What rural districts of Portugal should investors keep an eye out for once Lisbon and Porto go off the CBI market in July?

Answers

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  Tiago Gali Macedo

  NEXT/Gali Macedo & Associados

  January 28, 2021

  The Portuguese Residence Program for Investment Purposes (Golden Visa) provides for several different types of investments: the purchase of real estate property with a value equal to or above 500,000 euros; or the purchase of real estate property, with construction dating back more than 30 years, or that which is located in urban regeneration areas, for refurbishing, for a total value equal to or above 350,000 euros. These investment amounts can reduce by 20%, when the investment is done in a low density territory. A specific list with all the territories that qualify for this “discount” does not exist. Therefore, before investing, the chosen area must be analyzed in order to understand if it actually qualifies under one of those requirements.

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  Diogo Capela

  Lamares, Capela & Associados, Sociedade de Advogados

  January 28, 2021

  There is a minimum price reduction of 20% when one acquires real estate in low population density areas: this means your investment will drop to 400,000 euros, instead of 500,000 euros. If you are looking to acquire a house in one of these areas, to put it to yield, the most profitable areas would be the coastal Alentejo region, the Algarve or the Douro: these areas tend to be sparsely populated, and tourist wise they are interesting; this way you get to acquire a cheaper property with a high potential for profitability. If you opt for a property in these areas, you will have to make an investment of 400,000 euros. However, if you opt for a property that needs rehabilitation work, in a low density area, the investment required will be only 280,000 euros, in addition to the works that will be your responsibility.

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  Nuno Albuquerque

  N-Advogados

  May 26, 2021

  You can keep an eye out for Braga, Leiria, Aveiro and Alentejo.