How to buy a house in Portugal: Portugal is an attractive location for many people. Especially business people, expats and digital nomads choose to live in Portugal. The low cost of living, a quality lifestyle, and many other benefits are determining factors in this choice.
Furthermore, about 75 percent of Portugal’s population owns their own home. The rate of those homeowners is higher than it is in the UK and the US.
Another advantage of living in Portugal is that the prices of real estate properties are quite affordable.
The country also incentivizes foreign investors to buy a house here. Since 2012, the Golden Visa Program has been carried out for foreigners to get residency.
Find the property purchase process and a list of things to consider below.
How Foreign Investors Can Buy Property in Portugal
The Golden Visa Program is one of the options while buying a property in Portugal. Since 2012, the program has granted around 10,000 foreign investors to get residency in Portugal. Around 90 percent of this number obtained residency through buying a house in Portugal.
In addition to a residency right, investors have also obtained the right to live, work and study in Portugal. The visa-free access to the Schengen countries is another benefit.
You can find the basic steps to buy property in Portugal below:
- Getting a Portuguese tax number (NIF) is the first step. You can get a NIF number from any local tax office
- Then, you’ll visit real estate properties and decide on the one suitable for you
- You may consider a mortgage at this step. If that’s your plan, you’ll decide on the best mortgage option for you
- Then, you can negotiate and bargain about the price
- After you agree on the price, you’ll make a down payment
- It’s advisable to sign a pre-sale-purchase contract (CPCV: Contrato-Promessa De Compra e Venda)
- As a final step, you sign and notarize the property deed or Escritura Publica de Compra e Venda
The following documents are necessary to sign the sales contract:
- CPCV (Contrato-Promessa De Compra e Venda)
- A photo ID
- Property’s energy certificate
- Payment of the stamp (Imposto de Selo), and
- Land register (Caderneta Predial).
Taxes and Fees
Note that some fees and taxes are necessary to pay when you buy a property in Portugal. For example, IMT transfer tax is one of them. The rate of IMT depends on your property’s value.
There are other fees like notary and land registry fees. They typically cost from 0.2 percent to 1.2 percent of the property value.
Stamp duty is another tax you’re in charge of. It costs around 0.8 percent of the property value.
Where You Can Buy Property in Portugal
Before delving into more details, note that it’s highly advisable to consult a real estate agent in this process. However, be careful if they have a license number as well. Working with an agent will save you both time, energy, and money.
You can now take a look at the certain destinations to buy property in below.
Lisbon Is a Favorite Destination for Business People
The capital Lisbon is quite a cheap city compared to other capitals in Europe. It’s an attractive destination, especially for expats and investors.
Lisbon is also a business hub for many business people, tech companies, and startups worldwide.
Places like Avenida da Liberdade, Lapa, and Baixa Chiado can be more expensive. The property prices there have considerably increased. Alternatively, you can find more affordable choices in Amadora and Benfica. In addition, Cascais and Estoril are other options. Especially young professionals prefer these two regions. They’re the coastal towns about 35 minutes away from Lisbon.
Porto Appeals to Both Tourists and Business People
Like Lisbon, Porto is also a coastal city that overlooks the Atlantic. In Porto, you can find first-class beachfront properties as well. Foz Douro is an example that offers such properties. The Ribeira neighborhood, on the other hand, is suitable for buying commercial properties.
The Silver Coast between Lisbon and Porto is another popular destination to buy property. There are great pristine beaches here. You can also consider destinations like Tomar, Peniche, Obidos, or Nazare. Also, they’re cheaper than the Algarve.
Different Types of Properties in The Algarve
In the Algarve, you can buy luxury houses, apartments, as well as villas that view the ocean. You’ll find higher prices in areas like Lagos and Albufeira. In rural areas like Alcoutim or Monchique, properties are cheaper.
Things To Consider When Buying a House in Portugal
As noted above, asking for an expert opinion is advisable while buying a house in Portugal. The real estate agents are called “immobiliara” in Portugal.
If you want to buy a residential property in Lisbon or Porto through Golden Visa, you need to hurry. It’ll not be possible to do this as of 2022, according to the recent changes.