Buying a Second Home In The Algarve – Top Ten Reasons

10 Great Reasons for Investing in Algarve Property for a Second Home

Introduction

Buying a second home in the Algarve Portugal, aside from being a permanent holiday home, can also be a great investment. The potential rental income from either holiday lets or long-term rentals is enormous. 

With so many types of second homes available in the Algarve, just browse our listings where we have many Algarve apartments for sale or if you are looking for a family home we also have a great selection of Algarve villas for sale, you will be spoiled for choice. 

In the main the Algarve is well known as a place of sun, sand, and sea, however, it boasts so much more including a historical past filled with myth, fantasy, and fairy tales.

It’s a place of magic and wonders that just might get your heart racing as you drive along one of the region’s winding roads coastal roads. 

If you are considering buying a second home in the Algarve, here are our top 10 good reasons for doing so.

Why Should Foreigners Consider Buying a Home in Algarve?

There are many reasons why foreigners should consider buying a home in Algarve. The most important one is that the country offers complete freedom of movement for citizens, which means that you can come and go as you please without any problems. 

Furthermore, the property prices and mortgage repayments against possible rental incomes are very attractive compared with other European countries like Spain and France, so it’s worth considering this when deciding. 

The number of rental properties available against the number of tourists wanting to visit in the Algarve is lower than in most other European countries leading to fuller booking calendars for longer periods each year. 

Our Top Ten Reasons for Investing in Algarve Property as a 2nd Home

Let us look at our top reasons listed below:

1. Wonderful weather – The climate in this region is perfect for enjoying outdoor activities during all seasons of the year. With around 300 days of sunshine per year and milder winters, the Algarve attracts year-round visitors.
2. Property market – The Algarve has been on the international property market for over 50 years and is a popular destination for foreigners looking to retire or relocate due to its low cost of living, access to cultural attractions, and year-round sunny climate. The vast majority of foreigners who move here are British citizens and ageing retirees who have chosen to move away from busy cities in the UK.
3. Cost of living – This beautiful place is also very affordable compared to other popular European destinations such as Greece or Italy which can be double the price tag of what you would pay in Portugal making the Algarve the right choice for a second home.
4. Healthier Lifestyle – The quality of life is high with cleaner air, Faro is the 2nd cleanest city in Europe!, which obviously leads to a healthy lifestyle. The sunny climate and warm weather also add to this.
5. Accessibility – Being situated in the centre of Europe, Faro International Airport is accessible from all major European cities within a few hours. The short 2 1/2 hour flight from the UK is attractive to the British as a short-hop holiday destination. The Algarve also offers excellent access to some of Europe’s best beaches along the Atlantic coast, including Praia da Rocha and Praia do Forte. 
6. Tourism/ Vacation – The place has been ranked among the top five most desirable destinations in Europe for retirement by international media outlets such as CNBC, The Guardian, and The Telegraph. The area offers everything from luxury resorts to beaches, restaurants, and nightlife. There are also many popular golf courses in the area that attract golfers from around the world.
7. Lifestyle – The Algarve is home to many large-scale resorts that offer residents a wide range of amenities including private pools, spas, and gyms. Many of these resorts also have their own private beach clubs where tourists can enjoy sunbathing by day or relaxing at night under the stars.
8. Secure and Friendly Environment – Algarve is a wonderful destination to live and travel to because of its warm and inviting residents. Algarve is also regarded as one of Europe’s safest locations.
9. Excellent Food and Wine – Algarve is renowned for its delectable cuisine and superb wine, and the Algarve’s numerous restaurants provide a wide variety of traditional cuisines. Local restaurants are very reasonable compared to European destinations.
10. Superb Healthcare System – Algarve is not an exception to Portugal’s top-notch healthcare system. There are many hospitals and healthcare facilities in the area with staff who speak English.

What Is The Tax On A Second Home In Portugal?

When real estate in Portugal is sold, the buyer must pay the Property Transfer Tax (Imposto Municipal sobre Transmissões Onerosas de Imóveis, or IMT). Depending on the purchase price, the property’s location, and whether it is a primary or secondary residence in Portugal, the tax percentage might range from 1% to 8%. IMT also applies to the purchase of more than 75% of the share capital of a Portuguese business that owns property there.

Our Conclusion

Anybody looking for a place to escape severe winters, enjoy a fantastic standard of living, and experience beautiful landscapes and rich culture can consider investing in a second property in the Algarve. The Algarve is an ideal location for individuals searching for a second home thanks to reasonable living costs, top-notch health service, and a warm and secure atmosphere. 

The Algarve has plenty to offer everyone, whether you enjoy golf, fine dining, or are just searching for a relaxing environment. Algarve is a fantastic option for anyone thinking about purchasing a second home due to its reputation as one of the most beautiful places in Europe and its accessibility to other European nations.