Posted on 12 February 2016
One of Portugal’s flagship resorts on the Algarve, Vilamoura, is to undergo a new €1-billion phase of development, making it an attractive option for international investors.
The masterplan, overseen by Vilamoura World, was announced in October 2015 and includes 18 new projects, combining property, leisure and retail units, in total covering a staggering 400 hectares.
Given current market conditions, with prices stabilising in the Algarve, limited new construction and a highly competitive resale market, buying in Vilamoura now could be a smart long-term investment. That Vilamoura needs better infrastructure is no secret, so this new phase development should help achieve that.
It will also help put this part of Portugal’s famous ‘Golden Triangle’ as much in the international spotlight as the other two world-class resorts, namely Vale do Lobo and Quinta do Lago.
Vilamoura’s Marina area will also be upgraded as part of the development, with plans including a new yacht club, spa and gym, restaurants and boutiques.
Foreign investors attracted to the Vilamoura World development will include Golden Visa applicants, as more non-EU citizens look beyond Lisbon and Porto for a choice of €500K luxury properties. Golden Visa applicants continue to be strong in Portugal, with Chinese, Vietnamese, Russian, Malaysian and Middle Eastern investors taking advantage of the scheme.
Meanwhile, British and other overseas buyers in Portugal continue to benefit from sizeable tax breaks and low taxation, provided by Portugal’s Non-Habitual Residents (NHR) scheme, which guarantees the tax breaks on pension and income for the first ten years of residency in the country. Unlike a number of other EU countries, Portugal does not levy a wealth tax, and inheritance tax is lower than in many of its EU counterparts.