There are several reasons why foreigners are willing to buy a property in Portugal. One of the main reasons is the country’s pleasant climate and stunning natural beauty. With over 300 days of sunshine per year and a coastline that stretches for over 800 km, Portugal is a popular destination for those looking for a warm and sunny place to call home.

Another reason why foreigners are attracted to Portugal’s real estate market is the relatively low cost of living. Portugal is known for its affordable property prices, with apartments and houses often costing less than half of what they would in other European countries. This, coupled with the country’s strong economy and low unemployment rate, makes it an attractive destination for those looking to relocate or invest in property.

Portugal’s real estate market is also attractive to foreigners because of its Golden Visa program. This program allows non-EU citizens to obtain a residency permit in Portugal by investing in property. This can be a great way for foreigners to gain access to the EU and all of its benefits, such as freedom of movement and the ability to live, work and study in any EU member state.

In terms of most searched regions, the Algarve and the Silver Coast are considered two of the most popular regions for foreigners to buy property in Portugal. The Algarve, located in the southern part of the country, is known for its beautiful beaches and warm climate, making it a popular destination for retirees and holiday-home buyers. The Silver Coast, located in the central part of the country, is known for its historic towns, castles, and palaces, as well as for its proximity to Lisbon and the airport.

The average price for a property in Portugal varies depending on the location, but generally ranges from around €100,000 to €500,000. Prices in the Algarve and the Silver Coast tend to be on the higher end of this range, while prices in other regions such as the Alentejo and the Azores tend to be lower.

In conclusion, Portugal’s real estate market offers a lot of attractive features for foreigners. From the pleasant climate, stunning natural beauty, low cost of living, Golden Visa program and the most searched regions like Algarve and Silver Coast, all these factors make it a great destination for those looking to relocate or invest in property. With the average price of properties, it is a great opportunity for those looking for a budget-friendly option.

Why is Portugal Cheap for foreigners and expensive for locals?

For locals, the cost of living can be quite high. This is due to a number of factors, including the cost of housing, transportation, and taxes.

Housing

One of the main reasons why Portugal is cheaper for foreigners is the cost of housing. According to data from the National Statistics Institute (NSI), the average price of a house in Portugal is around €1,200 per square meter. This is significantly lower than in other European countries, such as France and Germany, where the average price is around €3,000 per square meter. Additionally, property taxes in Portugal are also lower than in other European countries, making it an attractive option for foreigners looking to buy a property.

Transportation

Another factor that makes Portugal cheaper for foreigners is the cost of transportation. According to Expatica, public transport in Portugal is relatively cheap, with prices ranging from €1.40 to €2.85 for a single subway, bus, or tram ride. Additionally, an all-day unlimited pass is €6 and a whole month is €36.

“One subway, bus, or tram ride in Lisbon ranges from €1.40 to €2.85, but an all-day unlimited pass is €6 and a whole month is the same as in Porto, €36. A taxi in the capital for two people is officially €2.25 to start, then €1.60 per km. This can vary a lot across the country though.” says CheapestDestinationsBlog.

Taxes

Portugal also has relatively low taxes compared to other European countries. The corporate tax rate in Portugal is 21%, compared to 25% in France and 29.58% in Germany. Additionally, the personal income tax rate in Portugal is also relatively low, with the top rate being 48%. This is lower than in other European countries, such as France and Germany, where the top tax rate is around 50%.

In addiction, a meal at a local restaurant can cost as little as €9-12, while a meal at a mid-range restaurant can cost around €16-22. Additionally, the cost of groceries is also relatively low, with a loaf of bread costing around €1 and a liter of milk costing around €0.90.

It’s important to consider that these prices are relative to the local wages and salaries, which are lower than in other countries, that’s why is cheaper for foreigners.

In conclusion, Portugal is a great option for foreigners looking for an affordable European vacation. The low cost of living, combined with the beautiful weather and rich culture.