Guide to Buying a House in Portugal
Is it easy to buy a house in Portugal?
Portugal’s real estate market is exemplary. The steady and strong economy of the country provides protection for many sectors and it gains investors’ trust. Both foreigners and locals prefer to own houses rather than renting in Portugal, which shows that buying a house in Portugal, is the desired and chosen option. A healthy economy and clear bureaucratic processes lead investors to buying property, because they provide investors with a convenient transaction period that is transparent and easy to follow.
Can foreigners buy property in Portugal?
Portugal does not follow different procedures while realizing a transaction with a foreign investor. Thus, the process of buying property in Portugal as a foreigner is not at all different from buying property as a Portuguese citizen. In fact, country’s successful Golden Visa Program encourages foreign investors to buy real estate in the country. According to the scheme, if investors follow certain procedures and meet with the requirements of the program, they are granted residency which may be renewed up to five years. After, provided that the residents have complied with all the rules throughout their temporary residency, investors obtain a permanent residence permit and they can apply for naturalization.
How can I buy a house in Portugal?
Portugal’s process of buying a house is relatively less complex and less stressful when compared to some other European countries. Still, it is a legal and bureaucratic process which is often nightmarish for most people. To be able to buy property in Portugal, interested parties must first obtain a Portuguese tax number (numero de contribuinte). Clear and proper identification information must also be revealed to the authorities. In addition, although not mandatory, it is a good idea to open up a bank account in Portugal to prevent unnecessary loss of money due to fluctuations in the currency rates.
Is Portugal a good place to buy property?
Portugal’s growing real estate sector provides investors with great opportunities for profit. If the goal of the property investment is to have high returns, buying real estate in Portugal is a great idea since the housing prices continue to rise strongly. Moreover, buying property in Portugal enables investors to become residents through the country’s Golden Visa program.
Is buying property in Lisbon a good investment?
The capital of Portugal, Lisbon, has been a great place for real estate investment in the last few years. Although it is quite expensive to purchase a house in Lisbon nowadays, the property market still expands and prices increase. Therefore, Lisbon is still a great place for property investment.
How much money do I need to deposit to buy property in Portugal?
The deposit, in other words, the down payment is changeable according to the buyer. In mortgage contracts in Portugal, non-resident buyers have to make a down payment of 30 per cent. The percentage decreases to 20 per cent when the transaction is being made by a Portuguese resident. This amount may decrease down to 10 per cent according to specific taxation situations of individuals.
Are there property taxes in Portugal? How much are property taxes in Portugal?
Yes, there are property taxes in Portugal, but they differ in amount in accordance with the specific cases at hand. For instance, the biggest tax cost named IMT (Imposto Municipal sobre Transmissoes) might be 10 per cent if the buyer is not a resident. On the other hand, IMT might be not-needed if the house bought is cheaper and it serves as the main residence of the buyer. The buyer is charged 0.8 per cent of the value of the house for stamp duty. Finally, notary and registry costs usually add up to approximately 1 per cent.
What are the costs of buying a property in Portugal?
The main cost of buying a property in Portugal is obviously the price of the real estate the buyer is interested in. Apart from the amount paid to the seller, there are several tax items which are attached to the main transaction. These consist of IMT, stamp duty, notary and land registry costs.
How do I choose the right property?
This is a question with many answers according to the interests of the buyer. The first thing that has to be settled when choosing a property would be the location and the type of the house. If the aim is to buy real estate in a metropolitan area, than the choices would most likely consist of flats. However, if the suburban areas of major towns are also feasible, buyers may find a larger variety of properties like villas or bigger houses. Secondly, the condition of the particular houses on demand is a crucial aspect buyers should be careful about. Trying to cut costs in the initial transaction might lead to bigger expenses later if the house is in a bad condition.
How to buy property in Portugal?
Buying a property in Portugal is not very different from buying a property in any other country in Europe. After Portuguese fiscal number is obtained, proper identification information is submitted and a bank account has been opened, buyers may proceed with the purchasing process. In this section, buyer and seller agree on a price, call in a lawyer, prepare and sign a contract, and agree on a down payment buyer should make. Final item in this section is the notary payments. Additional costs in this process are IMT, Stamp Duty, notary fees and land registry costs.