Holiday homes in Portugal: Lisbon luxury property offers tax-free rental income!


Holiday homes in Portugal: Lisbon luxury property offers tax-free rental income!

Top-notch holiday homes in the fascinating, buzzy Portuguese capital rent like a dream and there's no tax to pay on the income.

The world has discovered Lisbon, appreciating its mix of affordability, bespoke craftsmanship and blue skies — and pushing up property prices last year by 9.2 per cent.

Lisbon is a marvellous city. Light bounces off the River Tagus, reflecting on the glossy azulejo tiles of historic façades and patterned mosaic pavements. Alongside the beauty, there are solid financial reasons for buying homes there.

Lisbon’s property boom started at the end of 2012 helped by the introduction of Portugal’s Golden Visa which gave anyone spending over £444,000 on property the right to residency.

Initially Chinese buyers were the main Golden Visa purchasers, but in the recent years they’ve been joined by Brazilian, South African and Turkish investors.

A second scheme, the Non-Habitual Residency Scheme, allows EU residents, including Britons, who buy a home and spend 183 days or more in Portugal to pay no tax on pension or investment income for 10 years.

Together these schemes have helped property prices in Lisbon double since 2013. Now people are buying in Lisbon for both investment and lifestyle reasons, the property market is going up.


New homes in Lisbon

When Lisbon hosted World Trade Fair Expo in 1998 it transformed a desolate waterfront area to the east.

Today Parque das Nações has a similar feel to London’s Docklands with modern high-rise blocks, international company HQs, outdoor restaurants and a maritime theme.

There’s a marina, an aquarium, a casino and a cable car that runs along the tree-filled riverside towards the magnificent Vasco da Gama Bridge.

“Parque das Nações is close to the airport and the main motorways north and south, has good cultural and shopping facilities, excellent transport links and is only 15 minutes from the city centre,” says Chitra Stern of family-friendly hotel developer and operator Martinhal.

Here, Martinhal is about to start building Martinhal Residences, with 160 flats in a 14-storey tower, operating as a family-focused hotel with branded residences.

Prices for the one- to five-bedroom homes, with balconies and sharing indoor and outdoor pools, restaurants and children’s playrooms, start from £222,000 for a 409sq ft studio and £533,000 for two bedrooms.

Owners can take a rental guarantee of four per cent net for six years and have all furnishings, utilities and service charges paid by the developers.

Read more about Martinhal


Living the Lisbon lifestyle

Husband-and-wife restaurateurs Agnes and Alexis Bourrat worked in stellar London restaurants including Zuma, Chiltern Firehouse and at the Mandarin Oriental before moving to Lisbon in 2017.

A chance online search uncovered a restaurant for sale in Príncipe Real — the Mayfair of Lisbon.

The couple fell in love with the building, bought it and in July this year opened their own restaurant, BouBou’s.

“The Lisbon lifestyle is amazing with beaches and great nature nearby and wonder fresh food,” says Agnes, 30. “However, the boom of recent years has brought many new residents and property prices have gone through the roof.”


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