There is plenty to choose from for both golfers and players in the real estate market: in the southern province of Algarve, and further north, on the Silver Coast, and in the vicinity of Lisbon, villas and apartments within the framework of seaside golf complexes are being built and sold very briskly. At the same time, Algarve will be chosen by fans of large championship–class fields, and the Atlantic coast will be chosen by connoisseurs of rural beauty and unspoilt nature.
East of the Algarve
40 minutes east of Faro Airport, among hills, lakes and olive groves, the Monte Rei Resort complex is located with one of the brightest "autographs" of Jack Nicklaus – a 6.5 km golf course.
According to the director of the golf resort, Ian McInally, it took 15 years, as well as 30 million euros, for this ambitious project to bear fruit. Both the solid prices and the low density of the building indicate the high quality of the project for both fields and residential facilities. The minimum price of a townhouse is 1.05 million euros, large plots with scenic views are sold for 750,000 euros, and each of the 33 two–bedroom apartments with a good prospect of income from renting is for 900,000 euros.
Mario Condeco, commercial director of Monte Rei Resort, draws attention to the variety of offers: "As part of the project, you can purchase a turnkey house or build your own with the help of your architect or a company specialist." 75,000 euros for a family membership in a golf club is a bit expensive, but today the bargaining is quite appropriate.
Algarve Center
The first wave of popularity of prestigious Portuguese golf projects fell on the central part of the Algarve coast - and it seems that subsequent events will unfold here. By all accounts, The Keys ultra-modern villa and apartment complex in the city of Quinta do Lago is the most exclusive in this area, and housing prices - from 990,000 to 6 million euros – speak for themselves. This is one of the highest quality offers in this sector on this side of the ocean.
Mark Lehner, managing director of the E3 Property group of companies – developer The Keys, believes that "this project is designed for young people who follow trends and strive for brilliance and luxury, but in a pastoral, homely environment." Property owners are automatically guaranteed membership in the prestigious Quinta do Lago Golf Club, which owns two carefully planned championship-level courses. Each house has two swimming pools (for children – in the garden and for adults – on the roof). Perhaps this is the most grandiose of all the Algarve complexes under construction, which is suitable for both recreation and capital accumulation.
Here, not far from Faro, there is already a well-known seaside golf center Vilamoura, consisting of a number of residential complexes.
The Oceanico Group of companies with Anglo-Irish capital owns five golf courses on the territory of Vilamoura, and now another complex is being built here. Two fields from Nick Faldo and Christie O'Connor Jr. are offered to residents of the village 35 km from the resort of Amendoeira, near the historical center of the town of Silves. One of them is located in a mountainous area and is intended for fans of difficult tasks and big games, the second, on the contrary, has a quiet pastime and relaxation with a stick in hand. The local club house looks more like a palace, the architecture of the houses scattered along the hillside reflects Moorish traditions, and the entire complex with developed infrastructure meets the strict requirements of the American Golf Association.
Two-bedroom apartment with an area of 100 sq. m. m with underground Parking can be purchased at a price of 495 000 euros, the cost is large, with an area of 240 sq. m. m, three-bedroom villas with private pools start from 610,000 euros. The price includes a golf club membership (40,000 euros), which gives owners access to seven Oceanico courses.
Atlantic coast
To the north of Lisbon, on the "Silver Coast", 136 hectares were occupied by the Royal Obidos Spa resort & Golf Resort. The project includes apartments and villas around the 18-hole championship course designed by Steve Ballesteros, a club, restaurants and bars, a gym, a spa complex, tennis courts, a playground and a business center. In July last year, the Portuguese government awarded it the status of a project of national importance, the reason for this is its exceptional safety for the environment. Construction technologies are aimed at protecting flora, water bodies and preserving species diversity in this part of the country.
The widespread use of solar panels provides 70% heating of water in swimming pools, energy-saving equipment of category A is used here, and the technology of repeated use of heat from electrical appliances has been introduced. Collectors are installed on the territory of the complex to collect rainwater, which goes to watering gardens and grass on the grounds. In addition, in order to save resources, preference is given to equipment with low water consumption. The goal set by the developers is to reduce water consumption by 30% compared to most golf resorts. All buildings of the Royal Obidos Spa & The Golf Resort is built from natural materials and harmoniously fits into the natural environment. The minimum cost of a two–bedroom apartment is 316,000 euros, and a four-bedroom villa is 795,000 euros.
Those who are interested in shared ownership can purchase here one-eighth of the ownership of a villa in the Oceanico Prestige Residence Club complex for 139,000 euros, a fourth share of the ownership of a two-bedroom apartment in the Stepping Stones complex for 112,000 euros or one-eighth for 63,500 euros. At the same time, the owner has the opportunity to rent out the property. The completion of the project is scheduled for 2010.
Measure it a hundred times
Due to the variety of tax schemes, Portugal seems to many Europeans to be a very favorable country to live in. This reputation contributes to the growing popularity of resort real estate. But is it profitable from this point of view for Russians to buy a house in Portugal, register it as a permanent place of residence and seek Portuguese citizenship?
When planning investments in golf projects, choosing a vacation home or planning to move to the country, you should carefully calculate whether you will impose additional tax burdens on yourself. To do this, it is necessary to draw up a clear action plan, consult with a tax consultant specializing in the tax legislation of Russia and Portugal.
Thus, the amount of property tax in Portugal, according to David Franks, executive director of the consulting company Blevins Franks, depends on where the owner actually lives. If the buyer changes his citizenship to Portuguese, he should pay tax on income earned anywhere in the world and a certain part of the tax on capital income.
Non-residents pay tax on income received from property in Portugal, as well as in some cases a tax on income from other assets in the country.
The fiscal year in Portugal begins on January 1 and ends on December 31. A resident is a person who has been in the country for more than 183 days during the year. Persons who have proved that their real estate is their place of permanent residence are also considered to have Portuguese citizenship.
Tax on the increase in the cost of housing
When reselling real estate, Portuguese citizens are required to pay a tax on 50% of the income received (if the property was purchased after January 1, 1989), the rate can reach 42%. If the property has been owned by the owner for more than two years, the amount of inflation is taken into account when calculating the tax.
If the owner sells his main house in Portugal, a preferential rate applies – but only on condition that the net income (minus mortgage payments) goes to purchase a new permanent residence within the European Union, and the owner is a Portuguese citizen.
Non-residents' income from the resale of real estate is taxed at a fixed rate of 25%.
Inheritance and gift tax
Regardless of the nationality of the assignee, a stamp duty of 10% is charged on property in Portugal that was acquired upon donation or inheritance. The tax is not charged if we are talking about the transfer of property rights to spouses or relatives of the first degree. Bank deposits are not taxed if the deceased was a Portuguese citizen, although he did not live in the country and had no other assets.
Property tax
Two property taxes should be distinguished: a one-time IMT and an annual IMI.
IMT (Imposto Municipal sobre Transmissoes Onerosas de Imoveis) is the tax that the buyer pays when transferring rights to real estate. The rate varies from 0 to 6% depending on the cost of housing.
Upon registration of ownership, the buyer pays a stamp duty in the amount of 0.8% of the transaction value. This tax is also levied on property transferred by deed of gift or inheritance, in addition to the 10% stamp duty.
When buying a new building, VAT is charged, the rate of which starting from July 1, 2008 in Portugal is 20% of the cost of the object.
IMI (Imposto Municipal sobre Imoveis)It is a local real estate tax, which is calculated based on the registered value of the object and is calculated annually. Its rate varies between 0.2–0.8%.