The Algarve has always been popular for those wishing to buy. Location, climate, beaches, lifestyle and easy access to airports and other public transport, make it ideal for renting, long or short-term to holiday-makers with the possibility of making excellent returns.
For Europeans and non-Europeans buying for investment, properties rented privately or through management companies can offer an extremely good yield. It’s important to thoroughly research and get as much professional advice beforehand, whichever route you take and to consider the amount of time you wish to rent your property and all of the costs. Remember to allow for your personal requirements in the future and whether the management company can offer flexibility.
If you are purchasing purely as investment, the ‘turnkey’ properties on established resorts are ideal. With a multitude of facilities including rental management who can take care of your property for an annual fee, deal with all of the financial legalities for renting, plus registration of taxes on rental income - the profits of which can be paid into a house account.
If you buy ‘off resort’, there are also independent management and rental companies who will do this so you can rent when you wish (a slightly more DIY approach). We recommend seeking advice from a fiscal expert to ensure that you are properly registered and meeting legal requirements. Whatever your status - Resident or Non-Resident, providing holiday accommodation in Portugal is seen as ‘running a business’ and you must register it as such in both Portugal and ‘you’ the owner’s country of domicile.
Regulatory authorities are beginning to clamp down on unregistered rentals, with cumulative fines, so it pays to do the research!
Togofor-Homes Lda can put you in touch with the right people to give you financial and legal advice. With over 14 years’ experience in the Algarve, we are here to help you purchase your dream home and/or investment.
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