WHY INVEST IN LISBON? Market overview 2017

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Charity Brown
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1 WHY INVEST IN LISBON? Market overview 2017

Why Lisbon invested in real estate through Golden Visa programme Lisbon is fast emerging as one of the world s most attractive capitals to both live and invest in.

2 Why Lisbon invested in real estate through Golden Visa programme Lisbon is fast emerging as one of the world s most attractive capitals to both live and invest in. It was named the coolest city in the world for 2016 by Conde Nast Traveller, tipped as the next San Francisco by Bloomberg and is the fastest growing start-up capital in Europe. The five waves driving the change On the map for property investors As Lisbon s economy has picked up since the bailout so has its property market. The combination of buy-to-let incentives for investors, flexible immigration policies excellent prime, value real estate and a wave of regeneration across the city is causing a significant surge in investment from around the globe. Golden Path to Citizenship Portugal s Golden Visa programme allows for free travel across Europe s Schengen area and paves the way to European residency. Over 1.8 billion has been invested in real estate through the programme, attracting a wave of intelligent and forward-thinking investors to the country. Tax Efficient for Retirement Portugal abolished inheritance tax in 2004 and this, combined with low income tax, is making the capital a popular place with international retirees looking to settle in a cultured city that enjoys great transport links with the Europe and the wider world. Quality of life An intimate city of historic beauty flanked in surf beaches Lisbon combines low cost living with low crime low pollution and an excellent transport network With days of sunshine its temperate year round climate means you can be on the beach in March and October. NHR Europe s Best Kept Taxation Structure? For entrepreneurial or high net worth investors, Portugal s Non-Habitual Resident tax regime is perhaps the best-kept taxation structure in Europe. With incentives like no wealth tax and deferred tax on dividends it s no surprise to see a wave of startups and businesses arriving in Lisbon, a city that s quickly becoming Europe s answer to San Fransisco.

was bailed-out during the eurozone debt crisis. Now, property prices in Lisbon are up 11.

Even as prices in the capital rebound, compared to cities such as London or Paris, Lisbon offers incredible

London 26,400 Paris 13,600 Moscow 12,800 Lisbon 7,000 Madrid 6,700 In London, prime properties can command

In Lisbon, prime real estate is currently priced at 6,000-8,000 p/sqm.

3 Why invest? Inspiring capital appreciation potential Prime markets per sqm Property prices slumped by 30% after Portugal was bailed-out during the eurozone debt crisis. Now, property prices in Lisbon are up 11.9% on their 2013 low, with 4.4% growth registered in the year to February Even as prices in the capital rebound, compared to cities such as London or Paris, Lisbon offers incredible value for money, especially in the prime sector. London 26,400 Paris 13,600 Moscow 12,800 Lisbon 7,000 Madrid 6,700 In London, prime properties can command up to 33,000 p/sqm, while in Paris prices hover at 25,000 p/sqm. In Lisbon, prime real estate is currently priced at 6,000-8,000 p/sqm. Well-located real estate in Lisbon is therefore primed to be one of the best performing assets over the next years, with well positioned new-builds expected to double in price. Rate of rental return (residential, city centre) 6% 5% 4% 3% +24% higher than average Average: 3.59% 2% 1% 0 Amsterdam Dublin Lisbon Madrid Berlin Paris Rome London Sources: Savills World Research, Athena Advisers

4 How does Lisbon compare on a global scale? A surf-before-breakfast culture Transport system rated as 4th best in the world Low cost, high-quality of living Dynamic lifestyle and business environment, combining artists, entrepreneurs and investors. A global hub between Europe, Africa and South America. 30 minutes to world-class surf beaches and the vineyards of the Alentejo /sqm Lisbon Sydney Madrid Berlin Shanghai San Francisco Johannesburg London Rio de Janeiro Paris Source: Savills World Research What you need to know 1. The Buying Process Similar to that of the UK, the buying process is transparent. Stamp duty and buying taxes range from % of the property. You can expect to pay a deposit of 10-30% of the total purchase price. 2. Mortgage rates Loan-to-values are usually in the region of 70%. Mortgage rates start from as low as 1.9% fixed for 5 years Select your preferred property. Place an 'option'. View selected property (if necessary). Offer agreed, signing of Promissory contract and deposit payment. Completion contract.

Tax and residency benefits If you are a non-eu citizen Portugal offers one of the most successful Golden Visa options in Europe.

Citizenship available within 6 years of purchase Fast track to obtain a valid residency permit in Portugal & European passport 5 years golden visa + 1 year permanent residency Citizenship

obtain Permanent resident 2 months to obtain Apply for citizenship 6 months to obtain If you are European Non-Habitual Residences: For EU nationals, Portugal offers an incentive program if

5 Tax and residency benefits If you are a non-eu citizen Portugal offers one of the most successful Golden Visa options in Europe. An accessible, excellent value path to European residency Requires minimum property investment of 500,000 Possible to include immediate family on the visa (spouses & dependents) Citizenship available within 6 years of purchase Fast track to obtain a valid residency permit in Portugal & European passport 5 years golden visa + 1 year permanent residency Citizenship Year 0 Year 1 Year 3 Year 5 Year 6 Apply (valid for 1 year) Renew (valid for 2 years) Renew (valid for 2 years) Apply (valid for 5 years) Passport Temporary resident permit 4 months to obtain Permanent resident 2 months to obtain Apply for citizenship 6 months to obtain If you are European Non-Habitual Residences: For EU nationals, Portugal offers an incentive program if you have not lived in Portugal for the previous 5 years. This includes exemption on income tax from non-portuguese sources, including pensions, rental income, capital gains for 10 years. A flat rate of 20% is charged on income tax for those working in Portugal.

6 45 Holmead Road, London SW6 2JD +44 (0) athenaadvisers.com Invest beyond your borders. That s our mantra. And our mission is to make it easy. Established in 2003 and today led by three partners, Athena Advisers is an international sales network and property investment advisory that specialises in attractive new-build and renovation development projects in key prime markets. Originally focused in European property investment opportunities in France, London and Lisbon, our diverse portfolio spans time zones and lifestyles with more to come soon. From alpine chalets to sleek town houses, beach houses and everything in between, we handpick our portfolio very carefully, considering profitability but also lifestyle appeal. With offices in Brazil and a strong presence in South Africa and Russia, we help investors from all over the world diversify their portfolio with European property investments or second-home acquisitions in selected destinations.

THE PORTUGUESE NON HABITUAL RESIDENT (NHR) and GOLDEN VISA (GV) programmes

THE PORTUGUESE NON HABITUAL RESIDENT (NHR) and GOLDEN VISA (GV) programmes AFONSO BARROSO February 1 st 2018 Carlton Club London Abreu & Marques & Associados Afonso.Barroso@amsa.pt THE PORTUGUESE NON HABITUAL