dependents they have.
quality of life
Jose Neves, the founder and CEO of Farfetch has reflected that, ‘Porto quickly became an extremely attractive city to live in and invest. I believe that what really makes a difference are the people, the fact that the city is welcoming and that everything is close, the sea, the river and the best of Portuguese cuisine’.
The city offers 39 museums, 20 cinemas, 12 theatres, numerous art galleries as well as a busy cultural agenda throughout the year. Young and imaginative chefs are reinventing the region’s culinary traditions while artists are renovating previously neglected corners of the city. It is unsurprising that CNN has hailed Porto as Portugal’s ‘Most Creative City’ and in 2012, 2014 and 2017 the city was named Europe’s ‘Best Destination’ by Lonely Planet.
Consistently warm weather, a vibrant cultural life, a resurgent entrepreneurial scene, a world-class university and a unique city centre which carries a culture of diversity in its genes support Porto’s growing profile and government schemes will ensure that the attractiveness of Porto remains strong.
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