Buying Real Estate In Portugal
I currently work in a real estate in Portugal called Maiopção (www.maiopcao.pt) and if anyone is interested in learning more about living/working/purchasing properties in Portugal, please feel free to contact us.We assist in all paperwork and contracts are also available in english.We also make sure to follow up after the purchase to make sure everything is as you planned.We have properties all over the country, and lets not forget, the Algarve too.Reach out.
buying real estate in portugal
Although we do have a pretty amazing ultimate guide to the Golden Visa in Portugal, there is little info online that goes into great detail about the process of acquiring Portuguese real estate, the available options for both residential and commercial investments, as well as any other important questions you probably have when it comes to buying real estate in Portugal.
For years now, there was talk of changing the Golden Visa requirements due to the rapidly growing prices of real estate in the most popular areas of the country. Even though Golden Visa investors are only a tiny fraction of foreigners buying real estate in Portugal, the government decided to make some changes to the program, starting in 2022.
The new rules state that only residential real estate in interior regions of mainland Portugal counts, together with real estate in the Azores and Madeira, essentially taking away opportunities to invest in Porto, Lisbon, and much of the coast including the Algarve and the Silver Coast.
The geographical rule changes only pertain to residential real estate, so if you would still like to invest in property outside of the limited interior regions, there is still the option to acquire commercial real estate in all of Portugal.
For specific commercial real estate projects that you can invest in off-plan, we have collected some of the ones that are most popular and recommended among Nomad Gate readers. As projects come and go, we will continue to update this list as new ones arise.
While residential real estate generally offers the chance to earn a high yield (depending of course on factors such as location and possibility to rent it out), a managed investment in commercial real estate is also worthwile considering.
No matter what path you choose, you will have to pay taxes on top of your investment. Some of these taxes and fees will be billed at purchase, while others will come after the purchase. If you choose to go with a real estate developer, some of the costs such as IMT and VAT may already be included.
One tax you will have to pay when acquiring the property is IMT (Imposto Municipal sobre Transmissões) a.k.a property purchase tax. The rate depends on the value of the property, whether it is an urban or rural region, or whether it is your primary or secondary residence. There are also several exemptions and reductions to this tax, such as an exemption if the property was purchased by a real estate investment fund (like the ones above), and a flat 5% rate on agricultural lands, or 6.5% rate on other commercial sites.
With such a shift in the rules taking away most of the prime real estate areas, you are bound to be wondering where to look next. The new rules and eligible areas will likely influence many people to consider more inland parts of the country now, considering most of the coast is off-limits. The good news is that Portugal is full of undiscovered gems that offer a great quality of life.
For a full breakdown see the map above, or try out our Golden visa real estate search engine with a specific address. The list of regions that qualify as low density is reviewed by SEF every six months, meaning this can possibly change over time.
Which areas are considered interior is a bit more set in stone compared to the definition of low-density regions, as they are determined by a list of interior parishes and municipalities that was published a few years ago. It is more of a geographical definition than one based on economics and number of inhabitants, although interior regions are not strictly regions that are away from the coast. There are some more sparsely populated coastal areas included in this category. or a full account of which areas are considered interior, refer to our Portuguese Golden Visa real estate search engine, or our Golden Visa property map.
There are five municipalities in the Algarve that still qualify for residential real estate investments. These are Aljezur, Castro Marim, Alcoutim, Monchique and Vila do Bispo. Aljezur and Vila do Bispo are likely to be the most popular due to being located on the coast.
Another possible problem buying in Portugal - less so with urban properties or newer properties, but remarkably often with rural houses - is the dispersion of ownership. Often, property has been passed down in the family, and cousins, aunties, or grandchildren all have small interests in the estate. Since Portugal has traditionally had a high emigration rate, there could be a cousin living in Brazil, Bordeaux or Basildon who owns part of the property and could block the sale. Even in the best case scenario, trying to get hold of a distant relative who emigrated some time ago can delay a sale by weeks or months. A good lawyer will check the property's owners and can advise you if there is likely to be a difficulty - if you're in a hurry to complete, you might want to pick another property.
With resort properties, on the other hand, it's not uncommon for buyers to make a bid for the furniture as well, even though properties are generally marketed as unfurnished. If you see an ideal seaside apartment that's been really well furnished, and you're not looking forward to the job of buying furniture for a holiday home when your time there will be limited to a couple of weeks a year, this is an effective way to kill two birds with one stone.
In Portugal real estate agents (and some legal firms)do not offer financial guarantees.This can cost you your signal if the agency goes bankrupt.Make sure your agent is legal and ensure that your money is kept in a separate customer account and not as part of the company's own funds.
Global Real Estate Scout Ronan McMahonRonan McMahon is a global real estate scout. He spends six months of every year on the road, finding and negotiating opportunities to buy low and make serious profit from capital appreciation, rental income, or a mixture of both.
Residential real estate. Buying a residential property to obtain a Portugal Golden Visa is not allowed in large and coastal cities like Porto, Lisbon, Cascais, and others. However, Portugal's interior regions and autonomous areas like the Azores or Madeira are allowed for purchase.
Commercial property. There are no limits on buying commercial real estate in Portugal. Commercial real estate is primarily a tourist or a hotel, although it can be something else, such as an office space or a store.
Renovation is on investors' or a developer's duty. If investors buy an entire building, for example, a villa, they take over all the restoration work and pay for it. If foreigners buy an apartment in a hotel complex or a share in a real estate project, it means that developers will arrange rehabilitation.
Foreigners have every chance to get a residence permit by buying real estate. On average, the general process of obtaining a residence permit for an investor in Portugal takes 2 to 6 months. There are seven steps you can take to get ownership.
Select a property. First, choose a region and a property. Take into account the restrictions on residential real estate in large and coastal cities. Think about the real estate class: economy or the premium segment.
Prepare the documents. Collect a document package, translate copies to Portugal, and certify with an apostille. Immigrant Invest lawyers help at any stage of buying real estate to participate in the investment program. Investors can pass a preliminary Due Diligence check by providing information about their sources of income and identity. This minimises the risk of failure during the initial assessment.
Get ready for a deal. A lawyer in Portugal checks the documentation set for real estate, the absence of encumbrances, tax debts, and utility. If defects are found, the seller must eliminate them within the period specified in the preliminary contract.
Yes, Portugal is a worthy place to buy real estate. This country has a high quality of life but low housing prices. Portugal is a popular destination among tourists, so you can rent your property profitably and get an average yield of 5%. This country has a mild and comfortable climate and many resorts for recreation.
One of the most sought-after Golden Visa programs in Europe granting Portuguese residence to non-EU nationals in return for buying real estate and other investments in the country has been officially terminated.
Governments have also been facing internal protests as real estate prices, especially in the most popular destinations, keep rising, pushing local residents out as foreigners buy houses and apartments to rent via services like Airbnb.
First let me ask you: why would it be good that Americans are buying in Portugal? Everywhere I go I try to escape Americans .Second how much did the real estate pay you to be in that very report?Thrid I have a swiss salary and cannot afford neither want to buy inflated houses . Lisbon is becomming more and more like Disneyland. This beeing said why does the government put all their eggs in one basket(tourism)? Its pure nonsense plus it destroys the lives of average Portuguese workes who now can not event buy a house in Vila Franca de Xira in order to work and live in/around Lisbon area. Think about that. So stop visas, stop mass tourism.
I feel the need to share this article because people constantly ask me about investing in real estate in Portugal. Here I will highlight three reasons why now is not the right time to be investing in Portuguese real estate. 041b061a72