There are many good reasons to buy a residence in Portugal: the 300 days of sunshine per year, the red rocks of the Algarve, the surfing waves on the Atlantic coast, ... and the tax benefit.

Investing in real estate is a risk-free long-term investment. You do not buy a second home because you are looking for a quick and easy return, but with an eye to the future. A second home offers you a chance of a good return because the rental income is higher and more stable than, for example, a dividend on shares.

Since Lisbon no longer levies taxes on pensions of EU-citizens, Portugal has in a way become a tax haven for people at rest. Even the amount that the group insurance or pension savings yields, remains untaxed. At least the first ten years. And on the condition that you stay at least 183 days a year. (NHR-regime)

After all: make your gross pension your net pension for ten years, while enjoying the Portuguese sun. Doesn't that sound attractive?

Many investors also feel attracted by the Golden Visa-scheme whereby non-EU citizens receive a Portuguese residence permit when purchasing a property of at least EUR 500,000.

In addition, there is the growing market for second stays abroad. After all, a favorable arrangement has recently been introduced in Portugal for individuals who rent out their holiday home. Today they only pay 8.75 percent tax on their rental income (compared to 28 percent before), at least when it comes to seasonal rentals from second stays. The old rate still applies to rental contracts longer than one year. There are also no inheritance tax in a straight line.

You also do not have to pay taxes on your Portuguese rental income in our country. Although you have to state them. The Belgian tax authorities may charge them to determine the tax rate on your other Belgian income.