In the last two years, Germans have bought more property in Portugal, particularly in the Algarve. Real estate agencies in Portugal dedicated to German buyers believe that this increase in buying will remain over the next few years.

Germans already represent about 5% of the resident population in the Algarve, especially in the age group over 40.

Portugal’s Prime Location

The Covid-19 pandemic has increased German demand for the Portuguese property market, highlighting the good weather all year round and the outdoor activities.

With the start of the war in the east of Europe (Ukraine), real estate investors are more focused on the geographic areas to the west of Europe. From this perspective, Portugal is the European country geographically furthest away from the conflict. Furthermore, Portugal does not have, nor has ever had, any nuclear energy central, so there is no nuclear environmental risk.

The good weather, tranquillity, safety, being away from conflict zones and the absence of environmental risks are crucial factors for German buyers.

Investment Stability and Safety

The European Central Bank rates the Portuguese property market as strong, resilient and sustainable. The Portuguese Government and the European institutions have taken measures to avoid crisis like the one that happened in 2008. Investing in Portuguese real estate is a solid investment.

Tax benefits for foreign residents

Portugal has one of the most attractive tax systems in Europe for foreign residents. Foreigners who decide to live in Portugal for 183 days / year can benefit from several tax reductions or exemptions on retirement pensions and many other types of income. These tax benefits vary according to the country where the foreign resident came from and can be up to 10 years.

What the German buyer is looking for

The German buyer is looking for quality properties, luxury or high value villas located in quiet areas. It is important that the property has good indoor areas, good outdoor spaces, with sea views or views of green areas.

The most demanded locations in the Algarve by German buyers are the “golden triangle” ( Quinta do Lago, Vale do Lobo, Garrão e Ancão), Vilamoura, Tavira and Albufeira.

In the ” Golden Triangle” (Quinta do Lago, Vale do Lobo, Garrão and Ancão) a modern villa with an area of 350 m2, garden, private pool, garage and terrace can cost around 1 million 600 thousand euros, which represents 4.467,00 euros/m2.

In Vilamoura, a new and modern villa, with an area of around 129 m2, private pool, garage and terrace costs around 502 thousand euros, which represents 3.891,00 euros/m2.

In Tavira, a new and modern villa, with interior area around 200 m2, private pool, garden, garage and terrace costs around 540 thousand euros, which represents 3.120,00/m2.

In Albufeira, a new and modern villa, with an area of 173 m2, private pool, garage, terrace costs around 433 thousand euros, which represents 2.489,00 euros/m2.

These are some of the reasons why many foreigners choose Portugal to live.

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