Buying Property in Portugal
The property market in Portugal continues to be buoyant, despite the event of Covid-19, and continues to attract interest and buyers from around the world. There may be a silver lining to what has been a dark cloud, in so much as we have seen a change in people’s priorities. With the confines of lockdown, where and how one lives life has become a greater priority. It has forced many to reconsider what is important and Portugal offers a quality and pace of life that is far superior to many other places on earth.
Investing in Portugal
Portugal has much to offer, apart from an average of 300 days of sunshine a year, glorious beaches, excellent cuisine and a high standard of living. The healthcare system is comprehensive and affordable compared to many other western countries. January 1st 2024, will see the end of the Non-Habitual Residence (NHR) program. The D7 passive Income Visa remains in place (see our Fiscal & Legal advice). In addition, Portugal is a safe place to live in an increasingly turbulent world. Its position in Southern Europe makes it easily accessible to other countries in Europe, Africa and the USA. When investing in a property it is good to know that the country is politically sound and that your investment is as safe as it can be. Whether you choose to buy in Lisbon, Porto, Algarve or in the interior, it is also advisable to carry-out thorough research and to take the advice of trusted experts.
Buying a house can be a stressful matter in one’s own native country, but buying abroad can present unforeseen hurdles, therefore, we cannot stress enough the need to seek professional guidance.
At the outset, involve a lawyer in the region where you have chosen to buy and make sure that you have a good rapport with him or her. Laws Property Portugal Lda can guide you in this matter.
In Portugal, it is the buyer who incurs the purchase costs:
To buy a property you will need to have a passport or identity card and a Portuguese tax number. Your lawyer will help with acquiring a tax (fiscal) number.
The lawyer will translate the contracts and guide you through the process. The promissory contract is binding and usually a payment of 10% of the value of the property will be required. In some cases, this may be more. At signature of the deed (which involves the notary), the balance of funds will be required, and the property will be registered in the name of the new owner.
Note: If a mortgage is required – see our page: Fiscal & Legal