Prior to this change of law it was possible for non-Portuguese purchasers to buy investment property in Portugal via an offshore company and save themselves thousands in tax.

In 2004 this window of opportunity was well and truly closed!  There was a lot of concern in Portugal and among foreign investors that this would seriously damage the housing market in Portugal - particularly the second home housing market in regions such as the popular Algarve.

However, this does not appear to have been the case.  The property market across Portugal is still strong and in particular, the market in the Algarve region is riding high with property prices still increasing significantly and demand still in line with supply.

So it does seem that those interested in buying a second home in the sun or looking for a property investment opportunity further a field are still turning their attention to Portugal.

So what is it about this country, and in particular, this region of the country that proves of continued attraction to both holiday makers and those looking for their dream home abroad?

Firstly the region is the most popular region in Portugal and whilst good value properties are still available the prices are not falling like the most popular regions of Spain and France.

Secondly, cheaper flights, increased media attention and the opening of the final section of the Via do Infante (A22/IP1) motorway has opened up the entire Algarve region to more holiday makers and more foreign property investors looking for the ideal opportunity.  The motorway provides a free route across the entire coastal region,  linking Vila Real to St Antonio to Lagos, and the toll section goes all the way to Lisbon.

The real estate market in Portugal has been solid and stable for many years and is continuing to offer good medium to long term investment opportunities.

Also, the Algarve retains a slightly more exotic charm to it than Spain for example.  It has suffered less over development and exploitation than Spain.  Planners in Portugal have also been careful to protect the entire Algarve region from beach front development thus retaining the stunning coastlines’ appeal...building closer than 500 meters to a beach is actually prohibited and building above 4 stories is now almost impossible to achieve.

In terms of Portugal’s amenities and attractions - there’s everything from the 200kms of coastline, 3,000 hours of sunshine (which is more than Florida gets) low crime, absolutely no terrorism threat (unlike Spain or Florida for example), low pollution, a very straight forward and regulated property buying process, and all those golf courses!

Those interested in buying property in the Algarve are not only buying a solid long term investment, they are potentially buying themselves an income stream as well.  Villas and apartments in the area are much sought after - especially during the long summer months - for holiday lets.  So buying to let in Portugal, especially in the Algarve, is a real value added bonus opportunity for many.

Therefore, Portugal remains a firm favourite for property investors all round.