A Guide For Buying Property in Portugal

Portugal is a beautiful country offering a rich cultural heritage, quality life, and a good climate. That being the case, many people dream of owning property in this beautiful country. Also, the real estate prices are affordable enough compared to many other European countries.

In this article, you can explore some of the essential things you need to know about this process.

Advantages of Buying Portugal Property

When you get properties in Portugal, this means you can benefit from affordable prices.

Affordable Prices

Buying a house in Portugal can be a profitable investment because of the affordable property prices. The country went through an economic crisis between 2011 and 2012. At that time, prices dropped. Yet, Portugal has been showing improvement since 2015. So, the country offers good returns for property investments opposed to other popular countries like France where in Cannes returns are low for investors. Read more on the Cannes Film Festival.

In addition to property prices, the cost of living is also affordable in Portugal. You can see this in areas such as grocery shopping. 

Low Taxes For New Tax Residents

Portugal offers a non-habitual residency program (NHR) for foreigners to enjoy tax benefits. It’s a program that allows you to benefit from these for up to 10 years. It provides tax reductions on certain income and exemptions from taxes on your foreign income Low taxes are available for people who decide to become tax residents in Portugal. Let’s get to learn more about these benefits below.

If you receive income in Portugal, it’ll be taxed 20 percent for 10 years. You can also inherit property in Portugal, and you don’t need to pay wealth or gift tax for this. So, after buying home in Portugal, you can stay in it, and benefit from lower taxes. 

An Advantageous Location and Climate

Everyone knows how favorable Portugal’s climate is. Many areas in Portugal enjoy more than 300 sunny days. Also, winter temperatures do not usually drop under 2°C. It has a mild Mediterranean climate. 

The location of the country also provides various beautiful views of the ocean and rivers. The coasts and beaches are other attractive elements of the country. Besides these, nature reserves and national parks are other stunning areas in Portugal. 

How To Get Properties in Portugal

If you’re a foreigner who wishes buying property in Portugal, you’re free to go! In fact, Portugal incentivizes foreigners to buy property here. Also, if you’re a non-EU citizen, you can apply for the Portugal Golden Visa program. In this way, you can get a faster way to residency in Portugal after you buy a property. It also allows you to work in the country as well.

Now let’s take a look at the necessary steps to take while buying property in Portugal:

• You need to get a tax number called NIF in Portugal. You can receive it from local tax offices
• Check the available properties, and decide on the best one that suits your budget and needs
• You can bargain the final price at this step
• Then, make a down payment 
• Sign a pre-sale-purchase contract which is called CPCV (Contrato-Promessa de Compra e Venda)
• Finally, notarize the property deed or Escritura Publica de Compra e Venda.

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Fees and Taxes Related to Property Purchase in Portugal

When you get properties in Portugal, you’re subject to certain fees and taxes. These are:

• Stamp duty: It’s around 0.8 percent of the value of property.
• IMT (Imposto Municipal Sobre Transmissões) transfer tax: Depending on your property’s cost, its amount changes
• Notary and land registry fees: Usually, the rate is 0.2 percent to 1.2 percent of the property’s value.

Where To Buy Property in Portugal

There are various types of Portugal property you can select from. Some of these are villas, apartments, or rustic houses. They are scattered all around the country. So, you can buy a property near the beach or in a rural area.

If you want to be in the city center, you may consider Lisbon and Porto as top options. Many business centers are located in these big cities.

The help of a professional is recommended as buying property in Portugal can be a complex process, especially if you’re unfamiliar with the country’s property laws. Now there are many ways to get properties in Portugal, including through real estate agents, and online property portals. Working with a reputable real estate agent is often the best approach. Such agents can help you navigate the buying process and find the best properties. Many agents specialize in helping international buyers, and they can provide you with valuable insights. 

Yet, keep in mind that property prices will be higher compared to other parts of the country.

So, buying property in Portugal can be a life-changing step for you. Don’t wait longer an check the property options today!