In early October, Portuguese authorities made a significant announcement - the special tax regime for new "non-habitual residence (NHR) residents" would be suspended from 2024. However, rather than quelling interest, this decision seems to have triggered a fresh wave of enthusiasm for relocating to the country. Experts at Fortune suggest that the rush to secure NHR status is driven by a footnote in the law that ensures the special tax regime for those entering it before 2024 will remain intact. Consequently, the surge in interest is expected to impact the real estate market, causing both purchase and rental prices to rise. Interestingly, it was precisely the steep increase in housing prices that led to the benefits being revoked for foreigners.
The heightened demand is anticipated to exert upward pressure on real estate prices, leading to concerns about affordability. This isn't the first time such excitement has surrounded moving to Portugal. Earlier in the year, a similar frenzy occurred when news broke about the cancellation of the golden visa program.
Amid this evolving situation, the key lesson is to seize the opportunity. Savvy investors can explore potential investment properties for rent in sought-after locations like Lisbon or the Algarve, which continue to captivate the interest of foreigners looking to secure NHR status.
