Why do investors prefer Portugal over Spain?

Portugal has positioned itself as a preferred investment destination in the luxury sector. Although Spain also has a flourishing luxury market and a rich cultural and tourist offer, investors seem to favour Portugal.

Here are the reasons

Firstly, Portugal offers a very attractive tax regime for non-habitual residents, allowing individuals to benefit from tax exemptions for a period of ten years. This incentive has attracted numerous investors and high-value professionals, particularly those linked to the luxury economy.
In addition, Portugal's political and social environment is perceived as more stable and welcoming for international investors. The reduced bureaucracy and business-friendly environment contribute to the country's appeal. In contrast, Spain has faced political and social challenges, such as territorial tensions, which can be viewed as barriers to investment.

The quality of life in Portugal is also a significant factor. Portuguese cities combine rich history and culture with a relaxed lifestyle, and the country has been consistently ranked as one of the safest places in the world. Spain, although also culturally rich and diverse, faces issues of congestion and pollution in its major cities.

In the real estate sector, the Portuguese market has experienced sustained growth, with more affordable prices compared to the major Spanish cities. This growth, along with golden visa programmes and residence permits for investors, has encouraged a steady flow of foreign investment in the luxury sector.

Lastly, the development of the luxury tourism sector in Portugal has been driven by strong investment in infrastructure and promotion. The country has increased its presence in the luxury tourism sector, attracting visitors and investors with its offer of exclusive and authentic experiences.