Why British Buyers are Driving Up House Prices in Portugal: The Tax Factor Explained
Inews6 months ago
1050

Why British Buyers are Driving Up House Prices in Portugal: The Tax Factor Explained

Economy
portugal
realestate
uktax
investment
propertyprices
Share this content:

Summary:

  • House prices in Portugal have increased by over 60% since mid-2019.

  • Wealthy Britons are relocating due to security, lifestyle, and better weather.

  • UK tax changes are prompting high-net-worth individuals to consider moving abroad.

  • Portugal's real estate market shows no signs of slowing, with prices up 9.8% in the last year.

  • New tax incentives for skilled professionals are making Portugal more attractive.

Rising Property Prices in Portugal

Estate agents have reported that house prices in Portugal are on the rise, largely due to an influx of wealthy Britons relocating to Europe following changes in the UK tax system. According to the National Statistics Institute, property prices in Portugal have surged by over 60% from mid-2019 to mid-2024.

Factors Influencing the Move

The primary motivations for these relocations include security, lifestyle, and better weather. In addition, a new tax scheme aimed at skilled professionals has made Portugal particularly attractive.

Recent Market Trends

The latest data indicates that house prices rose by 9.8% in the third quarter of the year compared to the previous year. Zoie Hawker, managing partner of Fine & Country in the Algarve, stated that the UK remains the largest market for buyers, with demand from 32 different countries.

Impact of UK Tax Changes

Recent changes in the UK tax regime, including the potential scrapping of the non-dom tax status by former Chancellor Jeremy Hunt, have prompted many high-net-worth individuals to consider moving abroad. The Labour Party has also pledged to eliminate loopholes that benefit non-doms, which could further drive this trend.

Comparative Analysis with Other Countries

Similar trends are visible in Italy and Switzerland, where property prices are also increasing due to changes in tax laws designed to attract wealthy individuals. In Italy, a flat tax system for overseas earners was introduced, while Switzerland offers lower interest rates for property financing.

Conclusion

With higher capital gains tax and other financial pressures in the UK, many Britons are now exploring opportunities in European countries with more favorable tax conditions. As the demand for properties in Portugal continues to grow, experts predict that house prices will keep rising, driven by both local and international buyers.

Comments

0

Join Our Community

Sign up to share your thoughts, engage with others, and become part of our growing community.

No comments yet

Be the first to share your thoughts and start the conversation!

Newsletter

Subscribe our newsletter to receive our daily digested news

Join our newsletter and get the latest updates delivered straight to your inbox.

OR
PortugalToday.news logo

PortugalToday.news

Get PortugalToday.news on your phone!

Other Latest News

From Chinese Buffets to Exclusive Omakase: How Lisbon Embraces Asian Culinary Trends

From Chinese Buffets to Exclusive Omakase: How Lisbon Embraces Asian Culinary Trends

5 hours ago
850
Cascais Line Disrupted: Alternating Train Services Between Alcântara and Cais do Sodré Due to Overhead Wire Failure

Cascais Line Disrupted: Alternating Train Services Between Alcântara and Cais do Sodré Due to Overhead Wire Failure

6 hours ago
900
Discover Lisbon's New Cultural Gem: A Bookstore Dedicated to the City's Rich History

Discover Lisbon's New Cultural Gem: A Bookstore Dedicated to the City's Rich History

2 hours ago
880
Higher Education Reform in Portugal: 11 Key Questions Answered

Higher Education Reform in Portugal: 11 Key Questions Answered

3 hours ago
960
Shocking Allegations: PSP Officers Accused of Brutal Attacks and Sexual Abuse in Lisbon

Shocking Allegations: PSP Officers Accused of Brutal Attacks and Sexual Abuse in Lisbon

10 hours ago
940
Lisbon's Battle Against Heatwaves: Urban Experts Propose Eco-Friendly Solutions

Lisbon's Battle Against Heatwaves: Urban Experts Propose Eco-Friendly Solutions

14 hours ago
940
Lisbon's New Cyclo-Pedestrian Bridge Connects Central Axis to Eastern Areas

Lisbon's New Cyclo-Pedestrian Bridge Connects Central Axis to Eastern Areas

17 hours ago
850
Portugal Approves New Border Police Unit Amidst Political Standoff and Immigration Restrictions

Portugal Approves New Border Police Unit Amidst Political Standoff and Immigration Restrictions

19 hours ago
960
PSD and PCP Proposals on Mobility Subsidy Approved in Portuguese Parliament

PSD and PCP Proposals on Mobility Subsidy Approved in Portuguese Parliament

22 hours ago
1030
Lisbon Crackdown: PSP Shuts Down Illegal Lodgings and Identifies 26 in Major Raid

Lisbon Crackdown: PSP Shuts Down Illegal Lodgings and Identifies 26 in Major Raid

23 hours ago
950
Shocking Armed Robbery in Lisbon: Son of Angolan Judge Targeted in Benfica Apartment

Shocking Armed Robbery in Lisbon: Son of Angolan Judge Targeted in Benfica Apartment

1 day ago
1060
iServices Expands in Lisbon with New Store on Rua do Ouro

iServices Expands in Lisbon with New Store on Rua do Ouro

18 hours ago
880
Dreamy Getaway for Less: Portuguese Influencer Reveals Stunning Alternative to Algarve

Dreamy Getaway for Less: Portuguese Influencer Reveals Stunning Alternative to Algarve

9 hours ago
920
Parliament Launches Inquiry into INEM's Management and Recent Strike

Parliament Launches Inquiry into INEM's Management and Recent Strike

20 hours ago
880
Alkantara Festival Kicks Off November 14th with Award-Winning Choreographer

Alkantara Festival Kicks Off November 14th with Award-Winning Choreographer

16 hours ago
910
Court Rejects Sócrates' Request to Remove Judge and Fines Him €1020 in Marquês Case

Court Rejects Sócrates' Request to Remove Judge and Fines Him €1020 in Marquês Case

1 day ago
980
Middlesbrough FC Wraps Up Productive Training Week in Portugal Ahead of Santa Clara Clash

Middlesbrough FC Wraps Up Productive Training Week in Portugal Ahead of Santa Clara Clash

15 hours ago
940
Lisbon's Art Nouveau Gem: Camillo 25 Blends History with Modern Luxury

Lisbon's Art Nouveau Gem: Camillo 25 Blends History with Modern Luxury

1 day ago
990
Tragic Premature Birth in Ambulance: Hospital Director Speaks Out

Tragic Premature Birth in Ambulance: Hospital Director Speaks Out

1 day ago
860
Chega Party's Lisbon Headquarters Vandalized in Shocking Night Attack

Chega Party's Lisbon Headquarters Vandalized in Shocking Night Attack

1 day ago
1070
Carlos Moedas Announces Re-election Bid for Lisbon Mayor: What's Next for the Capital?

Carlos Moedas Announces Re-election Bid for Lisbon Mayor: What's Next for the Capital?

1 day ago
880
Portugal's Strategic Move: Valuing State's 50.1% Stake in TAP with a Credible Partner

Portugal's Strategic Move: Valuing State's 50.1% Stake in TAP with a Credible Partner

1 day ago
840
Shocking Video Leads to Arrest of Two Lisbon Police Officers for Alleged Torture

Shocking Video Leads to Arrest of Two Lisbon Police Officers for Alleged Torture

2 days ago
920
Sócrates Fights Tooth and Nail, Calls MP's Actions 'Cowardly' Over Parque Escolar

Sócrates Fights Tooth and Nail, Calls MP's Actions 'Cowardly' Over Parque Escolar

2 days ago
920
Miracle on the Fast Lane: Baby Born on Barreiro Highway with Family's Help

Miracle on the Fast Lane: Baby Born on Barreiro Highway with Family's Help

2 days ago
810
Benson Boone Explores Cascais and Lisbon Before Stunning Performance at Alive Festival

Benson Boone Explores Cascais and Lisbon Before Stunning Performance at Alive Festival

1 day ago
870