Portugal is trying its best to entice overseas buyers to invest in property and businesses in the country. At the beginning of next month it will introduce a new piece of legislation that will extend long-term visas to non-residents who are willing to bring capital into Portugal.
Apparently the new rules for eligibility will include the purchase of a property worth at least $500,000, or starting up a business that will create at least 30 jobs. Alternatively a visa will be available to those transferring at least $798,913 in capital.
It’s hoped these new regulations will help boost property sales, especially within the resorts and second-homes sectors. Figures from Global Property Guide show land values have fallen by 10.95% since the second quarter of last year, and the country still needs extensive austerity measures to try to restore its finances.
These austerity measures are to include higher income and property taxes, and are likely to be implemented sometime next year. Even though these new visa regulations may help a little, Portugal will still need to do a lot more to help it pull out of its third year of recession and into economic recovery.
It is likely that income taxes will increase from their current rate of 9.8% to 11.8%, although both of these rates still sound pretty low in comparison with many other countries around the world. Even so, Portugal’s largest union is to call a general strike for the middle of November. In spite of all this property in Portugal is looking like a pretty good bet, although anyone contemplating purchasing a home should take these higher taxes into consideration.