• Non-habitual residents scheme offers 10 years tax free in Portugal
• 4 bedroom Algarve home with 3 rental apartments costs just €325k (Ideal Homes Portugal)
• UK pensions freedom day to bring ‘frankly unchartered territory’ (FCA)

The Financial Conduct Authority (FCA) has spoken about how the UK is entering ‘frankly unchartered territory’ as pensions freedom day (6 April 2015) draws inexorably nearer. Nobody knows what the impact of suddenly granting those aged 55 and over the freedom to manage their own financial future will be, but a study published by Hargreaves Lansdown has indicated that around 16% of those who plan to withdraw their entire pension intend to put it into property.

A second or even first home overseas is a tempting choice for those who have worked hard their whole lives to save up for their retirement years and Portugal is an excellent choice, as Chris White, founding director of boutique estate agency Ideal Homes Portugal, reveals,“There’s a really exciting vibe running through the Portuguese property market right now. Sellers here definitely feel that prices have bottomed out and are set to rise over the course of 2015. There’s a feeling of optimism about the market and we’re seeing buyer numbers pick up as both domestic and overseas purchasers look to buy before prices rise too far.

“Portugal is within easy reach of the UK, has a wonderful climate in the southern Algarve region and offers a low cost of living. It also benefits from the non-habitual residents taxation scheme, where those who live there for more than six months of every year can enjoy ten years of their income (from employment or a pension) tax free.”

For buyers in the UK, the exchange rate is also adding to the already considerable attractions of a life in Portugal, as well as other sun-kissed parts of Europe. With the best rate in years making headlines recently, many of those who were considering a property purchase are suddenly pushing forward their plans as they realise how much more they can get for their money with a well-timed purchase. The soon-to-be available pension pots offer the ideal way forward for many buyers.

Ideal Homes Portugal’s villas with pools are particularly popular with British buyers who have had enough of the cold over the winter months and certainly offer excellent value for money at present. A three bedroom two bathroom traditional villa with pool, mature gardens and paddock costs just €385,000, including a fully refurbished designer kitchen and a sauna room by the pool.

Buyers looking for a more modern exterior can pick up a stunning contemporary four bedroom villa with pool in Pêra for €750,000. In addition to the garden, a spacious rooftop terrace provides 360 degree views of the surrounding area.

“We are definitely seeing a push of British buyers who have been encouraged by the exchange rate to purchase their dream home in the Algarve,” continues Chris White. “Many clients are seeing their purchase as an investment in terms of the potential for capital gains. Some are planning to reside permanently in Portugal and enjoy the taxation benefits of doing so, while others plan to use their property for part of the year and benefit from rental income at other times. It is definitely a buyers’ market at the moment.”

The wealth of properties available means that those looking to put their pension into an investment property such as a B&B or a cluster of self-contained rental apartments have some excellent options available to them. In Albufeira, this four bedroom villa with three attached rental apartments and good size swimming pool for €325,000 would make an ideal home for someone looking to live on site and manage their rental properties personally.

So far as Portuguese property is concerned, it really does look like the time to buy is now, with the exchange rate and pensions freedom day coming together to create the perfect storm.