Spotlight on Lisbon
In 2019, PwC ranked Lisbon as the best city in Europe for investment and development prospects, due to solid economic fundamentals, affordable prices, a low cost of living and improving transport connections.
Buying a property in Lisbon
Since the introduction of certain incentives, the city has seen a boost to the market and is now an international destination for investors, developers and tourists alike.
The Non Habitual Residency (NHR)
Introduced in 2009, the government’s Non Habitual Residency initiative allows anyone who has not been resident in Portugal for the past five years to receive pension income, rental income, capital gains on real estate and non-Portuguese income tax-free. The NHR is valid for 10 years.
The Golden Visa
Although Golden Visas are common in a number of southern European economies, Portugal’s scheme, which started in 2012, has been one of the most popular. Since this time, over 7,291 residence permits have been granted to non-EU residents. There are different ways of obtaining residency, with most people opting to purchase real estate via an investment of €500,000 or more, a few who decide to transfer capital and a small number of people who created a minimum of 10 jobs.
It’s also worth noting there is currently no inheritance tax, gift tax or wealth tax in Portugal.
Prime locations to purchase property in Lisbon
Built on seven hills, Lisbon offers a mix of neighbourhoods, each with a distinct feel. The Avenida da Liberdade is the central spine of the old town running down to the historic quarter of Baixa, providing easy access to the designer stores, theatres, restaurants and the waterfront. The lively district of Chiado, the city’s cultural heart has largely been rebuilt following a fire in 1988 and with prices now close to €10,000 per sq m the area generates some of the highest premiums in the city. To the west sits Belém, a quieter district with a village feel, overlooked by the Ajuda National Palace. Once home to dockyards and warehouses the area now offers green space, parks and plazas. The coastal town of Cascais, located 30 km to the west of Lisbon, is a second home retreat comprised of detached villas, world-class golf courses as well as good international schools.
Investment plans in Lisbon
With three tech parks, 90 higher education institutions, two universities and a vibrant start-up scene, Lisbon is emerging as one of Europe’s creative hubs. To meet this demand, the city’s transport infrastructure is being upgraded. Due to open in 2022, the new Monitjo Airport will service 50 million passengers per annum, up from 28 million at present. A €210 million Metro project is underway which will result in two new underground stops and the regeneration of Cais do Sodré, the city’s main transport hub for trains, the metro and ferries.