Buying a property in Portugal is a relatively straightforward process. This is a country of excellent standards of life, and with long tradition of property ownership.
Where to buy?
Where to buy your property will be one of the first questions. Lisbon is the capital city, and hence the most important market. But will surely depend on what you are looking for.
Market and type of property investment
The Portuguese real estate market is a hot as it can be, breaking records since 2017, after a decade of recession.
Depending on the type of investment you are looking into, there is a rich variety of alternatives for buying property in Portugal.
Residential market has boomed over the last 3 years and stock is still scarce, after years of very few new projects. Prices have, therefore, increased steadily but seem to be now stabilizing, particularly in Lisbon. Sqm price in Lisbon is around 3.100 € and 1800€ in Porto, being the national average around 1.020€.
The rental market in Porto and Lisbon has very low available stock, hence buying to rent out can be a healthy investment. rents have increased over 34% in 5 years. Yields will depend on the type of investment but rental yields in Lisbon will range from around 4.5% to 6.5%.
Price and tends
Regarding rice, currently one-bedroom apartment could be just over 170,000€, and the range is around 300,000€ to 400,000€, but you will also find several available to buy for around a million euros or above.
Our tourism sector has exploded over the past 5 years and hotel offer keep growing, particularly luxury and boutique hotels. It is a very good market still, countrywide, including the islands Madeira and Azores. Buy land to build could an excellent alternative, also for new trends like co-living and student housing.
The office market is also growing fast, as a consequence of economy growth and with new companies setting up in Portugal. There are new trends gaining maturity like community space and flexible work and making the headlines everywhere. Available stock is low, particularly in main markets in Lisbon and Porto.
Regions to invest
Portugal is a small country, although with great diversity of options. Lisbon or Cascais (30 min away) could be a first natural option, of you look for high urban standards. Porto, up north, will be a great alternative, offering similar life quality. Both beautiful cities and among the best places in the world for you to live in.
Should the criteria be based on high standards and best locations, also consider the Algarve (our southern coastline). All previous will have the highest priced properties, both apartments and villas, with different levels of price, depending on typology and how central or close to the coastlines.
If you are looking to have a property in the countryside, there are innumerous amazing options. By choosing the interior, you will find excellent life quality, amazing value for money, and, hence, much lower costs. Try looking into a few districts like Castelo Branco, Guarda, up north, or, further south (and warmer), into Santarém, Portalegre or Beja. Buying land to develop agricultural projects is also on the rise. Lastly, don’t overlook Madeira or the Azores. Buying or renting property, or generally investing in Portugal will give you a large number of possibilities.
Foreign investment
There is a growing number of foreigners buying property in Portugal, either as an investment, or making a decision to move to Portugal and enjoy our sunny days. Citizens from Brazil, United Kingdom, France and Italy, among many others have found Portugal as their perfect place. There are several attractive incentives like Golden Visa, which allow you to obtain a 5 year residency permit with a minimum investment of half a million euros. Also several other investment incentives, lined to entrepreneurship, startup and innovation. You might also benefit from double taxation agreement on your retirement. Ask https://moovehere.com/site/ and we will help you out.
Finding and choosing your property
Finding your property is fairly easy. Working with Real estate brokers is a good option. Those are in general professional and most international players are around, as well as a number of great local players. We can put you in touch.
Fees and taxes
Fees as a buyer will vary according to the specific situation. The most relevant cost is IMT transfer tax, which could up to 10% of the property value if you’re nonresident, or 0% if you choose a lower cost property as primary residence.
Fees and taxes include:
- Property transfer tax: Imposto Municipal sobre Transmissões (IMT): scale from 0% to 8% depending on the purchase
- Stamp duty: 0.8% the value of the property
- Notary and land registry fees: Can represent roughly up to 1% of the property cost.
Estate agent fees will vary (average 5%) and are usually paid by the seller.
We can help you source the right local help – having a solicitor is essential.
Necessary steps
Buying a property in Portugal is not too different to buy a home anywhere Europe. A few points to consider:
- What is your budget
- Decide on financing: are you investing your money or applying for a mortgage? There several solid banks, both national ad international
- Find the property
- Engage an independent solicitor to make sure all the documents and paperwork are right
- Reach agreement with the seller
- Sign the initial contract and register with the notary
- Pay deposit (usually 10% to 30%)
- Agree a completion date
- Pay IMT tax – as mentioned, the amount you pay will vary, according to value and your situation (from 0% up to 8%).
- Sign the public contract (Escritura) and register the property
Buying property and living in Portugal will be life changing. Because this is one of best countries in world to live in, an investment here might be a good one. We can help you all services and support needed for you and your family. Know more on https://moovehere.com/site/