The most “searched-for” regions for property investment in 2020-2021: Portugal, Greece, Cyprus, Malta or Montenegro?
Investment in real estate conjures up different images for different people, and for good reason. It is fair to say that investors each have their own agenda and their own rationale for entering the real estate sphere. And this is not always based around pure monetary returns. So, in this article from Jamesedition, we’ll look at five European destinations for property investment in 2021: Portugal, Greece, Cyprus, Malta, Montenegro — and discuss key aspects of buying real estate there.
Each of these countries could be classed as being “top” in at least one of the many considerations real estate investors might use.
Portugal enjoyed a 10.3% property value growth in the first quarter up to March 2020, which immediately puts it top of the list for capital growth compared to the other destinations. Lisbon, Porto, Lisboa and Estoril all saw strong growth due to low interest and mortgage rates and a high rental demand in more urban areas.
But property investment in Portugal is not all about capital returns and higher dividend yields: the real estate market has much more to offer.
Golden Visa program in Portugal
According to the Henley Passport Index, Portugal has the 6th strongest passport in the World (providing visa-free travel to most countries). The country is a member of the EU and places no restrictions on foreign investment in property.
Most importantly, it offers a 5-year residency permit for non-EU citizens with the option to apply for permanent citizenship after that period. This policy also places it in 6th position worldwide in the so-called ‘Golden Visa program’ rankings.
Spain, by comparison, offers only a 2-year residency permit, so the age-old ‘Spain or Portugal?’ question seems to be strongly answered in favor of property investment in Portugal.
It’s not surprising that there are more than 200 real estate companies working with foreign buyers in Portugal, including bigger corporate players and local agencies.
Property taxes in Portugal
As for the property tax in Portugal, in 2017 the country introduced a ‘Wealth Tax’ of 1% on property investment in Portugal for real estate valued over €1m. But due to personal allowances afforded to individuals and couples, along with the abolition of domestic Stamp Duty, it has had little effect on the demand for premium property.
Best places in Portugal to invest in real estate
Considering lifestyle, the Algarve region is famous for its beautiful weather and fantastic golf resorts. This is where luxury meets lifestyle meets investment.
But Portugal’s Silver Coast in the North is also a popular destination among real estate buyers. The area stretching from Ericeira (a 1-hour drive from Lisbon) to Nazare is well-known for its unique landscapes and the steady stream of tourists.