Exploring Investment options in Portugal: Opportunities and Tax Benefits

Portugal has established itself as one of the most attractive destinations for real estate investment, thanks to its economic stability, legal certainty and favourable tax environment. For investors from Qatar and MENA region the Portuguese property market offers advantageous opportunities, both...

Portugal's Roman-Germanic legal system guarantees robust rights for foreign investors. The acquisition of property by GCC and MENA nationals is not subject to restrictions and can be carried out by both natural persons and legal entities. The transfer of property in Portugal is formalised by public deed or authenticated private document and must be registered at the Land Registry Office, guaranteeing the full enforceability of property rights.

Portugal offers a number of tax incentives for international investors, namely: 1. Non-Habitual Resident (NHR) Scheme The NHR allows foreign investors to benefit from a reduced rate of IRS on certain income earned in Portugal (flat rate of 20 per cent) and exemption from taxation on income earned abroad, if they are covered by double taxation conventions. 2. Taxation on Real Estate Income Income obtained from renting property in Portugal is subject to a personal income tax rate of 28% for individuals and a corporate income tax rate of 21% for legal entities. However, there are deductions for maintenance costs, insurance and local taxes. 3. Municipal Property Tax (IMI) and Municipal Property

In addition to the tax benefits, property investment in Portugal has several strategic advantages for investors: - Growing market: Continued property appreciation, driven by tourist demand and the residential sector. - Political and economic stability: Portugal maintains a stable economy, with policies favourable to foreign investment. - Connectivity and quality of life: Modern infrastructure, a strategic location in the European Union and a high quality of life make the country attractive for investment and residence.

Many investors can find Portugal an attractive property market, supported by a secure legal regime and significant tax benefits. Whether for portfolio diversification, passive income or as a gateway to the European Union, property investment in Portugal remains a strategic and advantageous option. For efficient tax planning and proper structuring of the investment, the advice of lawyers specialising in real estate and tax law is recommended, ensuring that the advantages offered by Portuguese legislation are optimised.