Portuguese real estate has been pricing itself out of the market during the last few years.
Until 2023, Portugal had a 'golden visum' program, awarding a lifelong visum for a real-estate investment above €500.000. The program was altered and extended by an NHR program for foreign residents or Portuguese expatriates returning home. Tax incentives for foreign income made the difference as compared to a country as Spain which is less advantageous (but where the 13 regions have vastly different rates).
But the trend was not curbed and real estate prices continued escalating, pricing locals out of the market resulting in an new emigration wave of young Portuguese. The NHR 2.0 is now limiting the tax incentives for new arrivals to young professionals in mathematics, engineering and R&D. But will this restriction curb the trend? Tax incentives remain for all arrivals prior to 2025.
Following two videos depict the best (less overpriced) and worst (most overpriced) local real estate markets in Portugal.
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