The studies also show that Portugal is the country that, in 2024, will have the highest tax burden on the acquisition of a second home property among the markets analysed.

According to the study “Residential Tourism: Macroeconomic Impact”, between 2014 and 2023, residential tourism was responsible for 130 million overnight stays.

In the period under analysis, that is, in the last decade, an average of 284,584 full-time jobs were created per year. It is also worth highlighting that non-residents, when using their property in Portugal, contributed 672 million euros to the total production of the national economy, having helped to create, on average, 906 jobs and 129 million euros in remuneration, per year. .

The study considered tourist villages, tourist apartments and apartment hotels that are part of tourist developments.

The study “Residential Tourism: Tax Benchmarking”, which makes a comparative analysis of the tax burden in 2024 for the acquisition of second-home residential property in Portugal compared to that in other countries (Spain, France, Italy, Greece, Croatia, Cyprus and Montenegro ), concluded that:

- Portugal has the highest total tax burden on the acquisition of a new second home (25.4%) among the countries analyzed;

- Portugal is the country with the highest tax burdens on the acquisition of a second-hand residential property with tax charges of around 37,000 euros for a sales value of 500,000 euros

- Of the group of eight countries analyzed, only three - Portugal, Spain and France - charge tax on high-value properties and total aggregate assets. The minimum exemption limits are lower in Portugal (600,000 euros), Spain (700,000 euros) and France (1,300,000 euros).

- In relation to the tax burden on capital gains from an investment perspective, Portugal is the second country in the sample with the highest tax burden, right after France.

The studies “reveal, on the one hand, the enormous potential of residential tourism, its positive impact and the multiplier effect that the sector has on the economy, both in terms of attracting investment and foreign residents, and in terms of job creation”, says Pedro Fontainhas, Executive Director of APR.

On the other hand, they show “the enormous tax burden to which the purchase of second home properties in Portugal is subject”. “High taxation” that “can discourage investors and reduce the sector’s growth potential”, he warns.

“Portugal has all the conditions to be one of the world's leading residential tourism destinations, but fiscal competitiveness is a factor that cannot be ignored. Reducing acquisition charges can attract more investment and further boost our economy. Comparison with other Mediterranean countries, such as Greece, Italy and France, highlights the need for more competitive tax policies. Greece, for example, implemented the suspension of VAT on new properties to boost sales, while Italy offers tax benefits for properties owned by non-residents”, concludes Pedro Fontainhas.