SENIOR LIVING / RETIREMENT

OPTIONS IN PORTUGAL

OVERSEAS RETIREMENT LIVING CONFERENCE

CARVOEIRO, ALGARVE, PORTUGAL

Portugal at a glance

• Madeira: warm all year, furthest to fly• North/Porto: cheapest, history and culture,

colder/rainier• Silver Coast: cheaper, windier/cold sea• Cascais/Estoril: cosmopolitan, existing expat

community, more expensive• Lisbon: GOOD for: year-long rentals; purchasing

historical and short-stay investment property• Algarve: top tourist destination. Gets 70%+ of all

real estate enquiries. 3000 hours of sunshine, 300+ sunny days a year (more than California). Large expat community. GOOD for winter/summer rentals; year-round rental investments; holiday investment property; best overall value for money

Head-to-head: US vs. Portugal

Why the Algarve?

• Some of the best beaches and golf courses in the world• Existing multinational expatriate population. English very widely spoken• Food and wine among the best and freshest in the world. Largest fish consumer in Europe• Attractive and well-priced real estate. Algarve much less developed than Spain• Excellent health system (12th Best in the World according to WHO)• Very low crime• Many cultural, sporting, nature, historical, religious, attractions and activities• A high degree of anonymity and respect for privacy• Is the Algarve Europe’s most famous secret? 7 million a year visit it, most in the summer!

What options? Current landscape

1. Independent living villages such as in the US, Australia, South Africa, with amenities1. Do not exist YET in Southern Europe2. A few small villages (50-100 units) exist in Spain

2. Retirement villages with a combination of independent living/care1. One option in the Algarve (30+ years old) – expensive 2. Several options in Spain – variety of pricing models but generally more

affordable than Portugal3. Senior residences & care homes

1. A network of small privately-owned options, low quality and mostly catering to local market due to absence of multi-lingual skills

2. A few high end senior residences near Lisbon – expensive3. A couple of PPP-style care homes – small capacity catering for local and foreign

seniors with permanent residency4. One modern and well-staffed care home catering for independent, semi and

dependent residents, including dementia care – more affordable than Spain

The compromise: Southern European style senior living

1. In the absence of structured senior villages, with amenities and services, retirees and seniors seek the following:

1. A community of active seniors2. In a “real life” location3. Close to shopping, health, cultural and sporting amenities4. Close to the coast5. Good value for money

2. Visitors from furthest away need a structured way of understanding the market and quickly determining whether it stays on the list or is scratched off

3. Those who do not know the region seek a flexible, rental-based solution to allow them time to try-before-deciding

4. A key requirement is CHOICE: 1. Different property sizes to accommodate visiting family or a snoring spouse2. City, town or suburban/country locations3. With shared on-site amenities or greater privacy4. A range of prices catering for different budgets

5. THE SOLUTION: find your ideal community which blends local charm with international culture in the mix that is best for you. Overlay with how much investment focus you want

Where we come in: About ASL

• Solutions for retirees looking to move to Southern Europe or spend winters abroad

• Initial objective was to buy or build a series of senior US-style villages. 3 challenges• Long and unpredictable planning cycles• Existing real estate inappropriate due to accessibility issues and to expensive to retrofit• Clients want more choice than ever before

• Accommodation for rent (incl. serviced and “try before you decide”)

• Property for sale (including property sourcing and investment)

• Mainly 1, 2 bedroom apartments, 3 bedroom villas

• Coverage of Algarve, Lisbon/Cascais/Estoril, Silver Coast (and Spain)

• Discovery tours in up to 8 languages

• Post-installation services via specialist partner network (utilities, health, vehicle registration, legal, banking, pets, cultural & sporting clubs)

• Clients from 20 countries around the world

• 6 nationalities consistently move for Portugal’s NHR (tax-free) status

• A few nationalities move for Golden Visa

Real example: US client

1. NHR applicants – will spend between full-time in Portugal, with few returns to country of origin, but some time travelling in Europe

2. Looking to cut cost of living. Did not know which country, so researched several and visited Portugal & Panama. Have lived elsewhere in Latin America. Why Portugal?

1. More developed outside main cities / better safety2. Less humidity / milder weather3. Cheaper healthcare

3. Stayed in a central Algarve Senior Living location for 1 month, to explore without a car. Did not know which area, so visited a few

4. Locally, they were assisted with:a) Detailed visits to different areas and propertiesb) Participation in local activities and clubsc) Visit to different real estate rental optionsd) Post-visit, Algarve Senior Living provided options of available 2-bedroom

apartments within their budget (€650 per month)5. Clients are now resident and still renting

Non Habitual Residency program

1. Prerequisites:a) Must not have been tax resident in any of previous 5 tax yearsb) Minimum of 183 days p.a. in Portugal (not necessarily sequentially)c) Must become tax resident in Portugal (and obtain tax number)d) Must have a residential address (rental or purchase)e) Must formally apply to obtain the status

2. Successful NHR applicants benefit from a tax-free regime for 10 yearsa) Pensionsb) Other foreign sourced income such as dividends, interest

3. Income generated in Portugal from specific value-added activities have a tax rate capped at 20%

4. Real estate related income is not exempted as it is taxed at prevailing rate in country in which asset is located

5. The NHR period may be interrupted/suspended, or the NHR status cancelled

Buying a property

1. PLACE BEFORE PROPERTY: select where before you choose what1. Lifestyle vs. ivnestment2. Smaller or larger town, type of inhabitants3. Style of property

2. If you do not know the country / area, save time and get independent advice by paying a SOURCING AGENT or doing a “Discovery Tour”

3. Obtain a NIF (fiscal ID number) and open a bank account. Choose a lawyer or solicitor and sign a POA

4. Make an offer on property, negotiate and agree final price. In the current market, be ready to be quick!

5. Sign Promissory Purchase and Sale Agreement, and pay deposit (typically 10-30% of total price). Penalties for both sides if either pulls out

6. Count on around 5-7% closing fees: Municipal Real Estate Transfer tax (IMT), stamp duty (IS), legal and notary fees, bank valuations & fees (w/ mortgage)

7. Sign Purchase and Sale Agreement, prepared by lawyer and signed in front of a Notary Public. Payment of the remainder

8. Final registration of the deed at the Land Registry

Renting a property

1. Consider the following:a) Aparthotel is better than hotelb) Try-before-you-decide 1 month+ stay is better than short summer letc) Independent living is closest to “real life”d) In the Algarve, 6-9 months furnished is cheaper and provides more

choice than 12 months. In Lisbon, 12 months unfurnished is easier2. Book 6 – 12 months in advance3. Sign either:

a) Winter rental agreement (winter let)b) Annual renewable residential rental agreementc) If you are considering NHR status

i. MINIMUM contract length is 183 days p.a. OR ii. Annual contract with defined usage periods of at least 183 daysiii. Do NOT have to be continuous periods

BUY OR RENT: 1 bedroom river apartment

Serviced river view apartment

Modern 1-bedroom, 1-bathroom river view apartment

WINTER LET: 2 bedroom sea-view apartment

Modern 1, 2 and 3 bedroom apartments in fantastic location near the beach

One of few long-term modern let options near Praia da Rocha in Portimão, at excellent prices

LONG-TERM RENT: from €599 per month + expenses

Well appointed, light and spacious apartments located in the popular

neighbourhood of Praia da Rocha in the bustling city of Portimão. The

apartments are fully equipped and furnished to a contemporary

standard. Conveniently located for all local amenities including easy

access to the wide and popular Rocha beach.

1, 2 or 3-bedroom modern apartments with a variety of views

Walking distance to Rocha beach, restaurants, shops and public

transport

Contemporary furnishings

Elevator, entry phone, lobby and plenty of parking

Fully fitted kitchen including washing machine in 2 and 3 bedroom

apartments

FOR RENT: 2 bedroom traditional cottage

Excellent location! 2 bedroom cottage in heart of charming village, close to beach and river

Authentic refurbished 2-bedroom cottage within walking distance of town centre, beach, river

FOR RENT: 2 bed marina view apartment

Prime location 2-bedroom apartment with stunning marina views

Elevated 2-bedroom apartment ideally located for all amenities overlooking Lagos marina

WINTER LET: Sea view refurbished villa

3-bedroom villa in unbeatable Carvoeiro clifftop location

Partly refurbished 3-bedroom villa ideal for long term rents and no car required

BUY OR RENT: 3 bedroom golf course villa

Stunning Western Algarve golf course villa

Luxury 3-bedroom, 2.5-bathroom villa with stunning golf views

“Discovery tours”

• A combination of tourism and real estate• Understanding the context of the region and its areas• Visiting a variety of real estate options• Matching regions and real estate options to

investor/buyer criteria• Accompanied by an expert knowledgeable in the region• Best of both worlds: quicker than an internet search and

a way to tap into the specialist knowledge of 30+ RE firms

• Referrals to specialist advisor network in case of need

Algarve discovery tour 9-10 July (Sat-Sun)

SATURDAY• Carvoeiro, Sesmarias, Ferragudo, Portimão, Alvor, Lagos, Praia da

Luz, Burgau, Budens

SUNDAY• Albufeira, Vilamoura, Loulé, Tavira and surrounds

• Visit to approximately 10 properties on each day• Combination of properties for sale and rent• Pick-up and drop-off at Tivoli Carvoeiro• Lunch included

• First 24 seater bus sold out – sign up to be placed on waiting list for second bus

For more information

CONTACTS:

Luís da Silvainfo@algarveseniorliving.comwww.algarveseniorliving.com

UK: +44 208 144 7558PT: +351 965 683 054SE: +46 855 922 345

Visit us at our booth to know more or to book a real estate tour!

Questions & Answers