Portugal ranked 23rd place Europe as a real estate target, according to Global Property Guide, which called it an attractive country with a moderate to good rating. The annual capitalization rate is 6.16 percent, according to the publication. It’s strongest points are low transaction costs and also moderate rates of income tax. On the negative side are low yields in Lisbon, strict laws controlling owners and weak economic growth. Residential yields for apartments, however range from 5.4 percent to 6.2 percent. The Global Property Guide also believes that the property market in Lisbon is reasonably priced for European investors. The best European bet, according to the ranking, is Hungary, while Denmark came in last.
