English 
Français THE FRENCH APPETITE FOR PORTUGUESE PROPERTY EXPLAINED IN 4 FIGURES
FOCUS - The Portuguese Property Fair opens in Paris this Friday. For those drawn to the country, Le Figaro Immobilier explains, in figures, why tens of thousands of French people have already taken the plunge.
In two months’ time, the summer holidays will begin. This summer, more French people will be holidaying abroad. One destination has become increasingly popular in recent years, particularly among retirees who are keen to settle there and enjoy a happy life. The answer? Portugal.
From 12 to 14 May, the 6th edition of the Portuguese Property and Tourism Fair is taking place in Paris. The event brings together some 200 exhibitors. “A record,” says Carlos Vinhas Pereira, president of the Franco-Portuguese Chamber of Commerce and Industry. More than 20,000 visitors – retirees, investors and entrepreneurs – are expected (compared to 17,255 in 2016). This is an opportunity for Le Figaro Immobilier to provide you with some key figures on the Portuguese property market and the interest it is generating among the French.
50,000 French residents in Portugal
In four years, the number of French people settling in Portugal has more than quintupled to reach 50,000 (compared to a few thousand in 2013), 80% of whom are retirees, according to the Franco-Portuguese Chamber of Commerce and Industry (CCIFP). Since 2013, European pensioners have benefited from tax exemption on their pensions. This scheme applies for ten years, provided they have not resided in Portugal during the previous five years and that they remain there (either as tenants or homeowners) for at least 183 days (consecutive or otherwise) per year. As a result, they qualify for non-habitual resident status. Their pensions are fully exempt in Portugal under a Franco-Portuguese tax treaty and are not taxable in France.
+30% increase in transactions over one year
Just over one in five (22%) properties in Portugal was purchased by a foreigner. Nearly four in ten property transactions (39%) were carried out by French nationals. Their number has increased by 30% in one year. French buyers invest on average between €200,000 and €250,000 in the purchase of a property. For that price, you can get a lovely house of 100 to 150 m², close to the sea and the town centre.
Properties costing between €300,000 and €350,000 are also in high demand. And for a budget of between €750,000 and €1 million, you can purchase a luxurious 300 m² residence on a plot of 600 to 1,200 m², complete with a swimming pool, close to the sea and a golf course. “60% to 70% of French retirees buying in Portugal have an average pension of €1,400 per month. That is equivalent to an executive’s salary and almost three times the minimum wage (€540),” points out the president of the CCIFP.
€4,500: the average price per square metre in Lisbon
Lisbon tops the list of the most popular cities. In the city centre, prices average around €4,500 per square metre. This is almost half the cost of Paris. But if you take a stroll along Avenida da Liberdade, “the Portuguese Champs-Élysées”, prices easily exceed €10,000 per square metre. But another city, named the best European destination of 2017, also seems to be taking off: Porto, “prized for its historic centre, its cuisine and its vineyards”. Prices there are 20% cheaper than in Lisbon. “There is a lot of renovation work to be done,” notes Carlos Vinhas Pereira.
Income tax capped at 20% for working people
Retirees are not the only foreigners drawn to Portugal. A growing number of entrepreneurs from France are also setting up businesses in Portugal, mainly in the tourism sector, the property sector and personal services. Between 500 and 700 grocery shops, restaurants, cafés, rural guesthouses or bakeries are thus opening every year. But also so-called “high value-added” professions capable of boosting employment in Portugal. “We’ve seen many lawyers or artists, such as Philippe Starck, settle here,” says Carlos Vinhas Pereira. Like retirees, they can benefit from non-habitual resident status. This allows them to be exempt from tax on dividends, interest and capital gains, and to benefit from a tax rate capped at 20% on income from their business activities (compared to 45% in France).
