From Philippines To Portugal : Why Filipinos Are Investing in Portugal?
Let's face it, Asian passports, including the Philippines', aren't the strongest in the world. This makes it difficult to do business in first-world countries, let alone obtain travel visas. Portugal, is making itself available to Filipino investors as part of a strategy to rekindle its relationship with the country and as an EU member. Here's why Filipinos investors are investing in Portugal.
Attractive property prices
Portugal is an appealing market for Filipino investors due to the significant price disparity.
High-end real estate investors are drawn to Lisbon because of its high standard of living and thriving economy. As a result, the majority of Filipino investors are seeing higher returns on their investments. This obvious pattern is said to be followed in other major cities across the country.
Attractive Tax System
Portugal has also enacted a number of laws to protect buyers and the market. Filipino investors face little financial risk because the Central Bank controls interest rates, exchange rates, and inflation. Additionally, the ease with which a property can be purchased adds to the allure of Portugal.
When a property is sold, the increase in value (gain on sale) may be taxable. There are some restrictions with a 24-month grace period for reinvestment and if the sale is for reinvestment in a new property. However, it can be reduced if the property has undergone renovations.
High rental yields
Since the 2008/2009 financial crisis drove the country to the brink of collapse, the tourism industry has been a significant growth driver for Portugal's recovery. According to the National Statistics Institute, 27 million people visited Portugal in 2019, a two fold increase over the previous ten years.
Rents have risen as a result of a shortage of rental homes caused by an increase in tourists. Because rental income from tourist attractions is substantial, this is particularly encouraging for Filipino investors to own rental properties. Furthermore, Portugal has property management companies that look after investment properties.
Golden Visa Programme
With a Golden Visa permit, investors can register in the Schengen region's central system. This allows them to visit any country in Europe without a visa, and after five years, they can apply for a Portuguese passport. It should be noted that applicants, including Filipino investors, are not required to reside in the country.
As a result, the Golden Visa program is well-known throughout Europe. The scheme has attracted over 4.8 billion euros in real estate investments alone, making it the most popular way to profit from this extremely profitable policy. There are, however, other ways to invest in the country.
Time to invest in Portugal
Portugal provides a wide range of investment opportunities. The most popular option is to buy a brand-new or an older property that needs remodeling. Are you looking to invest in Portugal or obtain a Golden Visa? Contact us, and one of our advisors will gladly answer any questions you may have about your investment options.
Contact DRP Advisers for more information about Golden Visa and investments
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