LiveAlgarve.com - The Blog -

The weeks in the Algarve were fantastic for the third year in a row - the fourth holiday in Lagos went by far too quickly. This or something similar is how many people feel when they return from their summer break. Not least because of the pandemic, many who could afford it have bought a holiday home in the past two years. As an escape from everyday life, possibly also for the home office - and given the still low-interest rates on credit balances and high inflation, often also as a capital investment that can be rented out.

Renting a holiday property in a popular destination like Portugal can be an effective way to bring in some extra income. But before you go ahead and make an investment, it’s essential to calculate the yield you can expect accurately. We’ll outline how to do precisely that.

Portugal is full of beautiful landscapes. You have the photo-worthy yellow trams of Lisbon, the awe-striking natural beauty of the Douro Valley, and the endless country roads of Beira Interior. However, many would agree that the country's ultimate gem is the Algarve.

The property market has been on fire worldwide over the past few years, and Portugal is no exception. And amid rising prices (including real estate), you might expect a slowdown, but there are no signs of this.

On 21 April 2022, the Supreme Court of Justice (Supremo Tribunal de Justiça) in Portugal blocked the possibility of permanent habitation and temporary (for touristic purposes) coexisting. In other words, it allowed condominiums to restrict or order the cancellation of existing short term rental licenses (Alojamento Local).

Sergey Malinka
Sergey Malinka Property Consultant