The new normal: Tax, Real Estate and Air Bridges.

Hello Good morning my Friends,

As we dive into peak season, the unprecedented situation is all but satisfactory.

Due to the heavy exposition to Turism, the Algarve Region is heading to unknown chart territory. With this comes, as any other crisis, the bad and the good.

As a Property owner, its part of my thinking that heavy tax is on the way to colateral all this fresh printed fiat money. As so, the Real Estate, by its nature of resilience to maintain value on the long term ( because the tax farm must by always on, so that the Real Estate crop must be well irrigated to be collected by governments later on). The key point here is balance.

To have a good strategy that can be profitable above tax confiscation , we need to be aware of the market and is strengths.

The Algarve still is one of the best places to put your money to work on Real Estate. For more then 70 years, it worked well since we can keep results above tax.

With that in mind, i know and have access to other partners that are on the market as motivated sellers or cash buyers.

This period is of great opportunity to find good deals that will boost your portfolio and will drive results in the next 5 to 7 years.

With that in mind, i do understand some of the UK strategy about the keeping Portugal out of the Air bridge corridors. Due to peak season and after an heavy lockdown, i view this point as a temporary and to protect the Community of residents here and in the UK.

After the review on the 27th, i expect that some normality returns to the Region and that the UK Community can travel in and out without any restrictions.

This is also a pre-test to see how the situation evolves and how will the Region will be considered in 2021. There are some evidence that it could have a special tax and political status as Madeira and Azores, but nothing confirmed. If that happens, for sure you would like to invest on the Region and have a gateway to EU and other benefits.

Until then, we must be patient and strong to keep this desert cross to an happy ending.

My warmest regards,

Barros