Living in Lisbon, Portugal is becoming a question that many retired people are asking themselves. But why ? If you have your circle of friends, your hobbies, your habits ? What is it that makes so many people wonder whether their time would be better spent in the Algarve, Lisbon or Porto ?
The climate (265 days of sunshine per year) could be the reason, but that’s not enough. The other important advantage is the taxation: being taxed on your pension at 10% for 10 years. You just need to be a non-habitual resident (more than 183 days per year in Portugal) and not have been a tax resident for the last 5 years. The preparation of the application may seem difficult but we can help you. Especially if you do not speak Portuguese.
If taking the plunge is not easy for everyone, it is worth the effort. Moreover, there is a good chance that your friends will follow you. Nowadays, the British embassy counted more than 60,000 Brits retirees !
If we can compare our situation to the USA, Portugal is a bit like the Florida of Europe. The positive benefits of Portugal are unbelievable :
Portugal is historically and culturally rich. Monuments, parks, colours, but also the heritage of the great discoveries offer a sublime mix at every turn, which any more or less attentive walker will enjoy.
Leisure activities play an important part in everyday life : water activities, walking, golf, cycling, football…
Finally, freshness of everyday products (fruit, vegetables and fish), whose true taste we have forgotten and which can be found in any traditional restaurant.
When you are thinking about buying a property, you are already thinking about a large house for your children and grandchildren. While property prices were low in the aftermath of the 2008 crisis (the lowest level was reached in 2013), in the space of 5 years they have jumped by over 30%.
In Lisbon today, the lowest price you will find will be around €3500-4000/m² with renovation work to be done. Today we have properties selling for the price per square metre in Miami !
The latest analysis clearly shows that prices for new properties are constantly increasing. In 2020, Lisbon was one of the few cities in Europe where demand for real estate is strong. In contrast, prices have fallen for properties that need work.
The Algarve is the place where prices are low and where investment can be the most sensible. The beaches have an undeniable appeal, making this region one of the most popular destinations during the summer.
Need help finding your dream house ? Fill in this form and we will put you in touch with a trusted real estate agent. We have been in Lisbon for more than 10 years now, and we know the right experts.
We are not the only ones who think that Portugal is a great place to relax. Forbes magazine has rated it as the best country to live in after the coronavirus crisis.
For advice on relocation, including your NHR status, we’ve written a special report for you.
Congratulations on taking the step and good luck !
Elliot & Sylvain