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Experts say that 2021 will be a “year of recovery” for the Algarve property market, largely driven by foreign investment. They highlight that British buyers will be particularly significant, despite Brexit.
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The recent lockdowns have triggered new housing needs, including more space and a connection to nature. With this in mind, property experts have registered an increased demand for land.
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Despite expectations of falling house prices due to the COVID-19 pandemic, the average cost of buying a home in Portugal rose by 8.6% in the last 12 months, compared to the European average of 5.7%. In the meantime, rental prices have dropped by nearly 10%.
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Britons with second homes in Portugal will have to appoint a tax representative within the next 90 days or risk a fine of up to €7,500, says the Portuguese Tax Authority.
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One of the most appealing tax incentives for foreigners moving to Portugal, the Non-Habitual Resident tax regime saw fewer applications in 2020, amidst the COVID-19 pandemic.
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