We often hear about the attractiveness of the British market to Chinese and Hong Kong investors, but new research has also suggested that Portugal is an increasingly popular option – with investors potentially drawn by the access this provides to the EU and various Golden Visa and tax incentives.
According to the latest China thought leadership paper from China/UK PR agency 11K Consulting, the top reasons Chinese and Hong Kong buyers have for looking for real estate opportunities in Portugal include the country’s welcoming of international investment, its competitive tax system, its protective regulations through schemes such as the Golden Visa programme, its and good quality of life and safety.
It regularly ranks highly in global quality of life and safety indices. According to the most recent Global Peace Index, by the Institute for Economics & Peace, Portugal is the third safest country in the world – only behind Iceland and New Zealand – and the safest in the EU.
Unsurprisingly, the 11K Consulting research found that the most popular city in Portugal amongst Chinese and Hong Kong buyers is Lisbon, due to the capital city’s strong transport links, high living standards and world-class amenities.
Prices there typically range from €500,000 to €1,500,000, with Porto and the Algarve closely following as second and third most popular cities for property investment amongst Chinese and Hong Kong buyers.
Pre-Brexit and the pandemic, buyers from China and Hong Kong accounted for more than 75% of applications for the country’s popular Golden Visa programme. In spite of the upcoming changes in the Golden Visa programme, it’s expected that Portugal will remain a sound investment choice for Chinese and Hong Kong investors, due to competitive real estate values compared with other European countries, affordable cost of living, warm climate, and appeal as a tourism hotspot.
The report said that, when looking to acquire a residential property in Portugal, it’s recommended that investors employ a reputable lawyer, work directly with the developer to progress a purchase if hoping to complete before changes to the Golden Visa programme are implemented, and find a local expert that can provide guidance and show the best areas and properties available. Investors should also conduct due diligence on properties, developers and agents.
You can read the full paper here.