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Whilst the Portugal Golden Visa Program offers several investment routes, the real estate investment amount required can differ depending on if a property is located in a region of "low density".
The Portugal Golden Visa Program has several investment options. The most economic option is the 280k Euros investment in the rehabilitation of real estate in low-density areas.
The €280,000 investment in real estate is one of the lowest barriers to entry among Golden Visa programs in Europe. When you invest €280,000 in a qualifying property and renovation, you’ll be eligible to get Portuguese residency through the Golden Visa Scheme. Plus, by staying in Portugal only for seven days on average per year, you may be eligible to apply for full citizenship after five years.
What is a Low-density area?
Low-density areas are defined as territorial units (NUTS III) that have less than 100 inhabitants per square km or a per capita GDP of less than 75% of the national average. Low-density housing refers to buildings with a small number of units or residential areas primarily occupied by single-family homes. Low-density areas are of significant interest to investors in Portugal as they offer a 20% discount on the property investment amount required for the Golden Visa scheme.
Will Portugal Golden Visa changes in 2022 affect investments in low-density areas?
The changes being introduced to the Golden Visa program mean that property investments in Porto, Lisbon and other high-density urban areas on the coast will no longer qualify under the Portugal Golden Visa scheme starting the 1st of January, 2022. However, the reduced real estate investment options - purchasing a property worth €280K (reduced from 350K) or €400K (reduced from €500K) in low-density areas will still qualify as a route to residency.
What do low-density areas in Portugal have to offer?
Many attractive areas in Portugal like the South-west of the Algarve and the Silver coast and Comporta region are considered low-density areas. The low-density interior regions of Portugal offer a glimpse into a traditional way of life that both ex-pats and tourists alike find charming.
Popular low-density areas in Portugal which are attractive for residential, commercial and investment purposes are Leiria, Evora, Faro, Viseu, Braga, Aveiro and certain neighbourhoods within an hour of Lisbon and Porto.
However, Douro Valley, Setubal, Evora, and some districts in the Algarve are also classified as low-density areas. Notably, buying a property that needs renovation in these areas can make you eligible for the Golden visa scheme.
The Algarve
The Algarve is Portugal’s most popular region among European expatriates. Either in the summer or winter, it has tremendous tourism growth.
In Algarve alone, residential property transactions reached , almost 10% of the total property transactions of the first quarter of 2022’s total value.
Several areas in Algarve are now suitable for low-density routes: Castro Marim, Vila do Bispo, Monchique, Alcoutim, and Aljezur, even some parishes of Loulé and Tavira.
You can invest in a vacation home or use the highly profitable opportunity that touristic accommodations represent.
Douro Valley
The Douro Valley is renowned across the world for the breathtaking beauty of its river valley and vineyards, in-fact it's even classified as a World Heritage site by UNESCO. This region is particularly popular with those who enjoy wine tasting, walking, and water sports. Douro Valley is unique in more ways than just the wine, the sculpted hills, the old towns, the comforting cuisine, the well-known footpaths, the sights, and the culture as a whole are undoubtedly unforgettable.
A 120 square metre property in the Douro Valley in need of some renovation could be bought for €280,000 EUR, meaning it qualifies for the Golden Visa scheme.
In this region, properties with river views or a focus on wine are seen as noteworthy investments. This could be transformed into a holiday rental, offering great potential returns for a savvy investor.
Aljezur
Aljezur is well-known for its proximity to the sea and the hills of the Costa Vicentina. Its cliffs are regarded as excellent sites for the breathtaking views between the Alentejo and Algarve areas. Surfers from all over the world come to this area to enjoy the wonderful beaches at Arrifana, Amoreira, and Bordeira.
The estates have elements of local architecture, including adobo-covered first-floor walls, which are excellent for insulating against heat loss.
Alcácer do sal
In the South of Lisbon lies one of the main real estate growth markets in Portugal. The region is called Comporta and is the investment target of most international buyers.
Comporta’s famous for its fantastic beach and nature. It’s considered premium land, very limited. Bordering Tróia peninsula, a sought-after vacation spot in itself, only adds to its charm.
Located in the district of Alcácer do Sal, it’s 20 minutes away from the beach of Comporta, right on the bank of a beautiful river. Considered a low-density area and being close to cities like Lisbon and Setúbal, a property in Alcacer do sal is one to consider.
Évora
The southern of Portugal hides away several historic and quiet cities such as Évora. The city is known for its famous and well-preserved Roman temple, the Temple of Diana.
It’s home to the most southern university in the country, the University of Évora. Though a bit far away from the biggest cities, the university attracts a lot of students from surrounding districts.
With more people looking to stay in Évora, there’s a growth in searches for accommodation, which boosts the real estate market. It’s an excellent investment if you’re looking to buy and rent your property.
Serra da Estrela
A famous destination for winter sports, this is the second-highest mountain in Portugal.
The unique rock formations, natural habitat, and high-quality regional products are some of the factors that make it perfect for investment.
With such a great location and several villages scattered around the mountain, it has become quite sought after for the nature trails and rural experience.
A lot of people acquire rural houses to use for a season and rent them for the rest of the year. This represents quite the investment since more people look forward to having some quiet time away from big cities.
Mirando do Douro
Miranda do Douro is a city in the district of Bragança, northeastern Portugal.
Right by the border with Spain, it is bathed by the Douro river and surrounded by the magnificent landscapes of the International Douro Natural Park.
Remarkably, the city receives around 120 000 tourists per year, most of them Spaniards due to its proximity to Spain. That’s why it made a great investment in urban regeneration, in tourism, and commerce
Alcácer do Sal
In the South of Lisbon lies one of the main real estate growth markets in Portugal. The region is called Comporta and is the investment target of most international buyers.
Comporta’s famous for its fantastic beach and nature. It’s considered premium land, very limited. Bordering Tróia peninsula, a sought-after vacation spot in itself, only adds to its charm.
Considered a low-density area and being close to cities like Lisbon or Setúbal, it’s more than worth the investment.
Even in low-density areas prices have grown at least 5% per year. With the new laws prices are expected to pick up even more, low-density regions provide promising areas to develop eco-tourism, wellness, innovation, and luxury projects.
The 20% discount that applies when investing in low-density areas is an attractive draw to consider when considering the Portugal Golden Visa, which looks set to continue to be one of the most popular residency-by-investment programs in the world.
For more information on the Portugal property market, or to take a look at our latest listings please get in touch with us directly at +44 20 8064 2261 or contact us here.
